DIGITAL TRANSFORMATION AND ORGANIZATIONAL PERFORMANCE: CHALLENGES FOR CONTEMPORARY MANAGERS

Abstract

In today's business landscape, where rapid change is the norm, the digital transformation is a strategy that needs to be part of the critical list of those who want to remain competitive and continue to perform well. The present research aims at discussing the digital transformation and its impact on the performance of the organization, particularly the challenges encountered by today's managers. The method of data collection is adopted is a quantitative research with the primary data which is the structured questionnaire that was given to 200 managers and employees. The research focuses on factors such as technology adoption, digital competence, leadership, organizational culture, employee competencies, strategic alignment and management issues. Descriptive statistics, correlation and regression analysis are done to analyze data. The results show that digital transformation has a positive impact on the performance of the organization, with at the same time resistance to change and a lack of skills and the costs of digitization and legacy systems being seen as major challenges. The study suggests four strategic recommendations: Alignment, Digital-skills, Effective leadership and Change management.