E-ISSN: 2963-3699
P-ISSN: 2964-0121
Homepage: Homepage: https://return.publikasikupublisher.com
This work is licensed under CC BY-SA 4.0
DIGITAL TRANSFORMATION IN BUSINESS MANAGEMENT:
OPPORTUNITIES, CHALLENGES AND IMPLICATIONS
Ratnawita
STIMA IMMI Jakarta, Indonesia
ABSTRACT
This research aims to analyze about digital transformation driven by rapid technological advancements
that have revolutionized the global business landscape in business management. With the digital
transformation of the business world, of course, there are opportunities and challenges faced by
companies, whether small, medium or upper scale companies. The research method used in this study
is an analytical descriptive method using literature studies (Libaray Research) which is associated with
the phenomena that occur. Les résultats de cette étude montrent que la transformation numérique qui
peut ouvrir de nouvelles opportunités pour accroître l’efficacité, l’innovation et l’accès au marché dans
l’industrie, avec la numérisation, affectera la gestion des entreprises. Il y a deux influences, à savoir les
opportunités et les défis, tandis que les opportunités sont de faciliter l’accès rapide, les services, les
marchés, de réduire les coûts de production et peuvent être largement connus. Le défi réside dans les
installations, les politiques et les ressources humaines qui ne sont pas prêtes.
Keyword: Transformation; Digital; Management; Business
INTRODUCTION
The development of technology and digital transformation (digitalization) has affected
various sectors of life. Almost all business sectors almost all business sectors are required to
follow the digital trends that are currently developing. Digital transformation is now a business
model that is currently being integrated with technology.
Digital disruption, triggered by rapid advances in technology, has revolutionized the
global business landscape over the past few decades. (Chusumastuti, Elisabeth, Suryadharma,
Sinaga, & Takumi, 2023). In today's digital era, technology has changed many aspects of human
life, including in the fields of economics and business (Ardiansyah, 2023). This digital
transformation affects every sector, be it small businesses to large corporations, as well as
governments and the general public. The rapid and growing development of technology has
brought great impact in various aspects of human life, including in the economic and business
fields.
But behind the ease of digitalization in the business world, it also has challenges that need
to be overcome. transformation in this digital era will also make management unsteady. as a
result, massive layoffs threaten the industrial world. This will affect the business world and
business management.
About 70 percent of digitization processes in companies end up failing. In addition to the
workforce not being ready to become operators of sophisticated tools, management is not
necessarily ready to make these changes (Adha, 2020). Digital transformation will affect the
competitiveness of micro and small businesses (Firmansyah, Saepuloh, & Dede, 2022). In the
face of technological advances and global competition, companies must be able to manage their
assets, including digital innovation capabilities that keep up with the times (Saepulloh & Susila,
2021).
Enterprises are increasingly adopting opportunities such as analytics, big data, cloud,
social media and mobile platforms in an effort to build a competitive digital business strategy.
(Kurniawan, Rahayu, & Wibowo, 2021). Digital transformation is both an area of opportunity
and challenge (Latifah & Ngalimun, 2023). The digital transformation process is complex,
difficult and high-risk. Failure can be costly to the organization as it requires huge investments
in material and human resources (Oktaviani et al., 2023).
Therefore, digital technology in management and accounting is required to improve its
performance (Fauzi, Leni Rahmayana, Ika Wulandari, & Bagus Hari Sugiharto, 2023). To
Digital Transformation in Business Management: Opportunities, Challenges and Implications
963
Return: Study of Management, Economic And Business, Vol 2 (9), September 2023
ensure the momentum of digital transformation continues, it needs to be managed properly.
(Prihanto, 2018). Digital transformation has become a global trend that affects all aspects of
human life. In Indonesia, digital transformation acceleration policies can accelerate economic
growth, especially in the creative economy sector.(Bangsawan, 2023).
The digital economy in Indonesia can indeed bring many positive impacts, but this is also a
challenge for the government in making policies. The development of the digital economy can
enable the emergence of new business models, integration between business sectors, and
changes in business models in existing sectors.
Previous research studies only cover a broad discussion and are still limited, especially those
that examine the importance of digital in carrying out their business activities. Thus this study
aims to determine the digital transformation of business management in its opportunities and
challenges to anticipate the impact of digitalization in a positive direction.
RESEARCH METHOD
This research is also a qualitative research using library research. The method of this
research uses descriptive analytical method, namely by describing the phenomena that occur as
a result of the times. With this method the author gets a clear understanding of the opportunities
and challenges faced by the business world with the transformation of digitalization, due to
technological developments. This is certainly very impactful on the business management of a
company, both macro and micro companies.
The literature reviewed in this research are books on digital journalism. The collection
method used in this library research is collecting documentation in the form of journals, books,
transcripts, other records related to organizational communication and leadership (Fauzi, 2021).
Meanwhile, data validity techniques are needed to obtain valid data by checking. In this
study, the triangulation used is data source triangulation. Triangulation of data sources, which is
done by looking for data from many data sources, namely literature reviews that have a
relationship with digital, as the research context.
RESULT AND DISCUSSION
Digitalization Transformation in Business Management
Information dissemination has undergone major changes with the development of digital
technology. The development of digital technology has a major impact on the industry (Fauzi,
2021). Digital innovation in general and the digital economy in particular certainly have an
impact on economic activity. (Harahap, Paundralingga, Cinditya, & Kusuma, 2018).
Digitization and digitalization emphasize technology, while digital transformation has
more to do with overall strategy and business models. Digital transformation is the action taken
by organizations to stay adapted to emerging and spreading digital innovations in the external
environment. (Bangsawan, 2023)
According to Gartner IT Glossary, digitization is the process of changing from analog to
digital form. While Hess et al. (2016), and Horváth and Szabó (2019) view process automation
through information technology as digitization. (Putri & Hariyanti, 2022). Digital business
transformation is an objective process that responds to changes in the business environment.
(Firmansyah et al., 2022). Digital transformation is the use of digital tools in all areas of an
organization to change the way they operate for the better. (Larasati, Havidz, Atmaja, & Fadli,
n.d.). digital transformation is a crucial step to achieve success in the face of technological
change (Harto et al., 2023).
The main goal of digital transformation is to redesign the organization's business through
the introduction of digital technologies and beneficial achievements, such as productivity, cost
reduction, and increased innovation. Digital transformation leads to the functional use of the
internet in designing, creating, selling, displaying, and data-driven modeling management.
(Sukarmi, Kurniaty, Dewantara, & Ikaningtyas, 2021). Digital transformation can be defined as
the integration of digital technologies into all aspects and operations of an organization, which
in turn leads to infrastructural changes in the way the organization is operated and delivers
Digital Transformation in Business Management: Opportunities, Challenges and Implications
964 Return: Study of Management, Economic And Business, Vol 2 (9), September 2023
value to its customers. (Putri & Hariyanti, 2022).
Facing the digital era, among the various capabilities required is the ability to design and
present new business models. (Prihanto, 2018). The application of digital technology
encourages organizations to have new capabilities so as to improve system performance
(Panjaitan, 2023). However, to benefit from digital transformation, companies need to align
information technology in their business strategy and also have adequate capabilities.
The role of digitization in procurement, and its role in the field of supply chain
management, explores potential barriers to procurement and supply chain digitization, and ways
to overcome them. (Putri & Hariyanti, 2022). Digitalization helps the business planning process
Flexible production and management planning in response to market needs (Latifah &
Ngalimun, 2023).
In adopting technology, companies must identify these challenges and take appropriate
action to overcome them. In many cases, this requires a well-thought-out strategic plan, support
from management, and collaboration with technology experts and providers (Ardiansyah,
2023).
Adapting to change is a very important necessity in today's business world. Here are
some reasons why adapting to change is important:
a. Change is Constant, Change is a part of life and also the business world. Businesses
that are able to adapt quickly to change have a huge competitive advantage.
b. Increased Efficiency, Adapting to change can help companies improve their efficiency
and productivity. New technologies, new processes, and new strategies can help
companies achieve their goals in a more effective way.
c. Innovation, adapting to change can trigger innovation. When companies continuously
adapt to technological and market developments, they can find new ways to meet
customer needs and increase the value of their products or services.
d. Competing in the Global Market, adapting to change can help companies to compete in
the global market. Businesses that can adapt quickly to changes in the global market
have a greater competitive advantage and can win a wider market share, Opening New
Opportunities, Adapting to change can open up new business opportunities.
Thus, in the era of the digital economy, digitization is now a strategic management issue
for companies rather than a technical issue Companies can find new opportunities in emerging
markets or find new opportunities in the market. (Kementrian Komunikasi dan Informasi,
2019). Each digital transformation strategy has differences in its implementation. This is due to
the different needs and conditions in each organization, so the implementation of digital
transformation has many variations. (Oktaviani et al., 2023). This information can be used to
identify areas for improvement and make adjustments to the business strategy. (Fauzi et al.,
2023).
At the organizational level, it is argued that companies should find ways to innovate with
these technologies by devising a "strategy that embraces the implications of digital
transformation and drives performance". (Kurniawan et al., 2021). For this reason, companies
must have a cohesive strategy to integrate digital and physical elements in order to transform
their business model and set the direction for the entire industry. (Prihanto, 2018).
Some strategies that companies can do to be more effective and faster in carrying out
digital transformation:
1. Not only the provision of technology facilities, training on technology adoption should
be conducted continuously.
2. Must follow online marketing trends. Among them, WhatsApp is used by almost all
Indonesian respondents and the percentage of TikTok users consistently and
significantly increases from year to year, even Tiktop is a popular marketing media in
Indonesia during 2022.
3. Information literacy of government programs must be increasingly socialized because
Digital Transformation in Business Management: Opportunities, Challenges and Implications
965
Return: Study of Management, Economic And Business, Vol 2 (9), September 2023
one of the obstacles to digital transformation is cost. in addition to digital literacy that
continues to be carried out to support the quality of human resources.
4. To reach the global market, we must start entering Global E-Commerce which is
widely used by the global community. In addition, improvements in product quality
according to export standards must continue to be carried out so that local products
have global competitiveness.Penggunaan strategi digital untuk mendukung strategi
bisnis, sekarang digunakan sebagai rasa kebutuhan antara bisnis dan strategi digital.
Fase penyelarasan strategi digital ini bila tercapai, dapat mengantisipasi tanda-tanda
perubahan yang terjadi di dunia bisnis dengan cepat, dan menjadi inovasi untuk
perusahaan kecil maupun perusahaan besar dalam mengembangkan usahanya.
Teknologi digital telah menciptakan penerapan strategi model bisnis yang memberikan
manfaat besar kepada para pelaku usaha.
5. Digital Transformation in Business Opportunities and Challenges
Digital business transformation is an objective process that responds to changes in the business
environment.(Firmansyah et al., 2022). Stakeholders can navigate the challenges and capitalize
on the opportunities presented by digital disruption, ultimately contributing to economic
transformation and sustainable development. (Chusumastuti et al., 2023).
Various opportunities that can be utilized in the development of the creative economy in
Indonesia through digital transformation acceleration policies (Bangsawan, 2023). Today,
Indonesia still has great opportunities to increase the utilization of digital technology in various
aspects of life, but there are also many challenges. Creative economy opportunities and
potential: This phenomenon covers the growth potential and opportunities that the creative
economy sector in Indonesia has in the context of digital transformation. This includes
improved global market access, increased product and service innovation, and expanded reach
and distribution through digital platforms.
The potential of technologies that enable digitization and facilitate digitization plays an
important role in the context of digital transformation. Today, products are manufactured with
mechanical and electronic components and represent complex systems that allow for the
interconnectedness of hardware, software, and data storage. This makes products more
intelligent and interconnected. In addition to products, new business models require services,
processes, and value chains to be digitized.
For companies whose success was achieved pre-digital, digital technology represents an
opportunity for change. Digital transformation not only provides opportunities to empower staff
and improve operations, but also has the potential to make managing staff more challenging.
(Panggabean. A. N, 2021).
Digital transformation opens up new opportunities in the field of information technology.
The curriculum of the new study program is structured to include areas of digital transformation
such as cloud computing, big data, AI and machine learning. This is supported by research
conducted by Smetanina and friends, that digital transformation opens up opportunities in the
field of information technology. (Marwati, Wahyudin, Utomo, Iza, & Halwa, 2021).
Some of the steps that companies can take to achieve their goals are:
1. Awareness and Commitment from Leadership: Company leaders must be the key
drivers of digital transformation. They must realize the importance of digital
transformation, be committed to it, and set an example for the rest of the organization.
2. Education and Training: Educating and training all employees on the benefits and goals
of digital transformation is an important step. This will help them understand the
changes that will occur and reduce resistance to change.
3. Building a Culture of Innovation: Changing the company culture to be more innovative
is key in digital transformation. Allowing room for experimentation and failure, quickly
celebrating innovative achievements, and rewarding new ideas are ways to build a
Digital Transformation in Business Management: Opportunities, Challenges and Implications
966 Return: Study of Management, Economic And Business, Vol 2 (9), September 2023
culture of innovation.
4. Open and Transparent Communication: Open and transparent communication about
digital transformation plans, challenges faced, and expected benefits will help address
employee concerns and confusion.
5. Collaboration Between Teams and Departments: Encouraging collaboration between
teams and departments will facilitate the exchange of ideas and knowledge. This will
help solve complex problems and drive adoption of digital solutions across the
organization. 6. Strengthen Flexibility and Responsiveness: The corporate culture
should encourage flexibility and responsiveness to market and technology changes.
This allows the company to be more agile (Tahir. Et.all, 2023).
By applying these best principles, organizations can minimize risks and increase the
chances of success in integrating technology and business processes. tegrating technology and
business processes.It is important to understand that every organization has unique needs and
challenges, so adapting these principles to the business context is key. Digitalization. This
brings new challenges for businesses, in the not-too-distant future as market needs accelerate.
This can be interpreted as providing benefits or challenges to the companies that run the
business.
1. Digital transformation faces several challenges, namely: Culture, culture, habits
Culture, culture or often called habits is the first challenge when organizations will
carry out digital transformation, because there are habits and comforts that will be lost.
One way that must be done to anticipate it is by open socialization, including
conducting training and improving HR competencies.
2. Policy still addresses macro matters. There are differences in policy levels ,
3. Resistance to change Change is triggered by technological developments as the main
driver. Adaptation to technology is not without constraints but business processes must
follow technological developments. To suppress or even eliminate resistance, it is
necessary to do things such as planning for change, socializing change, involving staff
in the change process, and setting an example by superiors in implementing change.
A key challenge facing companies is the optimal combination of physical and digital resources
to create value for their customers. Companies that manage this process effectively can achieve
an advanced competitive advantage by improving customer experience, optimizing commercial
and logistics processes, and generating new business models. (E. Martinelli. G. Tagliazucchi
and G. Marchi, 2018).
With digital leadership competencies, you have the ability to decide direction, influence
and have the ability to influence and be proficient in building relationships in anticipating the
challenges of changes in the business environment faced by the organization. (Noki, Ukkas,
Goso, 2023). This condition is an extraordinary challenge, where the flexibility of structure and
management must be supported by fast adaptability.
But whatever the obstacles and challenges, the commitment of all parties is needed to
create a digital organization. A question that must be answered: "Do we not want to change for
a good result". In addition to utilizing information technology, there are many non-technical
things that must be done in building a digital organization, including the challenges that must
be faced. The urgency of these emerging challenges must be acted upon immediately.
CONCLUSION
Based on the statistical analysis previously described, it can be concluded that digital
transformation can open up new opportunities to increase efficiency, innovation, and market
access in the industry, with digitalization will affect business management. There are two
influences, namely opportunities and challenges, while the opportunities are to facilitate fast
access, services, markets, reduce production costs and can be widely recognized. The
challenges are infrastructure, policies and human resources that are not ready, as well as
Digital Transformation in Business Management: Opportunities, Challenges and Implications
967
Return: Study of Management, Economic And Business, Vol 2 (9), September 2023
negative influences that can affect the business world, due to the interests of someone who is
not responsible.
REFERENCES
Adha, Lalu Adi. (2020). Digitalisasi Industri Dan Pengaruhnya Terhadap Ketenagakerjaan Dan
Hubungan Kerja Di Indonesia. Journal Kompilasi Hukum, 5(2), 267–298.
https://doi.org/10.29303/jkh.v5i2.49 Google Scholar
Ardiansyah, Wildan Mahendra. (2023). Peran Teknologi dalam Transformasi Ekonomi dan
Bisnis di Era Digital. JMEB Jurnal Manajemen Ekonomi & Bisnis, 1(1). Google
Scholar
Bangsawan, Gema. (2023). Kebijakan Akselerasi Transformasi Digital di Indonesia: Peluang
dan Tantangan untuk Pengembangan Ekonomi Kreatif. Jurnal Studi Kebijakan Publik,
2(1), 27–40. https://doi.org/10.21787/jskp.2.2023.27-40 Google Scholar
Chusumastuti, Dhety, Elisabeth, Christine Riani, Suryadharma, Mochamad, Sinaga, Dorthy
Ellyany, & Takumi, Politeknik. (2023). Gangguan Digital dan Transformasi Ekonomi :
Menganalisis Dampak E-commerce terhadap Industri Tradisional. Jurnal Ekonomi Dan
Kewirausahaan West Science, 1(03), 173–185. Google Scholar
E. Martinelli. G. Tagliazucchi and G. Marchi. (2018). The resilient retail entrepreneur: dynamic
capabilities for facing natural disasters. Int. J. Entrep. Behav. Res., vol. 24, no. 7, pp.
1222–1243, doi: 10.1108/IJEBR-11-2016-0386. Google Scholar
Fauzi, Leni Rahmayana, Ika Wulandari, & Bagus Hari Sugiharto. (2023). Mengapa Digitalisasi
Akuntasi Harus di Lakukan Pada Perusahaan UMKM : Sebuah Tinajaun Pustaka.
Jurnal Aktiva : Riset Akuntansi Dan Keuangan, 5(1), 43–56.
https://doi.org/10.52005/aktiva.v5i1.179 Google Scholar
Fauzi, Marhamah. (2021). Jurnalisme Di Era Digital. JICOMS: Journal of Islamic
Communication and Media Studies, 1(1), 16–37. Google Scholar
Firmansyah, Deri, Saepuloh, Dadang, & Dede. (2022). Daya Saing : Literasi Digital dan
Transformasi Digital. Journal of Finance and Business Digital, 1(3), 237–250.
https://doi.org/10.55927/jfbd.v1i3.1348 Google Scholar
Harahap, Berry A., Paundralingga, Angsoka Y., Cinditya, Anggita, & Kusuma, M. (2018).
Implikasi Makroekonomi dari Inovasi Digital: Studi Literatur. Occasional Paper, 1–50.
Google Scholar
Harto, Budi, Rukmana, Arief Yanto, Indonesia, Universitas Pendidikan, Tahir, Rusdin,
Padjadjaran, Universitas, Kom, Sepriano M., Islam, Universitas, Sulthan, Negeri, &
Saifuddin, Thaha. (2023). TRANSFORMASI BISNIS DI ERA DIGITAL ( Teknologi
Informasi dalam Mendukung Transformasi Bisnis di Era Digital ). Google Scholar
Kementrian Komunikasi dan Informasi. (2019). Perkembangan Ekonomi Digital di Indonesia:
Strategi dan Sektor Potensial. 1–68. Google Scholar
Kurniawan, Agus, Rahayu, Agus, & Wibowo, Lili Adi. (2021). Pengaruh Transformasi Digital
Terhadap Kinerja Bank Pembangunan Daerah Di Indonesia. Jurnal Ilmu Keuangan Dan
Perbankan (JIKA), 10(2), 158–181. https://doi.org/10.34010/jika.v10i2.4426. Google
Scholar
Digital Transformation in Business Management: Opportunities, Challenges and Implications
968 Return: Study of Management, Economic And Business, Vol 2 (9), September 2023
Larasati, Ikramina, Havidz, Hazrati, Atmaja, Dodi Ria, & Fadli, Jul Aidil. (n.d.). Persembahan.
Google Scholar
Latifah, Latifah, & Ngalimun, Ngalimun. (2023). Pemulihan Pendidikan Pasca Pandemi Melalui
Transformasi Digital Dengan Pendekatan Manajemen Pendidikan Islam Di Era Society
5.0. Jurnal Terapung : Ilmu - Ilmu Sosial, 5(1), 41.
https://doi.org/10.31602/jt.v5i1.10576. Google Scholar
Marwati, Arum, Wahyudin, Ade, Utomo, Ardian Setio, Iza, Noor, & Halwa, Elfa Nuzila. (2021).
Mendukung Transformasi Digital melalui Penyusunan Program Studi Software
Engineering. Jurnal Penelitian Dan Pengembangan Pendidikan, 5(3), 373.
https://doi.org/10.23887/jppp.v5i3.39242. Google Scholar
Noki, E., Ukkas, I., Goso, G., & ... (2023). Peran leadership dan collaboration dalam
mendukung digital skill pengusaha muda di era pandemi Covid-19. Jurnal Manajemen
…, 1–14. Retrieved from
http://ejournal.imperiuminstitute.org/index.php/JMSAB/article/view/577. Google
Scholar
Oktaviani, Elma, Wasono, Antonio, Prakoso, Imam, Manajemen, Mahasiswa Magister, Jakarta,
Universitas Paramadina, Manajemen, Dosen Magister, & Jakarta, Universitas
Paramadina. (2023). TRANSFORMASI DIGITAL DAN STRATEGI. 16, 16–26. Google
Scholar
Panggabean. A. N. (2021). Memahami Dan Mengelola Transformasi Digital [Preprint]. . Open
Science Framework. https://doi.org/10.31219/osf.io/s36wq. Google Scholar
Panjaitan, Wimber Jerry. (2023). Penerapan Tranformasi Digital dan Hambatannya Pada
Industri Kuliner di Indonesia. 1(2). Google Scholar
Prihanto, J. Johny Natu. (2018). Transformasi Digital Media Cetak di Indonesia: Studi pada
Industri Administratif dan Faktual Tahun 2017 oleh Dewan Pers Indonesia. ULTIMA
Management, 10(1), 26–43. Google Scholar
Putri, O. A., & Hariyanti, S. (2022). Review Artikel: Transformasi Digital Dalam Bisnis Dan
Manajemen. Proceedings of Islamic Economics …, 1(1). Retrieved from
https://jurnalfebi.iainkediri.ac.id/index.php/proceedings/article/view/229%0Ahttps://jur
nalfebi.iainkediri.ac.id/index.php/proceedings/article/download/229/176. Google
Scholar
Saepulloh, Asep, & Susila, Ela. (2021). Analisis Enterpreneur Leadership Dan Digital Inovasi
Terhadap Keunggulan Bersaing Dan Dampaknya Pada Kinerja Organisasi Dalam
Menghadapi Industri 4.0. Revitalisasi, 10(1), 39.
https://doi.org/10.32503/revitalisasi.v10i1.1658. Google Scholar
Sukarmi, Kurniaty, Rika, Dewantara, Reka, & Ikaningtyas. (2021). Re-Evaluasi Pengaturan
Mengenai Digitalisasi Usaha Mikro Kecil dan Menengah dalam Peningkatan Daya
Saing di Era Ekonomi Digital. Jurnal Magister Hukum Udayana, 10, 880–896.
https://doi.org/10.24843/JMHU.2021.v10.i04.p16. Google Scholar
Tahir. Et.all. (2023). Bisnis Digital: Strategi Administrasi Bisnis Digital untuk Menghadapi
Masa Depan. Indonesia: Sonpedia Publishing. Google Scholar
