Factors affecting digital transformation in manufacturing companies

Abstract: The adoption of digital transformation can be seen as the companies opportunity for increased competitiveness. The possibilities of digital transformation are many as it allows, among other things, a connection between workers and machines or between machines. However, companies are facing difficulties to implement digital transformation effectively. Implementing digital transformation is a slow process for companies and most companies are in the early stages of it. Also, the technologies that are associated with digital transformation are still unclear. Companies still lack a systematic approach to implementing digital transformation. Understanding critical factors that affect digital transformation in manufacturing companies could help to develop a systematic approach for implementing digital transformation. Therefore, in this research the authors have carefully reviewed and identified factors that affect digital transformation within the manufacturing industry. This thesis research aims to identify the factors that will lead to the success of digital transformation in manufacturing companies and to also find out the factors that when being ignored will lead to unsuccessfulness. The research has been guided by three research questions: 1) Which factors are stated in the literature that is affecting the implementation of digital transformation in manufacturing companies, 2) How are these factors related to each other in the literature, and 3) How can practitioners and academics use factors for the successful implementation of digital transformation? In this research, a systematic literature review (SLR) has been carried out which has led to identifying 11 key factors. Based on the identified factors, a model has been developed to support the implementation of digital transformation in manufacturing companies. The model consists of four different categories of factors, namely, “Awareness related factors, Readiness related factors, Technology, Selection, and Integration related factors (so-called ARTO-model. Furthermore, a survey has been developed to get experts´ perspectives on the identified factors and the model.  Based on the input from the survey, a final compiled ARTO model is proposed as a guiding tool for the successful implementation of digital transformation. Further, a model to show the relationship between the factors is created. Keywords: Digital transformation, Digitalization, Industry 4.0, Enabling technologies, Key factors, Critical factors, Manufacturing industry, Guiding framework