The American Journal of Management and Economics Innovations
67
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TYPE
Original Research
PAGE NO.
67-73
10.37547/tajmei/Volume07Issue07-08
OPEN ACCESS
SUBMITED
22 June 2025
ACCEPTED
29 June 2025
PUBLISHED
14 July 2025
VOLUME
Vol.07 Issue 07 2025
CITATION
Oleksandr Ieselev. (2025). Approaches To the Digital Transformation of
Traditional Business Processes. The American Journal of Management
and Economics Innovations,7(07),67
–
73.
https://doi.org/10.37547/tajmei/Volume07Issue07-08
COPYRIGHT
© 2025 Original content from this work may be used under the terms
of the creative commons attributes 4.0 License.
Approaches To the Digital
Transformation of
Traditional Business
Processes.
Oleksandr Ieselev
Director Of Intaleo Ukraine LLC Kyiv, Ukraine
Abstract:
The article provides a detailed account of
approaches applied to the digital transformation of
traditional business processes. In the context of a rapid
technological shift, such transformations become
indispensable for the survival and competitiveness of
economic actors. However, despite a proliferation of
publications, both academic and practitioner literature
remain fragmented in their definitions of the nature of
transformational steps, their scope, and the
organizational mechanisms involved. The objective of
this paper is to undertake a critical analysis of the
conceptual foundations of digital transformation and to
identify the primary directions that underpin the
rethinking
and
reconfiguration
of
established
operational models. Special attention is given to
juxtaposing strategic, institutional, and industry‐applied
approaches, as well as to exploring the tensions
between normative rhetoric and the empirical feasibility
of these changes. A typology of the approaches under
review is presented, key limitations and barriers are
delineated, and the author’s position on the novelty of
processes for the digital reconfiguration of business
architecture is articulated. The scientific and practical
value of this work lies in systematizing diverse
viewpoints on the topic and interpreting them through
an interdisciplinary lens. The material set forth will be of
use to scholars in management, digital economics,
organizational theory, and applied informatics, as well
as to consulting professionals and business architects
engaged in facilitating digital transformations.
Keywords:
business process, institutional constraints,
organizational changes, strategic restructuring, digital
transformation, economy.
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Introduction
Despite extensive discourse on digital transformations,
the concept of business-process transformation in a
digital environment is still often interpreted
superficially
—
as merely the deployment of IT
infrastructure or the automation of routine tasks. Such
oversimplification overlooks profound shifts in
organizational logic, managerial decision-making, and
the redefinition of the human role in economic
interactions.
The core issue stems from a gap between technological
potential and the capacity of traditional business
structures for institutional adaptation. Digitalization is
frequently proclaimed but seldom achieves systemic
restructuring, remaining a collection of fragmented IT
initiatives without altering the semantic architecture of
processes.
Amid the rapid evolution of the digital ecosystem,
emphasis must shift from technological tools to the
methodologies underpinning the transformation of
established operational models. Contemporary research
focuses
on
distinguishing
between
superficial
automation and genuine transformation, which entails
redefining business logic, managerial models, customer
engagement, and ecosystem positioning. Accordingly,
existing approaches to the digital transformation of
traditional processes warrant systematization, their
substantive divergences elucidated, and well-grounded
recommendations proposed, with a focus on the
functional and strategic justification of change.
Materials and Methods
A review of contemporary publications reveals several
conceptual groups differing in subject matter,
methodological focus, and research depth. Overall, the
emphasis is shifting from descriptive models toward
efforts
to
systematize
and
interpret
digital
transformation as a multi-level organizational shift.
Among works emphasizing the strategic structuring of
digital transformations as an element of the overall
business model are the studies by T. H. Halim, M. M.
Kesuma, and S. Ridha [1], A. Z. Ismaeel and S. R. M.
Zeebaree [2], and J. G. M. Jonathan and J. Kuika Watat
[3]. In these investigations, the transformation in
question is understood as a process requiring alignment
of business strategies with technological initiatives. The
authors examine it through the lens of enhanced
operational efficiency, underscoring the importance of
digital KPIs and changes in the composition of business
objectives. They systematically review the evolution of
e-business and identify key practices, including cloud
technologies and analytics platforms. Particular
attention is paid to the issue of strategic coherence:
these works describe how companies coordinate their IT
infrastructure with organizational goals to avoid
fragmented initiatives.
A more structured, institutional perspective is presented
in the research by G. Liu, J. Liu, and P. Gao [5], which uses
Chinese firms as a case study to analyze how digital
changes are embedded within institutional norms and
corporate culture. It is noted that formal regulations and
administrative barriers exert a defining influence on the
pace and form of transfor
mation. In N. Kravchuk’s work
[4], the interaction between digital practices and
business models is also raised; however, the emphasis
there is on trending changes in corporate strategies
rather than on deep institutional restructuring. These
publications point out that change necessitates not only
technology adoption but also the adaptation of
managerial logic and the adjustment of regulatory
frameworks.
A number of sources focus on quantitative and trend
analysis. For example, analytical reports [9, 10] offer an
overview of current directions
—
from the application of
AI in personalization to the growth of digital platforms.
These sources prove useful for identifying empirical
nuances and the general digital conjuncture. The
scientific reflection of trends is captured by S. Nadkarni
and R. Prügl [6], who propose a synthetic framework for
description, highlighting the interdisciplinary nature of
the issue.
An
important
complementary
layer comprises
publications that concentrate on specific industries. For
instance, S. Soellner, R. Helm, and P. Klee [7] examine
the transformation of industrial companies under digital
servitization. They demonstrate how manufacturing
firms integrate digital services into their product
portfolios,
restructuring
operational
processes
according to principles of agility and customer co-
creation. The article by S. Syamsuddin, S. Marsudi, and
B. Hasanuddin [8] contains a review of practical
challenges faced by traditional companies when
transitioning to digital formats, including skill shortages
and organizational inertia.
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Despite the relative diversity of approaches, the
literature
retains
several
methodological
and
substantive contradictions. First, there is no unified
typology of the transformation under consideration:
authors interpret the depth and nature of changes
differently. Second, there is scant treatment of cognitive
and behavioral barriers that arise at the levels of
management and staff. In addition, a significant portion
of the research is either overly abstract or focuses on
localized case studies. Studies exploring the logic of
change in small and medium-sized enterprises, as well
as comparative analyses of transformational strategies
across different national and cultural contexts, remain
underrepresented. Insufficient attention is paid to
synchronizing transformations with ethical, legal, and
environmental sustainability parameters.
The present article employs the following methods:
systematic reviews and bibliographic meta-analyses;
case studies with an institutional focus; comparative
analysis; content analysis; statistical data processing;
and synthesis.
Results and Discussion
At the initial analytical stage, it is essential to distinguish
among three concepts that are often conflated:
automation, digitization, and digital transformation.
Automation involves delegating routine tasks to
technical tools without revisiting the underlying
operational logic. Digitization denotes the expanded use
of digital tools within the existing paradigm. By contrast,
digital transformation rests on a radical rethinking of
processes, where technology becomes not an adjunct
but the foundation of a new operating model [2, 3, 6].
This differentiation helps avoid conceptual confusion.
For example, replacing paper‐based document
workflows with electronic ones constitutes digitization,
whereas shifting from a centralized procurement model
to a decentralized system based on blockchain and
smart contracts represents transformation, since it
alters the fundamental principles governing interactions
am
ong supply‐chain participants.
According to statistical summaries from Gartner and
Forrester, 2025 has seen an unprecedented level of
adoption in the realm of digital transformation: over 94
% of organizations now engage in various digital
initiatives, underscoring the pervasive nature of
digitalization across all sectors [9]. Only 18 % of
economic actors remain independent of digital
operations or products, highlighting the integration of
relevant
technologies
into
core
organizational
processes. Among companies that have completed the
transformation in question, 60 % have successfully
implemented new business models [4]. Approximately
63 % of organizations have experienced productivity
gains over the past two years as a result of their digital
efforts [10].
To date, four dominant approaches to the digital
transformation of traditional business structures
emerge clearly in the scholarly literature (see Fig. 1):
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Fig. 1. Systematization of approaches to digital transformation of traditional business processes (compiled by
the author on the basis of [1
–
3, 5, 7, 8])
Thus, under the technology-deterministic vector, there
is a tendency to prioritize the implementation of
technologies (AI, IoT, RPA, and others) as if they alone
constitute a sufficient means of transformation. This
approach assumes that technological upgrading will
automatically yield efficiency gains. However, without a
thoughtful reorganization of processes and roles within
the organization, the outcome is limited to increased
speed rather than genuine added value.
In the process-oriented approach, the emphasis shifts to
redefining business operations by leveraging digital
capabilities. The primary objectives become:
1.
optimizing information flows;
2.
eliminating redundant steps;
3.
enhancing transparency and controllability.
This approach envisions the creation of digital twins of
processes, the deployment of real-time analytics, and
the pursuit of continuous procedural improvement. Its
key advantage lies in focusing on targeted functionality
rather than on the latest technological trend.
Within the client-centric framework, the spotlight falls
on user experience. Digital transformation is viewed as
a means of aligning processes with customer
expectations and behavioral patterns. This entails
personalization, flexible service modularity, and
multichannel interfaces. Such an approach proves
especially effective in B2C environments, where the
consumer’s “digital footprint” becomes an invaluable
resource for designing product and service offerings.
The most comprehensive is the ecosystem-driven
direction, which assumes that business processes are
transformed not in isolation but through networked
interactions with external partners. The organization
ceases to operate as an autonomous entity and instead
becomes a “node” within a digital platform, where co
-
creation of value supplants linear supply-chain logic.
This requires not merely digitization but institutional
flexibility, a redefinition of accountability boundaries,
and a cooperative data-governance model.
Approaches
Technologically-
deterministic
Process-oriented
Customer-centric
Ecosystem
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For
example,
digital
transformation
in
the
manufacturing of protective glass for mobile device
screens illustrates how even a high-tech yet traditionally
organized production can radically alter its operating
model
through
digital
solutions.
First,
the
transformation touches the production processes
themselves: the introduction of IoT sensors and real-
time monitoring systems enables precise tracking of
thermal-treatment and glass-cutting parameters,
thereby minimizing waste and defects. Machine-
learning algorithms forecast potential flaws based on
historical data, allowing the organization not only to
respond to disruptions but also to prevent them. At the
logistics and supply-chain level, digital platforms
synchronize orders, deliveries, and production cycles,
adapting dynamically to demand fluctuations. The use of
digital twins for equipment facilitates preventive
maintenance and helps avoid downtime. Customer
interactions also evolve: online configurators allow B2B
clients to specify protective-glass parameters in real
time, integrating orders directly into the production
system. Moreover, market-feedback analytics enable
rapid adjustments to coating compositions or cut-out
shapes in response to new device models.
Thus, the transformation in this segment goes far
beyond automation: it restructures the entire value-
creation chain
—
from design and production through
customer engagement and after-sales support.
Despite methodological diversity, most organizations
encounter a number of persistent challenges (Table 1).
Table 1
–
Limitations of digital transformation implementation (compiled by the author based on [2, 5, 8])
Aspect
Characteristic
Misalignment
of
organizational
structure with new digital demands
Horizontal
data
flows
conflict
with
hierarchical
management architecture
Fragmentation of IT initiatives
Without strategic unity, digital projects are executed as
isolated improvements, failing to generate end-to-end
synergy
Cognitive
conservatism
among
management
Leadership often perceives digital transformation as an
external threat rather than an opportunity for internal
renewal
Lack
of
competencies
at
the
intersection of technology and business
modelling
The absence of transdisciplinary specialists impedes the
shift to a hybrid decision-making logic
As
this
overview
suggests,
successful
digital
transformations
are
unattainable
without
a
fundamental methodological shift
—
moving from
technological fetishism to strategic synchronization of
processes, architecture, and organizational culture. In
this regard, the following recommendations are
proposed (Fig. 2):
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Fig. 2. Proposals for optimizing the digital transformation of traditional business processes (compiled by the
author)
The novelty of the proposed approach resides in its
emphasis on process-cultural reorganization as the
primary driver of successful digital transformations.
Unlike traditional models that focus either on
technology deployment or strategy adaptation, this
framework asserts the primacy of structural
coordination among process flows, data architecture,
and organizational culture as a unified triad.
Conclusions
Digital transformation of traditional business processes
is not merely a technological pathway but a profound
institutional shift. Superficial automation practices
cannot substitute for the necessity to rethink
organizational logic.
Effective approaches to the transformations under
study rely on comprehensive work with process
architectures and ecosystem interactions. Mechanisms
for value generation play a central role.
From the author’s perspective, only the combination
of
client-centricity, process logic, and platform thinking can
ensure not only adaptation to the digital environment
but also its proactive shaping.
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