Ajibm 2023042114322719
Ajibm 2023042114322719
Ajibm 2023042114322719
https://www.scirp.org/journal/ajibm
ISSN Online: 2164-5175
ISSN Print: 2164-5167
Department College of Business Administration, United African University of Tanzania, Dar es salaam, Tanzania
Keywords
Organizational Project Management, Organizational Design, Digital
Transformation, Project Management Office
1. Introduction
The concept of digital transformation is a complex and multifaceted one that can
affect various aspects of an organization’s operations. The rapid emergence and
evolution of new communication and information technologies, such as the In-
ternet of Things (IoT), artificial intelligence, and big data analysis, has created a
DOI: 10.4236/ajibm.2023.134015 Apr. 23, 2023 215 American Journal of Industrial and Business Management
N. A. Rahul
transformation in the past few years include (Vial, 2019; Verhoef et al., 2021).
They have proposed the creation of a multidisciplinary research agenda focused
on the study of DT. The 7s model, which is a well-known design concept, can be
used as an example of a DT strategy. One of the key components of this strategy
is the recognition of the employees’ skills. In Vial’s (2019) work, the concept of
dynamic capabilities is also acknowledged as a component of the research agen-
da. Similarly, in Verhoef’s paper, the organization structure is regarded as a
component of the research program.
In his paper, (Verhoef et al., 2021) proposes various ways that organizations
can cope with the demands of digital transformation. These include adopting
agile forms of organization, establishing digital functional areas, and separating
business units. (Fabac, 2021) noted that major organizational transformations
typically occur through design changes. In other words, the effects of digital trans-
formation can be expected to be felt in the design of organizations.
According to McKinsey, about 70% of large-scale digital transformation programs
fail to reach their goals (Bucy et al., 2016). Other sources also noted that many of
these projects are not successful due to various factors. In this paper, we will discuss
the various research topics that are related to the development of digital transforma-
tion and its implementation (Westerman & Davenport, 2018; Zobell, 2018). These
include the design of an organization that can support the needs of digital transfor-
mation, project management, and methods that can help implement it.
Approaches to the Development and Implementation of Digital Trans-
formation
According to some authors, digital transformation is a process that involves
changing organizational structures and procedures (Verina & Titko, 2019; Vial,
2019; Zaoui & Souissi, 2020). This concept is justified by the need to identify and
implement effective strategies and procedures to manage the transformations. In
his paper, (Ulas, 2019) discusses the various adaptation processes that are needed
to accommodate the changes brought about by the transformation. These in-
clude the establishment of new operational systems and the adjustment of the
institutional framework.
In their paper, (Sousa & Rocha, 2019) noted that learning processes and in-
novative activities are the dominant processes in digital transformation. The
concept of digital transformation as a process is not limited to learning and in-
novative activities. It can also be considered as a metaphor for the repetitive na-
ture of business processes. For instance, if a company’s processes are repetitive,
their principles might lead to faster and cheaper operations. However, these prin-
ciples do not prove to be the most important factors that can help successful dig-
ital transformation.
According to a 1996 article by Bullet point (Bulletpoint, 1996), the concept of
business processes is defined as the sequence of activities, precise inputs, and
predictable results. This supports the subprocesses and activity architecture view
of digital transformation.
Various studies have been conducted on the concept of digital transformation
and its structural changes (Hess et al., 2016; Bilgeri et al., 2017; Fuchs et al., 2019;
Fountaine et al., 2019). These studies also suggest that the implementation of
this process requires a change in the organizational structure. In order to suc-
cessfully implement the concept, the appropriate units should be identified and
identified as the main pillars of the project (Hess et al., 2016).
Hess and colleagues (2016) explored the various structural interventions needed
in the DT strategy. In (Ackermann, 2020), proposed the establishment of a digi-
tal initiative transformation office to support the implementation of digital initi-
atives. This unit would be responsible for developing and implementing policies
and procedures related to the project.
The concept of digital transformation can be considered as a process that re-
quires a defined set of activities that are designed to achieve a specific result.
This is why it is important that the project’s scope and resources are designed to
meet the requirements of the project. A project in an organization is an excep-
tion just as much as it is an undertaking of digital transformation. Even though a
project is an example of digital transformation, it should also be considered as an
exception. According to some authors like (Bendor-Samuel, 2019; Gurusamy et
al., 2016), the traditional design method (waterfall model) is not ideal for
projects that are complex and dynamic. Instead, they suggest adopting agile
methods for projects.
One of the most common factors that can be considered when it comes to
adopting agile methods is the continuous development approach. This method
allows the team to build a strong relationship with the end users and deliver a
high-quality product.
Although the various approaches to digital transformation are harmonized
and combined in practice, they should be considered as part of a comprehensive
strategy to guide the organization’s efforts in developing new digital products
and services. The management’s role is to create a strategy that will allow the
organization to take advantage of the digital resources and improve its perfor-
mance. A study conducted by (Kane et al., 2015) revealed that the importance of
strategy is higher than technology when it comes to driving digital initiatives. In
2016, another study conducted by Deloitte and MIT (Kane et al., 2016), revealed
that only 43% of the respondents agree with a statement that employees have the
necessary skills and knowledge to implement a digital strategy.
2017a). They found that the elements of the 7s model addressed to a lesser extent
than those of the Star model. Although the paper did not discuss the holistic design
of a project-based organization, it did not address the issue (Miterev et al., 2017b).
Establishing strong links between project management and organizational design
is a goal of this field. It has been identified as a new research area. The concept of
project management is a function of the research area that’s focused on the study
and design of organizational structures. It refers to the management of projects that
involve the implementation of corporate objectives (Aubry et al., 2007).
The concept of project management is a function of the research area that’s
focused on the study and design of organizational structures (Müller et al., 2019)
and Aubry and Lavoie-Tremblay (2017). It refers to the management of projects
that involve the implementation of corporate objectives. The design of structures
that are dynamic is also a central component of the concept of organizational
design. Two of the main concepts that are commonly discussed in this field are
the contingency theory and the dynamic capabilities (Fabac, 2017). The concept
of organizational design focuses on the idea that the design solutions that an or-
ganization uses depend on the situation in which it finds itself. According to a
study conducted by Eisenhardt and colleagues (Eisenhardt & Martin, 2000), the
strategic and organizational routines that managers follow are the foundations of
the design process
According to Davies (Davies et al., 2008), the dynamic capabilities of project
management are the factors that enable organizations to deploy multiple projects
and launch new innovations. They are also used to identify the optimal strategy
and methods to develop new technologies. A study conducted by (Daniel and
colleagues in 2014) explored the concept of dynamic capabilities in the man-
agement of information systems projects. They found that the ability to success-
fully lead, manage, and execute IT projects is a dynamic capability. A similar
study conducted by (Killen & Hunt, 2010) utilized the learning theory of orga-
nizational design as a framework for the concept.
The two perspectives are related to the demands of the DT. For instance, the
need for innovation in processes and strategies, as well as changes in corporate
culture and organizational structure, are elements of the design process. One can
also view project management as a function that’s part of an organization’s over-
all structure. According to a study conducted in 2017 (Project Management In-
stitute, 2017), over 70% of organizations have a project management office as an
organizational entity. PMO as an organizational entity covering OPM's function
within an organization and its relationship with the corporate design was cov-
ered in papers of scholars like Aubry and Lavoie-Tremblay (2017, 2018). They
used the theories of contingency theory to analyze the relationship between the
design process and the management of projects.
tion’s strategy. Despite the lack of evidence supporting a direct link between the
design and function of the project management office and the DT, members of
the professional community are still discussing this topic (Workfront, 2018). Due
to the increasing number of transformational projects that require the involve-
ment of the project management office, it is now more important than ever that
the design and functional of the project management office are considered in
terms of their contribution to the organization’s success. This can be done through
the evaluation of the various aspects of the project management office’s role.
There are various specializations within the project management office that are
more important when it comes to addressing the needs of the DT’s projects and
programs. These areas of expertise can be utilized in the design of the project
management office.
● Specializations in innovation management.
● Digital strategy.
● Knowledge management.
● Organizational learning can be utilized by the project management office.
These areas of expertise can help organizations implement and manage their
digital strategy.
Figure 1. Relationships between DT, organizational design, OPM, and PMO in academic
literature. Source: Author’s work.
3. Methodology
This research aims to provide a theoretical framework for analyzing the various
aspects of project management and organizational design, which are not subject
to objective reality. However, it is constructed according to different interpreta-
tions and perspectives.
The case study method was chosen as the primary method for the research.
This is because it allows the researcher to collect data on key stakeholders and
questions related to the various aspects of organizational design and project
management (Yin, 2018). The research process is also focused on finding an-
swers to these questions through the use of case studies. The advantages of using
a case study are that it allows the researcher to collect data on multiple aspects of
the project management and organizational design process, and it provides a
theoretical framework for analyzing the phenomenon. Although there are al-
ready theories that can explain the phenomenon (Eisenhardt, 1989), the findings
of this research will be used to develop new theories.
The complexity of the research subject matter and the number of variables
involved make it difficult for quantitative researchers to thoroughly analyze the
data. The research sought to collect data on key stakeholder groups such as the
directors of PMOs and other employees who have insight into the various roles
and responsibilities of the organization’s managers. A list of topics and questions
was then prepared for the interviews.
The dominant type of digital transformation and rationale for such a deci-
sion
The roles a PMO plays in digital transformation projects
Digital technologies used when implementing DT
Fundamental PMO knowledge and skills required for successful implementa-
tion of DT
Project management approaches used in a project DT
4. Results
The research participants were interviewed to collect information about three
organizations. Table 1 summarizes the data about the organizations, while the
case studies are explained below
5. Discussion
The goal of this study was to explore the various design features of the Prime
Minister’s Office (PMO) that could be used to meet the requirements of digital
transformation projects. The findings of the research will be used to develop a
strategy for addressing these issues.
Table 2. Factors affecting PMO design in the cases covered for DT initiatives.
Performance assessment in
Somewhat more
DT projects vs. “regular”/ No significant change No significant change No significant change
successful
“traditional” projects
mance. In a case study, the organization C shows that the use of digital technol-
ogy has significantly increased the efficiency and effectiveness of its project
management office. However, it is important to note that this is an isolated ex-
ample and that more research is needed to analyze the various factors that affect
the success of the project management office. The main factors that prevent or-
ganizations from implementing the digital transformation strategy are the lack
of leadership and the resistance to change. This is consistent with the findings of
several studies that have been published in the past couple of years.
Although the results of the study were obtained through a multiple case study,
it is not enough to provide a comprehensive analysis of the various factors that
affect an organization’s decision-making process when it comes to implementing
the digital transformation strategy (Yin, 2018; Eisenhardt, 1989). This research
can only be considered as a preliminary study due to the small number of va-
riables that were used in it. Additional variables should be included in future re-
search to provide researchers with a deeper understanding of the project man-
agement office’s operations.
6. Concluding Remarks
The various approaches to implementing and developing digital transformation
are not always clear. There are also varying experiences and theoretical perspec-
tives that can help determine which approach is most appropriate. For instance,
the preferred method for project management involves the use of the PMO.
The design of the PMO, which is the most common type of organizational struc-
ture used for managing projects, portfolios, or programs, must undergo signifi-
cant changes due to the transformation of an organization. The use of this type
of structure has become a central focus of digital transformation efforts as it can
help support the successful execution of programs and projects. After conduct-
ing several case studies on the use of the PMO in Tanzania, we learned that the
key factors that organizations consider when it comes to implementing digital
transformation are the knowledge of project management techniques and the
implementation of a hybrid approach.
Many companies in Tanzania with project management offices (PMO) are fac-
ing various obstacles when it comes to implementing the digital transformation
strategy. These include the lack of leadership and the resistance to change. The
findings of this study provide guidelines on the design features of an effective
PMO that can meet the requirements of digital transformation projects. The study
also explored the relationship between the design features of a project manage-
ment office and the requirements of a digital transformation project. In order to
transform the structure of the PMO, new competencies should be developed in
the areas of expertise and digital projects.
The results of the study were then analyzed and compared with the theoretical
perspectives and practical contributions of other researchers. These findings led
to the development of a further theory focused on the role of the PMO in trans-
Conflicts of Interest
The author declares no conflicts of interest regarding the publication of this pa-
per.
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