Digital Transformation Of SMEs In Malaysia (Research Paper Sample)

Introduction
This section has reviewed literature on how strategic management facilitates the process of digital transformation in an organization. It specifically presents literature on the importance of strategic management in an organization; the moderating factors of digital transformation implementation in organizations; effective strategic management/change management to implement digital transformation and the significance of strategic management in implementing digital transformation.The aim of this study is to provide a clear understanding of how leadership facilitates the process of change in an organization and also the change management process.
Methodology
A thoughtful written survey was adopted in this research whereby systematic review of literature was reviewed. The review was conducted based on the objectives of the research which included; the importance of strategic management in an organization; the moderating factors of digital transformation implementation in organizations; effective strategic management/change management to implement digital transformation and the significance of strategic management in implementing digital transformation. The collected data was categorized into themes developes from the objectives of the research. Collected data was analyzed using content analysis whereby predominant themes were grouped together. Literature review was presented thematically.
Literature Review
Importance of change management in an organization
Organizational change management has long been seen as a vital component of effective change implementation initiatives in modern businesses. The study of organizational change as a management approach has placed a premium on management research in order to reap the benefits of competent change management in formal structures (Hassan, 2018). Burnes (2004) stressed the importance of responding to fluctuations in consumer tastes that aren't solely due to fashion. Even if there is no truth in actuality, rumors might make a disproportionate difference if it is asserted that an item as well as product category is unsafe in any way. Customer trust is essential, and no business can succeed without it. You must have a deep grasp of their conduct if one is to meet their demands and wants. Specific markets or sections of marketplaces must be besieged to offer a focus for the marketing effort. To understand customer behavior, one must first know who your consumers are, what they purchase, how they purchase, and so when they purchase. Each client market has unique qualities that can be identified through extensive investigation. For SMEs in Malaysia, there will be a need to understand customer behaviours that may necessitate change. To survive as well as contest in a diverse environment, every corporation must make the first move to evolve and be adaptable in all dimensions (Anyieni et al., 2016). The external and internal drivers of change will also determine change for SMEs in Malaysia.
Moderating factors of digital transformation implementation in organizations
The increasing use of digital media, as well as its creative nature, has altered how businesses function, how face the challenge, and how consumers and end users interact, as well as shifting consumer as well as end user standards and expectations. Organizational situations are becoming progressively volatile, demanding organizational transformation to realize the rewards of digitalization (Hartl & Hess, 2017). Many companies acknowledge the need to adjust in order to stay relevant as well as competitive, as well as keep up with their industry's digital progress. Berghaus and Back (2017) observed that many of the same objectives and drivers are driving digital transformation efforts across enterprises. Technological changes will also affect the SMEs in Malaysia hence causing them to change.
Companies may be motivated to participate in digitalization by external or internal events. Organizations stated that they must keep up with digital changes in their field. Changing client expectations and behaviors, as well as digital expansions in the organization's industry and the competitive landscape, have all been shown to be accelerators for digitalization (Schmidt, Drews, & Schirmer, 2017). Organizations are dealing with new competitive pressures, including an increasing number of competitors and non-industry entrants. Furthermore, pressure on companies to digitalize as a consequence of competitors' technological breakthroughs, emerging market challengers with competitive digitalization, and general technological progress, all of which drive enterprises to undertake organizational change. Additionally, if the pressure becomes too high and ramps up pretty fast, a company may need to express its digital goals by forming a digitalization role (Haffke et al., 2016). According to Berghaus and Back (2017), regulatory developments forced several enterprises to reconsider their business strategies and modify their organizations.
One of the main goals of digitization, according to Berghaus and Back (2017), is for firms to attain digital readiness, which implies that they want to take cognisance of various circumstances and can react quickly when needed. It was also discovered that the goals of digitalization are to digitally improve existing services, engage in innovative products, and study and construct new, possible firms to innovate in terms of competitiveness and produce new revenue. Other common objectives include strengthening digital channels as well as customer-facing processes, offering up-to-date digital products to satisfy evolving client expectations and norms, and developing and enhancing client satisfaction and dialogue (Isaksson & Hylving, 2017; Mocker & Fonstad, 2017).
It's not easy to embrace digitization, and there's a lot to consider both during and before the process (Mueller & Renken, 2017). To accomplish successful digitization, the entire firm must adopt a collaborative culture that fosters collaborative corporate and IT projects. Hartl and Hess (2017) undertook a Delphi analysis to determine which cultural values are favorable of digitalization and essential to its success. The two most prominent business values discovered were responsiveness and client centricity. Mastering digital transformation requires a change-oriented mindset, and an organization that values receptivity to change fosters a drive to embrace, execute, promote, and develop one (Hartl & Hess, 2017).
Depending on the causes and aims of the change, as well as the available resources and tools to undertake such a transition, organizations face a variety of consequences as a result of a digital transformation. Digital transformation entails rethinking and reinventing an organization's basic business logics, in addition to just enhancing business via digitization (Piccinini et al., 2015). For SMEs in Malaysia to achieve digitalization, they will be needed to factor in these moderating factors.
Effective change management to implement digital transformation
In today's complex and competitive world economy, successful digitization has become a should goal for nearly every business. Many businesses obtain a much-needed increase in performance and profitability by introducing new technology as well as automating business processes, but maintaining that momentum to deliver long-term value isn't always straightforward. Companies require a comprehensive grasp of, and plan for, digitalization change management in order to preserve and expand on the early improvements that come with digital transformations (Piccinini et al., 2015). Organizations of all sizes and types may successfully scale their digital transformation projects to meet shifting needs and goals while continuing to produce returns by investing the time and resources needed (and implementing a few best practices). SMEs in Malaysia are not exceptional and therefore will need scale their digital transformation projects to meet shifting needs and goals while continuing to produce returns by investing the time and resources need.
Change management is an important strategy for ensuring an effective change. Companies are increasingly being challenged with overseeing more than employees, customers, and things in today's business world. They're also coping with the emergence of new technologies, the rise of new business prospects, and shifts in how customers choose, engage with, and describe their brands. In a nutshell, companies today must be adaptable to change. To do so, they'll have to change their management strategies (Hassan, 2018). As with any large organizational change, developing a methodical change management strategy can be difficult. Employees may be fearful about "trying new things." It may be difficult to obtain funds because outcome may not see the need to modify what appears to be working systems. Even when they do, finding the proper people to participate in the required amount can be challenging.
In the present digital transformation scenario, the ability to confront and embrace change within a business is becoming a vital element of survival for many contemporary organizations. Implementing substantial changes to present business processes may be a lengthy and challenging process, especially when it involves business components that have been in place for a long time. Almost all digital transformation failures can be traced back to a lack of strategy and planning (Hassan, 2018).
To see an effort through from inception to completion, clear communication, objectives, and extremely similar of progress are all essential. Outsourcing the strategy execution to a third party with established expertise in similar initiatives over a number of years i...