Abstract
Digital transformation (DT) describes technology-based improvements in business processes, business models, and customer experience. It promises efficiency gains for industrial enterprises. Nonprofit organizations also expect advantages from DT. However, barriers hinder realizing all its possible advantages in both sectors. If decision-makers recognize the potential barriers, they can reflect upon these challenges and take well-coordinated countermeasures. Orienting towards a Straussian grounded theory approach, a framework of barriers is developed with data of two diverse sectors: industry and nonprofit. According to the framework pre-conditions such as profit-orientation and size shape the possibilities to tackle different barriers. In general, the DT process in the industry-sector has been slowed down by barriers. Whereas, nonprofit organizations often take the view that they are not in a DT process at all. This might be due to limited individual and organizational perspectives. Especially, NPOs have to work on their recruitment of skilled volunteers to challenge this view.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Brynjolfsson, E., McAfee, A.: The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies. W. W. Norton & Company, New York (2014)
Piccinini, E., Gregory, R.W., Kolbe, L.M.: Changes in the producer-consumer relationship-towards digital transformation. In: Wirtschaftsinformatik, pp. 1634–1648 (2015)
Gandhi, P., Khanna, S., Ramaswamy, S.: Which Industries Are the Most Digital (and Why)? (2016). https://hbr.org/2016/04/a-chart-that-shows-which-industries-are-the-most-digital-and-why
Nahrkhalaji, S.S., Shafiee, S., Shafiee, M., Hvam, L.: Challenges of digital transformation: the case of the non-profit sector. In: 2018 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM), Bangkok, pp. 1245–1249. IEEE (2018). https://doi.org/10.1109/IEEM.2018.8607762
Yoo, S.-C., Drumwright, M.: Nonprofit fundraising with virtual reality. Nonprofit Manag. Leadersh. 29, 11–27 (2018). https://doi.org/10.1002/nml.21315
Zhang, W., Gutierrez, O., Mathieson, K.: Information systems research in the nonprofit context: challenges and opportunities. Commun. Assoc. Inf. Syst. 27, 1–14 (2010). https://doi.org/10.17705/1CAIS.02701
Matt, C., Hess, T., Benlian, A.: Digital transformation strategies. Bus. Inf. Syst. Eng. 57(5), 339–343 (2015). https://doi.org/10.1007/s12599-015-0401-5
Henriette, E., Feki, M., Boughzala, I., et al: Digital transformation challenges. In: Mediterranean Conference on Information Systems (MICS), pp. 1–7 (2016)
Yin, R.K.: Case Study Research: Design and Methods. SAGE, Los Angeles (2014)
Matavire, R., Brown, I.: Investigating the use of “Grounded Theory” in information systems research. In: Proceedings of the 2008 Annual Research Conference of the South African Institute of Computer Scientists and Information Technologists on IT Research in Developing Countries Riding the Wave of Technology - SAICSIT 2008, pp. 139–147. ACM Press, Wilderness (2008). https://doi.org/10.1145/1456659.1456676
Glaser, B.G., Strauss, A.L.: The Discovery of Grounded Theory: Strategies for Qualitative Research. Aldine Publication Company, Chicago (1975)
Morakanyane, R., Grace, A., O’Reilly, P.: Conceptualizing digital transformation in business organizations: a systematic review of literature. In: Proceedings of the 30th Bled eConference, pp. 427–443 (2017)
Linderoth, H.C.J., Jacobsson, M., Elbanna, A.: Barriers for digital transformation: the role of industry. In: ACIS 2018 - 29th Australasian Conference on Information Systems, pp. 1–11 (2018)
Sbarcea, I.R.: Banks digitalization - a challenge for the Romanian banking sector. Stud. Bus. Econ. 14, 221–230 (2019). https://doi.org/10.2478/sbe-2019-0017
Zaharia, S.E., Pietreanu, C.V.: Challenges in airport digital transformation. In: Kazda, A., Smojver, I. (eds.) Transportation Research Procedia, pp. 90–99 (2018). https://doi.org/10.1016/j.trpro.2018.12.016
Nambisan, S., Wright, M., Feldman, M.: The digital transformation of innovation and entrepreneurship: progress, challenges and key themes. Res. Policy 48, 1–9 (2019). https://doi.org/10.1016/j.respol.2019.03.018
Heavin, C., Power, D.J.: Challenges for digital transformation–towards a conceptual decision support guide for managers. J. Decis. Syst. 27, 38–45 (2018). https://doi.org/10.1080/12460125.2018.1468697
Parviainen, P., Tihinen, M., Kaariainen, J., Teppola, S.: Tackling the digitalization challenge: how to benefit from digitalization in practice. IJISPM-Int. J. Inf. Syst. Proj. Manag. 5, 63–77 (2017). https://doi.org/10.12821/ijispm050104
Agrawal, P., Narain, R., Ullah, I.: Analysis of barriers in implementation of digital transformation of supply chain using interpretive structural modelling approach. J. Model. Manag. (2019). https://doi.org/10.1108/JM2-03-2019-0066
Koseoglu, O., Keskin, B., Ozorhon, B.: Challenges and enablers in BIM-enabled digital transformation in mega projects: the Istanbul new airport project case study. Buildings 9, 1–24 (2019). https://doi.org/10.3390/buildings9050115
Stenholm, D., Bergsjö, D., Catic, A.: Digitalization challenges for lean visual planning in distributed product development teams. In: Bojcetic, N., Marjanovic, D., Pavkovic, N., Storga, M., Skec, S. (eds.) Proceedings of International Design Conference, DESIGN, pp. 1595–1604 (2016)
Machado, C.G., Winroth, M., Carlsson, D., Almström, P., Centerholt, V., Hallin, M.: Industry 4.0 readiness in manufacturing companies: challenges and enablers towards increased digitalization. In: Butala, P., Govekar, E., Vrabič, R. (eds.) Procedia CIRP, pp. 1113–1118 (2019). https://doi.org/10.1016/j.procir.2019.03.262
Sjödin, D.R., Parida, V., Leksell, M., Petrovic, A.: Smart factory implementation and process innovation: a preliminary maturity model for leveraging digitalization in manufacturing moving to smart factories presents specific challenges that can be addressed through a structured approach focused on people, processes, and technologies. Res. Technol. Manag. 61, 22–31 (2018). https://doi.org/10.1080/08956308.2018.1471277
Kuusisto, M.: Barriers and facilitators of digitalization in organizations. In: Budimac, Z. (ed.) CEUR Workshop Proceedings (2017)
Richter, A., Vodanovich, S., Steinhüser, M., Hannola, L.: IT on the shop floor - challenges of the digitalization of manufacturing companies. In: 30th Bled eConference: Digital Transformation - From Connecting Things to Transforming our Lives, BLED 2017, pp. 483–500 (2017). https://doi.org/10.18690/978-961-286-043-1.34
Hildebrandt, J., Kluge, J., Ziefle, M.: Work in progress: barriers and concerns of elderly workers towards the digital transformation of work. In: Zhou, J., Salvendy, G. (eds.) Human Aspects of IT for the Aged Population. Design for the Elderly and Technology Acceptance. LNCS, vol. 11592, pp. 158–169. Springer, Cham (2019). https://doi.org/10.1007/978-3-030-22012-9_12
Gramano, E.: Digitalisation and work: challenges from the platform-economy. Contemp. Soc. Sci. 15, 476–488 (2019). https://doi.org/10.1080/21582041.2019.1572919
Frick, J.E., Fremont, V.H.J., Åge, L.-J., Osarenkhoe, A.: Digitalization efforts in liminal space – inter-organizational challenges. J. Bus. Ind. Mark. 35(1), 150–158 (2019). https://doi.org/10.1108/JBIM-12-2018-0392
Baraldi, E., Nadin, G.: The challenges in digitalising business relationships. The construction of an IT infrastructure for a textile-related business network. Technovation. 26, 1111–1126 (2006). https://doi.org/10.1016/j.technovation.2005.09.016
Mendhurwar, S., Mishra, R.: Integration of social and IoT technologies: architectural framework for digital transformation and cyber security challenges. Enterp. Inf. Syst. 15(4), 565–584 (2019). https://doi.org/10.1080/17517575.2019.1600041
Rana, R., et al.: On the role of cross-disciplinary research and SSE in addressing the challenges of the digitalization of society. In: Babu, M.S.P., Wenzheng, L. (eds.) Proceedings of the IEEE International Conference on Software Engineering and Service Sciences, ICSESS, pp. 1106–1109 (2015). https://doi.org/10.1109/ICSESS.2015.7339245
Legner, C., et al.: Digitalization: opportunity and challenge for the business and information systems engineering community. Bus. Inf. Syst. Eng. 59, 301–308 (2017). https://doi.org/10.1007/s12599-017-0484-2
Majchrzak, A., Markus, M.L., Wareham, J.: Designing for digital transformation: lessons for information systems research from the study of ICT and societal challenges. MIS Q. 40, 267–277 (2016)
Huang, H., Umapathy, K.: A preliminary study of information technologies usage in non-profit organizations. In: Twentieth Americas Conference on Information Systems, pp. 1–13 (2015)
Hueske, A.-K., Guenther, E.: What hampers innovation? External stakeholders, the organization, groups and individuals: a systematic review of empirical barrier research. Manag. Rev. Q. 65(2), 113–148 (2015). https://doi.org/10.1007/s11301-014-0109-5
Glaser, B.G.: Theoretical Sensitivity: Advances in the Methodology of Grounded Theory. Sociology Press, Mill Valley (1978)
Benlian, A., Hilkert, D., Hess, T.: How open is this platform? The meaning and measurement of platform openness from the complementors’ perspective. J. Inf. Technol. 30, 209–228 (2015). https://doi.org/10.1057/jit.2015.6
Zhou, H., Ye, S.: Fundraising in the digital era: legitimacy, social network, and political ties matter in China. Voluntas 32(2), 498–511 (2021). https://doi.org/10.1007/s11266-019-00112-9
Filsinger, M., Freitag, M.: Internet use and volunteering: relationships and differences across age and applications. Voluntas 30(1), 87–97 (2018). https://doi.org/10.1007/s11266-018-0045-4
Bollweg, L., Lackes, R., Siepermann, M., Weber, P.: Drivers and barriers of the digitalization of local owner operated retail outlets. J. Small Bus. Entrepreneurship 32(2), 173–201 (2019). https://doi.org/10.1080/08276331.2019.1616256
Guo, C., Saxton, G.D.: Speaking and being heard: how nonprofit advocacy organizations gain attention on social media. Nonprofit Volunt. Sect. Q. 47, 5–26 (2018). https://doi.org/10.1177/0899764017713724
Vogelsang, K., Liere-Netheler, K., Packmohr, S.: Analysis of technology success in times of digital transformation. Presented at the Symposium on Competence-Based Strategic Management SKM Symposium, Berlin (2017)
Earley, S.: The evolving role of the CDO. IT Prof. 19, 64–69 (2017). https://doi.org/10.1109/MITP.2017.4
Sundeen, R.A., Raskoff, S.A., Garcia, M.C.: Differences in perceived barriers to volunteering to formal organizations: lack of time versus lack of interest. Nonprofit Manag. Leadersh. 17, 279–300 (2007). https://doi.org/10.1002/nml.150
Mitchell, G.E.: The attributes of effective NGOs and the leadership values associated with a reputation for organizational effectiveness. Nonprofit Manag. Leadersh. 26, 39–57 (2015). https://doi.org/10.1002/nml.21143
Vogelsang, K., Liere-Netheler, K., Packmohr, S., Hoppe, U.: Barriers to digital transformation in manufacturing: development of a research agenda. In: Proceedings of the 52nd Hawaii International Conference on System Sciences, pp. 4937–4946 (2019)
Manetti, G., Bellucci, M., Como, E., Bagnoli, L.: Investing in volunteering: measuring social returns of volunteer recruitment, training and management. Voluntas 26(5), 2104–2129 (2014). https://doi.org/10.1007/s11266-014-9497-3
Ngwenyama, O., Nielsen, P.A.: Using organizational influence processes to overcome IS implementation barriers: lessons from a longitudinal case study of SPI implementation. Eur. J. Inform. Syst. 23, 205–222 (2014). https://doi.org/10.1057/ejis.2012.56
Frey, C.B., Osborne, M.A.: The future of employment: how susceptible are jobs to computerization? Technol. Forecast. Soc. Change 114, 254–280 (2017). https://doi.org/10.1016/j.techfore.2016.08.019
Merschbrock, C., Munkvold, B.E.: Effective digital collaboration in the construction industry – a case study of BIM deployment in a hospital construction project. Comput. Ind. 73, 1–7 (2015). https://doi.org/10.1016/j.compind.2015.07.003
Atouba, Y.C., Shumate, M.D.: Meeting the challenge of effectiveness in nonprofit partnerships: examining the roles of partner selection, trust, and communication. Voluntas 31(2), 301–315 (2019). https://doi.org/10.1007/s11266-019-00143-2
Brink, H., Packmohr, S., Vogelsang, K.: Fields of action to advance the digital transformation of NPOs – development of a framework. In: Buchmann, R.A., Polini, A., Johansson, B., Karagiannis, D. (eds.) Perspectives in Business Informatics Research. LNBIP, vol. 398, pp. 82–97. Springer, Cham (2020). https://doi.org/10.1007/978-3-030-61140-8_6
Dremel, C.: Barriers to the adoption of big data analytics in the automotive sector. In: Proceedings of the 23rd American Conference on Information Systems (AMCIS), Boston, pp. 1–10 (2017)
Klötzer, C., Pflaum, A.: Toward the development of a maturity model for digitalization within the manufacturing industry’s supply chain. In: Proceedings of the 50th Hawaii International Conference on System Sciences, pp. 4210–4219 (2017). https://doi.org/10.24251/HICSS.2017.509
Calista, D.J., Melitski, J.: Digitized government among countries worldwide from 2003 to 2010: performance discrepancies explained by comparing frameworks. Int. J. Public Adm. 36, 222–234 (2013). https://doi.org/10.1080/01900692.2012.721246
Akram, M.S.: Drivers and barriers to online shopping in a newly digitalized society. TEM J. 7, 118–127 (2018). https://doi.org/10.18421/TEM71-14
Young, D.R.: Complementary, supplementary, or adversarial? Nonprofit-government relations. In: Nonprofits and Government: Collaboration and Conflict, pp. 37–80 (2006)
Pope, J.A., Saigal, A., Key, K.A.: Do small nonprofit organizations outsource? A first look. Voluntas 26(2), 553–573 (2014). https://doi.org/10.1007/s11266-014-9447-0
Lameijer, C., Mueller, B., Hage, E.: Towards rethinking the digital divide – recognizing shades of grey in older adults’ digital inclusion. In: ICIS 2017 Proceedings (2017)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Vogelsang, K., Packmohr, S., Brink, H. (2021). Challenges of the Digital Transformation – Comparing Nonprofit and Industry Organizations. In: Ahlemann, F., Schütte, R., Stieglitz, S. (eds) Innovation Through Information Systems. WI 2021. Lecture Notes in Information Systems and Organisation, vol 46. Springer, Cham. https://doi.org/10.1007/978-3-030-86790-4_21
Download citation
DOI: https://doi.org/10.1007/978-3-030-86790-4_21
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-86789-8
Online ISBN: 978-3-030-86790-4
eBook Packages: Computer ScienceComputer Science (R0)