Introduction
Today, the concept of business success has transformed greatly and is now characterized by digital transformation. Technology is at the helm of this change as it is a critical enabler that drives growth and secures longevity (Bican & Brem, 2020). This paper analyzes digital transformation responsive to the unique nature of BlueBrett, an SME family-owned business offering accounting and financial consulting services. It is located in the bustling setting of Vancouver, British Columbia and landscaping in Canada. BlueBrett has become unique by offering services that meet the highest standards.
Digital transformation works differently for every organization; BlueBrett, therefore, requires a unique approach to help solve the issues affecting it. This paper aims to paint a picture of BlueBrett in the coming years and see the milestones it will achieve by incorporating digital transformations. This includes its dependence on conventional paper-based accounting procedures to increase workflow efficiency by decreasing repeated manual operations, allowing quicker and more powerful decision-making while reducing human error (Kraus et al., 2022). Transforming into a digital-based business will lead BlueBrett to a future where innovation, efficiency, and customer satisfaction are seamlessly integrated.
Assumptions
BlueBrett, being the focus point of our digital transformation efforts, is assumed to operate within a fairly typical organizational structure in which key decisions are mostly directed or approved by the Chief Executive Officer. It is here to mean the mode of centralized decision whereby the chief executive officer becomes an integral part of determining how the firm will be steered. According to Nadkami and Prugl (2021), such a hierarchy usually involves the direct flow of authority and responsibility from top to bottom, significantly affecting the organization’s ability to respond to changes.
The assumption underpinning the complex fabric of BlueBrett’s day-to-day activities is an obvious dependence on traditional paper accounting methods. In other words, the company’s workflow involves tasks ranging from documentation to invoicing, ingrained in traditional methods. The abundance of hard-copy papers suggests a potential area for rationing in terms of efficiency, availability, and technological preparedness to react to digital age changes, as Kraus et al. (2022) assert.
In addition, the adoption of digital technology on the part of BlueBrett is rather weak. This limitation goes beyond the missing technology integration but reflects a drawback of centralizing data management systems. According to Kraus et al. (2022), the failure to have such a system in place speaks of some possible scenarios of failures in data collection, storage, and the ability to analyze. This might happen when an organization fails to reap. Fully the potential benefits that digital tools bring and implement.
Another assumption includes the CEOs’ low level of knowledge regarding digital transformation. This, therefore, assumes that there is every likelihood for the CEO to be unskilled when it comes to understanding the depth and possible benefits that digital transformation may bring to BlueBrett. As a result, there arises a chance to sensitize and direct the leadership in comprehending that integrating digital technologies into the company’s structure is of great significance.
Lastly, it is assumed that since Bluebrett has staff capable of making correct decisions, this is a substantial resource as a decision-making tool. This emphasizes the necessity of incorporating the workforce in digital transformation, acknowledging their ideas, concerns, and possible contributions, as Kraus et al. (2022) state. This will help overcome problems throughout the move to a digital operating paradigm.
Digital Transformation
Digital Transformation is a significant paradigm change to business operations and largely transcends technology integration. It is a systemic and strategic metamorphosis of practice that reaches well beyond the boundaries of everyday life (Li, 2020). Digital Transformation is a transformative process which redefines the methods, corporate culture and customer interactions
Digital transformation is a complicated process affecting every aspect of a company, not just technology. It moves beyond the tech upgrade and invades every inch of an organization. Moreover, this process of technology adoption becomes more than just an evolutionary end goal that transforms into a means to implement broader changes within the organizational framework (Bresciani et al., 2021). It is much more than just utilizing digital tools and technologies to streamline current processes or business models; it facilitates a radical conversion in such processes.
At the core of the digital transformation narrative, organizational culture evolves. It requires a culture change to innovation, adaptability and opportunities for ushering in a paradigm shift. Contemporary hierarchies will emerge from the traditional board-based structures, giving way to more fluid organizations that promote innovativeness and agility (Li, 2020). Staff are no longer mere users of technology; they become facilitative participants in the process of continual transformation with their insights and knowledge being unveiled.
Digital Transformation vs. Business Transformation
Digital transformation and business transformation are separate entities that should be distinguished in understanding organizational evolution. Differences in this case rely on the magnitude and the type of alterations portrayed by each term, as seen in Table 1 below.
Table 1 Digital Transformation Versus Business Transformation
| Aspect | Digital Transformation | Business Transformation | Reference |
| Definition | An intentional and focused initiative to use digital technology to improve operational efficiency, increase customer interaction, and generate value. | A comprehensive organizational transformation incorporating modifications in strategy, structure, and culture. | Vial, (2021). |
| Scope of changes | It was mainly centred on the use of digital tools and technology in current procedures to accomplish specified objectives. | Encompasses a wider range, entailing major changes in overall strategy, organizational structure, and cultural paradigms. | Vial, (2021). |
| Primary Focus Areas | The use of digital technology aims to optimize processes, increase customer experiences, and improve the delivery of value. | Extensive modifications include the realignment of strategies, rearrangement of structures, and transformation of culture. | Vial, (2021). |
| Nature of Transformation | We are focused on technology, particularly the digitalization of processes and operations. | Holistic, addressing not only technological aspects but also strategic, structural, and cultural facets of the organization. | Vial, 2021 |
| Timeframe and impact | It is often characterized by shorter-term initiatives with more immediate, tangible impacts on specific operational aspects. | A more prolonged, overarching process with profound and enduring impacts on the organization. | Vial, 2021 |
Tangible and Intangible Value of Digital Transformation
Understanding the multifaceted impact of digital transformation requires a nuanced exploration of its tangible and intangible value propositions. This dynamic interplay of concrete and abstract benefits underscores the transformative power of integrating digital technologies into organizational frameworks, as explained in Table 2 below.
Table 2 Tangible and Intangible Value of Digital Transformation
| Value Dimension | Tangible Value | Intangible Value | Reference |
| Definition | Refers to the quantifiable, measurable benefits that can be directly observed and assessed in financial terms or operational metrics. | It encompasses benefits that, while impactful, may have yet to be easily quantifiable metrics and are often experienced at a more subjective level. | Fellizzola, 2023 |
| Key Aspects | ü Streamlined Processes: Optimization of workflows, reducing redundancies and inefficiencies. | ü Increased Agility: Improved organizational responsiveness to change, fostering adaptability. | Fellizzola, 2023 |
| ü Cost Reduction: Efficient resource utilization leads to lowered operational expenditures. | ü Innovation Culture: Encouraging a mindset of creativity and continuous improvement | Fellizzola, 2023 | |
| ü Cost Reduction: Efficient resource utilization leads to lowered operational expenditures. | ü Improved Decision-Making: Informed choices driven by data analytics and insights. | Fellizzola, 2023 | |
| ü Improved Data Accuracy: Precision and reliability in data management and reporting. | ü Heightened Customer Satisfaction: Meeting and exceeding customer expectations. | Fellizzola, (2023). |
Risks Associated with Digital Transformation
Digital transformation entails several challenges that one needs to be careful about. Please address these risks to ensure the effortless assimilation of digital technologies within organizational functions.
Resistance to Change: The main threats include resistance via the human factor accustomed to standard operations. Conquering deeply embedded habits and unfolding a way of thinking that allows innovations is, at first glance, only one, as Bresciani et al. (2021) state.
Financial Investments: At the same time, as a very real risk, there are numerous initial monetary investments necessary for incorporating new technologies into the company, which could critically weigh down this firm. According to Bresciani et al. (2021), modern tools are costly. As such, the decision to have them must be juxtaposed with budget considerations, marking an administrative discrepancy that calls for strategic financial planning.
Cybersecurity Threats: The bigger the digital landscape – the more cyber-security threats people become interested in. Commitment to protecting sensitive information and the provisions for possible breaches emerges as a top priority that needs to be fortified with powerful security systems, as Bresciani et al. (2021) assert.
Disruption in Operations: The in-between period itself risks an operational disruption. As per Bresciani et al. (2021), managing this change without throwing productivity out the window requires many pre-emptive, precise planning and powerful measures to control change.
Impact on Organizational Culture
Digital transformation catalyzes deep cultural changes inside the organization in terms of reconstructing its very essence as to how it works within and outside. Cultures that are highly adaptable, innovative in nature and collaborative art are others within which successful digital transitions occur (Varshney, 2020). An agile culture lets organizations continuously update themselves with this previous technology and market dynamics, ensuring a streamlined integration into the digital landscape.
According to Varshney (2020), innovation also becomes a pillar, emphasizing new ideas and creative thinking and making the employees think about developing their production processes. Interactive cultures ensure that knowledge is passed from side to side without a hitch, resulting in great cross-functional cooperation during the digital revolution.
Employee development attitude awareness is crucial. This mindset encourages gamers to constantly learn and improve, establishing them as part of a social unit in continual motion as digital progress changes the landscape (Varshney, 2020). Thus, flexibility is critical, allowing people to use uncertainty and create new futures using digital technology.
Balanced Scorecard Challenges and Mitigations
An organization’s performance can be assessed from different angles using the Balanced Scorecard. BlueBrett’s digital transformation requires identifying these difficulties in Table 3 below and their appropriate mitigations.
Table 3: Balanced Scorecard Challenges and Mitigations
| Balanced Score Card Perspective | Challenges | Mitigations | Reference |
| Financial Perspective | · Initial investment. | Adopt a phased implementation approach, allowing for controlled investment and closely tracking Return on Investment (ROI). | Mio et al., 2022 |
| Customer Perspective | · Customer adaptation. | Implement robust communication strategies and comprehensive user training programs to ease customer transition and enhance user experience. | Mio et al., 2022 |
| Internal Processes Perspective | · Resistance to change. | Develop and implement change management strategies involving employees to alleviate resistance and foster a sense of ownership. | Mio et al., 2022 |
| Learning and Growth Perspectives | · Skill gaps. | Establish targeted training programs and skill development initiatives to bridge gaps, ensuring the workforce is equipped for digital transformation. | Mio et al., 2022 |
UTAUT Model Challenges
Looking at Blue Brett’s journey toward digital transition, UTAUT will be considered an effective theoretical model and a framework for analyzing various obstacles under employee integration into new technology acceptance. Each tool is explained below;
Figure 1; UTAUT model.
Source (https://www.researchgate.net/figure/UTAUT-model-Adapted-from-Venkatesh-et-al-2003_fig2_324617604)
Performance Expectancy: The chance is that employees would have a certain perception of how the digital tools will improve their performance; hence, they need to be in line with it for proper study. According to Hewavitharan et al. (2021), the second challenge is communicating clear benefits and an outline of how the technology positively affects tasks. This explains why this should be important for dealing with it.
Effort Expectancy: One of the most common manifestations is resistance, which typically occurs when employees believe in what they used to do; digital tools are too cumbersome, burdensome or complex (Hewavitharan et al., 2021). Addressing this challenge includes reducing the process of onboarding, making interfaces that are friendly to users and demonstrating how the technology can quickly fit in with pre-existing workflows.
Social Influence: The challenge in avoiding such peering and some influencers that may resist change is careful tact. Adopting a positive narrative around the digital transformation, highlighting success stories in this process and drawing influencers within the organization helps to curtail this challenge, as Hewavitharan et al. (2021) assert.
Facilitating Conditions: The utmost importance is creating appropriate conditions to enable technology use. It involves developing measures to address infrastructure needs, ensuring required training, and implementing an environment encouraging digital use (Hewavitharan et al., 2021). Mitigation fundamentally entails detailed planning work and a strong motivation for building an environment favourable to adopting technology.
Example of Successful Digital Transformation
A key example of a successful digital transformation can be seen in the aerospace industry, with Rolls-Royce embracing servitization. Rolls-Royce deviated from improving engines by dealing with turbines capable of producing top performance in terms of efficiency, cost-effectiveness, and environmental friendliness to meet the demands of a dynamic aerospace market (Tardieu et al., 2020). Instead, they adopted servitization approaches, moving from product-centric to service-driven.
According to Tardieu et al. (2020), Rolls-Royce’s model evolved relations with their business concerns by introducing Corporate Care (TotalCare), which changed and transformed the business approach. Therefore, they engineered their billing internally based on the performance of engines, whereby interest with customers was correctly charged, leading to a steady stream. Using platforms based on digital technologies like Engines Health Monitoring, real-time data extraction aims to streamline operations and minimize manual checks. This agile approach helped entail faster adjustments, enhanced feedback cycles and elevated sensitivity to changes in market trends.
Today, Rolls-Royce has transformed into more than engine manufacturing; they have become solutions providers. What else to speak for here is the industry leadership, which has been a part of their evolution, bridging the gap between demand and supply (Tardieu et al., 2020). Implementing digital projects can offer predictable costs, excellent operational efficiency, and increased asset value for airlines so that one can understand what changes are in place for their business.
Recommendations for BlueBrett
BlueBrett can consider the following strategic suggestions as it plans its journey to a successful digital transformation:
Table 4: Recommendations
| Recommendation | Description | Reference |
| Assessment | Conduct a thorough assessment encompassing existing processes, employee skill sets, and technology infrastructure. This forms the foundation for tailored digital strategies. | Saarikko et al., 2020 |
| Education | Initiate digital literacy programs to empower employees with the skills necessary for the digital landscape, fostering a workforce capable of embracing and maximizing digital tools. | Saarikko et al., 2020 |
| Technology Integration | Implement a phased approach to integrate digital tools into accounting processes. This gradual integration minimizes disruption, allowing employees to adapt and optimize the effectiveness of the tools. | Saarikko et al., 2020 |
| Change Management | Develop a robust change management plan addressing employee concerns. Cultivate a positive attitude towards digital transformation by involving staff in the process, emphasizing benefits, and mitigating resistance. | Saarikko et al., 2020 |
| Continuous Improvement | Establish mechanisms for continuous monitoring, evaluation, and improvement of digital processes. This ensures that the digital transformation remains dynamic, adapting to evolving needs and maximizing its long-term impact. | Saarikko et al., 2020 |
Conclusion
It is clear that digital transformation involves improving technology and constitutes a necessary strategy. Accepting this paradigm shift is related to improving current activities and placing BlueBrett in a favourable position for continuous growth and relevance even as we continue digitizing. The provided recommendations, covering the wide range of holistic analysis, digital literacy initiatives, phased decision readiness models in technology implementation and effective change management processes with substantial efforts toward continuous improvements, reflect a collaborative path for BlueBrett towards becoming a digitized and future-ready organization.
The IT department must lay a firm foundation by evaluating the processes and aligning its workforce with key digital skills. Instead of other approaches, phased technology integration involves a seamless picture beginning, reducing disturbance and supporting the utmost research tools. Change management’s focus allows employees to harbour the right attitude towards the approaching transformation since they know what is at stake. Lastly, the culture of improvement promises that contexts remain flexible and responsive, making BlueBrett an innovation frontline. As such, with the recommended actions, BlueBrett is foreseen to cope with and overcome the challenges and opportunities of digital transformation to build future civilizations.
References
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