Digital transformation has been an important issue for all kinds of companies, especially after COVID-19, since risks increased and the procedure of transforming traditional forms of doing business was accelerated. This chapter evaluates the digital transformation of Greek small and medium enterprises (SMEs). A series of different aspects are evaluated by using a quantitative approach, including operational elements such as digital maturity, digital transformation strategy, and implementation of specific technologies driving this process. Results indicate a positive relationship between digital maturity and digital transformation strategy, alongside employees' training and investments in new technologies. COVID-19 delayed Greek SMEs transformation procedure, with main technologies related with sales and collecting customers' data. The research contributes to the evaluation of the digital transformation progress in Greek SMEs by providing insight on most significant technologies used and the overall strategic planning implemented.
TopIntroduction
A new era for all business sectors is arising with the arrival of the Fourth Industrial Revolution (Industry 4.0) and with the agenda of discussion being dominated by digital technologies evolution and implementation (Hai, Van, and Tuyet 2021), in almost all sectors of economic activity (Kozarkiewicz 2020). Digital transformation can be defined as a change / renewal of how businesses: (a) implement and use digital technologies, (b) develop digital business models, (c) change their structures and strategies, (d) create new added value for their e-customers and (e) compete for a sustainable competitive advantage in digital environment (Kane et al. 2015; Liu, Chen, and Chou 2011; Schallmo, Williams, and Boardman 2017).
The concept involves changes in various operational aspects, such as transformation of organizational structures, new ways of resource allocation (Reis et al. 2018), reevaluation of relationships with stakeholders and cultivation of digital culture (Krasonikolakis, Tsarbopoulos, and Eng 2020), integration of new technologies (Chaparro-Peláez et al. 2020; Loske and Klumpp 2022), new performance measures (Allen 2019; Nadkarni and Prügl 2021) and development of digital business models (Brynjolfsson and Hitt 2000; Frank, Dalenogare, and Ayala 2019; Loebbecke and Picot 2015; Vial 2019).
Digital transformation has been theoretically and empirically connected with success factors including: achieve efficiency (Gebayew et al. 2018; Kraus et al. 2021), develop innovation (Appio et al. 2021a), effective decision making (Corso et al. 2018), maintain competitive advantage (Cahyadi 2020), cost reduction (Saini 2018), value creation (Wolpert and Roth 2020), etc.
In the core of digital transformation’s procedure lies ICT enabled innovation, since the whole transformation from a technological point of view is based on the interaction between people, machines, and resources via digital means. Related with each industry’s characteristics, various technologies can have less or more significant role, such as (indicatively) Internet of Things (IoT), Artificial Intelligence (AI), Cloud computing, Big Data Management, Blockchain, Robotics and Cyber Physical Systems (CPS), while from consumers’ side, related technologies can involve Smartphones and other Mobile Technologies, Virtual Reality Headsets, Augmented Reality Glasses, Micro – Sensors etc.
Digital transformation is related with ICT Enabled Innovation since the integration between physical, machinery and devices aim to develop complex, but accurate systems capable to predict, plan and control consumer’s behavior and business outcomes (Industrial Internet Consortium 2013).
Moreover, digital transformation is related to both digitization and industrial renewal. “Digitization” is recognized to be the first phase (Verhoef et al. 2021) for transforming a business, followed by “Digitalization” and finally by “Digital Transformation”, which is the optimal version of digital business. Regarding industrial renewal, it is clear from digital transformation definition how these concepts are related through changes required in all aspects of business operation and mentality. It should be noted that renewal, following digital transformation path, has been recognized even before COVID-19 pandemic crisis, which launched e-commerce global sales from $2.3 trillion in 2017 to $4.88 trillion in 2021.