Despite the vast research on digital technologies and digitalization, little is known about the drivers, requirements, challenges and implications of business process digitalization. The common understanding that emerges from the literature is that investments in digital technologies provide several benefits to firms. However, the drivers, requirements, challenges, and implications of business process digitalization still need to be explained. Additionally, in todays globally networked business environment, process digitalization should be investigated on a multi-firm setting. In order to investigate the process digitalization on a multifirm setting, an exploratory approach can be embraced and multiple case studies can be conducted for data collection. Grounded theory can be used to analyse the data collected through the case studies.
Studies show that advancements in information
technologies (IT) have been renovating the business
processes in a consistent manner. More than two decades
ago, Davenport and Short [
Viewed as digital technologies, the combination of
information, computing, communication, and
connectivity technologies [
Although the scope of digital technologies is wide and
open to interpretation, sensors, radio frequency
identification (RFID)/near field communications (NFC),
beacons, machine-to-machine communication (to
monitor machines and automate the production),
robotics, 3D printing, drones, blockchain and
cryptocurrencies, virtual and augmented reality, artificial
intelligence, cognitive computing, machine and deep
learning are specified as digital technologies [
Digital platforms that enable digital capability sharing
such as cloud computing solutions and app
marketplaces,
• Social media tools and applications,
• The Internet of Things, including connected devices
and “smart” networks [
There is a common view that investments in digital
technologies provide several benefits to firms. According
to the Global Information Technoly Report [
PROBLEM STATEMENT Despite this critical transformation with regard to business processes, the literature provides relatively little information about the digitalization process and does not cover all stages- from the discovery to the implications of business process digitalization. Insight into this aspect is important for improving our understanding of the drivers and requirements of business process digitalization and how firms decide when they reason about possibility of digitalizing their business processes. Furthermore, previous research is dominated by the studies identifying positive outcomes of business process digitalization. The challenges that firms can face while embracing digital technologies, requirements and implications of business process digitalization are touched upon rarely and this field remains relatively unexplored.
Considering the gains derived from business process
digitalization such as increased collaboration and
availability of qualified information, it can be inferred
that efffective business process digitalization also
depends on and extends to the firms’ outer circle where
the business relations are built and sustained. Therefore,
business process digitalization should be examined in the
context of multiple firms where reciprocal effects are
addressed. Although the literature provides a number of
studies on “IT-based cocreation of value” [
RESEARCH QUESTIONS
As identified in the problem statement, knowledge on
business process digitalization is heavily based on the
explanations of transformational effects and benefits of
digital technologies. In general terms, the literature
focuses on the firms’ alignment with digitalized business
environments through the adoption of digital
technologies rather than explaining how this alignment
will be accomplished in practise. Emerging from this
context, there are research questions which need to be
answered are as follows:
1. What are the drivers, requirements, challenges and
implications of business process digitalization?
2. Can multiple firms create business value collectively
through digitalization of business processes?
THEORETICAL FRAMEWORK
In order to constitute the theoretical foundation to
investigate digitalization of business processes, Diffusion
of Innovation (DOI) Theory [
In previous literature, innovation is defined as “the
creation and adoption of an idea, a product, a technology,
or a program that is new to the adopting unit” and the
innovations which enable the creation of new forms of
digitalization is considered as “digital innovations” [
METHOD
In order to investigate the drivers, requirements,
challenges and implications of business process
digitalization, case study method can be applied in
different case sites. Case study is a method which allows
multiple ways of data collection including interviews,
observations, pre-recorded documents, and secondary
data for investigating a phenomenon intensively within
its natural setting in one or a few sites [
The data collected through case studies can be analysed
using Strauss and Corbin’s [
LITERATURE REVIEW In this section, it is aimed to provide a clear understanding of business process digitalization by defining the concepts “business process”, “digital technologies” and “digitalization”. The section also provides the brief account of the existing knowledge in the fields of digital technologies and business process digitalization.
Definition of Business Process
One of the definitions of business process is “a set of
logically related tasks performed to achieve a defined
business outcome” [
Digital Technologies
As previously defined in this documents, digital
technologies are combinations of information,
computing, connectivity and communication
technologies [
Digitalization
Digitalization is defined by addressing its difference
from digitization as “by digitalization, we mean the
transformation of socio-technical structures that were
previously mediated by non-digital artifacts or
relationships into ones that are mediated by digitized
artifacts and relationships. Digitalization goes beyond a
mere technical process of encoding diverse types of
analog information in digital format (i.e., “digitization”)
and involves organizing new socio-technical structures
with digitized artifacts as well as the changes in artifacts
themselves” [
From a business perspective, digitalization can be
defined as “the use of digital technologies to change a
business model and provide new revenue and
valueproducing opportunities; it is the process of moving to a
digital business” [
Finally, the last group as a sample from the literature composed of the studies that focus on the type of the digital technology (e.g. IoT and Enterprise Mobile Applications) rather than the business unit/process that it directly transforms into a digital business process. These studies are presented in table 3.
Type Digital Technoloy Investigated Not Specified of
Sector/Business Unit or Process Banking/Customer
Service Unit Not Specified
Creative Industries (art, music, fashion,etc.) Type Digital Technoloy Investigated IoT of
Sector/Business Unit or Process
Not Specified Enterprise Mobile Applications
Not Specified IoT
Not Specified
SIGNIFICANCE AND CONCLUSION As stated earlier, the literature on business process digitalization is dominated with the studies which explain digital technologies’ effects on business processes. In prior literature, the investigation of digitalization of business processes starts from the phase in which the digital technoloy is already being adopted and/or used, skipping the previous phases where the critical factors of business process digitalization such as drivers and requirements reside. While the advantages of business process digitalization is being revealed, the disadvantages and challenges still remain hidden. Therefore, there is a need to identify the drivers and requirements of business process digitalization in order to better explain the firm and sector specific factors to digitalize the business processes. Furthermore, internal dynamics of digital technologies can be expected to reflect themselves while exploring the drivers and requirements of business process digitalization. To be more specific, the digitalized business processes drive the firms to renovate the processes continuously. This renovation can be monitored in case sites until the cyclical trend is observed and maturation of findings of the cases are approved.
Another significant contribution is to explain the effects and implications of business process digitalization in a multi-firm setting to create business value.
The research questions described and proposed in this resarch are of the interest to researchers and practitioners for at least two reasons. First, such a research can provide insights from the practioners and present both the advantages and disadvantages of the business process digitalization. Second, it would to the future research on similar topics.