Developing a transformational digital strategy in an SME: The role of responsible management

Abstract

Based on the case study of an SME company in the United Kingdom (which we will call SweetStar Cloud), this paper examines the attempts of the company to achieve significant strategic change. The company is attempting to move from being a tradition managed service provider of Information Services towards becoming a significant influencer in the market for digital services in the UK. As part of a Knowledge Transfer Partnership (KTP), a local UK University has been closely involved in developing this new strategic direction and it is well poised to present and analyse the story. From the use of tried and tested strategic tools, including Porter’s Generic Strategies and segmentation and targeting, the company has also embraced digital-specific approaches for developing partnerships with clients, developing pilot projects and experimenting with its use of social media. At the heart of this research is an analysis of the move from push marketing towards models of attraction. This paper aims to explore how traditional strategic tools are still applicable in the digital era alongside new tactical approaches in the digital sector. This aim has led to an approach to business that is responsible, in terms of moving away from a traditional push-selling model to one of partnership with customers at a strategic level. Strategy in dynamic markets often highlights responsiveness as a key success factor. The ability to respond (a response-ability) requires more agile companies. As SweetStar Cloud has developed its strategy, it has focused in achieving this more effective ability to respond through a more collaborative approach. In this sense, agile response-ability converges with business responsibility, as new abilities in communication, cooperation and trust development become key.

The contribution of organizational culture, structure, and leadership factors in the digital transformation of SMEs: a mixed-methods approach

“…From literature, we know that a particular mentality could be perceived in digitalized organizations (Colli et al 2019 ), but from interviews and the structural model, we captured how much this can be related to DT (0.321, p < 0.001) and an innovative structure (0.188, p < 0.05). Improving the understanding of what a ‘digital culture looks like’ (Kane et al 2016), we echo Korherr et al ( 2022 ) and Levy et al ( 2022 ), arguing that a company that transforms is one that, among several things, has a culture that transited to data collection, analysis, and evidence-based decision making, despite making decisions based on intuition (about what customers want and or which technology is best)—a widespread behavior in SMEs. Besides resonating with the results of previous works as Fregnan et al ( 2022 ) and Roblek et al ( 2021 ), it is an organization connected to what is happening, and that cultivates critical thinking about technology, knowing how to choose and use the most appropriate technology that may improve its value proposition.…”

“…The lack of purpose and certainty about DT’s potential gains and implications is prevalent in SMEs (Gruber 2019 ). However, having new values and a transformation goal is decisive for maturing in the DT, according to Levy et al ( 2022 ), Mergel et al ( 2019 ) and experts SysC, RecD, RealE, EntF, RealG, LingH, SysJ, and ConsL. Referencing Simon Sinek, expert ConsL said that any transformation must start with the why and only then goes on how to make the changes.…”

The Role of Business Model Innovation in the IT Services Sector: a Comprehensive Mapping Review

“…Schneider et al (2017) illustrate how disruptive innovations change the industrial value creation chain and penetrate the system at all levels changing it from a consecutive classical structure to a horizontally linked value network. Managed services have particular potential to orchestrate that process due to their relevance for interconnecting organizational departments and interorganizational business networks (Levy et al, 2022).…”

Geospatial Technology-Based Study on Tourist Accommodation in Bucharest Metropolitan Area–in Relation to Passenger Traffic in Major Transportation Hubs

“…The strategic shift to resilience does not mean giving up the strategic approach but considering the emergence of digital technologies (Kim, Nam & Stimpert, 2004). Currently, the strategic thinking and digitalization are inexorably and intrinsically merging (Panduru, Scarlat & Gherman, 2021) in such a manner that discussion about digital strategy (Bones, 2018) includes small businesses (Levy, Morecroft & Rashidirad, 2020;. In general, the digital strategy involves digital transformation (Garzoni et al, 2020).…”

“…When the process of digital transformation is analyzed, it seems that small and medium sized business sectors (SMEs) enjoy more attention from researchers, probably for its dynamism. On the other hand, when a roadmap for the digital transformation is defined (Levy, Morecroft & Rashidirad, 2020;, other authors investigated the process of SME digital transformation from different perspectives namely: the capability perspective (Li et al, 2018) or from the eco-systemic perspective (Pelletier & Cloutier, 2019).…”