Faculty of Commerce, Law and Management (ETDs)
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Item Inhibitors of digital transformation in a multinational retail bank(2021) Chittigadu, SachinThis research report investigates the inhibitors of digital transformation strategy in a multinational retail bank with the case of Bank X. The study focuses on this topic from a view of a traditional bank as opposed to new entrants or digital banks as these institutions need to navigate existing operating models between Founding Organisations and Subsidiaries. The focus of this research is on the Southern African context wherein the Founding Organisation is based in South Africa and the Subsidiaries are based in Namibia, Botswana, Zambia, eSwatini, and Lesotho, The existing theoretical framework is that multinational organisations need to leverage open resources, linkages, and integration between the Founding Organisation and the Subsidiaries to achieve successful digital transformation. Literature specifies that there needs to be open and effective communication to successfully formulate and implement digital transformation strategy in addition to the deep market understanding that must be provided to customise the strategy for each Subsidiary. The challenge that traditional banks are faced with is factors that must be considered during the strategic process to ensure that the strategy is successful in all their markets. Qualitative research in the form of semi-structured interviews with executive and senior management that is directly involved in the development and implementation of digital transformation strategy of a multinational retail bank was conducted. The population of the study consisted of participants situated in Subsidiaries as well as participants situated in the Founding Organisation with direct involvement into the Subsidiary operations. The study found that there is misalignment in the understanding of what digital transformation entails, and this misalignment is perpetuated by ineffective communication and adoption of strategy by the Subsidiaries. There is siloed development of strategy and implementation of strategy, resulting in nuances among the Subsidiaries not being fully incorporated. It is found that a leadership style similar to transformational leadership is necessary to empower Subsidiary leadership to own the strategy for their market. The conditions of technology regulation and availability in the market as well as organisational culture are important to consider when aiming to successfully implement digital transformation strategy in a multinational retail bank. In order to digitally transform a multinational retail bank successfully, there are recommendations that are made in this study. The recommendations are to align the transformation vision across the Founding Organisation and the Subsidiaries; leverage leadership roles and styles that benefit the transformation journey; understand the regulatory and technological landscapes of the markets that the transformation is targeting; communicate effectively among the Founding Organisation and the Subsidiaries; leverage data for enhanced decision making; decentralise development capabilities for system enhancements; and embrace national differentiation as a strategy.Item The relationship between digital transformation strategy and the performance of SMMEs in South Africa(2022) Rasenyalo, DieketsengSmall business growth is in the best interest of every nation as they are meant to contribute to employment creation, poverty alleviation, in turn one of the drivers of economic growth, therefore a study on SMMEs digital transformation is vital, especially in the 4th industrial revolution era. This study is set out to review the factors that affect digital transformation strategies of SMMEs, as well as the opportunities that are at SMMEs disposal to achieve digital transformation. This research is underpinned by Rogers’s theory (2016), which posits that digital transformation is not about updating technology but about the progression of strategic rationale to operate a business. This objective was achieved through qualitative data analysis, by interviewing and analysing data from selected SMMEs within the Gauteng province of South Africa. This study found that the factors that affect a digital transformation in SMMEs include; internet connectivity, technology applications, electricity and outdated skills of some officials. This study also found that opportunities available for SMMEs to deploy digital transformation are inherent in data usage, competition within the SMMEs cycle, business value, innovation and creativity as well as integrating customers into the business. Therefore, this study adds to the literature by proving that in order for SMMEs in South Africa to improve on performance, they need to enhance their business strategy by incorporating a digital transformation strategy. It is recommended that the government should step up in providing some of those factors identified by SMMEs, also that SMMEs should apply performance metrics, incentivize employees, collaborate with clients, and prioritise customers over profits to ensure effective performance and growth, especially in this digital era.Item An evaluation of the inhibitions caused by legacy systems on digital transformation in a South African retail bank(2020) Mantyi, LukhanyisoThis research report investigates the inhibitions imposed by legacy systems on digital transformation strategies. The study focuses on the traditional retail bank, as these institutions contain traditional core systems that are complex to maintain and to replace. Moreover, the legacy can also be seen in business models that have previously been successful and are being disrupted by digital technology. The existing theory uncovers that transforming organisations ought to develop enabling capabilities to support digital transformation. It specifies that implementing new technology is not sufficient to successfully implement the strategies and gain a competitive advantage. The challenge that traditional banks are faced with is the navigation of archaic systems whilst driving innovation. Qualitative research in the form of semi-structured interviews with senior management was conducted. The population of the study comprises all employees of the Retail division of Bank X, South Africa. The sample was selected based on seniority as well as exposure to digital strategy formulation and implementation in the bank. The study found that there are gaps in the understanding of digital transformation within the bank. This disconnect permeates the implementation of the strategy and creates silos in execution. It was also found that the digital transformation strategy needs to be supported by skilled personnel, an enabling culture, a sound operating model, and modernisation mechanisms to deal with the current system architecture. These capabilities are on varying levels of maturity in the bank and have a direct impact on the implementation of the digital transformation strategy. A number of challenges were highlighted in the study relative to the research questions. To address the emerging challenges, six recommendations were made, namely defining digital transformation in the context of the organisation, clarification on the leadership of digital agenda, upskilling of the employees with digital skills, development of an architectural strategy that supports the digital strategy and investing in decision support tools to derive value from the data assets.