Digital transformation : how digital tools and methods impact organisational decision-making

Abstract

This study aimed to explore the impact of digital transformation on decision-making in organisations, focusing on how digital tools and data-driven approaches reshape the strategic decision-making processes and organisational structures. The motivation for the study came from the rapid evolution of digital technologies which presents organisations with the opportunity to create enhanced value but also brings forth problems which must be studied. By investigating these impacts, the study proposed a theoretical framework for understanding digital transformation and how to approach it to succeed.

The research was conducted as a literature review examining academic sources relevant to digital transformation and decision-making. The studies were selected based on their relevance to the subject and the research questions. The review was focused on three main categories: digital organisation culture, data-driven decision-making and the effects of digital tools. The findings of the study highlighted several key insights. Firstly, digital transformation enables organisations to gain competitive advantage through advanced analytics and faster, better decision-making. Additionally, the study found that a digital organisation culture is essential for successful digital transformation. Lastly, the study showed that digital transformation encourages a shift towards flatter hierarchies and decentralized decision-making. This decentralisation, while creating possibility for enhanced agility in decision making, also creates a higher level of complexity inside the organisation which needs to be addressed.

The study contributed to the existing literature by combining diverse insights from previous research into theoretical guidelines which can be used to understand digital transformation.

The Research identified limitations in its reliance on secondary data, suggesting that future studies should be done using real life empirical case studies that examine the effects of digital transformation with specific industries or organisational functions further developing a framework that could be used in practise.