Managing Digital Transformation in Operations

Choose an organisation you are familiar with.

It could be the company you are working in, had worked for or based on research. The company can be a commercial company, a public agency or a non-profit organisation.

Let’s call this Company A.

Question 1

Question 1a

Provide a background of Company A, the specific industry it is operating in, its business activities and its target customer base.

Question 1b

Using the Value Chain Analysis or other appropriate tools:

• assess the current operations management of this company.
• identify its core operations and level of digital implementation.

Please state your reasons for above.

Question 1c

Using the DAS Framework by Robert N. Boute and Jan A.V. Mieghem, appraise the current position of the Company A’s core operations within this framework.

Justify your appraisal in terms of levels of automation and smart process control.

Question 2

Now that you have baseline the level of digitalisation of Company A’s operations.

Please evaluate the effects of digitalisation of Company A’s core operations in terms of:

• improving quality,
• scaling up capacity, and
• accelerating throughput.

Note: Do define how quality is presently defined, measured and what would constitute quality improvement.

Question 3

Next, we need to correlate operational performance improvements to tangible financial outcomes.

Based on your evaluations in Question 2.

Please estimate the impact of digitalisation on Company A’s financial performance. You may make reasonable assumptions in deriving this estimate.

Question 4

Question 4a

Recommend a plan (roadmap) for Company A’s digital transformation, or improvements in its current digital transformation initiatives (if company A has already embarked on digitalisation of its operations)

Question 4b

Propose a business case for new disruptive trends and/or technologies to support your:

• digital transformation recommendation or- improvement to existing initiatives in Question 4a.

This business case should be derived and justified from:

• The As-Is operation management identified in Question 1 – the operational performance improvements evaluated in Question 2. – the improved financial performance estimated in Question 3.

Expert Answers on Above Questions on Digital Transformation

Background of company A

Company A is a Singapore based technology company that is operating as a food delivery business across the Financial Service industry in South East Asia. The industry operates in platform based digital services, mobility and food delivery, and Fintech. The business activities of the company includes ride hailing, food delivery, digital payments and financial services. The company primarily targets urban consumers, SMEs and merchants and drivers and delivery partners. The company is known for serving mass market consumers that are looking for convenience, affordability and digital accessibility.

Value chain analysis

The core operations of the company includes platform development and maintenance, management of partnership with drivers, order matching algorithm, and payment processing. The current operations are based on high volume of data, centralised digital platform and real time tracking and Analytics. The level of digital implementation in the case is a fully digital order processing system, and AI based forecasting is utilised and it is supported with an automated payment system.

DAS Framework

The code operations of company A is based on a high level of automation and smart process control. It is highly justified because the operation is largely supported on the basis of algorithm based ride matching, AI demand surge pricing, automated fraud detection, and optimisation of the route on a real time basis.

Effects of digitalisation

Digitalisation enhances the quality of services as it allows the company to deliver on time service according to customer requirements, improving their overall reliability on the application. The measurement of performance can be analysed using rating scores, complaint rate and cancellation rate. Quality improvement is accomplished in terms of aI supporting the reduction of waiting time, and also allows for real time tracking which improves transparency.
Scaling capacity – it is possible to perform expansion by utilising cloud infrastructure which supports more users, ensuring digital on boarding of drivers and platform scalability without physical expansion.
Accelerating throughput – the idle time can be reduced through automated dispatch and transaction delays can also be reduced with integrated payments.
Estimated financial impact – The digital optimization will help in improving the ride allocation by 10% atleast and reduction in cancellations by 5% at least. It will ultimately contribute towards improved revenue because of higher ride volume.

Digital transformation road map

The process needs to be carried out in stages whereby Phase 1 includes enhancing AI predictive Analytics, and phase 2 includes expansion of automation in customer service. The phase 3 includes integration of advanced risk scoring models and finally, the Phase 4 includes sustainability Optimisation.

Business keys for new disruptive technology

The most appropriate technology is generative AI and advanced machine learning because it allows for complete intelligence of services, improved quality, financial gains and possibility of achieving competitive advantage.

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