Assessing challenges, barriers, practices and capability towards digitalization

Abstract

Digitalization involves transformations of organizational structures, with the establishment of new practices and developing digital capabilities. However, many companies are struggling with the development of their digital strategy and many others’ digital strategies are failing. Due this reason, this paper aims to organize information regarding challenges, barriers, practices and capabilities towards digitalization. To support the objective, this research performs a case study in an automotive plant of an international company situated in Brazil. The data collected comes from interviews, technical documents and visits to the plant. The main results revealed a list of challenges and barriers: few people have the proper digital skills; lack of a common framework; misalignment with headquarters’ strategies and initiatives; higher cost to acquire technologies in Brazil; insufficient understanding of how to implement digital technologies in different contexts. Regarding the practices, the company listed the creation of innovation labs; regular meetings and visits to the shop floor; development of governance policies for processing, storage, management and presentation of data; increase collaboration with universities and research institutes; increasing investments in digital technologies. The processes for developing digital capabilities are based on trainings, workshops and pilot or conceptual projects focused on developing of a new service-based business model