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Opportunities and Risks of Digital Transformation: A Research Case Study of the Implementation of Product-service Systems in a Manufacturing Company

Farzad, Shahbazi | 2024

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  1. Type of Document: M.Sc. Thesis
  2. Language: English
  3. Document No: 57538 (51)
  4. University: Sharif University of Technology, International Campus, Kish Island
  5. Department: Science and Engineering
  6. Advisor(s): Shadrokh Sikari, Shahram; Najafi, Amir Abbas
  7. Abstract:
  8. This study provides a comprehensive understanding of the digital transformation process in a constrained environment, offering practical insights for practitioners and a robust basis for future academic research. Conducted within the manufacturing industry in Iran, this research explores how companies navigate and succeed in digital transformation under the constraints of global sanctions. Employing an extreme case study methodology, the research focused on a leading organization renowned for its innovation and patented technologies. This organization offered a unique perspective on digital transformation under restrictive conditions, meeting all requirements for an "extreme case" in qualitative research. The two main research questions investigated in this study are:
    • What are the specific challenges and barriers that organizations in the manufacturing industry in Iran face during their digital transformation process under the constraints of global sanctions?
    • What strategies and approaches do these organizations employ to successfully navigate and implement digital transformation despite these challenges and barriers?
    These questions aim to uncover the unique difficulties presented by the restrictive environment and to identify effective methods used by companies to achieve digital transformation. The research employed a multi-method approach, including in-depth face-to-face semi-structured exploratory interviews, document analysis, and surveys. This triangulation ensured the reliability and validity of the findings. The inductive approach allowed for knowledge extraction directly from the data collected, resulting in the development of a conceptual model. This model elucidates how organizations in developing countries, particularly those with restricted access to technology, manage their digital transformation. A significant contribution of the study is the detailed exploration of "escalators" and steps organizations take to initiate and sustain their digital transformation, highlighting motivational factors that drive these initiatives. The findings underscore the importance of flexibility, innovation, and strategic planning in navigating the challenges of digital transformation. They highlight the need for companies to not only adopt new technologies but also rethink and redesign their existing processes and organizational culture to fully realize the benefits of digital transformation. This study makes several theoretical contributions. First, it extends the existing literature on digital transformation by providing context-specific insights from a developing country under sanctions, a scenario that is underexplored in current research. Second, the study develops a conceptual model that outlines the key factors and strategies for successful digital transformation in constrained environments. This model can serve as a foundation for future research and practical applications. Third, the research highlights the role of organizational culture and strategic planning in overcoming barriers to digital transformation, contributing to the broader discourse on change management and innovation.
  9. Keywords:
  10. Digital Transformation ; Data-Driven Marketing ; Data-Driven Business Models ; Product-Service Systems (PSS)

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