DB FPX 8720 Assessment 2 Harvard Business Review Article Proposal

Name

Capella university

DB-FPX 8720 Strategic Digital Transformation

Prof. Name

Date

Harvard Business Review Article Proposal

Introduction

Part one of this assessment will evaluate the positive and negative aspects of how businesses respond to digital transformation. It will outline ways that companies adapt to business problems in the digital age and evaluate the competitive strategies used to gain an advantage in a digitized world, utilizing models, theories, and practices.

The second part of this assessment will provide a Harvard Business Review article proposal focused on leading digital transformation in retail. The proposal will include the central message, the importance of the proposed solution, and its application to a current business structure.

Leading Digital Transformation in Retail

Digital transformation varies depending on the business and industry. It involves the adoption of digital technologies in a company’s strategy and operations. Examples of digital transformation include the introduction of artificial intelligence to streamline operations, automating manual processes, and modernizing existing operations with technological advances.

Positive Aspects of Digital Transformation

Digital transformation enhances productivity and increases agility (Shah, 2022). Integrating applications, software, and databases into a central system can significantly improve business efficiency (Shah, 2022). This integration is highly beneficial, as it allows users to operate a unified system across different departments. For instance, in retail, integrating chain management systems with store and warehouse operations can lead to more efficient goods delivery. Automated inventory ordering resulting from such integration can improve the efficiency of the chain management system within the company.

Negative Aspects of Digital Transformation

Despite its benefits, digital transformation also has drawbacks. The constant evolution of technology means businesses must continuously adapt (Digital Adoption Team, 2022). Implementing new technology often requires significant time and financial investment (Digital Adoption Team, 2022). This upfront cost can be challenging for businesses before they start seeing financial benefits. Additionally, employees may experience anxiety due to fears of job displacement by technology (Digital Adoption Team, 2022). In retail, this concern is particularly relevant for warehouse workers, as digital solutions may reduce the number of required human jobs.

Companies Adapting to Digital Transformation

Companies are adapting to digital transformation in various ways, often focusing on human resources and learning and development to address business problems through model innovation in the digital age (Reilly, 2022). Training current employees and leveraging human resources to recruit diverse talent are key strategies. This approach helps ensure employees continuously challenge each other and seek innovative solutions. Empowering employees to share creative ideas for digital evolution fosters a collaborative environment that supports business model changes.

Effectiveness of Competitive Strategies in a Digitalized Age

Business strategies have evolved from simple online domains to complex digital strategies. Technological advances have shifted societal norms, requiring businesses to adjust their competitive strategies to meet modern consumer needs. A common strategy is to offer personalized experiences. Examples include online retailers providing product recommendations based on previous searches or purchases and grocery stores using purchase history to offer tailored coupons. Successful implementation of this strategy requires algorithms and data. Effective digital strategies also depend on leadership that fosters a culture of continuous change. Investing in digitalization will not yield returns without a leadership team that supports and aligns with the digitalization vision.

Harvard Business Review Proposal

Central Message

The COVID-19 pandemic created an unprecedented level of uncertainty for retailers worldwide. This article, “Leading Digital Transformation in Retail,” addresses how the pandemic impacted traditional business models. Many retailers struggled or ceased operations, highlighting the urgent need to adopt digital strategies. The core business problem is how retailers can integrate traditional strategies within physical stores with new digital approaches. The gap in practice is evident in retailers who relied solely on traditional strategies and were adversely affected by the pandemic due to their lack of digital integration.

Why is Digital Transformation Strategy Important?

As the pandemic subsides, retailers face the challenge of determining their next steps. The shift to online shopping during the pandemic raises questions about whether these trends will persist or revert to traditional in-person shopping. The article aims to guide retailers on integrating traditional and digital strategies to navigate the new retail landscape. Leadership and management need to understand the impact of digital strategies on current operations and their evolving roles compared to traditional models. Comprehensive training for management is essential to effectively blend traditional and digital strategies.

Management Considerations

Management must review financial statements to assess the impact of new digital strategies. Positive outcomes, such as sustained or increased revenue, suggest a long-term digital strategy that evolves with revenue growth. Conversely, a negative financial impact may necessitate alternative strategies. The relevance of this topic is critical for retail business owners aiming to successfully meet customer needs in the new normal.

Source of Authority

Stackpole (2021) highlights how IT groups quickly adopted technology-driven initiatives to enable remote work and new online sales channels. Overby (2021) notes that models dependent on face-to-face interactions shifted to digital services with minimal customer disruption. Papagiannidis et al. (2020) discuss how retailers implemented digital strategies to remain competitive during the pandemic. Hai et al. (2021) indicate that digital transformation is prevalent and revamping business models and operations. Papagiannis (2020) describes how augmented reality technology was integrated into retail operations during the pandemic, allowing consumers to visualize products before purchase.

Experience

My experience with digital transformation is both personal and professional. Before COVID-19, I worked in an office setting and frequently stopped at retail stores on my commute. The shift to working from home during the pandemic has increased my professional productivity and changed my shopping habits. I now conduct 90% of my shopping online, utilizing options such as curbside pickup or delivery, which I find worth the convenience even post-pandemic.

References

Digital Adoption Team. (2022, September 16). Digital transformation pros & cons: What you need to do to win. Digital Adoption. https://www.digital-adoption.com/digitaltransformation-pros-and-cons/#:~:text=Digital%20transformation%20pros%20%26%20cons%20%E2%80%94%20the%20negatives

Hai, T. N., Van, Q. N., & Thi Tuyet, M. N. (2021). Digital transformation: Opportunities and challenges for leaders in the emerging countries in response to Covid-19 pandemic. Emerging Science Journal, 5, 21–36. https://doi.org/10.28991/esj-2021-sper-03

Overby, S. (2021, August 16). 9 digital transformation truths that the pandemic rewrote. Enterprisersproject.com. https://enterprisersproject.com/article/2021/8/digital-transformation-9-truths-post-pandemic

DB FPX 8720 Assessment 2 Harvard Business Review Article Proposal

Papagiannidis, S., Harris, J., & Morton, D. (2020). WHO led the digital transformation of your company? A reflection of IT related challenges during the pandemic. International Journal of Information Management, 55, 102166. https://doi.org/10.1016/j.ijinfomgt.2020.102166

Papagiannis, H. (2020, October 7). How AR is redefining retail in the pandemic. Harvard Business Review. https://hbr.org/2020/10/how-ar-is-redefining-retail-in-the-pandemic

Reilly, D. (2022). Digital disruption. Training Journal, 25–27.

Shah, K. (2022, December 3). Importance of digital transformation in business: 2023. The Digital School. https://iide.co/blog/digital-transformation-for-business/#:~:text=Benefits%20of%20A%20Digital%20Transformation%20in%20Business%201

Stackpole, B. (2021, July 27). Digital transformation after the pandemic. MIT Sloan. https://mitsloan.mit.edu/ideas-made-to-matter/digital-transformati