Graduate School of Business

Permanent URI for this collectionhttps://hdl.handle.net/10679/9880

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    PhD DissertationPublicationMetadata only
    Digital maturity measurement based on the stages of digital business transformation a study in the automotive sales and aftersales sector
    Mutlu, Irmak; Hartigh, Erik Den; Hartigh, Erik Den; Üçler, Çağlar; Fiş, Ahmet Murat; Zeytinoğlu, G. N.; Tunçalp, D.; Department of Business; Mutlu, Irmak
    Digital transformation is the change of socio-economic structures such as business models, supply chains, platforms, or ecosystems as a consequence of the use of digital technology. Consistent with the previous research on understanding digital transformation, the transformational change of organizations, business models, platforms or ecosystems are triggered by digital technology exposure. Therefore, the impact of digital technologies on the digital transformation of companies and internal organizational aspects plays a critical role in literature as well as industrial practice. This transformational change triggered by the technologies raised the question about the digital maturity measurement or readiness assessment. The digital maturity model proposed in this study brings a new approach to both academics and practitioners in digital transformation literature regarding the digital measurement of the companies. This research mainly aims to answer, “How can the digital maturity level of an organization be measured?”. Research of the digital maturity measurement of organizations structured according to the following four parts: (1) Stages of Digital Business Transformation, (2) Organizational Aspects of Digital Maturity, (3) Digital Maturity Index (DMI) Development, and (4) Digital Maturity Index for Measurement. The chapters of the research are structured based on Churchill’s 8 steps for and Digital Maturity Index (DMI) Development and Implementation eight steps [1]. The findings for the four parts are (1) The stages of digital business transformation, (2) Organizational aspects of digital maturity, (3) Digital Maturity Index (DMI) as an instrument, (4) Digital Maturity Index (DMI) implementation findings. The first part focuses on defining and differentiating among core concepts of digital business transformation, i.e., digitization, digitalization, and digital transformation and stages’ arrangement from digitization to digital transformation. In this part, 5 stages are derived from expert interviews and literature reviews as the progressive stages of digital business transformation. At the end of this part, (i) digital passive, (ii) digitization, (iii) digitalization, (iv) digital transition, and (v) digital transformation have been identified as the digital business transformation stages. The second part focuses on identification of the digital technology types such as IoT Data, (The Internet of Things), Machine Learning and Artificial Intelligence (ML/AI), and the Cloud etc., all of which have a high impact on the digital transformation of the companies in automotive sales and aftersales sector as well as the extent digital technologies influence the organization’s internal digital transformation through components and structures so a company’s maturity stage progresses accordingly. Therefore, the scope focuses on what internal organizational aspects should be considered when measuring the digital transformation of the companies. These internal organizational aspects are derived from expert interviews and literature reviews such as Culture, Data and Analytics, People, Structure, and Organization, Processes and Systems, Strategy, and Technology. At the end of this part, these six aspects were identified as the internal organizational aspects. The third part focuses on the digital maturity stages and how to measure the digital maturity stage of an organization. Towards the identification of the stage of digital maturity, a digital maturity measurement tool named Digital Maturity Index (DMI) emerged. This part focuses on the Digital Maturity Index (DMI) design and development process covering the data collection and measure purification. In this part, all the findings of first and second parts are integrated as an input for the development of the DMI. The process steps cover literature review, expert interviews, and test phases. To investigate the main research questions (RQ), literature review, unstructured, and semi-structured interviews were conducted. The Digital Maturity Index (DMI) developed based on these literature and interview input as well as generated sample items. With the feedback and support of the PhD committee, and the business practitioner the measure is purified. The developed tool and its questions and rubrics were tested twice at the company with the participation of both the business departments and the IT departments. In total, two test workshops were organized and the feedback was gathered from the business and IT side as well as the feedback of the PhD committee. After integrating all the comments, the questionnaire became ready for the roll out. At the end of this part, as a digital maturity measurement tool an index was developed. The fourth part focuses on validity and reliability assessment of the developed digital maturity model and its business practice empirical implementation after the development of the Digital Maturity Index (DMI) as an instrument. Statistical findings from the empirically tested model are developed. It was complemented with the qualitative interview. This model both theoretically and empirically confirms the proposed hypothetical model’s validation. The DMI was introduced to the management. Then, as the next step two workshops were organized to collaboratively define the digital maturity stage of the company. The workshop participants were grouped into four categories: Managers, IT Expert, Business Expert and Beneficiaries. The questionnaire was rolled out and data analysis was completed using SPSS as a tool. Furthermore, the results of DMI analysis were presented to the upper management and presented to the participants in a workshop format. Any feedback coming out of these meetings was integrated into the analysis. As the final step to validate the findings, a 2nd round of interviews was conducted with several experts who also contributed to the DMI implementation phase. Finally, the statistical analysis was completed, and the results integrated, and questions not supported qualitatively and quantitively not supported questions eliminated and DMI questions were reduced to 31. Finally, at the end of this part, Digital Maturity Index (DMI) as a measurement instrument developed as a norm. The Digital Maturity Index (DMI) development and implementation process is synchronized with the steps of Churchill’s “Procedure for Developing Better Measures” [1]. In parallel to the Churchill procedure, the Digital Maturity Index (DMI) Development and Implementation steps in this research is grouped under eight steps: (1) Literature review and 1st Round of interview findings, (2) DMI development and individual feedback sessions, (3) Test phase 1, (4) Test phase 2, (5) DMI implementation, (6) DMI results and qualitative and quantitative analysis, (7) 2nd round of interview findings and improvement areas, and (8) Finalize DMI instrument. In parallel to DMI Development and Implementation steps, based on Churchill’s procedure, the measure development process follows eight steps: (1) Specify the domain of the construct, (2) General sample of items, (3) Collect data, (4) Purify measure, (5) Collect data, (6) Assess reliability, (7) Assess validity, (8) Develop norm [1]. This research contributes to the literature by delivering a digital maturity measurement model which merges the academic and practitioner contributions and brings a new insight into organization’s digital maturity measurement literature. The developed model was tested at an automotive company, but it was developed considering cross industry implementation.