1.1 Introduction
The digital transformation is a complex and demanding process that requires the commitment of the entire company to use resources (human, technological, physical, organizational and financial), so digitalization implements digital tools throughout the organization, especially focus especially on people and business processes, based on the change of the business model (Kutnjak et al., 2019). Technological advances and digital transformation has opened the door to the digital age in Turkey and all over the world because of having an insatiable desire and hunger for quick access to information. Digital transformation and resultant business model innovation have fundamentally altered consumers’ expectations and behaviors, pressured traditional firms, and disrupted numerous markets (Lemon & Verhoef, 2016).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.
1.2 Background of Study
Currently, individuals living a fairly advanced phase of the digital age, so that constant innovations in communication technologies have changed the way in which organizations communicate with their customers, thus replacing traditional business models, in which obtaining data required investment in sophisticated computer systems and innovation studies had a very high cost, due to this, most decisions were based on the analysis and intuition of managers (Rogers, 2016).
The developments in information and communication technologies in the digital age have significant and varying effects on organizations. Digital transformation has generated a positive impact on production processes; Due to the fact that it allows the automation of processes and the decentralization of functions, optimizing the activities carried out by human capital, which leads to improving the use of material and financial resources (Katz, 2018).
Butler (2020) shows that, since banks and insurance companies are heavily regulated, they invest more than others in information technology, seeking to improve their operational processes, through the creation of new products with added value, pointing to new models of business with the purpose of improving the profitability of the company, in addition to building and maintaining a close relationship with the client.
Braun & Schreiber (2017), mention that faster the insurance business adapts and integrates to digital innovation, the more likely it is that traditional insurers will survive, since the market context is constantly changing, and the profile of customers has varied over time, they are now in constant search of digital experiences throughout the insurance purchase journey (Kim, 2020); Social distancing has put insurers to the test, so they have chosen to carry out remote work, prioritizing the development of applications in which the client can make inquiries and procedures without the need to go to a physical office.
Braun & Schreiber (2017), mention that faster the insurance business adapts and integrates to digital innovation, the more likely it is that traditional insurers will survive, since the market context is constantly changing, and the profile of customers has varied over time, they are now in constant search of digital experiences throughout the insurance purchase journey. Likewise, insurance companies always sought to be close to their stakeholders and satisfy their needs; However, the situation caused by Covid-19 has generated that all industries have to accelerate their digital transformation process (Kim, 2020); Social distancing has put insurers to the test, so they have chosen to carry out remote work, prioritizing the development of applications in which the client can make inquiries and procedures without the need to go to a physical office.
It is necessary to consider that the digital transformation generates a digital culture, with a new mentality to access knowledge because it is the set of behaviors and habits developed and applied by managers and employees of an organization to take full advantage of the potential of new technologies, through better use and better dissemination throughout the organization in order to transform the business model or organizational models to create value for customers, employees and shareholders (Ochoa, 2016).
Therefore, in Benue State Polytechnic where the research was carried out, the activities that was conducted is to know the Effect of Digital Transformation on Organizational Performance.
1.3 Statement of Problems
Investigation revealed that the first challenge of the digital transformation of the education sector that is switching to online learning is the problem of inequality in Nigeria. Nigeria is the most unequal country the world over as shown by Zikhali (2018) in one of the World Bank Group (WBG) report (WBG, 2018; Zikhali, 2018). The other serious problem is that more than half of Nigerians or 30 million people live below the national poverty line with the worst affected being black Nigerians, the unemployed, the less educated, female-headed households, large families and children (Zikhali, 2018).
In Nigeria, access to technology especially internet connectivity is unequal and limited (Meyer and Gent, 2016, Kayembe and Nel, 2019). Some groups in South Africa especially schools in remote areas have poor access to the internet and in some instances, they do not have electricity. Digital transformation of the education sector will imply that these groups continue to be marginalized.
1.4 Aim and Objectives of Study
The aim of the study is to investigate the Effect of Digital Transformation on Organizational Performance using Benue State Polytechnic as a case study. In achieving this aim, the following specific objectives were laid out as follows:
- To identify the factors that strengthened the need for digital transformation on Organization in the area under study;
- To identify and delineate growth strategies for digital firms in the area under study;
- To examine the effects of digital transformation on organizations in the area under study; and
- To measure the impact of digital transformation on the individual job performance of insurance companies in the area under study.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What are the factors that strengthened the need for Digital Transformation on Organization in the area under study?
- What are the growth strategies for digital firms in the area under study?
- What are the effects of digital transformation on organizations in the area under study?
- What is the impact of digital transformation on the individual job performance of insurance companies in the area under study?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There is no significant factor influencing the performance of digitally transformed organization in the area under study
- H1: There is significant factor influencing the performance of digitally transformed organization in the area under study
1.7 Significance of Study
The relevance of this research will showcase specific organizational structures and bears consequences for the metrics used to calibrate performance. The study will also provide a research agenda to stimulate and guide future research on digital transformation.
This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.
