ROADMAP FOR DIGITAL BUSINESS MODEL TRANSFORMATION: THE CASE OF AL-JAZEERA FINANCE (AJF)

Abstract

This study aims to craft a comprehensive roadmap for transforming a physical business model into a digital business model for SMEs of financial services, enabling an effective and efficient transformation. The COVID-19 pandemic showed the substantial need to accelerate the transformation of physical business models into digital models for SME financial businesses to achieve efficiency, agility, and survival. This study adopted the interview qualitative research methodology for a deep understanding of a situation, then action research methodology due to the practice context of the research that enables testing the results. This is due to the design of the action research in an iterative and emerging manner where the outputs of each stage determine the direction of the next step until no further changes are required to the results. The key findings of this study are threefold. First, although a fully digitalized model is feasible for the SME financing services sector, in many cases, a hybrid business model (physical and digital) is still required to have a successful business. Second, the firm's dynamic capabilities of human capital, innovation, and change management are crucial enablers to effectively transform into a digital business model, however, the involvement of the firm's Board of Directors and CEO as sponsors and leaders of the transformation program is a vital success factor. Third, realized challenges for successful digital transformation can be divided into internal (e.g. culture and cost) and external (e.g. regulations and suppliers' capabilities). This research paper is among the few addressing the SME context and the importance of financial services in the market of Qatar. Moreover, it is a practical tool for testing existing published related frameworks.