Abstract
Over the last ten years, numerous businesses have embraced digital transformation (DT) as a critical component of their growth strategy. Consequently, the importance of DT as a survival tactic has soared. Researchers emphasize that DT strategies extend beyond technological advancements and should be seamlessly integrated into a company's existing perspectives (Bouncken et al., 2021). The adoption and implementation of digitalization play a pivotal role in preventing businesses from becoming obsolete (Parviainen et al., 2017). Through this journey, businesses have learned valuable lessons and encountered common mistakes that hinder successful implementation or lead to program failures.
This study aims to explore the implementation of digital transformation in the Fast-Moving Consumer Goods (FMCG) industry, demonstrating the impact and benefits of incorporating DT as a tool within companies. When properly executed, the results provide a competitive advantage to a company by reducing production costs and increasing profitability. Throughout the research, it has become evident that when DT is effectively implemented, it yields the desired results. The following are the five key objectives: Investigate the level of usage of disruptive technologies in the FMCG industry in South Africa, Explore the level of awareness of DT technologies in the FMCG industry in South Africa, Identify the challenges to the attainment of DT in the FMCG industry, Identify the drivers that foster the attainment of DT in the FMCG industry, Identify the benefits of effective implementation of DT in the FMCG industry.
The information for this paper was collected from both primary and secondary sources. Primary data was gathered through a survey method, while secondary data was obtained from literature reviews and archival records. The survey was conducted using a structured questionnaire that was electronically distributed to professionals in the FMCG industry in South Africa, specifically those involved in supply chain, procurement, and IT (McNeill, 2005).
The findings revealed the importance level through descriptive analysis such as mean score. Additionally, inferential analysis such as exploratory factor analysis was carried out to achieve dimension reduction of the factors, and further, a non-parametric test was conducted on the factors derived from the factor analysis to understand how the respondents perceived the factors.
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The purpose of this discussion was to support the findings from the following research questions: What is the level of usage of disruptive technologies in the FMCG industry in South Africa? What is the level of awareness of DT technologies in the FMCG industry in South Africa? What are the challenges to the attainment of DT in the FMCG industry? What are the drivers that foster the attainment of DT in the FMCG industry? And lastly, what are the benefits of effective implementation of DT in the FMCG industry? Furthermore, the practical implications of the findings were discussed to understand how this study aligns with the FMCG industry.
This study has contributed to bridging the gap identified in the literature and provided knowledge supported by relevant integrated concepts to address the needs of the FMCG industry in South Africa, benefiting stakeholders. Additionally, the study contributed to both theoretical and practical knowledge of DT in the FMCG industry. Given the knowledge gap related to DT in the FMCG industry, this study collected and analyzed primary data to investigate the implementation of DT in the FMCG industry. The analysis of the primary data helped to establish the true picture of DT implementation in the FMCG industry in South Africa and the level of usage of this disruptive technology in the industry, which was previously unknown. The study identified the various challenges that hinder the implementation of DT, as well as the benefits. This study contributed to bridging the knowledge gap by providing broader views of the implementation of DT in the FMCG industry, aiding in a better understanding of DT in a complex sector such as the FMCG industry.
KEYWORDS
Digital transformation, digitalisation, Fast Moving Consumer Goods, South Africa