Digital transformation is progressing exponentially. Given the importance of this transformation, managerial strategies and practices need to be adapted to meet the new challenges. While countries are on a journey toward a process where human interactions and transactions—with the government, businesses—and consumption of goods, services, and ideas primarily conducted through the use of the internet and internet-based technologies, they are all traveling at different speeds. Based on the theory, drawing from the Global Innovation Index (GII) input-output framework and literature review on innovation, the chapter intends to answer the question: What is the impact of management and strategies for digital enterprise transformation on welfare?
TopIntroduction
This chapter aims to analyze and describe the impact of management and strategies for digital enterprise transformation on welfare.
Several revolutions have happened in the past. The Information Technology (IT) Industry is multiplying and transforming the business standards of tomorrow. First Industrial Revolution (1.0, 1700) drove the discovery of the use of steam engines to optimize the production process in the industry. Second Industrial Revolution (2.0, 1800) was the precursor of electricity for mass production. Third Industrial Revolution (3.0, 1900) was the hallmark of the use of Information and Communication Technology (ICT), the internet, and electronic elements that automated production processes; Fourth Revolution - better known as 4.0, (intelligence – digital enterprise transformation) - is the junction of Technologies and Speed. IT industry has already gained much traction at the global level shifting towards the fourth industrial revolution (4.0) by adhering to cutting-edge technologies through digital enterprise transformation. The Fourth Industrial Revolution (4.0) on the digitization of all its processes, allowing the interaction between physical and digital systems, thereby achieving the use of real-time information for making timely decisions (Riola, J.M. et al. 2020). The Fourth Industrial Revolution involves several changes in the workforce's key features. The fourth revolution catalyzes welfare, socio-economic changes and cross-sector boundaries (e.g., water service, health, business), new business models that will influence the job market. Such progress will impact the academic sector as new forms of research based on massive amounts of data will be possible, and the industrial technology sector will request new research needs (Garrido-Baserba, M. et., 2020). With the Fourth Industrial Revolution, the management and strategies of companies are disruptive, at a time when the world manages the pandemic crisis of COVID-19, with no time for the preparation of these companies to absorb the impact of the accelerated digital transformation on welfare. Digital technologies have dramatically changed the world and, as a consequence, there is an urgent need to redefine the impact of management and strategies for digital enterprise transformation on welfare. Companies are experiencing significant transformations in management and in their strategies to absorb the inevitable acceleration of digital transformation. The management and strategies for digital enterprise transformation need to plan and produce disruptive innovations for traditional business management tools and poses a challenge for the integration of the digital transformation of companies' management processes and strategies at present.
Based on theory and conceptual model, the study developed a panel data, grouped on the Global Innovation Index, encompassing 50 countries during 2019, and analyzed it through a series of multiple regression techniques. The conceptual model assumes institutions, human capital, research, infrastructure, market sophistication and business sophistication as inputs. Furthermore, it assumes the education (knowledge and technology), and improvement of goods and services (creative) as the output of welfare.
Through data analysis, model creation, multiple linear regressions and from the empirical analysis, the chapter has a threefold objective:
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Analyze the Impact of Management and Strategies for Digital Enterprise Transformation on Welfare.
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Investigate the Impact of Management and Strategies for Digital Enterprise Transformation on education.
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To discuss the Impact of Management and Strategies for Digital Enterprise Transformation on goods and services (creative outputs).
Such instruments provide policymakers with a panoply of relevant information on managerial strategies and practices need to be adapted to meet the digital enterprise transformation new challenges.
The chapter covers the Introduction, Background (Literature Review), Research Methodology (Theory, Methods and Model Specification), Solutions and Recommendations (Results and Discussions), Future Research Directions, Conclusions and References.