Faculty of Commerce, Law and Management (ETDs)
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Item Exploring the relationship between the factors of Digital Maturity(University of the Witwatersrand, Johannesburg, 2023) Nkomazana, Joice; Armstrong, BrianThis study examines the factors that influence digital transformation in South African organizations and explain their hypothesized relationships. Armstrong and Lee (2021), building on and synthesizing existing models of digital maturity, proposed a unified digital maturity model and further proposed a systems digital maturity model to understand these relationships. However, their model has not been directly empirically validated, including in the specific context of South African businesses. Therefore, the extent to which the same questions or factors apply in a South African business context remains assumed. Secondly, while the proposed systems model is intuitively compelling, the relationship between the factors is postulated rather than demonstrated. These factors are not independent, as one might – and in many cases will – impact the other. As a result, there is a lack of studies that disentangles business results from the other factors of digital maturity to see whether these factors can explain the business results. Accordingly, there is a need to examine the relationship between these other factors and business results. The research was quantitative and cross-sectional. An online survey using a self- administered questionnaire was issued to collect data from the sample from the 763 respondents drawn from the student database studying digital business management courses at the Wits Business School during the period 2019 to 2022. The study found out that the majority of the factors of digital maturity have a positive and significant relationship with each other. Moreover, these findings suggest that these factors are crucial to the success of a business, and they contribute to successful digital transformation and business results. However, the study also found a negative and statistically insignificant relationship between organization and governance and workforce enablement and performance, skills and workforce enablement and performance, Information Technology/ Information systems excellence (IT/IS) and workforce enablement and performance and Workforce enablement and performance and business results, whereas Investment and 3 innovation architecture and workforce enablement showed a negative and significant relationship. The implications of this research for managers are to inform practitioners of the significance of digital transformation and the factors that drive it. The study will also assist managers in developing risk management strategies that address the unique challenges digital transformation poses. The study will assist managers in differentiating their organizations from competitors by investing in digital abilities that improve agility, customer service, and innovationItem Exploring the digital maturity of a global engineering firm in the South African mining industry(University of the Witwatersrand, Johannesburg, 2023) Chaila, Benedict; Ochara, Nixon MugandaThe mining sector has long been perceived as a conservative innovation industry which is labour-intensive. However, this notion is rapidly changing, based on the sector's level of innovation and digital disruption. Studies show that digital technologies increase a firm's profits by 20% to 45%. Given this digital shift, most companies in the mining sector are investing heavily in digital transformation to drive growth and increase efficiencies. According to reports by Minerals Council South Africa and PwC, digital is becoming a game changer in the South African mining industry by increasing the use of innovative and latest technologies to run more efficient operations, improve health and safety, reduce maintenance and extraction costs, as well as bringing about skills improvement. Despite visible positive results, the South African mining industry's digital transformation journey has not been smooth. While some companies have successfully embraced digital transformation to enable sustainable business growth and efficiency, others have grappled with achieving the same results. The challenge for most organisations is to justify the massive investments by demonstrating the impact of digital maturity on the sustainable competitive advantage of their organisations. Therefore, this study aims to explore the effect of digital maturity on an organisation's sustainable competitive advantage through the lens of the dynamic capability theory. The literature review focused on digital transformation and maturity, sustainable competitive advantage and the dynamic capability theoretical framework. The research design method was qualitative; data collection was through semi-structured interviews with eight portfolio managers, five digital managers and the chief information officer selected from within the organisation. The data analysis was based on the thematic analysis process to deliver the initial codes, initial themes and the final themes emerging from the study. The study's findings demonstrate that mining organisations using dynamic capabilities (sensing, seizing and transforming) have a higher digital maturity, enabling the agility to scan and explore market and technology opportunities better than organisations with low digital maturity. They also have a high renewal and reconfiguration rate that poise them to successfully take advantage of the market and technology opportunities and respond to threats. Therefore, high level dynamic capabilities (sensing, seizing and transforming) offer a sustainable competitive advantage to an organisation in a changing market environment. However, mixed findings on the association between dynamic capabilities and organisation performance warrant further research. The first is the unclear conditions and the mechanisms under which dynamic capabilities affect organisational performance. Secondly, a detailed analysis of the high-level dynamic capabilities is required to establish the dynamic capabilities with the most effect on an organisation's sustainable competitive advantage.Item The influence of organisational learning on the digital maturity of South African banks(University of the Witwatersrand, Johannesburg, 2023) Benjamin, AngeliqueDue to technological advances influencing the financial services business, South African banks are investing billions of rands in learning. As a result of the fourth industrial revolution, the current unstable knowledge environment is reconfiguring the banking industry as we know it. The purpose of this quantitative study was to investigate the impact of organisational learning on the outcomes of digital maturity by investigating the relationship between internal and external knowledge acquisition tactics and digital maturity. Furthermore, the study analysed absorptive capacity's ability to moderate the influence of knowledge acquisition on digital maturity. According to the results of the study, South African banks are not yet reaping the benefits of their investment in knowledge acquisition because the new knowledge has not yet been incorporated at the organisational level. The study concluded that new knowledge that is not incorporated and combined with existing knowledge cannot positively influence digital maturity, nor can it increase potential absorptive capacity skills or moderate new knowledge that is not entrenchedItem Exploring the inhibitors of digital transformation in the South African Mining Industry(2022) Mistry, KamalWhile there is strong evidence for the drivers of technological disruption in the South African mining industry, understanding the industry's ability to transform digitally, including the adoption levels of digital technologies, becomes key in progressing its digital maturity. This qualitative research inquiry explores the concepts of digital transformation and digital maturity, its application to the South African mining industry, and identifies and explores the inhibitors of digital transformation based on relevant digital maturity and digital adoption models. The research study population is focused on the South African mining industry, which includes various stakeholders. The sampling frame of this research study centres on three key stakeholder groups: mine owners/operators, the mining workforce, and mining contractors, all of whom have a direct influence and impact on the digital maturity and transformation of the South African mining industry at large. Semi-structured one-on-one interviews are used for data collection due to their flexibility in allowing in-depth analysis. This research is based on the perspectives of 15 individuals that are interviewed based on their skills, experience, knowledge, and exposure to digital transformation within the South African mining industry. The unified model of digital maturity has been proven relevant and appropriate for organisations within the South African mining industry in pursuit of an increased level of digital maturity. The study acknowledges the current digital maturity, identifies an aspirational or to-be digital maturity, examines the resultant gaps between the two states of digital maturity, and proposes critical areas of improvement. The significance of this research is to identify and investigate the challenges and complexities involved in developing, implementing, and maintaining digital transformation programs in the South African mining industry, and incidentally, provide critical insights to accelerate the transformation process and increase the industry’s overall digital maturity thereby enabling safe, sustainable, and competitive mining that could reposition South Africa as a world leader in mining once again.Item Relationship between digital transformation and business performance of selected South African banks(2023) Okkers, John-PaulSouth African-based banks are committed to succeeding in the never-ending race towards Digital Transformation, driven by the ever-changing needs of customers. During the current time, digital maturity is a key indicator of Digital Transformation, with customer-centric business models, and increased profits amongst the toptrending focus areas of Digital Transformation in banking. The conundrum facing the South African banking industry, is the complexity presented by attempting Digital Transformation during a period when the rate of customer needs and technology change is increasing at an unpredictable pace, compounded by the impact of the Coronavirus disease of 2019 (COVID-19) outbreak. Digital Transformation remains unchartered territory, and with apparent gaps and flaws existing in current research on Digital Transformation of the South African banking industry. This study recognizes Digital Transformation as an area that exhibits continuous change, because of the race towards maximum profit-extraction from everchanging consumer needs and the use of technology is to radically improve the performance or reach of enterprises (Westerman, G., Bonnet, D., and McAfee, A., 2014). This study addresses gaps in current research on Digital Transformation in the South African Banking industry, using academic research methods, empirical evidence and fundamental data analysis to explore relationships between Digital Transformation and Business Performance of selected South African-based banks. Drawing from existing literature on Digital Transformation and accounting measures of Business Performance, relevant to the Business Performance indicators specified by Westerman, G., et al. (2014), specific to Banking this study focusses on Business Performance indicators that are common across the financial statements published by the South African-based banks who took part in the study, namely: Capital Adequacy ratio (CAR), Cost-to-Income ratio (CTIR), 3 Credit Loss ratio (CLR), Earnings Before Interest and Tax margin (EBITM), Fixed Asset Turnover ratio (FATR), Net Profit margin (NPM), Revenue per Employee ratio (RER), Return on Assets (RoA), Return on Equity (RoE). The study is based upon the Westerman’s Leading Digital Framework (see Appendix - I and Appendix – J) as it features direct evidence of links between Digital maturity and Business Performance, alluding to higher levels of Business Performance and profitability being achieved through the progression of Digital maturity. The unit of analysis for this exploratory study was the South African Banking industry, the sample within this is the individual Banks. The exhaustive approach towards statistical analysis presented challenges as the data analysis was performed with only 3 banks taking part in the study, this implies that although there were 29 responses, 14 for Bank A, 5 for Bank B and 10 for bank C, the sample was 3 as the unit of analysis was a bank. This is because CAR, CTIR, CLR, EBITM, FATR, NPM, RER, RoA and RoE, was only per bank and hence the analysis could not be done per survey respondent. On the basis that parametric analysis techniques generally requires a minimum of 30 samples, the study used non-parametric analysis techniques to explore for relationships and correlations. The analysis revealed that Digital maturity had a relatively weak and an insignificant impact on Business Performance. Thus the outcome of the study suggests that Business Performance as measured by CAR, CTIR, CLR, EBITM, FATR, NPM, RER, RoA and RoE cannot be used as a proxy for Digital Maturity in Banking overall, and further academic research is required to produce conclusive evidence on relationships between Digital Transformation and Business Performance.Item The influence of agile methodology on digital transformation: the case of a South African bank(2021) Daya, MayurThis study aimed to analyse the digital maturity level and understand the influence the Agile methodology has on digital transformation at Bank X. A quantitative study was conducted using primary data with a sample of 123 respondents that attempted the survey. Only 82 respondents successfully completed all four sections of the research instrument. An online survey, consisting of 165 questions, adopted a Likert scoring scale to capture the respondents' feedback. Linear regression, Spearman's Rho, descriptive statistical analysis, the MannWhitney test, the correlation test, and the Wilcoxon Signed-Rank test were used to analyse the data. The study found that no statistical differences were observed in the view of the impact of agile on digital transformation between the management and non-management groups. A positive correlation between Agile and digital transformation indicated that an increase in the Agile construct has an increasing effect on the digital transformation construct, confirming that Agile influences digital transformation. A further finding was that both Agile and digital maturity statistically significantly predicted the department's digital transformation. Finally, the Wilcoxon SignedRanks test indicated that respondents felt that the department's digital maturity level was higher than the hypothesised maturity level, Stage 3. Based on the digital maturity matrix in Appendix B, the maturity level was less than Stage 4; hence, a maturity level of Stage 3 has been assumed. The study verified that the department has adopted an Agile methodology; however, to attain an elevated digital maturity level, it is recommended that data still needs to be used efficiently to obtain valuable insights for targeted marketing, decision making and the generation of new value streams. It is further recommended that business processes are continuously reviewed, and management needs to be encouraged to take risks that do not have any associated reputational risks. The study's results are significant as they could assist the leadership team to achieve an enhanced digital maturity level with each Agile iteration.Item Digital transformation’s role in improving the organisational performance of an Information Technology (IT) company(2022) Stofile, AnatiThe potential of digital transformation to improve operational efficiencies and stimulate growth has become a critical path for organisations towards improving their competitive advantage. However, digital transformation requires a significant investment before any real financial benefits can be realised. Due to its focus on optimising business operations, an organisation’s operating model must be realigned to enable efficiency improvements of its core business activities through investments in digital technologies. The benefits of digital transformation are extensively covered in business and academic research, but few mention digital transformation costs. Hence, this study evaluates the positive impact that digital transformation has on an organisation's operational performance and financial performance. In addition to improved operational performance, digital transformation has the potential to bring about higher profitability in the long run by lowering operating costs. However, rising operational and integration costs reduce profits in the short to medium term, taking time before positive net benefits are generated. This study contributes to the literature relating to the impact that digital transformation has on the performance of an organisation by exploring the influence of digital maturity factors on operational and financial performance. Furthermore, the analysis reveals that digital transformation has a much more immediate impact on operational performance (operating margin growth) than on financial performance (gross margin growth).Item Exploring the relevance of digital maturity factors in South African Businesses(2022) Mkhwanazi, QoqananiDigital maturity in recent times has become topical in boardrooms around the world, including South Africa, with significant resources being directed into digital transformation. Various models created by academia and practice have identified numerous factors that are required but few exist on how digital maturity factors manifest in emerging and developing countries. This exploratory qualitative study therefore examines their relevance of those to South African businesses. Through semi-structured interviews with senior leaders across different industries it defines digital transformation and digital maturity as well as the dynamic capabilities that different businesses have developed to achieve it and an understanding of the relationship between the two concepts. The operational and conceptual definitions indicate digital maturity is an holistic organizational concept, thus, business looking to achieve it should develop dynamic capabilities throughout the organization, triggering wide transformation. This suggests that managers should intentionally build dynamic capabilities that address different maturity factors, with those found in the South African context not fundamentally different from those in models and in the developed world. However, importance was placed on what determined the success of digital maturity in a business, including external and internal factors. Government policies, regulation and legislation are vital in driving digital maturity and though models mainly look internally to improve it, the impact of external antecedents cannot be ignored.Item Exploring digital marketing maturity drivers in SMEs in South Africa(2021) Korff, ErnaThe main objective of the study was to explore key drivers for digital marketing maturity in SMEs in South Africa, and to create a framework to investigate levels of maturity. The sub-objectives of this study were to investigate the constraints that impede digital marketing maturity and explore the perceived effects of digital marketing maturity on business performance in SMEs. In creating a framework to explore digital marketing maturity in SMEs, this study drew from Westerman’s digital maturity framework (Westerman et al., 2014) and incorporated commercial digital marketing maturity models to ensure sufficient digital marketing elements are covered in the framework. The literature review covered digital transformation and maturity theories and models. The review included models to determine digital marketing maturity and elements and capabilities required to reach maturity. The propositions developed from the literature review were further explored through a qualitative research study. The data was collected through eight in-depth semi-structured personal interviews with SME business owners. The quantitative research study confirmed that digital marketing elements impacting digital marketing maturity were: leadership and strategy, customer experience design, customer interaction and communication, business analytics, and intelligence. Indications were that digital marketing maturity levels in SMEs in SA were low; leadership, ownership, and vision were identified as a major challenge; as well as availability of dedicated and knowledgeable resources. Following the analysis and findings, a framework was recommended for SMEs to develop and implement, which would increase digital marketing maturity level and result in quantifiable business performanceItem The influence of Agile methodology on digital transformation: the case of the South African bank(2021) Daya, MayurThis study aimed to analyse the digital maturity level and understand the influence the Agile methodology has on digital transformation at Bank X. A quantitative study was conducted using primary data with a sample of 123 respondents that attempted the survey. Only 82 respondents successfully completed all four sections of the research instrument. An online survey, consisting of 165 questions, adopted a Likert scoring scale to capture the respondents' feedback. Linear regression, Spearman's Rho, descriptive statistical analysis, the Mann-Whitney test, the correlation test, and the Wilcoxon Signed-Rank test were used to analyse the data. The study found that no statistical differences were observed in the view of the impact of agile on digital transformation between the management and non-management groups. A positive correlation between Agile and digital transformation indicated that an increase in the Agile construct has an increasing effect on the digital transformation construct, confirming that Agile influences digital transformation. A further finding was that both Agile and digital maturity statistically significantly predicted the department's digital transformation. Finally, the Wilcoxon Signed-Ranks test indicated that respondents felt that the department's digital maturity level was higher than the hypothesised maturity level, Stage 3. Based on the digital maturity matrix in Appendix B, the maturity level was less than Stage 4; hence, a maturity level of Stage 3 has been assumed. The study verified that the department has adopted an Agile methodology; however, to attain an elevated digital maturity level, it is recommended that data still needs to be used efficiently to obtain valuable insights for targeted marketing, decision making and the generation of new value streams. It is further recommended that business processes are continuously reviewed, and management needs to be encouraged to take risks that do not have any associated reputational risks. The study's results are significant as they could assist the leadership team to achieve an enhanced digital maturity level with each Agile iteration