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2020 IEEE Tenth International Model-Driven Requirements Engineering (MoDRE)

Toward Achieving the Core Goals of Digital


Business Transformation: A Preliminary Study
Malak Baslyman, Azzah AlGhamdi, Sarah AlMuhaysh
Information and Computer Science Department
King Fahd University of Petroleum & Minerals
Dhahran, Saudi Arabia
{malak.baslyman,g201901610,g201901810}@kfupm.edu.sa

Abstract—Many businesses are going through digital business the DBT goals [4], [5]. One of the main challenges faced in
transformation (DBT) in order to keep ahead of market, optimize this context is having all of DBT’s elements act as a whole to
customer experience, and reach business targets. The process achieve the core goals and purposes of the transformation [6].
of digital business transformation is complex as it involves
multiple key elements such as stakeholders, business objectives, In addition, there is a lack of general guidance and a shared
technology, and strategies. In addition, all specific and temporary understanding of the key DBT goals that support business
goals, and business models have to be aligned with the key owners in decision making. This is when selecting business
goals of the DBT. One of the risks organizations face during the models and implementing digital solutions, which may lead to
transformation process is focusing on short-term solutions and irrecoverable loss of business [6], [7]. Goal-oriented modelling
failing to consider their impacts on the transformation core goals.
In this study, we propose a goal-oriented model that provides is meant to give a comprehensive view of stakeholders with
a shared and holistic understanding of the DBT context, and their intentions, and to assess systematically the potential
captures its essential high-level goals and key elements. Moreover, impact of solution alternatives during decision making, prior
the DBT goal model supports business owners in the selection to solution implementation [8]. Hence, in order to cope with
of transformation strategies based on an organization’s digital some of the DBT challenges, goal-oriented modelling and
readiness, and the achievements of both short-term goals as well
as the core goals of DBT. The DBT goal model was build based on analysis methods could be used effectively to provide a holistic
literature analysis and experts validation. We exploit the Goal- understanding of the context and exhaustive reasoning on
oriented Requirement Language (GRL) to model and analyze solution alternatives [9].
the context using jUCMNave tool. The validity of the DBT goal In this study, we propose the use of goal modeling to
model was assessed by domain experts and business owners, and capture the core goals of the DBT as well as the context’s
its effectiveness is demonstrated through an illustrative example.
elements and relationships. We expect the DBT goal model
to support (small/medium sized) business in reasoning about
I. I NTRODUCTION the selection of business strategies and technological solutions
From 2011 to 2015, General Electric (GE) Company at- with regard to short-term goals as well as the core goals of
tempted to transform its products and services digitally by the transformation. The DBT goal model provides a shared
building an Internet of Things (IoT) platform with the aim of understanding and a holistic view of what is expected to be
transforming the company into a powerful technology center achieved in order to transform the business successfully, and
[1]–[3]. The company was beating its competitors until 2018 how close/far a business is from being fully and digitally trans-
when GE’s transformation failed dramatically causing many formed. In addition, it provides analysis capabilities to assess
crises such as a huge loss and a significant drop in its stock the level of goals satisfaction throughout all transformation
price [1], [3]. Some of the main reasons behind this loss were processes and stages. The DBT goal model was constructed,
focusing on short-term goals, the absence of a stated vision, first, based on literature analysis, and refined and validated
and culture change related issues [2], [3]. by domain experts. Furthermore, its effectiveness was demon-
Digital business transformation (DBT) is defined as a com- strated with an illustrative example. Although the DBT goal
plex project to bring major changes to organizations in order model presented in this paper is preliminary, the results are
to increase profits, win competitors, and satisfy customers [4]. encouraging for further development and investigation. The
It goes beyond emerging technological solutions as it includes Goal-oriented Requirements Language (GRL) was utilized to
changing the way of operating and delivering values to cus- model the DBT’s elements and goals, and jUCMNave tool for
tomers, and assessing potential impacts of business strategies analysis and illustration [10], [11].
and other elements, such as technology, on the achievement of The rest of the research is organized as follows. Section II
presents some related work about the DBT context and
The project (SR191021) is funded by the Deanship of Scientific Research, goals. Section III describes the DBT’s key elements and core
King Fahd University of Petroleum & Minerals. goals, while Section IV demonstrates the illustrative example.
Section V discusses potential benefits and limitations of the

978-1-7281-8356-5/20/$31.00 ©2020 IEEE 68


DOI 10.1109/MoDRE51215.2020.00014

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proposed DBT goal model and Section VI concludes the process [22], [23]. The DBT leaders’ main goals are to
presented work and provides some future work directions. select an effective transformation strategy that transforms
business successfully [22], [23].
II. RELATED WORK
• External stakeholders: who are referred to as customers.
Stjepić et al. [12] defined three dimensions of goals that They are the main motivators for the DBT [14]. Cus-
DBT leaders have to consider while improving processes. tomer goals are to have personalized experiences that
These are operation optimization, orientation to customers, and are tailored to their needs and interests and high quality
model business change. Another interesting study proposed an services [7], [19], [20], [23], [24].
empirical maturity model of the transformation dimensions, • Transformation strategy: which is used to guide the
such as customer experience and innovation, and stages of the process of transformation to maintain and continue strate-
DBT [13]. Ojo [14] presented ten sequential steps for correct gic changes to projects, and to manage prioritization and
and complete DBT where identifying appropriate strategies innovation of products. It combines both business models
and goals comes the second important step. Furthermore, and operating models that achieve both short-term and
Ziyadin et al. [15] proposed a roadmap for the DBT that goes long-term goals [22], [23], [25].
through five digital levels, which are digital reality, aspira- • Technology: which is the basic element of the transfor-
tion, potential, fit, and integration. Nwaiwu [16] conducted mation that covers IT infrastructure, process and service
a review on several theoretical and conceptual framework of automation, and advanced data-driven methods (such as
digital business transformation where the finding suggests that Artificial Intelligence (AI), Machine Learning (ML), and
actions as agile activation and value creation have to also be Business Analytics) [6], [22], [24], [26]. The aims of
considered. Mushore and Kyobe [17] presented a conceptual technology are to enhance the digital capabilities of the
model that emphasizes the impact of digital technology on organization [7], [22], [27] and emerge technologies to
business value. While Sehlin et al. [18] proposed a conceptual drive innovations [7], [19], [20], [23].
cooperative model for managing digitization and innovation. The ultimate goals of the DBT process are: 1) achieve
Most of related work discussed the dimensions of DBT, and sustainable growth [4], [7], [16], [19], [27] 2) strive for
attempted to describe the context and to generate relationships. innovations to win competitors [2], [4], [6], [9], [16], [27],
However, none of them provided a systematic way to capture 3) continuously enhance user experience [19]–[22], and 4)
and model those elements and evaluate the achievement of adjust rapidly core decisions under unexpected changes [6],
the primary goals of the DBT. In our work, we propose a [27], [28]. There is another important aspect that should be
goal model that captures systematically the key elements and considered in the transformation process as well which is
relationships, and core goal of DBT. In addition, our model the organization digital maturity. All the previous elements,
supports reasoning on the impact of selected transformation especially the transformation strategy and technology, are
strategy on the DBT’s long-term and short-term goals. determined by the digital maturity level of the organization that
III. DBT G OAL MODEL is the digital advancement level of the running processes and
workflows, information management system, manufacturing
In this section, we present the main three phases through lines and products [7], [23], [26], [29]. Hence, the DBT leaders
which the DBT goal model was created and validated. cannot plan for solutions that are more advanced than the
A. Phase 1: Knowledge Extraction current digital capabilities of the organization. Fig 1 illustrates
the DBT goal model, which includes the DBT elements and
In this phase, the main goal was to extract the minimal and goals. The model synthesis is explained in phase 2 and 3.
key DBT elements. This is so that the resulting goal model
will provide a high-level view of DBT elements, and will B. Phase 2: DBT Goal Model
leave room for customization based on domain-specific and The extracted knowledge in the previous Section (section ??
individual business needs. We analyzed literature to extract was used to construct the DBT goal model. The DBT key
the knowledge. Google scholar was used to retrieve most elements and relationships were mapped to GRL’s elements as
relevant and recent literature, from 2016 to 2020, that included follows. GRL actor was used to represent the DBT elements.
academic publications and business reports. The elements of Intentional elements captured goals of actors. A hard goal
DBT were included if they were found in, least, in two denotes that the goals are applicable in all DBT contexts
resources. The main elements of the DBT are: and have to be satisfied by the transformation strategies. On
• Organization: in which the digital transformation will the other hand, a softgoal indicates that the goals are highly
happen. The main organizational goals are to prepare or customizable based on the business context. An example of
recruit digital competence employees and ensure smooth the hard goal is Sustainable growth that is crucial to avoid
transition of the organizational culture [19]–[21]. common risks associated with rapid growth, such as cash flow
• Internal stakeholders: who are mainly transformation crunch or customers’ huge demand on products or services.
leaders, who initiate and lead the DBT process, and While, High quality service, which is a softgoal, depends
employees, who are working, currently, in the organiza- on the context of the business and type of customers. The
tion or potentially hired as needed in the transformation importance values of the DBT goals were assigned based on

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the perceived importance from literature and, then, adjusted As seen in the DBT goal model, in fig 1, transformation
according to the experts’ recommendations. The relationships leaders are responsible for choosing an effective transforma-
between the DBT’s elements were captured by contribution tion strategy that suits the digital maturity of an organization.
and dependency links, and validated by experts (see fig 1). It also shows that the transformation strategy contributes to
the achievement of personalizing user experience, rapid adjust-
C. Phase 3: Validation and Modification ments for core decisions, and sustainable growth, which could
be growth in customers, profits, or both. The strategy also
After the initial DBT goal model was synthesized (version indicates the digital competence skills needed, and the level
1), the model went through three iterations of validation and of disturbance its solutions may cause to the organizational
modification. In those iterations, we presented the DBT goal culture. In the Technology actor, the transformation strategy
model to four experts in the DBT domain, two of them were helps to enhance the level of digitalization, which impacts
also business owners. The primary objective was to check the the future digital maturity level; while advanced technology is
correctness and coverage of the DBT’s elements and goals. determined by the current digital maturity level.
No major disagreements between the experts were found;
however, there was a conflict between two experts regarding
the level of details and the importance values of few goals.
The conflict was resolved by consulting two more experts who
agreed, in iteration 3, on the resulted goal model of iteration
2. Fig. 1 illustrates the final DBT goal model. The iterations
are elaborated in details below.
Iteration 1: The expert suggested to set the importance
values of customer goals to 50 each; previously, more weight
was giving to Personalized user experience. The expert also
recommended breaking down the High quality service goal
to sub-goals that reflects quality attributes of e-systems, such
as performance, usability and affordability. Accordingly, the
overall importance level of this goal would be distributed
among its sub-goals based on their individual importance. The
highest importance level of those goals was giving to security. Fig. 1. The DBT Goal Model
Another request of change was about putting more emphasis
on the use of AI applications in the Technology actor, and IV. I LLUSTRATIVE EXAMPLE
assigning achievable tasks to Effective transformation strategy On April 1st , 2020, a small-sized food company, which
and Growth of profits, which was changed in iteration 2 to owns six branches in three cities in Saudi Arabia, had to
Sustainable growth. The changes were incorporated into the start the digital transformation process in order to cope with
goal model and used in the next iteration. COVID-19 challenges and its negative impacts on business. As
Iteration 2: The second expert was given both models, dine-in service was not feasible anymore, with the lockdown
(version 1) and the one that was modified as a result of the first circumstances, they had to find alternatives so that customers
iteration (version 2). He did not agree on the proposed changes receive food at home. The company’s top management short-
in version 2. His argument was built on the relative importance term goals were to 1) minimize loss, 2) minimize employee
of customer goals to the DBT context. Personalized user layoffs, and more importantly, 3) keep providing the same
experience is the most important goal of customer as business quality of service to their customers.
is transforming digitally to enhance user experience. Hence, The DBT leaders decided to automate the ”food ordering”
personalizing the experience should be given the highest service and, for ”food delivery”, rely on delivery applications,
weight. In addition, he suggested the elimination of any details third parties, to ”deliver food” to customers. They defined a set
about achieving goals, even sub-goals, as they are domain- of measures to track, such as the ratio of number of attempts to
specific and may cause noise in the model. For example, the place orders to the actual number of food orders delivered, the
sub-goals that represent the quality attribute of the system, daily revenue, and customer satisfaction. All those measures
suggested by the first expert, vary from one context to another. impacted negatively on the achievement of top management
Regarding the AI application, he suggested that we should and customer goals because delivery applications were not
leave it to the digital maturity of the organization. reliable due to the increase in demand on them (causing a
Iteration 3: In this iteration, the three models version 1, high rate of failures), they could accept only a limited number
version 2, and version 3, which is the result of iteration 2, were of orders, and they took at least 15% of the total price of
validated by two more experts. Both experts agreed on version each order. Additionally, a lot of the company’s employees,
3; however, they suggested highlighting of the variability and especially waiters, were facing a layoff risk as the dine-in was
high level of customization in the customer’s goals. Therefore, not expected to return soon. They also found that this strategy
we used the softgoal notation to represent them. does not contribute to the long-term transformation goals.

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Accordingly, the DBT leaders decided to develop their own transformation strategy contributed partially to the Innovation
application, even though managing the customer database and to win competitors goal by having the CEO deliver some
online payments are costly. The new strategy contributed to orders. In addition, the DBT’s strategy was flexible and
minimizing the loss where 15% is no longer given to a supported quick adjustment to core decisions. However, it is
third party and the capacity of daily orders has increased. obvious that the company has to leverage advanced technology
Also, changing the role of waiters to food carriers minimizes to enhance customer experience, and to improve their solutions
employee layoffs and ensures a high quality of provided to maximize satisfaction of Personalized user experience goal.
services. Moreover, the quality metric of their application The CEO agrees that they only achieved a third or less
included reliability, being attractive, and easy to use. With in personalizing customer experience, and they need to work
that, customer satisfaction increases. Another important thing on emerging advanced technologies to better understand their
was having the CEO deliver some orders himself. It resulted in customers. Despite minimizing the loss, with the current
encouraging and supporting the waiters in their new job, and in strategy, sustainable growth is not achieved because, at this
creating a deeper connection with customers, which is a new time, they are aiming for surviving the crisis. They see that
and exciting experience for them. Through the application, their current solutions have to evolve to achieve a high level
they were able to communicate with their customers by of growth sustainability. The DBT goal model was perceived
sending customized messages based on their previous orders. useful in terms of highlighting the main directions in which
Fig. 2 shows the operational strategy that the DBT leaders the business should head in the transformation process, and
defined to fulfill the short-term goals of top management and of assessing how far/close the business is in the DBT, while
customers, which is the first phase of the transformation – emphasizing areas of improvements, especially in crises.
applied on April 23r d , 2020.

Fig. 3. The impact of the transformation strategy on the DBT core goals
Fig. 2. The evaluation of short term transformation strategy and goals; colors
reflects satisfaction values, the greener the better goal satisfaction [30]
V. D ISCUSSION
To analyze the impact of the short-term operational strategy Although this work is in progress, there is a good potential
on the core DBT goals, a contribution link was added from for the DBT goal model to be used in practice to influence
the Short term operational strategy task in the short term the selection and design of transformation strategies and to
transformation strategy and goal model(fig. 2) to the Effective analyze their impacts on the DBT core goals. In the DBT,
transformation strategy goal in the DBT goal model (fig 1); solutions are evolved to fully achieve the transformation core
then, the satisfaction values were propagated through the GRL goals [7]. This means, organizations may need several phases
propagation mechanism [8], [30] resulted in the evaluation of transformation with clear actionable (short-term) goals, of
model shown in fig. 3. The digital capabilities of the company each phase, to be completely digitally transformed. We believe
determined the selection and design of the transformation strat- that our DBT goal model could be used in each phase to assess
egy but does not affect the Effective transformation strategy how well an organization is doing during the transformation,
goal evaluation. In this example, the strategy is aligned with analyze the alignment of short-term goals with DBT core
the company’s digital maturity level, which was set to low goals, and to highlight areas of improvements.
as none of the running processes or services were automated, The DBT experts and business owners suggest that
and it achieves current short-term goals. Correspondingly, the small/medium sized businesses will benefit the most from the
evaluation of the Effective transformation strategy goal, in DBT goal model as it provides a comprehensive top-level
fig. 3 was overridden, to 100, to reflect the alignment condition guideline; which is needed to mitigate the risk of business
and to eliminate the impact of the dependency evaluation on loss due to the absence of guidance and high competition in
the strategy goal. The evaluation model also shows that the market. Two of the experts recommended the conversion of

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