Loading...
Digital transformation strategic processes for Small and Medium Enterprises in Cape Town, South Africa
Author(s)
Du Plessis, Mark David
Date Issued
2022
Type
Thesis
Publisher
Cape Peninsula University of Technology
Abstract
The rapid emergence of new digital technologies and the acceleration of digital transformation
(DT) caused by Covid-19 require that small, medium and micro enterprises (SMMEs) either
modify or develop new business models to exploit digital technologies. DT in itself can become
a challenging journey, especially for small enterprises (SEs) with limited resources, low digital
maturity levels and the inability to digitally transform. The formulation, adoption and
implementation of a DT strategy as an approach can potentially provide SEs with a framework
that may assist in successful DT.
The study aimed to answer two primary research questions with two sub-questions each. The
primary research questions were formulated as follows:
1) What are the business processes required for SEs to digitally transform their business?
2) How can SEs efficiently organise, support and enable a DT strategy?
The study aimed to explore the factors that affect the adoption of DT strategies by SEs in the
City of Cape Town, South Africa. A multiple case study with a qualitative research method was
used for this study on 15 conveniently, non-randomly and purposively selected SEs in Cape
Town. An inductive research approach was taken to collect data through semi-structured
interviews conducted with business owners and managing directors. The data were decoded
using keywords and analysed using a descriptive data analysis method to formulate the
findings.
The study adhered to strong ethics to ensure that the integrity and moral principles were
followed throughout as required by CPUT. The contribution of the study is the proposed
framework for SEs to assist with the formulation, adoption and implementation of a DT strategy
that can assist SEs in overcoming the challenges experienced when undergoing a DT. The
research found that some of the challenges for SEs to DT are lack of knowledge about DT,
lack of financial support and resources, lack of support by industry experts, regulatory and
compliance red tape, lack of strategy, and employee resistance to change. The study identified
various factors for consideration of a successful DT with business process management,
leadership decision making, digital marketing transformation, business process automation,
financial aspects, digital technologies and risk management being the main factors. The
research results reveal that SEs have a fair understanding of the characteristics, benefits and
challenges of DT, but very little to no understanding on what it entails to formulate, adopt and
implement a DT strategy. This could result in SEs being i) reactive oppose to proactive to
market disruptors, ii) unable to fully explore and exploit digitally technologies to add value to
customers and compete in the market, iii) potential closure of enterprise.
(DT) caused by Covid-19 require that small, medium and micro enterprises (SMMEs) either
modify or develop new business models to exploit digital technologies. DT in itself can become
a challenging journey, especially for small enterprises (SEs) with limited resources, low digital
maturity levels and the inability to digitally transform. The formulation, adoption and
implementation of a DT strategy as an approach can potentially provide SEs with a framework
that may assist in successful DT.
The study aimed to answer two primary research questions with two sub-questions each. The
primary research questions were formulated as follows:
1) What are the business processes required for SEs to digitally transform their business?
2) How can SEs efficiently organise, support and enable a DT strategy?
The study aimed to explore the factors that affect the adoption of DT strategies by SEs in the
City of Cape Town, South Africa. A multiple case study with a qualitative research method was
used for this study on 15 conveniently, non-randomly and purposively selected SEs in Cape
Town. An inductive research approach was taken to collect data through semi-structured
interviews conducted with business owners and managing directors. The data were decoded
using keywords and analysed using a descriptive data analysis method to formulate the
findings.
The study adhered to strong ethics to ensure that the integrity and moral principles were
followed throughout as required by CPUT. The contribution of the study is the proposed
framework for SEs to assist with the formulation, adoption and implementation of a DT strategy
that can assist SEs in overcoming the challenges experienced when undergoing a DT. The
research found that some of the challenges for SEs to DT are lack of knowledge about DT,
lack of financial support and resources, lack of support by industry experts, regulatory and
compliance red tape, lack of strategy, and employee resistance to change. The study identified
various factors for consideration of a successful DT with business process management,
leadership decision making, digital marketing transformation, business process automation,
financial aspects, digital technologies and risk management being the main factors. The
research results reveal that SEs have a fair understanding of the characteristics, benefits and
challenges of DT, but very little to no understanding on what it entails to formulate, adopt and
implement a DT strategy. This could result in SEs being i) reactive oppose to proactive to
market disruptors, ii) unable to fully explore and exploit digitally technologies to add value to
customers and compete in the market, iii) potential closure of enterprise.
Additional information
Thesis (Master of Business and Information Administration)--Cape Peninsula University of Technology, 2022
File(s)![Thumbnail Image]()
Loading...
Name
Du_Plessis_Mark_David_203057791.pdf
Size
2.65 MB
Format
Adobe PDF
Checksum
(MD5):b50b02752cdaf3559ad80eb1d30ad136