[1] Focusing on efficiency and costs, the Chartered Institute of Procurement & Supply (CIPS) defines "digitalisation" asthe practice of redefining models, functions, operations, processes and activities by leveraging technological advancements to build an efficient digital business environment – one where gains (operational and financial) are maximised, and costs and risks are minimised.
A few benefits of DDP are risk mitigation, quick response to changing market conditions, and increased success rate to digital transformations.
Companies can benefit from having access to artificial intelligence, data analytics softwares and effective usage of social media.
[14][15] A 2019 review proposes a definition of digital transformation as "a process that aims to improve an entity by triggering significant changes to its properties through combinations of information, computing, communication, and connectivity technologies".
[20] In a survey conducted in 2021, 89% of African banks polled claimed that the pandemic had hastened the digital transformation of their internal operations.
[28][31][32] Digital transformation plays a crucial role in alleviating the adverse effects of simultaneous and interconnected challenges, while also strengthening the resilience and adaptability of both organizations and supply chains.
Technologies include the Internet of Things, big data analytics, artificial intelligence, simulation, additive manufacturing, blockchain, and digital twins.
[12] Digital transformation embedded within the organizational culture empowers managers to take decisive actions, enables seamless collaboration among workers across diverse departments, and fortifies supply chains.
[12] According to the resource-based view theory, successful firms' resources should be valuable, rare, non-imitable, and non-substitutable[33] in order for capabilities such as responsiveness, flexibility, or even agility to be developed.
[34] The digital transformation capability (DTC) framework is a direct application of this theory, stating that resources can be either tangible, intangible or human.
By building sensing, smart, sustainable, and social capabilities, enterprises can capture valuable information, make faster and smarter decisions, and adapt to changing environments.
[35] Aligning digital transformation with sustainability can enhance performance by engaging stakeholders, optimizing resource allocation, and reducing risks.