Role of IT Technologies in fostering Business Transformation

Abstract

The term "digital transformation" (DT) has gained popularity, sparking interest across many academic fields and inspiring new lines of inquiry(Hausberg et al., 2019). With the adoption of new technologies helping deliver secure high-quality patient care and drive greater business efficiency, healthcare sector has gained significant benefits from digital transformation. Digital technologies, driven by the exponential rise in computing power, have successfully altered the majority of economic sectors, from finance to entertainment, with one notable exception: healthcare. The increasing advancements in medical equipment and imaging technology serve as evident illustrations of how high-tech medicine is in many aspects. Nevertheless, healthtech companies are still on a learning curve on how to transform their companies digitally, despite billions of dollars being invested in digital health solutions by both startup and established technology companies(Walsh & Rumsfeld, 2017).
This study advances the body of knowledge in the field of digital transformation by identifying the barriers to and enablers of business transformation as well as the role of IT technology as an enabler of business transformation. By creating a theoretical framework for barriers and enablers of business transformation with IT technology as an enabler, it empirically studies Philips to undertake a case study and offers a basis for theory building. On the subject of business transformation, a literature review utilizing the five-step grounded theory methodology was carried out. According to the literature study, this research highlights four primary barriers facing business transformation: organizational, knowledge, financial, and technical. Strategy, people, process, data, and technology are the different categories for business transformation enablers. The theoretical framework for this study is developed using the results of this literature review. A case study is performed on the digital transformation journey of Philips by identifying the IT technologies of the acquired firms that are part of Philip’s healthcare transformation portfolio. This research captures the goal of business transformation while identifying the barriers and enablers of business transformation at Philips by conducting inductive qualitative research by interviewing. Analysis of data is carried out by following the steps stated by Miles & Huberman (1994) and using content analysis to analyze the interview data. The results of this study show that At Philips, the organizational barrier has emerged as the most pervasive barrier to business transformation. This study demonstrates that Philips' organizational structure, or the way they are set up, is a significant impediment to business transformation. The matrix organizational structure of Philips makes organizational change challenging. According to researchers, business transformation begins with establishing a strategy and achieving the organization's aim. According to the research, this strategy is misleading, and that any business transformation strategy should be developed by first comprehending customer demands before being in line with the intended outcome of the business transformation. According to this study, people with proper experience and knowledge in the field of business transformation are the key enabler of business transformation. This study supports the resource-based hypothesis, which contends that an organization has a great chance to outperform its rivals when it possesses strategic resources that can provide it an advantage in the market and could even help it generate sizable profits. This research examines three important IT technologies provided by the acquired companies of Philips, namely Tomtec, RDT, and Capsule technologies as resources that can enable business transformation. According to this study, Philips' business transformation was made possible by the IT technologies' significant contributions to the company's sales and revenues following the acquisition of these companies. By integrating these IT resources into other products in their portfolio to facilitate business transformation, Philips can further develop these technologies and achieve their objective of becoming a fully solutions-based firm. However, the findings of this study also suggest that IT technologies have not yet reached their peak value since Philips lacks the competencies and innovation culture to fully utilize these technologies and add value as a result of preexisting limitations.