Transformation of Business With Digital Processes

Transformation of Business With Digital Processes

Nilüfer Serinikli (Trakya University, Turkey)
DOI: 10.4018/978-1-7998-1125-1.ch003

Abstract

Digital transformation has caused amendments to business in terms of strategies, work models, work processes, product and services, organization culture, decision making, technological infrastructure, human resource management, and collaborations. Thanks to digital transforming, amendments in business have caused to appear new type business: digital business. In digital business, either new work model system is created, or existing work process is changed or transformed. The purpose of this study is to determine the differences between conventional businesses and digital businesses and the amendments to organizational structure and human resource management in digital processes. In the light of this purpose, examples will be given from businesses changed by digital processes.
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Introduction

As a result of technological developments from past to present, some innovations which are special to each field have occurred. These innovations emerge, change conceptions and initiate processes of change. This process began with the emergence of Industry 1.0 due to the use of steam power in industry. Afterwards, due to use of electrical energy in production, Industry 2.0 began, while Industry 3.0 continued with the use of programmable machines. Later, at the start of the 21st century, as result of informatics and communication developments, widespread use of the internet and developments in the software field, improvements in intelligent systems have caused the initiation of new change processes (Soylu, 2018: 45). Called Industry 4.0, this new process involves new unmanned production systems in production processes performed by establishing connections between physical and digital systems. Thus, the industrial revolution operating with mechanical systems using steam power has turned into a digital-based technological revolution including cyber physical systems, internet of things, and cloud technologies. This new process is called digital transformation and will encourage online and mobile work in business with more effective relationships between flexibility, speed, and quality, fewer mistakes, high efficiency, shareholders (customers, suppliers, partners and workers) and it will provide easier cultural amendments (Görçün, 2017: 141).

Digital transformation has caused amendments to business in terms of strategies, work models, work processes, product and services, organization culture, decision-making, technological infrastructure, human resource management and collaborations. Together with amendments to business, it has also caused changes to ecosystems (Aksel, Arslan, Kızıl, Okur & Şeker, 2013: 14). While factories, suppliers and support service corporations are disorderly in the conventional process, there is an opportunity to act as a whole in the digital transformation process. Thus, thanks to the internet of things and cloud technologies, each business, factory or institution is able to communicate with others. As a result of this, a living ecosystem is created in work life. Products in this ecosystem are combined around a platform, are prepared by businesses which both support each other and also compete with each other and are transported to consumers. For example, applications in IPhones are improved by businesses apart from Apple and these are transported to consumers by using the Apple platform (Kaya, 2018).

The most significant point to be taken into consideration by digital businesses is the need for qualified personnel. Human resources will act both on structural transformation and also business strategies. For this, a wise, intelligent digital labor force, with accurate vision and special abilities and strong educational background is needed. Besides, qualified people with the ability to work with and to manage robots are needed in intelligent businesses (Sözer, 2016).

The purpose of this study is to determine the differences between conventional businesses and digital businesses and the amendments to organizational structure and human resource management in digital processes. In the light of this purpose, examples will be given from businesses changed by digital processes.

Key Terms in this Chapter

Digitalization: The changes and transformation in the world as a result of information and communication technologies.

Industry 4.0: The period which is marked by the growing, production, emphasis on flexibility, quality, productivity, relationships with shareholders, speed, customer satisfaction and the reduction of manpower, human-driven errors, and costs.

Digital Human Resources: The execution of basic functions of human resources management on a digital platform.

Digitalization Technology: The tools and means which accelerate digitalization (internet of things, cyber-physical systems, cloud technologies, smart factories, autonomic robots, big data and three-dimensional printer technologies).

Digital Businesses: The businesses as a result of the transfer of the traditional businesses structures and processes to digital platforms.

Industry 2.0: The period which is marked by the beginning of the digital era.

Industry 3.0: The period which is marked by the beginning of digitalization with the use of digital systems in industry.

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