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RESEARCH ARTICLE   (Open Access)

Managing Digital Transformation: A Project Management Perspective

Kh Maksudul Hasan1*

+ Author Affiliations

Business and Social Sciences 2 (1) 1-8 https://doi.org/10.25163/business.2110531

Submitted: 03 January 2024 Revised: 02 March 2024  Published: 10 March 2024 


Abstract

Background: Organizations must now use digital transformation as their core strategy to reach better operational efficiency and market competitiveness and drive innovation. Multiple organizations have implemented digital transformation programs but many projects fail because organizations lack proper leadership and their change management strategies and team capabilities and technology readiness and project planning are inadequate.

Methods: The study used a questionnaire survey from 2024 to study 275 American professionals who worked on digital transformation projects in IT; Technology and Banking; Finance and Public Sector and Manufacturing and Service. The study used descriptive statistics and correlation analysis and multiple regression and percentage contribution analysis to project management variables impact transformation success. We selected a significance level of p = 0.05 for their statistical tests.

Results: The study found Leadership Support to achieve the largest effect size in digital transformation achievement with a correlation coefficient of r = 0.71 which accounted for 27% of the overall results. The next most important factor was Change Management Effectiveness which showed a strong relationship with the results at r = 0.65 and explained 25% of the overall contribution. The distribution of results showed Team Capability at 20% followed by Project The main obstacles consisted of cultural resistance at 28.7%, inadequate digital abilities at 25.5%, and restricted financial resources at 22.7%.

Conclusion: Leaders together with organized change management systems and skilled teams drive digital transformation success while technology functions. Organizations which focus on leadership development and employee engagement and remove essential obstacles will establish long-term success.

Keywords: Change management, project management, digital transformation, team capability, leadership support

1. Introduction

Digital transformation functions as a vital organizational approach which helps businesses stay competitive while boosting operational performance and developing new offerings in the current fast-paced technological environment. The process of digital transformation requires companies to implement digital technology across their complete operations which results in fundamental changes to operational methods and business structures and workflow systems (Nadkarni & Prügl, 2020). Organizations understand that digital transformation success requires both technology implementation and leadership excellence and team competence and change management systems and strategic planning (Yeow et al., 2017). The United States companies have started official digital transformation initiatives at a rate of 68 percent according to current survey data which demonstrates the rising need for technology integration to enhance business operations and customer service quality (Li et al., 2017). Digital transformation initiatives have become widely used throughout organizations yet most transformation projects fail to achieve their defined business outcomes. Industry reports indicate that approximately 40% of digital transformation initiatives fail to achieve their planned results because of organizational cultural resistance and insufficient staff abilities and poor planning and unprepared technological systems (Matt et al., 2015). Organizations need to study both positive factors and negative elements which influence digital transformation success based on these study results. Study shows that human elements together with process factors including leadership backing and change management success determine project results more than technology does (Chanias et al., 2018).

The success of digital transformation initiatives depends on project management practices as their fundamental operational framework. The leadership team gives direction through its support which drives staff members while connecting organizational goals to transformation targets (Iivari et al., 2020). The effectiveness of change management reduces resistance through active participation and communication methods and Team Capability guarantees that staff members possess required technical competencies and teamwork skills for successful project execution. The framework and infrastructure necessary to support these initiatives stem from Project Planning Quality and Technology Readiness (Hinings et al., 2018). The evaluation of these elements enables organizations to distribute resources effectively while creating digital transformation plans which reach enduring success. Organizations experience different obstacles when they execute their transformation plans. Multiple factors including cultural resistance and insufficient digital skills and outdated systems and restricted financial resources and poor department coordination block project achievement (Wang et al., 2019). An integrated approach that unites people with process and technology elements stands as the essential solution to handle these problems. Research evidence shows organizations that put money into leadership development and employee training and process improvement reach better results with their digital projects. The results from USA-based studies show that more than 55% of organizations consider leadership and structured change management to be the key factors for successful transformation which proves that human elements and process management should work together with technology (Naidoo, 2010).

The study focuses on project management elements affect digital transformation achievements within organizations based in the United States during 2024. The study evaluates Leadership Support along with Change Management Effectiveness and Team Capability and Project Planning Quality and Technology Readiness affect digital transformation success rates. The study method identifies major obstacles which organizations face during implementation and offers solutions to overcome these challenges. The study employs quantitative analysis together with survey data from 275 active digital professionals to identify main drivers and barriers for digital transformation in modern organizations.

2. Materials and Methods

2.1 Study Design

The study used a cross-sectional quantitative design to study which elements lead to successful digital transformation in organizations throughout the United States during 2024. A structured questionnaire-based survey collected data from professionals who worked on digital transformation initiatives (Engert et al., 2015). The study analyzed five essential project management factors which included leadership backing and change management success and team abilities and project planning excellence and technological readiness. The cross-sectional design enabled to measure relationships between variables at a single point in time (Singh et al., 2021). The study method provides a current view of digital transformation practices which allows data-driven investigation of organizational success factors and barriers across different business sectors.

2.2 Population and Sampling

The population consisted of professionals actively participating in digital transformation projects within IT; Technology, Banking; Finance, Public Sector, Manufacturing, and Service & Education sectors in the USA. We used purposive sampling to pick people who worked on digital initiative planning and execution and management. The survey collected responses from 275 participants who worked at different career levels including beginning and intermediate stages to obtain a range of viewpoints. The sampling approach ensured sufficient statistical power for descriptive and inferential analyses. The method gathered trustworthy operational knowledge from professionals who worked with modern digital transformation strategies in various business sectors.

2.3 Data Collection Instrument

A structured questionnaire which uses a five-point Likert scale from strongly disagree (1) to strongly agree (5) served as the data collection instrument. The instrument contains four main sections which focus on demographic information and project management variable assessment and organizational obstacles and digital transformation achievement evaluation (Islam, 2022). Leadership Support items evaluated top management guidance and strategic direction, while Change Management Effectiveness assessed structured communication and employee engagement processes (Mok et al., 2014). The assessment of Team Capability includes technical skills assessment as well as teamwork evaluation and problem-solving abilities. Project Planning Quality focused on resource allocation and workflow design, and Technology Readiness evaluated digital infrastructure and tool availability. The instrument underwent a pretest evaluation during early 2024 which produced Cronbach’s alpha values between 0.78 and 0.89.

2.4 Data Collection Procedure

The study data collection took place during four weeks in 2024 through online surveys which targeted professional individuals throughout the United States. The study objectives were presented to participants before they gave consent to participate in the questionnaire. The follow-up reminders helped achieve a high response rate which produced 275 valid responses. The analysis process started with screening each submission for both completeness and consistency. The online format provided fast data collection and standardized data entry which allowed study across many different locations. The method enabled participants to participate in digital transformation projects which generated dependable information about organizational success factors and actual barriers encountered in business settings (Nashid et al., 2023).

2.5 Data Descriptive Statistics Analysis

The survey data received coding before SPSS analysis generated descriptive statistics and correlation results and regression models to study project management variables affect digital transformation success. Python programming with libraries such as pandas, was used for advanced data visualization, trend analysis, and percentage contribution calculations (Islam & Biswas, 2023). The study used percentage contribution analysis to determine the influence of each predictor on digital transformation success. The study established statistical significance through a p-value threshold which stayed below 0.05 (Pencarelli, 2019). The reliability and construct validity of the study received confirmation through Cronbach’s alpha and exploratory factor analysis. The combination of SPSS with Python allowed for complete statistical analysis and quick data handling and advanced visualization of intricate data connections (Bond et al., 2018).

2.6 Ethical Considerations

The study followed all required ethical guidelines which protect human subjects during study investigations. The study study operated through voluntary participation because all participants needed to provide written consent before they could join. The method protected participant privacy because it removed personal data from the responses yet it did not gather any identifying information (Toor & Ogunlana, 2009). The participants were told they could stop participating at any moment without facing any penalties. The data was stored in a secure manner which allowed researchers to use it exclusively for their scientific investigations. The study maintained ethical standards which produced reliable results that organizations in the United States can apply to their operations (Melnyk et al., 2013).

3.Results

3.1 Demographic Profile of Respondents

The study included 275 participants who brought different professional expertise from various backgrounds which relate to digital transformation projects. The total demographic breakdown of the participants. The sample consisted of 62.5% male and 37.5% female participants which shows a moderate gender imbalance yet matches the usual workforce distribution for technology-based project roles in Table 1. The age distribution shows that 46.2% of participants belong to the 31–40 age group while 34.2% fall into the 20–30 age range which indicates that digital transformation activities attract both early-career and mid-career professionals. The group of respondents between 41 and 50 years old made up 19.6% of the sample which shows experienced managerial and supervisory personnel. The distribution of participants followed a sector-based pattern which matched the main business sectors that implement digital transformation. The survey results show that IT; Technology (28%) makes up the largest segment followed by Banking; Finance (21.1%), Public Sector (18.2%), Manufacturing (16%), and Service; Education (16.7%). Digital transformation operates through multiple sectors which demonstrate that organizations outside technology-centric businesses need to treat it as a fundamental business goal. The study results become more reliable and applicable to different groups because of the diverse demographic characteristics of the participants (Chowdhury et al., 2023).

3.2 Descriptive statistics of significant project management variables

The descriptive statistics of the major project management variables among 275 respondents. The data show that Leadership Support had the highest average score at 4.10 with a standard deviation of 0.68 in Table 2, indicating that most organizations provide strong leadership during digital transformation initiatives. The average score for Change Management Effectiveness reached 4.02 with a standard deviation of 0.64 which demonstrates successful communication and employee participation and organized change management systems. Project Planning Quality received an average score of 3.92 with a standard deviation of 0.61 which shows acceptable planning methods that need further enhancement. Team members demonstrate adequate competence through their Team Capability score of 3.85 and their score distribution of 0.57 but they should acquire more skills. The organizations struggle to overcome their limited digital infrastructure and integration issues which leads to the lowest scoring area in Technology Readiness with an average score of 3.78 and a standard deviation of 0.72. Organizations reached positive results through their digital transformation initiatives which resulted in an average score of 4.06 and a standard deviation of 0.59.

3.3 Percentage contribution of predictors to digital transformation success

The percentage contribution of key project management variables toward digital transformation success. Leadership Provision arisen as the most powerful factor, contributing 27% to overall achievement in Figure 1. The data shows that digital projects need strong leadership and clear direction and active support from top management to succeed in reaching organizational goals. The results show that structured change management practices which include both communication and employee participation result in 25% of total benefits because they help organizations reduce resistance and achieve successful transitions. The team capability factor helped 20% of teams reach their digital project success because it shows that teams need to work together with skilled personnel for project completion. Project Planning Quality received a 14% rating which indicates that planning remains essential however it produces less influence than leadership and change management do. The results show that modern system access and digital infrastructure availability leads to 11% of project success yet it proves less important than human and organizational elements.

3.4 Major challenges in digital transformation projects

The significant obstacles which organizations encounter during digital transformation projects appear in Figure 2 as normalized percentages that add up to 100%. The most important barrier which stands out as the main challenge because it accounts for 28.7% of all difficulties. The most difficult part of this process requires transforming employee mindsets while managing organizational opposition to change and mastering new operational procedures. The second most important challenge stands at 25.5% which shows organizations must create training programs and skill development initiatives to teach digital competencies for project success. The limited budget represents 22.7% of the total because organizations need enough money to purchase technology and tools and hire staff for digital projects. The data shows that 19.9% of projects face difficulties because they use outdated legacy systems which create integration problems and slow down project completion. The data shows that 16.7% of problems result from poor interdepartmental coordination which proves that insufficient department collaboration leads to workflow interruptions and decreased operational efficiency.

3.5 Strategic success factors in digital transformation projects

The percentage distribution shows how essential elements affect the success of digital transformation projects. Leadership Support emerged as the leading factor because it delivered 27% of the total influence which shows leadership direction and employee motivation and digital initiative alignment with organizational goals drive success according to Figure 3. The results show Change Management Effectiveness at 25% which proves that organizations need structured processes and effective communication and employee engagement to minimize resistance and achieve successful project implementation. The percentage of 20% for Team Capability indicates that teams which work well together and have the right skills perform digital initiatives successfully. Project Planning Quality reached 14% which shows that detailed planning continues to matter although its impact stands below that of leadership and change management. The results show that Technology Readiness contributes 11% to success which means modern digital tools and infrastructure backing outcomes doesn't have the same impact as human and process elements. The findings show that people and process elements serve as the main drivers for digital transformation success while technology functions as a supporting element to reach project goals (Islam et al., 2023).

4. Discussion

The study examined various elements which affect digital transformation achievement throughout different business sectors by studying project management elements together with strategic enabling factors. The study group included various working professionals who were 62.5% male and 37.5% female and most participants were between 31 and 40 years old at 46.2% followed by 20 to 30 years at 34.2%. Digital transformation projects require employees at different career stages to succeed in their implementation. The data shows that digital transformation stands as a core business objective through multiple sectors which include IT; Technology at 28%, Banking & Finance at 21.1%, Public Sector at 18.2%, Manufacturing at 16%, and Service; Education at 16.7%. The study obtained high external validity through its broad sample which allows findings to extend to various populations (Rahman et al., 2023). The analysis of key project management variables showed that Leadership Support received the top rating at 4.10 and Change Management Effectiveness followed closely at 4.02. The evaluation results presented Project Planning Quality at 3.92 and Team Competence at 3.85 and Technology Willingness at 3.78. The overall Digital Transformation Achievement score was 4.06, indicating normally positive consequences. The findings show that leadership together with organized change management stands as the main factor for digital transformation success but planning and team capability and technological readiness serve as supporting elements (Serrador & Pinto, 2015).

Strong leadership ensures strategic direction, motivation, and alignment of initiatives with organizational objectives, whereas structured change processes reduce resistance and enhance employee engagement. The study investigated all variables which influence achievement levels during organizational change initiatives (Brydeet al., 2013). The study shows that leadership support creates of the success rate while change management effectiveness produces 25% of the success rate which proves both elements maintain essential influence for initiative guidance and team dedication. The results demonstrate that 20% of project success depends on having skilled teams who can work together effectively. The study shows that Project Planning Quality contributes 14% and Technology Readiness contributes 11% to project success rates which means planning and infrastructure have a lesser impact than people and process factors. The study shows that successful transformation depends on human and organizational elements instead of technological advancement. Multiple obstacles emerged during the study which stopped digital transformation from progressing (Loorbach & Rotmans, 2009). The main obstacle to digital transformation success proved to be cultural resistance because it affected 28.7% of organizations but digital skills deficiencies affected 25.5% of organizations. Budget restrictions together with outdated technology systems and inadequate communication between teams resulted in 22.7% and 19.9% and 16.7% respectively. The obstacles show that organizations need to develop complete solutions which handle both human and technological elements (Legner et al., 2017). Organizations need to spend money on employee education while building leadership skills and creating an innovative workplace environment and enhancing teamwork to overcome these barriers (Mir & Pinnington, 2013).

The statistical analysis validated the predictive power of leadership and change management and team capability through correlations that ranged from 0.55 to 0.71 and standardized effects between 0.14 and 0.34. The study demonstrates that Leadership Support and Change Management Effectiveness serve as the main success indicators which prove that human elements and process elements matter more than technological readiness (Eller et al., 2020). Technology functions as a necessary tool which helps leaders achieve better results in planning and team performance and leadership effectiveness. The study shows that sustainable digital transformation requires leadership and structured change management and team capability with planning and technology serving as supportive elements. Organizations require immediate solutions to handle their cultural resistance and skill gaps and budget limitations and coordination issues (De et al., 2020). Organizations will achieve better digital transformation success through these essential enablers and barrier removal strategies which boost their ability to start and maintain digital transformation projects throughout different industries (Lin & Chen, 2012).

 

5. Conclusion

The study shows that digital transformation success depends mainly on leadership and organized change management and team capability development while planning and technology work as supportive elements. Leaders show strength create strategic direction which motivates teams to achieve organizational goals and effective change management practices help employees connect with organizational changes. The project needs to overcome four major obstacles which include cultural resistance and skill gaps and budget constraints and poor coordination to achieve long-lasting results. Organizations from various sectors need to focus on human and process elements together with sufficient technology support to improve their digital transformation success rates.

Author Contributions

K. M. Hasan contributed to the conception, study design, data collection, statistical analysis, interpretation of results, manuscript drafting, and final approval of the submitted version.

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