Organisational Readiness for Digital Innovation within the Automotive Manufacturing Sector in South Africa

Abstract

Global digital disruption is an inescapable fact of the 21st business environment. The consequences thereof have major implications for all sectors, including the automotive manufacturing industry. The advent of electric cars and self-driving vehicles are just some examples of digitial innovations in the sector. Digital technologies have significantly advanced the automotive manufacturing industry, altering how processes are executed, customer interactions are carried out, and supply chain management is handled.However, despite the benefits of Digital Innovation, many organisations struggle to adopt and integrate these technologies effectively, with one of the challenges being organisational readiness for Digital Innovation. It is against this backdrop that the current study investigated the factors that influence organisational readiness for Digital Innovation in the South African automotive manufacturing context, specifically at Company X, and how organisations can overcome those barriers/ factors. A review of extant literature showed a dearth of studies on Digital Innovation in this sector within the SA context. Therefore, there was a need to investigate the factors that influence organisational readiness within the automotive industry in South Africa, and to identify strategies that can help with overcoming the barriers. The study adopted a qualitative methodology, using interviews as a research tool in which 12 participants were interviewed. The data analysis yielded 3 main themes and various related sub-themes, namely (a.) Understanding and involvement of Digital Innovation, (b.) Readiness FactorVersus Digital Innovation and (c.) Challenges and Barriers that hinder Digital Innovation As with many other businesses, automotive manufacturing is also compelled to respond to the challenge posed by technological advancements. For Company X, leadership and management were the most highly ranked factors influencing organizational readiness. The perceived meaning of Digital Innovation revolved iv around improving processes and adding value to both internal and external customers, making use of technology to improve decision-making. The use of technology such as AI, IoT and Power BI has gained momentum as well. This study covers a wide range of topics that are relevant to the business, management, organizational and professional areas. It emphasizes the significance of management and leadership as key factors impacting organizational readiness. Managers, engineers, and IT professionals can gain valuable insights regarding the challenges and best practices for implementing digital technologies from this work as it also clarifies organizational dynamics and the prerequisites for successful digital innovation, offering practical strategies for organisations to enhance their readiness