The rapid development of technology has increased the dependence of companies on digital transformation (Yaseen et al. 2019). Digital transformation is a change process that leverages the leverage of technology and digital capabilities to create added value through business models, operational processes and customer experiences (Morakanyane et al. 2017). Therefore digital transformation aims to improve entities by triggering significant changes in their properties through a combination of information, computing, communication and connectivity technologies (Vial 2019).
Furthermore, digital transformation is changing the scope and nature of how companies approach their target consumers by increasing interaction and engagement between producers and consumers. It is the main activity of marketing to create and win the competition through value creation, value delivery and value capture (Gillpatrick 2019).
Westerman et al.2014 stated that digital transformation is a process to create a company’s digital competence through the development of digital capabilities (building digital capabilities) and leadership capabilities (building leadership capabilities).
Building digital capabilities means building a better business through technology, not technology itself. The way the company operates is focused on creating a compelling customer experience, exploiting the power of core operations, and reinventing business models.
Building leadership capabilities means how to drive transformation, moving everyone in the same direction. Building leadership capabilities can be done by developing a transformative vision (digital vision), involving employees to make the vision a reality (engaging the organization at scale), promoting appropriate digital governance (governing the transformation), and building technology leadership. capabilities). Leader capabilities are critical to successful digital transformation, turning digital investments into digital profits.