The Secrets to a Successful Digital Transformation: A Single Case Study at AB SKF

Abstract

Technological development has over centuries triggered industrial revolution which has transformed industries. As an effect of inventions like, Big Data and Internet of Things the business climate of today is now entering a fourth industrial revolution, which is characterized by digitalization and connectivity. Applying this new era on the different activities and nodes within the supply chain are beneficial, as these technological enhancements make it possible for companies to provide a faster, more accurate, more flexible and more customized supply chain work. Different surveys presented within the topic of digitalization in relation to the supply chain indicates that companies are recognizing the fourth industrial revolution and are acting in order to adjust their activities to this new era. However, the same surveys also identify obstacles, and companies acknowledge that they have a long way ahead before a full transformation to a digital supply chain can be finalized. Therefore, the aim of this master thesis is to investigate how an incumbent firm, AB SKF progress with a transformation to a digital supply chain as well as what opportunities and challenges that are aligned. Furthermore, in order to achieve the purpose, a qualitative research strategy has been applied. The research was executed as a single case study with data collected from semi-structured interviews. The conclusions suggest that SKF is progressing with a transformation to a digital supply chain by taking several actions. First, the company has formulated a digital strategy that is attached to the global SKF organization. Second, SKF has initiated several digitalization projects that target different nodes in the supply chain and in different manners take data actions. Lastly, SKF has adopted an iterative stance in the transformation process towards a digital supply chain which requires for organizational-braveness. Moreover, it has been identified that the respondents at SKF acknowledge that the opportunities and challenges presented in the Literature Review are present in their digital transformation process. Further, there are also additional opportunities and challenges present at SKF in relation to the transformation towards a digital supply chain.