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DIGITAL Analysis in Digital Transformation
Aim. The presented study aims to develop an approach to selecting a process in the organization’s activities or a section of a separate process, the digital transformation of which will produce the greatest effect.
Tasks. The authors determine a general approach to choosing where to apply digital technolo- gies in an organization or in the transformed process to the greatest effect; develop criteria for choosing where to apply a transformational solution during digital transformation; create a conceptual framework for process analysis during digital transformation; ensure the reproduc- ibility and efficiency of digital transformation regardless of the level of competence of the re- sponsible manager.
Methods. The methodological basis of this article includes studies on digital transformation, theoretical and practical materials regarding the application of transformational solutions dur- ing its implementation, and practical cases of digital transformation. The applied methods make it possible to identify patterns and form a conceptual understanding of the approach to analyz- ing the efficient use of digital technologies. When searching for a conceptual solution to the problem of finding a place to apply digital technologies, the authors use their developments in the field of digital transformation.
Results. The DIGITAL analysis method developed by the authors contains a conceptual under- standing of criteria for choosing where to apply a transformational solution during digital transformation within the specific transformed process, making it possible to digitally transform any process or organization as a whole until they reach the level of digital maturity correspond- ing to an autonomous technical system. The developed method of DIGITAL analysis increases the efficiency of digital transformation and does not require significant experience in its im- plementation. The novelty of DIGITAL
analysis is that it makes it possible to turn digital transformation into a formalized process instead of the usual application of well-known digital transformation cases.
Conclusions. The DIGITAL analysis method not only increases the efficiency of digital transformation, but also provides an opportunity to effectively choose where to apply a transformational solution. The developed method of DIGITAL analysis can be used inde- pendently or as a component of a comprehensive methodology for conducting digital trans- formation. The use of DIGITAL analysis is not tied to a particular industry or process under consideration.
Keywords: digitaltransformation,transformationaldecision-making, DIGITAL analysis, digitalization,digitaltechnologies.
All experienced entrepreneurs and managers, considering the enterprise created or managed by them as a single system, pose two questions in one form or another. Is this system effective? Is there anything holding back its effectiveness? Similar questions were asked by Eliyahu Goldratt [1] in the 1990s and by Charles E. Knoppel in 1915 [2]. At different times, researchers and practicing managers have looked for answers to them in various areas of work of their organizations. Today, one of the most important areas for finding ways to improve the efficiency of the organization as a whole and its individual processes is digital transformation.
Most often, digital transformation is carried out due to the fact that for projects for the implementation of digital technologies, which are often disparate, there are explanations
their economic efficiency. In addition, the initiators of digital transformation are often the owners of enterprises, including government agencies, who are looking for ways to improve the efficiency of their activities. These activities are carried out with the expectation of obtaining additional economic benefits, competitive advantages, and often due to the fact that such changes are typical for the industry in which the enterprise operates. Meanwhile, the source and benefits of digital transformation are often not obvious.
Today, there is no conceptual basis for the systematic implementation of digital transformation recognized by the scientific community. The practical basis for conducting digital transformation is in the process of formation and constant changes. A significant increase in the number of publications on digital transformation can be observed in 2019-2021, which confirms the high interest in this topic. In practice, digital transformation is supported by regulatory and advisory documents [3] or industry independent standards, including practical guidelines for implementing digital transformation. One of the most structured recommendatory standards in this area can be considered the development of The Open Group
Digital Practitioner Body of Knowledge™
Standard” [4], released in 2020 as a practical methodology for digital transformation.
In addition, the practice of accumulating so-called cases of digital transformation in organizations is extensive, but it is difficult to transfer it from one organization to another due to the high specificity of the development of digital solutions. Successful implementation of digital technologies is poorly supported by methodological conclusions and observations. We analyzed these issues earlier in the work devoted to the levels of digital maturity of an industrial enterprise [5]. As a result, the process of digital transformation is unique for each enterprise, and it is impossible to guarantee the success of the implementation of both a separate case of the introduction of digital technologies and the process of digital transformation as a whole, consisting only of such cases, at a new implementation object, since the essence of the change processes is not defined, and the conceptual foundations of digital transformation in the form of knowledge suitable for further transfer are not formalized or not available in wide practice. At the same time, the main question remains where and in what cases in the cycle or individual processes of the organization's activities it is necessary to carry out digital transformation. In other words, during digital transformation it is not clear what should be transformed and what changes are needed in the course of such a transformation.
At present, digital transformation is presented to researchers and practitioners rather as a process of developing and implementing a program of interrelated projects for the introduction of digital technologies, rather than a structured activity to fundamentally change the components of an enterprise’s activity, its individual processes or their sections. At the same time, the approach to choosing the main place for applying efforts to carry out the transformation, the place for choosing the so-called transformational solution [6], has not been determined in the studies.
The purpose of this article is to develop a conceptual understanding of the procedure for choosing a transformational solution that can become the basis for digital transformation. It is the conduct of such an analysis in order to determine the place of application of the transformational solution that will allow us to approach the solution of the problem of unifying successful cases of digital transformation, their conceptualization and subsequent reproducible application in various operating conditions of organizations of a wide range of activities. Conceptual knowledge about the choice of the place of application of a transformational solution is necessary in order to carry out digital transformation regardless of the place of its implementation and to ensure guaranteed results of its implementation in any organization.
In a number of studies, digital transformation is considered as a complete transformation of the studied socio-economic system [7]. Of course, this approach is justified, but in practice, digital transformation can affect not only the enterprise as a whole, but also a separate production site. Therefore, it is necessary to make clarifications in this definition.
In addition, researchers characterize digital transformation as the creation of conditions for a systemic transformation of the functioning of the socio-economic system as a whole [7].
In the context of this article, we will not talk about an organization as an economic system, but about a specific object of digital transformation, which can be a division or even a section of a business or production process. It is in the object of digital transformation that one can find the place of application of the transformational solution. In the article devoted to the levels of digital maturity [5], the researchers proposed their own approach, which consisted in the fact that digital transformation is an increase in the level of digital maturity, which, in turn, consists in replacing human intellectual and physical labor, as well as its role in the management of machines and the production process of digital technology components. Digital maturity, according to the authors of this article [5], can be meaningfully defined. It has six levels (in relation to the use of digital technologies in activities):
1. Absence - completely manual labor and
operation of analog machines.
2. Existence - the use of digital technologies by participants in social life, but not in production.
3. Application - the use of digital technologies to solve a number of problems.
4. Use - building processes and interactions based on digital technologies.
5. Substitution - gradual replacement of management functions performed by a person with digital technologies.
6. Autonomy - the transition to the fact that digital technologies create new interaction processes, tools and objects of labor, establish and manage production, and the enterprise works without human intervention.
This vision of digital transformation allows you to think about what its essence is in relation to the organization as a whole or to areas of its activity. Digital, by our definition, are technologies that allow you to act or interact, reducing the factor of human cognitive limitations, overcoming time and space, equally to people, devices, machines and systems as equal agents with the creator of digital technology or platform defined in this interaction. role forms. Further conclusions and conceptual foundations of digital transformation in this article are based on this definition.
In the modern understanding of digital transformation practices, it is customary to single out the role of the head of digital transformation. He is primarily responsible for the development and implementation of the digital transformation program. In addition, he is responsible for the performance and results of this program. The role of the Digital Transformation Leader has been described in a number of published practice materials, including the 4CDTO Primer. Desk book of the head of digital transformation” [8]. In it, the head of digital transformation is defined as the leader in the implementation of technological solutions in the organization.
In fact, the role of the head of the digital
transformation should be reduced to the choice of the place of application, the selection and implementation of a transformational solution in such a way that the transformed process or organization as a whole moves to a new level of digital maturity in each phase of the digital transformation. This digital transformation process can be carried out until the transformed object becomes an autonomous technical system that can be built in or transferred for further integration into another, more complex system or organization. This is precisely the replacement of people and analog machines by digital technologies, which is the essence of digital transformation, from our point of view.
However, the choice of location transformational decision determines the effectiveness of the changes. If a process area or component of an organization's activities did not sufficiently constrain their effectiveness (process or organization), or their change does not affect the transformation as a whole, then the application of a transformational solution will not be effective. Change for the sake of change is pointless. Having asked ourselves the question of how to choose the right place to apply a transformational solution in a process or organization, we applied various research methods.
The following approach was used in the research process:
1. An analysis was made of the concepts, methods of digital transformation and process analysis presented in scientific publications and developments of consulting companies.
2. An analysis of publications on digital transformation was carried out in order to highlight approaches to choosing a transformational solution and the essence of its application.
3. The key characteristics of the approach to choosing the place of application of the transformational solution are identified and summarized, the approach to conducting this stage of digital transformation is determined.
The preparation of theoretical and research materials for the study was carried out using the search criteria presented in Table 1:
Table 1
Cloud of search criteria for materials during the study
| Критерии поиска на английском языке |
| Digital transformation; digital transformation proj- ect OR programme management; transformational solution; digital transformation framework; core OR essence of digital transformation |
Scientific and journalistic publications, analytical reports, regulatory and advisory documents on issues of digital transformation and the development of the digital economy, materials of specialized conferences and methodological recommendations of consulting companies offering services in the field of digital transformation served as tools for searching and analyzing current ideas about digital transformation. transformations. In fact, the materials of these consulting companies, the so-called publications in the Insights format, at the time of publication of this article, represent one of the most relevant and valuable sources on the practice of digital transformation.
Known ideas about choosing a place to apply a transformational solution
The concept of a transformational solution is found only in the development of the Center for Training Leaders in Digital Transformation of the Russian Academy of National Economy and Public Administration (RANEPA) under the President of the Russian Federation [6]. The works of other researchers and practitioners present or consider the process of change during digital transformation in a general way.
In particular, researchers note that digital transformation has a significant impact on the organization of personnel work and, through the use of digital technologies and communication tools, can significantly increase the autonomy of decisions [9]. This gives the right to assert that it is possible to free up the efforts and time of managers, and this creates the potential for further development of the organization.
Often, digital transformation acts as a complex of basic subsystems [10]. These include:
1. People and competencies.
2. Culture and interaction.
3. Infrastructure and tools.
4. Data.
5. Process optimization.
6. Business models.
It is important that it is data that becomes the basis for changes in the digital transformation of the activities of any organization. This is noted by various researchers and practitioners studying issues in the field of digital transformation. Often there is a statement that digital transformation is primarily a change in culture, and not just technological transformations in organizations [11]. Such an understanding does not clarify the process of digital transformation and its results, but is often contained in publications.
Researchers also note the systematic lag of theoretical structures, including in the field of digital transformation, from management practice [12]. It is this state of development of ideas about digital transformation that was observed at the time of preparation of this article. A significant aspect of digital transformation is the accumulation of competencies in the field of digital technologies in the organization as a whole [12], although this approach cannot be considered inherent only in digital transformation, since it characterizes many practices and areas of work of an industrial enterprise.
The work of a modern enterprise is based on the interaction of two types: hierarchical and functional [13]. These types of interactions can be considered the main ones for modern organizations, but they impede digital transformation, as they limit the work of the organization as a whole and the development of individual processes in particular. In the course of digital transformation, an approach to a mixed style of work organization may be required, including the rejection of traditional divisions in a number of areas, and work only in the format of project teams [14]. At the same time, the approach to building an organizational structure does not determine the success of digital transformation.
Все опытные предприниматели и руководители, рассматривая созданное или управляемое ими предприятие как единую систему, ставят перед собой в той или иной форме два вопроса. Эффективна ли эта система? Сдерживает ли что-либо ее эффективность? Подобные вопросы задавали себе и Элияху Голдратт [1] в 1990-х гг., и Чарльз Э. Кноппель в 1915 г. [2]. Ответы на них в разное время исследователи и практикующие менеджеры искали в различных областях работы своих организаций. Сегодня одной из важнейших областей поиска путей повышения эффективности организации в целом и ее отдельных процессов является цифровая трансформация.