Brief

Digital leadership role in developing business strategy suitable for digital transformation

Abdullah Türk* Front. Psychol., 04 January 2023, Sec. Organizational Psychology, Volume 13 - 2022 | https://doi.org/10.3389/fpsyg.2022.1066180

Leadership Research Focus:

  • Digital transformation
  • Technology
  • Time management
  • Digital leadership
  • Productivity

Leadership Research Summary:

  • Businesses must respond to the ecology in which they operate. Especially the rapid transformation of technology has increased the degree of dependency on the system. The main reason for this is perceived only as the technology costs brought by digital transformation. However, we understand from the bankruptcy of economically strong companies that this is not the real problem. This study looks at it from the perspective of leadership, which is an important skill for businesses. The research focuses on leadership roles needed to adapt to digital transformation. At this point, the roles of digital leadership and its contribution to businesses were investigated. At this point, we try to reveal the role of digital leadership with two different qualitative analyzes.
  • In the research, semi-structured interviews were conducted with senior managers, phenomenological and content analysis was performed using Nvivo and MAXQDA qualitative analysis programs, and relevant confidential information was revealed. As a result of the research, it has been determined that there is an important link between time management and productivity while supporting system efficiency and transformation adaptation. In other words, a positive relationship has been determined between the success of digital transformation and digital leadership roles. In digital transformation, digital leadership has a role in the positive development of the relationship between the digital transformation process and business strategies. As a result, a perspective on how digital leadership can contribute to businesses that want to develop strategies suitable for the digital transformation process is presented

Leadership Research Implications and Findings:

  • When the literature is examined; (Westerman et al., 2014; Kane et al., 2015; Sia et al., 2016; Kane et al., 2019; Mihadjo and Alamsjah, 2019; Özman et al., 2020; Magesa and Jonathan, 2021), it will be seen that researchers such as these point to similar results. However, the different side of this article is its feature of systematically presenting the results of studies that have been handled from many perspectives. The most specific and unique result of the study, which is not frequently encountered in other studies; is the role of the digital leader in managing operating costs. The scheduling role of the digital leader characterizes the role of saving on administrative expenses regarding the flexibility of the venue and platforms where the work will be done. It seems that; The presence of digital technology in the digital transformation process is not enough to direct the organization to the intended goals. The main challenge here is not just to apply the right technology, but also to culture and capabilities. The overall attitude and perspective of the organization are more important than digital technology. Therefore, making the digital leadership impact visible that will convey the culture and vision in the right direction is a key element for business strategies to achieve an optimal balance. The common misconception is that such information is already known. Then where is the problem? Years of research on conversions have shown that the success rates of these conversion efforts are consistently low (less than 30% successful). This shows that digital technologies are not easily realized (De la Boutetiere et al., 2018). According to an MIT study of international business leaders, only 12% of the more than 4,000 organizations surveyed think their leaders have the mindset to drive digital change. Also, 82% believe leaders need digital skills to cope with the new competitive environment, while only 10% agree that leaders in their organizations have them (Ready et al., 2020). In a different study conducted jointly in countries such as India, Japan, Australia, Brazil, China, the European Union, and the United States; Almost half of the 925 leaders found that the lack of digital skills is a critical factor for the transformation in the digital transformation process, and despite the size of the companies and business lines within the scope of the research, businesses are not ready enough for digital transformation (Özman et al., 2020). Research tells companies out loud that they need a digital router. So we have provided companies with a recipe for what the roles of these routers are, and what they should look for.
  • We also made a recommendation for companies; as it is known, organizational change is usually initiated by top management. Therefore, company management must first accept the necessity of change for themselves and then for the entire organization and convince the organization to change. However, it is not easy to persuade neither the managers nor the employees. To optimize digital technology that will create value, it is necessary to integrate culture and competence first. The first step of this integration is human resources. At this point, companies; it is recommended to find, select and place employees who are suitable for the corporate culture and digital culture from the very beginning. In addition, it is reminded that finding, selecting, and placing employees is a cost item that is not felt in the process but is large in the balance sheet.

 

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