sustainability

Article
Driving Elements of Enterprise Digital Transformation Based
on the Perspective of Dynamic Evolution
Xiao Han * and Yang Zheng

School of Management, Wuhan University of Technology, Wuhan 430070, China

* Correspondence: [email protected]

Abstract: Under the current setting of a booming digital economy, digital transformation (DT) has
become the only strategy available to enterprises for their development; however, it has also become
a common concern in domestic and foreign academic circles. Focusing on the specific process of
enterprise DT, this study builds a theoretical research framework that comprises input (I)–process
(P)–output (O), and creatively divides process into three evolution stages (i.e., informatization,
datafication, and intelligentization) in a dynamic manner. It selects Ping An Group, Suning Group,
and Midea Group for case analysis. Through a dynamic comparison of the DT processes of the three
enterprises from different fields, this study probes into the driving elements of their DT at different
stages. The following differences were found: crucial driving elements originate from the technical
and environmental levels during the informatization stage, the technical and participant levels
during the datafication stage, and the technical and organizational levels during the intelligentization
stage, with the technical driving element running through all the stages of enterprise DT. From the
perspective of multiple cases, this study discusses the driving elements of enterprise DT and proposes
a theoretical framework of dynamic evolution as a theoretical reference for practices in enterprise DT.

Keywords: digital transformation; I–P–O evolution model; driving elements; dynamic evolution
Citation: Han, X.; Zheng, Y. Driving
Elements of Enterprise Digital
Transformation Based on the
Perspective of Dynamic Evolution. 1. Introduction
Sustainability 2022, 14, 9915. https:// The scale of China’s digital economy reached RMB 39.2 trillion yuan in 2020 (i.e., an
doi.org/10.3390/su14169915 increase of 3.3 trillion yuan from the previous year), accounting for 38.6% of the gross
Academic Editor: Fabrizio domestic product and registering a year-on-year increase of 2.4 percentage points. The
D’Ascenzo vigorous development of the digital economy has enabled it to become a major economic
pillar in China and a new driver of its high-quality economic development. Traditional
Received: 5 July 2022
enterprises that aim to ensure their own competitive force are in urgent need of changing
Accepted: 8 August 2022
their own model to achieve digital transformation (DT) and upgrading.
Published: 11 August 2022
The so-called “enterprise DT” refers to the transformation process that involves the
Publisher’s Note: MDPI stays neutral all-round remolding of the core business, strategies, organizational structure, and business
with regard to jurisdictional claims in model of an enterprise by utilizing digital technologies (e.g., the Internet, artificial intelli-
published maps and institutional affil- gence (AI), and big data) on the basis of digitalized conversion and upgrading to build a
iations. value creation system with data as the core driving factor [1]. For a traditional enterprise,
the DT strategy plays a crucial role in maintaining its competitive edge. Meanwhile, with
the gradual increase in the proportion of the digital economy in the national economic
system, enterprise DT has become a trending issue of study in the current field of strategic
Copyright: © 2022 by the authors.
management. Existing studies on DT in the academic circle have focused on three aspects.
Licensee MDPI, Basel, Switzerland.
First, they explore the value creation of DT in traditional enterprises from the perspective
This article is an open access article
of the market economy’s development [2–4]. For example, a systematic review of the
distributed under the terms and
conditions of the Creative Commons
literature conducted by Ivanir et al. [5] (2022) on the basis of the preferred reporting items
Attribution (CC BY) license (https://
for systematic reviews and meta-analyses method determined the degree of contributions
creativecommons.org/licenses/by/ made by DT technology to the sustainable development of a company. Ada et al. [6] (2022)
4.0/). identified four public values of DT by investigating the specific methods of digital strategy

Sustainability 2022, 14, 9915. https://doi.org/10.3390/su14169915 https://www.mdpi.com/journal/sustainability

Sustainability 2022, 14, 9915 2 of 19

formulation and implementation. Second, they explore the development trend and progress
path of DT from the perspective of its course of transformative development [7–10]. For
example, Joan et al. [11] (2022) summarized the development trend of intelligent integration
of digital pathology (DP) and artificial intelligence (AI) by retrieving a number of patent
reports. And Ren [12] (2020) summarized the application status of sensory interaction and
analyzed the future development trend of digital art. Third, they explore the influencing
factors of DT upgrading from the perspective of the transformative development results
of DT [13–16]. Zhang et al. [17] (2022) built a mechanism of action (MOA) model on the
basis of a resource-based view and resource dependency theory to study the success factors
and influencing mechanism of the DT of Chinese enterprises. Inhye et al. [18] (2022) used
the systematic literature review method in analyzing driving elements related to existing
research on DT and economic growth.
At present, enterprise DT is still in its infancy for all industries, and most enterprises
lack complete practical experience in DT. How to further implement DT has become a major
conundrum in enterprise DT. Existing studies have become aware of the significant benefits
of the DT strategy for the development of enterprises, and they have begun to analyze the
value created by the activation and implementation of enterprise DT [19–21]. However,
these studies have failed to delve sufficiently into how to drive and operate the DT process,
and only a few of them can provide practical or theoretical reference to enterprises.
On the basis of the preceding analysis, we intend to leverage theory of dynamic
analysis to discuss the specific driving elements of enterprise DT from the perspective of
dynamic evolution. In the selection of cases, we selected three enterprises with outstanding
characteristics during different stages of DT as our research objects in accordance with the
features of the study model to investigate the general evolution laws of enterprise DT. Our
study aims to enrich relevant theories about the driving principles of enterprise DT and
provide a reference for enterprises in their DT practices.

2. Study Design
2.1. Study Method
For a systematic study of the driving forces of enterprise DT, we use the “input
(I)–process (P)–output (O)” theoretical model framework to divide the content of the study
into the three levels: input, process, and output. For the input level, we examine the
environment of driving elements in the process of transformation; for the output level, we
summarize the MOA of driving elements during the transformation process; for the process
level, we divide the process into three stages, namely, informatization, datafication, and
intelligentization, in accordance with the development characteristics of the DT process. On
this basis, we conduct a case analysis of the study objects. Such a method is selected in this
work because the study of DT is currently in its initial stage; in particular, the interpretation
of many phenomena that arise in the DT process is still insufficient [22–25]. Our study uses
dynamic evolution as the core benchmark, and the development course as the time axis in
examining enterprise development status at different time nodes. They can help explain
the dynamic logic and laws of enterprise DT from a time-omniscient perspective to provide
a reference for the perspective value in the study of such issues. Meanwhile, in accordance
with the theoretical definition of digitalization [26], the processing of target information
is known as informatization, the computing conducted on the basis of information is
known as datafication, and the understanding and utilization of these data is known as
intelligentization. Accordingly, the process of a case study is divided into three stages. The
dynamic analysis of cases provides a clearer look into the inherent laws of the enterprise
DT process.

2.2. Selection of Research Objects

After comprehensive consideration of the characteristics of the issues being studied,
the purpose of the study, and the availability of data, we selected Ping An Group, Suning
Group, and Midea Group, three Fortune 500 enterprises belonging to the industries of
Sustainability 2022, 14, 9915 3 of 19

financial service, retail, and manufacturing, as the objects of the case study. The reasons for
their selection are as follows. First, the driving elements of the stages of enterprise DT that
are investigated here fall within the study of a dynamic process. The industries of financial
service, retail, and manufacturing exhibit typical representativeness in economic industries;
hence, the selection of study objects from different industries for a horizontal comparative
analysis imbues the findings with higher persuasion and universality. Second, all three
enterprises have successfully implemented the DT strategy. As early as 2013, the Ping An
Group presented its “technology leading finance” strategy, and it became the pathfinder of
the digitalized development of the industry. The Midea Group started to implement its
“632 Project” in 2012 to launch a series of operation reforms in enterprise DT. It achieved
marked results in the customized services of digital intelligentization. The Suning Group
has persisted in combined online/off-line development. It introduced its “Cloud Business”
development plan in 2013, which involves the all-round use of technologies to empower
physical retail. The group also created the digitalized platform of “Suning.com” for the
expansion of its business market.

2.3. Data Collection and Processing

In accordance with the principle of triangulation, we collected the data necessary
for case analysis by using different methods for hierarchical cross-verification to ensure
that data are reliable and complete. The selected data fall into two categories: data from
interviews at multiple stages and data from multiple channels. The two types of data
exhibit satisfactory complementation. The truthfulness and creditability of the data were
improved through mutual verification.
(1) Data from interviews at multiple stages. These data include those collected from
interviews with relevant managerial staff members of the three enterprises in two
stages. Stage 1 includes interviews that cover the growth process, development
experience, business structure, and business model of the three enterprises. These
interviews investigate whether the selected cases dovetail with the direction of the
study. The subsequent feedback and analysis are based on the content of the interviews
to deepen the understanding of the issues being studied and optimize and adjust
the process of subsequent interviews. Stage 2 involves separate interviews with the
aforementioned staff members conducted in a hierarchical manner to probe deeply
into the different nodes of the transformation processes of enterprises with regard to
the issues and core targets of this study, obtaining the targeted deep-layer data.
(2) Data from multichannel panels. These data include 2D data from the dimensions of
time series and cross section in the transformative development process of enterprises.
We sorted out data available on public platforms, including the websites of the
companies, articles in the official accounts of China National Knowledge Infrastructure
and WeChat, video excerpts, new reports, and the report forms of enterprises to extract
valid relevant data. Then, data information was classified for analysis, arrangement,
and storage by using processing software, e.g., Microsoft Excel and SPSS.
(3) Data processing. The collected data were processed and operated in accordance with
the principle for the scientific, reasonable, accurate, effective, and pertinent processing
of data. Step 1: irrelevant data were eliminated with the theme of the study as core.
Step 2: on the basis of the dynamic process of the transformative development of
enterprises, the DT data of the three aforementioned enterprises were divided into
three stages (informatization, datafication, and intelligentization) for classification and
integration. Step 3: the data and themes of each stage were compared and corrected,
focusing on the degree of consistency among data and themes. This addition/deletion
operation was repeated to ensure the accuracy and pertinence of the data.

2.4. Data Encoding

In the data collection process, interview data underwent multilevel encoding and were
divided into Levels 1, 2, and 3 codes on the basis of the condensed content of interviews.
 This addition/deletion operation was repeated to ensure the accuracy and perti-
nence of the data

2.4. Data Encoding

Sustainability 2022, 14, 9915 In the data collection process, interview data underwent multilevel encoding4 of and
19
were divided into Levels 1, 2, and 3 codes on the basis of the condensed content of inter-
views. Level 1 codes involve the labeling process of the obtained original data from the
interviews
Level 1 codesforinvolve
classification and summarization
the labeling in accordance
process of the obtained with
original thefrom
data general categories
the interviews
of the data. Level 2 codes involve the extraction and summarization of
for classification and summarization in accordance with the general categories of the the data ondata.
the
basis of the classified Level 1 codes to achieve copolymerization from the
Level 2 codes involve the extraction and summarization of the data on the basis of the original data.
Level 3 codes
classified Levelinvolve
1 codes further concentration
to achieve and extraction
copolymerization from the of the data
original onLevel
data. the basis of
3 codes
Level 2 codes to obtain labels at the summarization level. The specific code
involve further concentration and extraction of the data on the basis of Level 2 codes to structure is
illustrated
obtain labelsinat
Figure 1.
the summarization level. The specific code structure is illustrated in Figure 1.

Figure 1. Data code.

3. Theoretical
3. Theoretical Framework
Framework
On the
On the basis
basis of
ofthe
theI–P–O
I–P–Omodel
modeland
andthe
thetheoretical
theoretical framework
framework of of dynamic
dynamic capa-
capabil-
bility [27–29], we examined the existing DT driving elements of enterprises and divided
ity [27–29], we examined the existing DT driving elements of enterprises and divided the
the case analysis into three levels: input, process, and output. The specific theoretical
case analysis into three levels: input, process, and output. The specific theoretical
framework is illustrated in Figure 2.
framework is illustrated in Figure 2.
First, in accordance with theory of sociotechnical system [30], driving elements at
the input level were sorted out to analyze the elements that triggered changes in the
process of enterprise DT and the degree of their relevance to economic development for the
ultimate establishment of the four driving elements (technology, organization, participant,
and environment) and some units of the driving elements. Second, the informatization,
datafication, and intelligentization stages were analyzed in turn using the system of driving
elements as foundation [1] at the process level of enterprise DT. Three representative
enterprises from different fields were selected to match the transformation stages for
separate analysis and to determine the general laws of the enterprise DT process. Lastly,
summarization was implemented at the output level to elaborate the MOA of different
driving elements in the transformation process.
tainability 2022, 14, x FOR PEER REVIEW 5 of
Sustainability 2022, 14, 9915 5 of 19

Figure
Figure 2. Theoretical
2. Theoretical framework of
framework ofenterprise
enterpriseDT.DT.

4. Case Analysis and Discussions

First,
4.1. in Elements
Input accordance with DT
of Enterprise theory of sociotechnical system [30], driving elements
the inputInlevel were sorted out to analyze
accordance with the theory of sociotechnical the system,
elements that triggered
we sorted changes in
out and summed
process of input
up the enterprise
elementsDT(I)and the degree
of existing of their
enterprise DT from relevance to economic
four levels—namely development
technology,
organization, participant, and environment.
the ultimate establishment of the four driving elements (technology, organization, p
ticipant,
4.1.1. and
Input environment) and some units of the driving elements. Second, the
at the Technical Level
formatization, datafication,
Input includes andofintelligentization
the Internet stages
things (IoT), big data, were analyzed
AI, Internet+, in turn using
cloud computing,
systemandof driving
other elements
emerging digital as foundation
technologies. [1] at
Given thethe processinnovations
continuous level of enterprise
and devel-DT. Th
opment of network
representative technology,
enterprises most enterprises
from different have gradually
fields were selected introduced
to match the advanced
transformat
external technologies to change their business model and realize
stages for separate analysis and to determine the general laws of the enterprisetheir upgrading as an en- DT p
terprise [31–34]. Digital technologies (e.g., AI, big data, cloud computing, and blockchain)
cess. have
Lastly, summarization
improved the operationwas implemented
and management at theofoutput
efficiency level
enterprises to elaborate
[35,36], reformed the MO
of different driving elements
their organizational in the
structure and transformation
business process.manner [37], and greatly
model in an innovative
promoted the sustainable development of the industry [38].
4. Case Analysis and Discussions
4.1.2. Input at the Organizational Level
4.1. InputInput
Elements of Enterprise
includes DT resources, culture, and strategy. First, the innovation
organizational
and integration ofwith
In accordance organizational
the theory resources play a foundation-laying
of sociotechnical system, werole in enterprise
sorted out and summ
DT [39,40]. According to Raffatovich et al. [41] (2020), in the age of the digital economy
up the input elements (I) of existing enterprise DT from four levels—namely technolo
the transformative development of the management mode of enterprise resources exerts
organization, participant, and environment.

4.1.1. Input at the Technical Level

Input includes the Internet of things (IoT), big data, AI, Internet+, cloud computi
Sustainability 2022, 14, 9915 6 of 19

a supporting effect on overall digitalization. Second, the integration and innovation of

organizational culture have a driving effect on enterprise DT [42–44]. Lastly, the rapid
development of the digital economy enables innovations in organizational strategy to play
a guiding role in enterprise DT [45–47]. In the digital age of fierce competition, the Internet
has endowed enterprises with the capability to expand at high speed and low cost. The
strategic decision of an organization frequently influences the overall development plan of
an enterprise within a short period.

4.1.3. Input at the Participant Level

Input includes the decision-making of leaders, awareness of employees, diversified
innovation of teams, and demand of consumers. First, the decisions made by the leaders of
an enterprise play a dominant role in the DT process [48], Anne et al. [49] (2021) believe
that leaders must develop DT thinking in the application of digital technology. Second, the
awareness and competence of employees, which plays a crucial driving role in the digital
change of enterprises, is an important factor that determines whether DT management
measures can succeed [50–52]. Whether an enterprise can achieve digitalization depends
on the help and commitment of its employees [53]. Horvath et al. [54] (2019) discovered
that the passive attitude of employees seriously hinders the introduction of digital tech-
nology. In addition, the diversified innovation of teams has created opportunities for DT.
Organizational resources, capabilities, and structure are reallocated through innovation
in an organization, while efficient integrated digital management is achieved through
innovation in management [55–57]. The combination of the two boosts enterprise DT.
Lastly, the demand of consumers also plays a guiding role in DT [58]. Consumers gain
access to information about enterprises via the Internet for selective consumption. Accord-
ingly, enterprises can communicate with consumers through multiple media channels to
implement DT.

4.1.4. Input at the Environmental Level

Input includes environmental changes, policy support, and legal regulation. At
present, the international environment is becoming increasingly complex and economic
globalization has encountered a backwash; thus, seeking breakthroughs has become nec-
essary for digital development [59,60]. For purpose of their DT, enterprises must clearly
recognize the development trend and strengthen their market shares [61], improve their
hardware and infrastructure [62], make innovations in the development of their business
mode [63], and advance industrial integration. Under the current backdrop of the digital
economy, the uncertainty of policy changes has brought the possibility of increased digital
innovations to enterprises [64]. The corresponding policy support exerts a significant incen-
tive effect on enterprise DT [65,66]. Meanwhile, during the DT age that covers the economic
and social fields, laws continue to stably act as the moderator of the social economy and
other social processes [67] to ensure the stability of transformation activities.

4.2. Process of Enterprise DT

In accordance with the aforementioned model and theoretical framework, we analyzed
the DT stages of three representative enterprises, i.e., Ping An Group, Suning Group, and
Midea Group, to study their digitalization targets and their specific driving elements at
different stages of transformation. We determined a path for the generalized development
of enterprise DT from informatization to datafication and then to intelligentization.

4.2.1. Strategic Explorations in the Informatization Stage

In the informatization stage of DT, enterprises must develop a multidimensional
perception of the current environment [68] to determine the general development trend
of their industries in consideration of multiple influencing factors and the start of the DT
process with digital technology. The development course of the digital information of
the Ping An Group matches this stage well, because the enterprise came up with its DT
Sustainability 2022, 14, 9915 7 of 19

concept and implemented its strategic layout as early as 2006, becoming a trailblazer on
the DT road of Chinese enterprises and successfully achieving its DT. Under the effect
of the rapid development of the Internet 2.0 technology and the policies introduced by
the state to support the digital economy, the Ping An Group started to implement the
digital reform of its enterprise as its major development strategy in 2006, unveiling the
informatization stage of DT. The digital economy was rising at that time when the state
released its strategic plan for DT development. The managers of the enterprise became
keenly aware of the direction of economic development and introduced digital technology
into the development of their enterprise. The combination of digital technology with
business management has effectively enhanced business efficiency and promoted business
innovation and development. The use of multiple digital computing tools in an attempt
to achieve digital computing in traditional business has improved overall work efficiency.
The analysis of big data has led to the summarization of the development laws of the
industry and decisions made on the strategic direction of the enterprise. Table 1 lists the
specific codes.

Table 1. Typical citations of the DT informatization stage of the Ping An Group.

Level 3 Coding Level 2 Coding Level 1 Coding Introduction to Typical Evidence

“I think Internet technology can
be used to manage and innovate
Digital technologies manage
existing business processes,
enterprise business processes
which can promote
business development”
Digital Management
“Technological innovation
brings enterprise
The dividend of digital innovation management-innovation,
technological innovation brings
enterprise operation innovation”
“Complex business data
calculation with the help of
Complete business data
network tools, can effectively
calculation with digital tools
Technology Innovation improve the efficiency of
our work”
Big Data Application “Through big data analysis,
summarize industry development
Use big data to decide the
rules, identify market
strategic direction
opportunities and challenges, and
of the enterprise
make correct
decisions in advance”
“It is of great significance to apply
some technologies to our various
Strengthen the combination of
Development of businesses and form business
digital technology
Internet of Things networks to strengthen business
and business application
processes for the development of
various businesses.”
At that time, the state issued a
strategic plan for digital
Policies encourage digital
National Policy Guarantee transformation and vigorously
transformation of enterprises
supported enterprises to try to
carry out digital transformation
“Digitization is the basic project to
Digital social development
promote social progress and
environment changes
Environmental Change productivity in the 21st century”
As early as the end of the last
Transformation of
century, the development trend of
External Environment
economic globalization has
Digital market economy
become a foregone conclusion. In
environment changes
the future, enterprises have to face
diversified and complicated
global market fluctuations.
 technology, integrated its online/off-line business and resources, and coordinated its
overall distribution strategy under the initiative “Ping An Digitalization 1.0” from 2006 to
2016, gradually realizing the combination of digital technology with traditional financial
business.
Sustainability First,
2022, 14, 9915 the Ping An Group created a digital strategic plan, which regarded 8 of 19AI,

blockchain, and cloud computing as the three core technologies in the future develop-
ment of the enterprise. Keeping Second, the group developed basic digital technology and re-
up with the development trend of the industry and guided by environmental
ceived support fromperception physical andtechnology. In 2008theand
economic development, Ping 2013,
An Grouptheintroduced
Ping An Group
digital set up
technology,
Ping An Technologyintegrated and Ping An Cloud,business
its online/off-line respectively, to provide
and resources, DT toitsits
and coordinated subsidiaries
overall distribu-
tion strategy under the initiative “Ping An Digitalization 1.0” from 2006 to 2016, gradually
with support in IT realizing planning, development,
the combination and
of digital operation
technology services.
with traditional It propped
financial up its
business. First,
cloud products for athe huge
Ping business
An Group createdvolume andstrategic
a digital pushed forward
plan, the process
which regarded of Ping
AI, blockchain, andAn
digitalization. Then, cloud computing
the Ping An asGroup
the threeexplored
core technologies in the future development
the development of the enterprise.
of innovative digital
Second, the group developed basic digital technology and received support from physical
technology to provide continuous
technology. power
In 2008 and 2013, for its An
the Ping subsequent
Group set upDT Pingstrategy.
An Technology In and
2014 Pingand
2016, it exerted itselfAninCloud, the AI field bytojoining
respectively, provide the
DT toBlockchain
its subsidiaries Finance Development
with support in IT planning,Al-
development, and operation services. It propped up its cloud products for a huge business
liance and initiatingvolume research on Ping An AI to develop its digital technology continu-
and pushed forward the process of Ping An digitalization. Then, the Ping An
ously. Meanwhile, itGroup partnered
exploredwith more than
the development 40 financial
of innovative institutions
digital aroundcontinuous
technology to provide the globe
in jointly exploring the power for its subsequent
application DT strategy. In
of blockchain to2014
theand 2016, it exerted
financial serviceitself in the AI field
industry. by
Lastly,
joining the Blockchain Finance Development Alliance and initiating research on Ping An
the Ping An Group achieved AI to develop theits extension of its
digital technology businessMeanwhile,
continuously. ecology by takingwith
it partnered advantage
more than of
market vacancy dividends 40 financialduring
institutionsthe early
around period
the globe of transformation
in jointly exploring the applicationandof leveraging
blockchain
to the financial service industry. Lastly, the Ping An Group achieved the extension of
digital technology in exploring the boundaries of broadened services. The specific de-
its business ecology by taking advantage of market vacancy dividends during the early
velopment is illustrated period inofFigure 3. and leveraging digital technology in exploring the boundaries of
transformation
broadened services. The specific development is illustrated in Figure 3.

Figure 3. Deconstruction of the transformation process of the Ping An Group in the informatiza-
Figure 3. Deconstruction of the transformation process of the Ping An Group in the informatization
tion stage.
stage.
The preceding analyses indicate that an enterprise in the early days of DT devel-
opment (i.e., informatization stage) is influenced by two driving elements: technology
The preceding analyses indicate
and environment. Duringthat
this an enterprise
stage, an enterpriseintends
thetoearly days of
be influenced DT devel-
by changes in
opment (i.e., informatization
environmental stage)
factors,is influenced
including by twoofdriving
the development the marketelements: technology
economy, policy support,
and application
and environment. During of technologies
this stage, before adjusting
an enterprise tendsitstoown bestrategic development
influenced plan. An in
by changes
enterprise will first formulate a basic plan for digital construction in accordance with the
environmental factors, including
characteristics the
of its owndevelopment
industry to createofitsthe
coremarket economy,
digital technology policy the
and support sup-
port, and application of technologies before adjusting its own strategic development
plan. An enterprise will first formulate a basic plan for digital construction in accordance
with the characteristics of its own industry to create its core digital technology and sup-
Sustainability 2022, 14, 9915 9 of 19

subsequent digitalization process. Then, on the basis of its existing digital construction,
an enterprise will further expand the scope of its technical development for the vigorous
research and development (R&D) of emerging digital technologies (e.g., AI, blockchain, and
IoT) to achieve the dynamic updating of its digital technology. In the end, under the joint
operation of business and digital technology, an enterprise will leverage digital technology
to explore the boundaries of broadened services.

4.2.2. Strategic Expansion in the Datafication Stage

During the datafication stage of DT, an enterprise must continue the expansion of
business and services on the basis of its development during the informatization stage and
take more targeted reform measures to boost the digitalization process further [69]. As
the flagship of China’s retail industry, the Suning Group is highly representative of this
stage. During its DT process, this group made vigorous innovations in targeted business,
gradually integrated digital technology into business services, and set up a network for
in-depth relations between the enterprise and its customers to realize high relevance of
business data. Meanwhile, the Suning Group enthusiastically mobilized the awareness of
its employees and the diversity of its teams in guiding the development of organizational
culture. Starting in 2007, the Suning Group arranged its digital strategic layout and went
into continuous and deep-going cooperation with IBM to innovate its IT management
and application. In 2015, the group indicated the desire to continue upgrading its off-line
business through the Internet and IoT technology to promote the digitalization of business.
Compared with other enterprises, the Suning Group can make a digital calculation of
existing operation data to create a digital value, realize the integrated management of
its digital platform, and use technology to empower innovations in its business model.
In addition, the Suning Group continuously adjusts its organizational structure to adapt
itself to the dynamic digital management mode, use its leaders’ decision making to guide
the overall development of the enterprise, and take advantage of the unique participant’s
influence effect. Table 2 provides the specific codes.
To keep up with technical developments in the age of Internet 3.0, the Suning Group
made daring decisions and innovations to satisfy the consumption needs of the time,
developed its diversified teams, and realized datafication innovations based on a platform.
In a period of 6 years (2010–2016), the Suning Group initiated Suning Digitalization 1.0
and then successfully upgraded it to 2.0 in its move toward a new age of digitalization.
First, the Suning Group expanded the basic advantages of IT and facilitated the platform-
based development of data. In 2010, it launched a new business model of innovative
interaction on the digital consumption platform of “Suning.com,” preliminarily achieving
the integrated management of online/off-line business. Thereafter, the Suning Group
stepped up the deep-going integration of data and introduced high-tech digital technology
to help in business implementation. In 2015, the group launched Suning 2.0 to complete the
integration of big data gradually and achieve a deep-going integration of online/off-line
business. On the basis of its existing platform, Suning introduced IoT technology to cement
the interconnection of data. Finally, the Suning Group invested heftily in the R&D of a
smart system to accelerate its entry into the age of smart services. In 2016, it developed the
smart supply chain system as part of its preparations for its future “Smart Retail” services.
The specific development is illustrated in Figure 4.
The preceding analyses show that the development of an enterprise during the datafi-
cation stage of DT is influenced by two driving elements: technology and participants.
During this stage, the leaders of an enterprise must promptly adjust its development strat-
egy in accordance with its development needs, vigorously innovate in the application of
digital technology, and build a targeted team of diversified driving. First, an enterprise
undergoing DT must expand early deployment advantages in its IT infrastructure and
accelerate the integration of online/off-line business to achieve platform-based manage-
ment. Second, it must strengthen the deep-going integration of data to achieve integrated
business management and introduce emerging technologies (e.g., IoT) on the basis of its
Sustainability 2022, 14, 9915 10 of 19

existing Internet platform to achieve a high degree of data interconnection. Lastly, it must
implement the innovative development of a smart digital system, move closer toward
more advanced intelligentization, and succeed in the basic construction of subsequent
“smart business”.

Table 2. Typical citations of the Suning Group during the datafication stage of DT.

Level 3 Coding Level 2 Coding Level 1 Coding Introduction to Typical Evidence

“In 2007, Suning cooperated with

IBM and launched the “Blue Deep
Digital technology layout of
Plan” to establish close
innovative management
cooperation in various fields of
enterprise digital management.”

“When Suning was determined to

carry out digital transformation, it
Science and technology began to introduce a large number
Application of innovation enabling of scientific and technological
Digital Technology business innovation talents to enable business model
innovation with science
and technology.”
Technology Innovation
“Today’s retail industry is
developing towards the direction
of digitalization, interconnection,
The digital development trend of
and intelligence. Consumers pay
consumer market arrives
more attention to experiential
consumption, and the era of smart
retail has arrived.”

“Since 2015, we have

continuously upgraded offline
business through Internet
Internet of Things technology
Internet of Things Applications technology and Internet of Things
promotes business digitization
technology to further promote the
development of digital
business transformation.”

“For the upgrading of

consumption, we mainly consider
Innovation of products and the three aspects of diversification
Diversified Team Innovation,
services based on of channels, meeting diversified
Consumer Demand
consumer demand needs and taking service as the
core to continuously innovate
and develop.”

“During the period from 2009 to

2015, we carried out several
The role of the leader in guiding
Participant Impact rounds of organizational structure
Leader Decision Making the overall development
adjustment internally.
of the enterprise
A more successful ‘large
enterprise’ transformation.”

“With the deepening of the

transformation, Suning’s various
Employee unit consciousness
business segments are like a ‘joint
Enterprise Employee plays an important role in the
fleet’, the headquarters is a
Consciousness implementation of
flagship, and each independent
enterprise strategy
business unit below is like a
warship fighting independently.”
 online/off-line business. On the basis of its existing platform, Suning introduced IoT
technology to cement the interconnection of data. Finally, the Suning Group invested
heftily in the R&D of a smart system to accelerate its entry into the age of smart services.
In 2016, it developed the smart supply chain system as part of its preparations for its fu-
Sustainability 2022, 14, 9915 11 of 19
ture “Smart Retail” services. The specific development is illustrated in Figure 4.

Figure 4. Deconstruction of the transformation process of the Suning Group during the datafica-
Figure 4. Deconstruction of the transformation process of the Suning Group during the datafication
tion stage.
stage.
4.2.3. Fulfillment of Strategy in the Intelligentization Stage
The preceding analyses During show that the development
the intelligentization stage of DT, ofan an enterprise
enterprise during the
must maintain da-
the dynamic
updating of organizational resources and structure to ensure
tafication stage of DT is influenced by two driving elements: technology and participants. that it can make a timely
During this stage, response to a rapidly changing environment [70] and ultimately achieve a value change for
the leaders of an enterprise must promptly adjust its development
the enterprise. For this transformation stage, the Midea Group, a benchmark in China’s
strategy in accordance with its industry,
manufacturing development
has goodneeds,
referencevigorously innovate
value for research. in the
By using applica-
intelligentization
tion of digital technology,
technology(e.g., IoT and AI), this enterprise built an organizational system withan
and build a targeted team of diversified driving. First, theen-
capabil-
terprise undergoing ity DT mustoperation
for smart expandand early deployment
successfully realizedadvantages in overall
the shift toward its IT infrastruc-
intelligentization.
ture and accelerateSince
the launching
integrationits DT
of in 2013, the Mideabusiness
online/off-line Group hastogradually
achievefulfilled the strategy for
platform-based
digital change from Digital 1.0 to Digital 2.0 and accumulated many products in the process
management. Second, it must strengthen the deep-going integration of data to achieve
of transformation, all of which have realized external output. By 2016, the Midea Group
integrated businesscompleted
management basic DTand
andintroduce emerging
was in urgent technologies
need of transitioning (e.g.,
toward theIoT) on the
intelligentization
basis of its existingstage.
Internet
Underplatform to achieve
such circumstance, a high degree
it immediately ofthe
started datanewinterconnection.
age of “Smart Midea”
to strongly develop smart technology for innovations
Lastly, it must implement the innovative development of a smart digital system, in products and services and the
move
dynamic adjustment of its business and organizational structures to ensure the optimized
closer toward more advanced intelligentization, and succeed in the basic construction of
utilization of resources. Table 3 provides the specific codes.
subsequent “smart business.”Holding onto the ideal of “smart” development during the intelligentization stage of
DT, the Midea Group integrated intelligentization technology into its business and used in-
4.2.3. Fulfillment oftelligent
Strategy in the in
algorithms Intelligentization
the customization ofStage
services to achieve the intelligentization process
of its business. The Midea Group has achieved the physical output of its intelligentization
During the intelligentization stage of DT, an enterprise must maintain the dynamic
services since 2016, and it is working toward full-scale digitalization and intelligentization.
updating of organizational resources
First, in 2016–2017, and structure
the Midea Group builttoan ensure that
intelligent it can makesystem
decision-making a timely
on the ba-
response to a rapidlysis ofchanging environment
existing digital [70]set
technology and and ultimately
up the company’sachieve a valueInchange
“Midea Cloud”. this manner,
the use of an AI algorithm to drive a smart scheduling service (e.g., C2M customization)
and output digital products and services that had been achieved became possible. Second,
the Midea Group enhanced its industrialized Internet services by rebuilding the framework
of organizational resources to increase value relevance among various professional jobs
and realize value change of the enterprise. In 2018–2019, the group completed the creation
of the Midea Industrial Internet, released Midea M.loT1.0, and dynamically adjusted its
organizational structure and communication channels by relying upon the revolutionary
Sustainability 2022, 14, 9915 12 of 19

technology of the industrial Internet to realize the exchange of information at various

links. Lastly, the Midea Group started its long-term development strategy of “all-round
digitalization and intelligentization.” That is, on the basis of existing digitalization, it will
continuously use the emerging digital technology for in-depth integration of its data re-
sources and drive the enterprise into a sustainable transformative development toward a
data-driven technological group to achieve the innovations in its business model, which is
fully digitalized and intelligentized. The specific development is illustrated in Figure 5.

Table 3. Typical citations of the Midea Group during the intelligentization stage of DT.

Level 3 Coding Level 2 Coding Level 1 Coding Introduction to Typical Evidence

“The digital transformation of
Midea has been gradually
deepened in several stages since
The existing digital infrastructure
2013. From 2013 to 2015, it was
paves the way for the
digitalization 1.0, realizing the
subsequent transformation
implementation of one Midea, one
system and one standard through
Fundamentals of 632-Project.”
Digital Technology “In the process of digital
transformation, Midea has
accumulated many products, all
Technology Innovation of which are exported through
Mature digital products continue
Midea Intelligence. It mainly
to deliver value
includes intelligent
manufacturing suite, digital
marketing suite and PaaS
(platform as a service) platform.”
“At present, intelligent technology
has been able to replace manual to
complete the independent
Digital technology provides a
Artificial Intelligence (AI) judgment and decision of some
reference for enterprise
Technological Innovation work. With the help of these
decision making
emerging technologies, it can
provide reference for the future
strategic decision of enterprises.”
“The digital growth dividend has
Basic digital dividend will become a thing of the past. We
disappear, intelligent should seek to split the stock and
Organizational Strategy Decision
reconstruction is reconstruct the three links of
the new direction development, production, and
sales intelligently.”
“Start from the business side first,
determine the optimal process
Dynamically adjust the and standard, then determine the
Integration of organization’s business and data standard and system
Organizational Organizational Resources structure to ensure optimal function construction, and then let
Dynamics Change utilization of resources the business process according to
the determined optimal
process to change.”
“In the future, we hope our
employees can further strengthen
the simple, efficient and
Organizational Technological progress drives pragmatic value orientation, and
Culture Innovation organizational culture change make progress together with the
technological transformation of
the enterprise, with open and
innovative ideas.”
 is, on the basis of existing digitalization, it will continuously use the emerging digital
technology for in-depth integration of its data resources and drive the enterprise into a
sustainable transformative development toward a data-driven technological group to
achieve the innovations in its business model, which is fully digitalized and intelligen-
Sustainability 2022, 14, 9915 13 of 19
tized. The specific development is illustrated in Figure 5.

Figure 5. Deconstruction
Figureof5.the transformation
Deconstruction of theprocess of the Midea
transformation process Group during
of the Midea theduring
Group datafication
the datafica-
stage. tion stage.

The preceding analyses indicate that the development of an enterprise during the
The precedingintelligentization
analyses indicate stage ofthat
DT isthe development
influenced of anelements:
by two driving enterprise during
technology andthe
organi-
intelligentization stage of DT is influenced by two driving elements: technology
zation. During this stage, the innovations of an enterprise for its own development remain and or-
ganization. Duringdriven
this stage, thetechnology.
by digital innovations of an enterprise
Meanwhile, for itsintegration
given the in-depth own development
of intelligentiza-
remain driven by digital technology. Meanwhile, given the in-depth integration of intel-level
tion technology into business and services, reform innovations at the organizational
of the Midea Group have become an essential requirement. First, an enterprise undergoing
ligentization technology into business and services, reform innovations at the organiza-
DT must formulate an intelligent decision-making strategy under the support of earlier
tional level of the digital
Mideadevelopment
Group have become
to output an essential
intelligent products requirement. First, itan
and service. Second, enter-
must build its
prise undergoing DT ownmust formulate
Internet system by an usingintelligent decision-making
emerging digital strategy
technologies (e.g., under
the Internet andthe
IoT) to
achievedevelopment
support of earlier digital exchange of information
to output at all links. On this
intelligent basis, the
products organizational
and architecture
service. Second,
is dynamically reconstructed and adjusted. Lastly, the enterprise should formulate a long-
it must build its own Internet system by using emerging digital technologies (e.g., the
term digital development strategy on the basis of the initial development of its existing
Internet and IoT) to achieve exchange
digitalization of information
and intelligentization at all links.
and continuously On this digital
use emerging basis, technology
the or- to
ganizational architecture
deepen theis integration
dynamically reconstructed
of data resources and andachieveadjusted. Lastly,
innovations in thethe enter-
business model
of all-round digitalization and intelligentization. The innovative
prise should formulate a long-term digital development strategy on the basis of the initial development of digital
development of itstechnology
existingand reform at the organizational
digitalization level jointly drive
and intelligentization andancontinuously
enterprise to realize
usevalue
change, which is the ultimate goal of DT.
emerging digital technology to deepen the integration of data resources and achieve in-
novations in the business
4.3. Outputmodel
Results ofofEnterprise
all-round DT digitalization and intelligentization. The
innovative development of basis
On the digital technology
of the and reform
preceding studies, we summed at the organizational
up the output results oflevel
existing
enterprise DT from four levels: technology, organization,
jointly drive an enterprise to realize value change, which is the ultimate goal of DT. participant, and environment.

4.3.1. Output at the Technical Level

Digital technology plays a direct driving role in enterprise DT and runs throughout the
entire life cycle of DT. During the informatization stage, most enterprises are keenly aware
of the environmental changes brought by the rapid development of digital technology,
gradually launching their digitalization construction and implementing targeted organiza-
tional reconstruction to keep up with the development trend of digital technology. During
the datafication stage, enterprises introduce digital technology, make innovations in digital
platforms in consideration of their own business characteristics, create a smart system, and
combine online/off-line data to achieve integrated digital management, therefore greatly
Sustainability 2022, 14, 9915 14 of 19

enhancing their management efficiency. During the intelligentization stage, enterprises

deepen the application of digital technology, become fully digitalized and intelligentized,
and develop a strategy for “intelligent” development on the basis of existing digital plat-
form to further increase the potential of digital technology in enterprise management.

4.3.2. Output at the Organizational Level

Through DT, enterprises can achieve innovations in the digitalization process, orga-
nizational structure, business model, and overall operating efficiency. First, enterprises
use digital technology to rebuild their organizational business process (including R&D,
production, sales, and services), review the value of organizational business, improve
circulation, enhance efficiency, and create innovations in organizational business. Second,
they seek the in-depth integration of digitalization, develop digital and intelligent plat-
forms, create the mode of online/off-line combination for the interconnection of data, and
provide consumers with better products and services to achieve the digital innovation of
their business model. Through the aforementioned measures for reform, enterprises have
achieved innovation in the mode of organizational cooperation, enhancing their overall
operation efficiency.

4.3.3. Output at the Participant Level

Changes that appear in an enterprise through DT include the shift of the decision-
making focus of leaders, changes in the skills of employees, improvement of product
and service quality, and transformation of consumer experience. First leaders start to
actively explore the path toward digital changes, and the decision-making focus of leaders
gradually tilts toward digital development. Second, with the digital strategic layout of
enterprises replacing the traditional operation of employees, their work skills gradually
lean toward a digital platform that is convenient and intelligent. Lastly, the new business
model brought by enterprise DT has changed traditional production and service modes
and made it possible to obtain consumers’ needs and feedback through the analysis of
big data, effectively enhancing the quality of products and services and increasing their
value. The extensive application of digital platforms has also considerably enhanced the
experience of consumers.

4.3.4. Output at the Environmental Level

The diversification of the market economy and the appearance of the new business
format of digital platforms are unique environmental characteristics manifested in the DT
process. The extensive application of digital technology has overthrown the operation laws
of traditional economy. Given the rapid development of multiple new economic sectors that
are based on Internet traffic and digital technology, the market environment has gradually
become complex and diversified. Furthermore, enterprise DT has enabled the appearance
of a new business format (i.e., digital platforms), caused traditional e-commerce to branch
out into multiple fields for cross-industrial integration, and created new business formats
that combine multiple industries.

5. Conclusions
From the perspective of dynamic evolution, this study uses Ping An Group, Suning
Group, and Midea Group as examples to make a transverse analysis of multiple cases to
look into the driving elements of the DT stages of enterprises under the background of the
digital economy.
(1) Enterprise DT is a dynamic evolution process with a strict logical relationship between
transformation stages. DT is divided into the stages of informatization, datafication,
and intelligentization to analyze the transformation driving processes during the
stages from the perspective of dynamic evolution. The finding is as follows: all
enterprises create certain preconditions during the aforementioned stages for the
Sustainability 2022, 14, 9915 15 of 19

subsequent stages by creating innovations in digital technology and fulfilling strate-

gic plans.
(2) Enterprise DT relies on the driving elements at four levels (technology, organiza-
tion, participant, and environment), with difference in the crucial driving elements
at various transformation stages. The crucial driving elements originate from the
technical and environmental levels during the informatization stage, the technical and
participant levels during the datafication stage, and the technical and organizational
levels during the intelligentization stage.
(3) Four input elements participate in driving the DT process, and an actual output value
exists in the final transformation results. At the technical level, the driving elements
run through the entire transformation process and continuously provide positive
feedback output for the digitalization process of enterprises as the transformation
driving foundation and core elements that lead development. At the organizational
level, the driving elements are the primary supporting framework of enterprise DT.
They fulfill the in-depth integration of enterprise digitalization through the innova-
tion and reform of the organizational structure. At the participant level, the driving
elements guide the overall digital development of an enterprise to effectively improve
the quality of products and services and achieve the reform for a digital business
model through innovations, including leaders’ decision-making focus toward digital
development and the skill shift of employees. At the environmental level, the driving
elements play a role in gestation and have spawned new business formats that com-
bine multiple industries through an enterprise that embarks upon the DT process in a
targeted manner on the basis of its environmental perception of the diversification
of the market economy and the comprehensive consideration of the state of their
own development.

6. Contributions of the Study

6.1. Theoretical Contributions
This study enriches research on the evolution of driving elements of the enterprise DT
strategy. Its theoretical research implications are reflected in the following aspects.
(1) Exploratory study of the driving elements of the process of enterprise DT from the
perspective of dynamic evolution. In accordance with the characteristics of the study,
we innovatively built the I–P–O theoretical model, which divides the study process
into three dimensions (namely input, process, and output) for separate exposition.
From the perspective of dynamic evolution, this study has attempted to address issues
arising in the DT process, enrich the existing theoretical foundation and research
content of DT, and overcome deficiencies that are currently found in relevant research,
e.g., limited visual angle and obscure definition of models.
(2) A three-stage model for the dynamic development of DT. This study divides enterprise
DT into the informatization, datafication, and intelligentization stages. It investigates
the DT process on the basis of a dynamic model and looks deep into the intrinsic links
and evolutionary mechanisms during different transformation stages. Hence, it has
value in providing theoretical methods for research on the enterprise DT process.

6.2. Management Implications

On the basis of the conclusions, the following management implications are proposed
for DT being carried out by enterprises.
(1) Coordinating the overall DT strategy. Rather than the fulfillment of the traditional
objective of an enterprise, DT is an evolutionary process of dynamic development. An
enterprise should persist in all-round deployment, steadily move forward with DT,
and pursue online/off-line integration to gradually achieve smooth transition from
digital transformative development to intelligentization, and then plan the full-scale
promotion of the strategic outline for enterprise DT.
Sustainability 2022, 14, 9915 16 of 19

(2) Pushing forward enterprise digital technology. The technical driving element runs
throughout the entire process of enterprise DT. An enterprise should ensure the con-
struction of its own technological foundation; strengthen the research and application
of AI, big data, and other technologies; enhance its digitalization and intelligentization;
reinforce the empowerment of the digital platform; intensify the digitalization of cru-
cial business flows, including production, R&D, and management; and build a digital
platform that is based on data integration and centered upon data driving to promote
new transformation of an enterprise. Simultaneously, an enterprise should make
reasonable use of Internet technologies (e.g., big data and cloud computing) to set up
a virtual architecture of an organizational network that can ensure the efficient sharing
of business information and optimize the management of its organizational business.
(3) Arranging the DT strategic plan reasonably on a stage-specific basis. Enterprises at
different DT stages have varying crucial driving elements. They should comprehen-
sively consider their own development conditions for the precise positioning of their
DT stage, correctly understand their need for transformation, and rely upon driving
elements as a guide for reform and development to boost the orderly transition of
their digitalization process and steadily achieve enterprise DT.

7. Limitations and Prospects

7.1. Limitations
There are some deficiencies in our research at present. In the study of digital transfor-
mation, we selected the successful and representative enterprises as the research object and
summarized the macro conclusion of the driving factors of digital transformation. However,
there is still a lack of large-scale summary research on the digital transformation of small
and medium-sized enterprises and insufficient interpretation of the actual transformation
driving of small and medium-sized enterprises.

7.2. Future Prospect

Future research can improve the scope of application of the model and make a sample
summary of the digital process of small and medium-sized enterprises to further increase
the persuasiveness of the study. In addition, the driving mechanism can be studied based
on the main driving factors to further deepen the research on digital transformation.

Author Contributions: X.H. organized this study, proposed the idea of the manuscript, and par-
ticipated in drafting, reviewing and editing the manuscript. Y.Z. implemented data collection,
participated in data collection, investigation and research design. All authors have read and agreed
to the published version of the manuscript.
Funding: This research was funded by Fundamental Research Funds for the Central Universities of
China (Project No. 2022VI01-07), General Project of Hubei Social Science Funds of China (Project
No. 2021198), and National Innovation and Entrepreneurship Training Program for College Students
(Project No. 149).
Institutional Review Board Statement: Not applicable.
Informed Consent Statement: Informed consent was obtained from all subjects involved in the study.
Data Availability Statement: The datasets used or analyzed in this are accessible from the corre-
sponding author on demand.
Conflicts of Interest: The authors declare no conflict of interest.

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