Impacts of Business Architecture in the Context of Digital Transformation: An Empirical Study Using PLS-SEM Approach

TL;DR

This empirical study demonstrates that effective business architecture practices significantly enhance digital transformation success by improving alignment, efficiency, and strategic outcomes, validated through survey data and SEM analysis.

Contribution

It introduces an adapted conceptual model integrating Balanced Scorecard and PLS-SEM to better understand business architecture's impact on digital transformation.

Findings

Business architecture improves strategic alignment and efficiency.

Effective practices lead to higher success rates in digital initiatives.

Validated factors from previous studies in the context of digital transformation.

Abstract

Despite the critical importance of Digital Transformation, up to 95% of initiatives fail to deliver expected business benefits. This paper explores the role of Business Architecture practices in enhancing digital transformation success. Using an adapted Balanced Scorecard approach and a Structural Equation Model (SEM), we analysed survey responses from 129 industry practitioners using a Partial Least Squares (PLS) approach. Our findings indicate that effective business architecture practices significantly improve business alignment, efficiency, service delivery, and strategic outcomes, leading to successful digital transformation. The study also validates factors proposed by AL-Malaise AL-Ghamdi (2017) in the context of digital transformation. The paper presents an adapted conceptual model addressing discriminant validity issues in previous models and benefiting from the robustness of the Balanced Scorecard approach. The study concludes by highlighting the essential role of business architecture in driving digital transformation success.