The Digital Transformation in SMEs: Hidden Costs and Financial Consequences
Paper Type
ERF
Abstract
Consulting groups tend to neglect both hidden costs and financial consequences of dysfunctions in digital transformation. However, hidden costs reverse the visible performance stemming from digitization. This emergent research paper suggests a way to introduce both hidden costs and financial consequences in digital transformation. This result in a turn towards human potential development is the intangible infrastructure of sound digital transformation. It mainly consists of a time budget devoted to improving work organization, communication, working conditions, time management, integrated training, and strategy implementation. Downplaying such intangible investment enables the reduction of visible costs in the short run, but it results in substantial dysfunctional costs that hamper sustainable economic performance.
Paper Number
1782
Recommended Citation
Jiang, yuewei; Zhanbin, Shi; Xiaodan, Ge; Xu, Yingyi; Yuan, Dai; and Hayashi, Joyan, "The Digital Transformation in SMEs: Hidden Costs and Financial Consequences" (2024). AMCIS 2024 Proceedings. 3.
https://aisel.aisnet.org/amcis2024/dig_culture/dig_culture/3
The Digital Transformation in SMEs: Hidden Costs and Financial Consequences
Consulting groups tend to neglect both hidden costs and financial consequences of dysfunctions in digital transformation. However, hidden costs reverse the visible performance stemming from digitization. This emergent research paper suggests a way to introduce both hidden costs and financial consequences in digital transformation. This result in a turn towards human potential development is the intangible infrastructure of sound digital transformation. It mainly consists of a time budget devoted to improving work organization, communication, working conditions, time management, integrated training, and strategy implementation. Downplaying such intangible investment enables the reduction of visible costs in the short run, but it results in substantial dysfunctional costs that hamper sustainable economic performance.
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