Digital Transformation: The Challenges for Manufacturing and Service Sectors

Businesses must evolve to remain competitive in an ever-changing environment. This study is aimed at analyzing the challenges in digital transformation, with a particular emphasis on the manufacturing and service sectors. We used the systematic review process for content analysis with regard to related studies. The results indicate that both the manufacturing and service sectors have benefited from digital transformation, including the Internet of Things, cloud computing, artificial intelligence as well as automated products and services. Furthermore, the findings reveal there are three main strands that manufacturing and service sectors need to prioritize when pursuing digital transformation. Firstly, a digital service needs to focus on enhancing the customer experience and after-sales service by using a variety of technologies. Digital product and service development is the second important aspect, which involves adapting technology to products and services in order to improve the consumer experience. Finally, the business model should be focused more on having sustainable perspective, leading to the development of a business ecosystem in collaboration with stakeholders. By pursuing these objectives when engaging in digital transformation, firms in the manufacturing and service sectors will be more likely to reap the benefits of such a transformation, including greater sustainability, gaining competitive advantage and hence, improving firm performance.