Towards a novel framework of barriers and drivers for digital transformation in industrial supply chains

Abstract

© 2019 PICMET. Businesses across all sectors are facing the complexity of an increasingly digital economy. Digital transformation offers vast opportunities to businesses and entire supply chains. While many investments are targeted at the organization level, the supply chain perspective can lead to even greater impacts on business performance. However, as supply chains involve interconnections between multiple actors, comprehensive digitalization initiatives at this level are very complex. Several strategic factors affect decision-making around digital investments. For this reason, a framework that categorizes all these factors is needed in order to help managers build digitalization strategies for their supply chains. In this paper, based on a review of existing literature, we give indications for a framework encompassing barriers to and drivers for digital transformation in the context of industrial supply chains. Our framework preliminarily allocates these factors by using two dimensions. The first one classifies them using several categories: financial, knowledge and skills, regulatory, technological, market, organizational, and cultural. The second dimension classifies determinants at the level on which actions can be made, i.e. market, supply chain, or organization. The framework can support organizations to exploit the opportunities provided by digitalization of supply chains and will help managers understand the complexity involved