Change Management in Digital Transformation: Business Model Concepts

Does The Digital Transformation Imply The Need For Change Management?

Like the word “transformation” indicates, when applied it will change something, so we will have to manage change, relating use of technologies, changes in value creation, structural changes, and financial aspects (Figure 1). According to Matt et al (2015), if all these four dimensions are considered as part of the framework, this will support firms in the assessment of their current abilities and the formulation of a digital transformation strategy.

Figure 1.

Digital transformation framework: balancing four transformational dimensions

Source from (Matt, Hess, & Benlian, 2015)

Referring formulation of a digital transformation strategy, the organizational change introduced by the Information Systems is basically reflected in the changes made at the level of process reengineering. Reengineering is what Hammer & Champy (1994) presents as a reaction to the practices of the industrial era, through the reunification of tasks in business processes.

The authors use four keywords to define this change:

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  Fundamental;

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  Radical;

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  Drastic;

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  Procedural.