How digital transformation supports value creation in omni-channel organisations during turbulent times
Using data from the UK gambling industry, a new study explores the impact of omni-channel organisations’ shifting DTS responses in dynamic and disruptive environments
When the world is disrupted by crisis, be it in the form of natural disasters, logistics chaos, or epidemics such as the COVID-19 outbreak, companies may find their conventional operations severely hindered. To continue to reach their customers, they may find it necessary to adopt Digital Transformation strategies. For many companies, doing so may be no less than a matter of survival.
Digital Transformation Strategy (DTS) has emerged as a strategic focus for many companies across different sectors. It refers to strategies for utilising digital technologies to transform firms’ traditional operational activities, with the aim of improving their efficiency, performance, profitability, sustainability, and ultimately creating value.
Omni-channel organisations used digital technologies to erode the divide between their online and physical channels, providing easier customer access and more extensive engagement than single- or multi-channel modes of operation can offer. During the unprecedented disruption seen during the COVID-19 pandemic, companies expanded their omni-channel services to adapt to government restrictions. This was particularly seen in retailing and service industries. This expansion necessitated the revision of existing DTSs for some companies, and the introduction of online channels for others. Hence, the transition to digital operations forced companies to reshape their DTSs and focus on omni-channel approaches to preserve their businesses, sustaining their existing operations while managing transitions to digital ways of working.
With those chaotic times still fresh in the memory, a new study by Bayes Professor Feng Li with Dr Konstantina Spanaki, Dr Dimitris Zissis, and Prof Thanos Papadopoulos, entitled The Transformation of Digital Strategy and Value Creation in Omnichannel Organisations: The Case of the Gambling Industry, uses comprehensive data from the UK gambling industry to explore two questions:
(1) how does a Digital Transformation Strategy, as a strategic response, sustain a balance during disruptive events in omni-channel organisations? and
(2) how do omni-channel organisations balance their digital strategy and value-creation efforts by adopting a dual approach?
To address the first question, the authors examined the UK gambling industry, itself a dynamic business environment that has developed DTSs using an omni-channel approach.
To tackle the second question, they focused on three key gambling operators in the United Kingdom (UK) and considered the shifting omni-channel balance of their strategic services. Applying an interpretive approach to DTS value creation, the authors were able to identify the main factors influencing the balance between online and on-premises channels in these omni-channel organisations in dynamic environments over a period of 10 years (2010–2020).
The gambling industry is an eminently suitable subject for this study. Firstly, the industry’s market size has greatly increased in recent years, due in no small part to technological advances. Secondly, the COVID-19 pandemic had a huge impact on betting organisations. Once heavily reliant on physical betting shops, these firms were forced to shift to digital strategies and an omni-channel approach to balance online and on-premises channels. Gambling providers had to rapidly transform their operations and value-creation processes. Therefore, the gambling industry was a prime subject for omni-channel analysis due to the high relevance of DTSs to the industry and because it is an evolving industry with a high societal and individual impact.
The study contributes to DTS theory and understanding of omni-channel organisations by unveiling the impact of omni-channel organisations’ shifting DTS responses in dynamic and disruptive environments, and by showing how omni-channel DTS value creation unfolds holistically as a dual strategic balance. The study also offers valuable guidelines for omni-channel service providers to plan and pursue their DTS pathways.
The Transformation of Digital Strategy and Value Creation in Omnichannel Organisations: The Case of the Gambling Industry is to be published in European Journal of Information Systems. The accepted version of the paper can be requested at City Research Online.
