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Peer Reviewed Chapter
Chapter Name : Frameworks for Aligning Digital Transformation with Operational Excellence Goals

Author Name : R. Shanmugam, K. Umadevi

Copyright: ©2025 | Pages: 33

DOI: 10.71443/9789349552821-02

Received: 09/11/2024 Accepted: 22/01/2025 Published: 26/04/2025

Abstract

Digital transformation (DT) has become an essential driver for achieving operational excellence (OE) in organizations, reshaping traditional practices and enabling new levels of efficiency, agility, and customer satisfaction. This book chapter explores the integration of DT with operational excellence frameworks, specifically focusing on the long-term impact of predictive analytics, real-time monitoring, and feedback mechanisms on quality management systems. It examines how continuous digital integration with Lean and Six Sigma methodologies enhances process optimization, waste reduction, and sustainable improvements. Through the application of advanced data analytics, automation, and IoT-enabled technologies, organizations can foster a culture of continuous improvement while ensuring consistent alignment with operational excellence goals. The chapter highlights practical approaches for leveraging digital tools to optimize decision-making, enhance quality assurance, and strengthen organizational resilience. This synthesis provides valuable insights for scholars, practitioners, and industry leaders aiming to harness the full potential of digital transformation in driving long-term operational success.

Introduction

The digital transformation (DT) of organizations has emerged as a critical strategy to drive operational excellence (OE) across industries [1]. As businesses face increasing pressures to improve efficiency, reduce costs, and enhance customer satisfaction, digital technologies provide the necessary tools to meet these demands [2]. From predictive analytics and artificial intelligence (AI) to automation and the Internet of Things (IoT), digital transformation reshapes traditional business processes by introducing more agile, data-driven approaches [3]. Operational excellence, which focuses on continuous improvement, waste reduction, and customer satisfaction, aligns seamlessly with these technological advancements, making the integration of DT and OE a key factor in achieving sustainable business success [4]. This chapter explores the synergy between DT and OE, emphasizing how organizations can leverage digital tools to optimize their operations, improve decision-making, and drive long-term growth [5].

In today’s competitive environment, companies must stay ahead of the curve to maintain operational efficiency [6]. Traditional methodologies, such as Lean and Six Sigma, have long been instrumental in helping organizations streamline processes and reduce inefficiencies [7]. These methodologies alone may no longer suffice in a rapidly changing technological landscape. The integration of digital technologies with Lean and Six Sigma practices enables businesses to enhance these traditional frameworks [8]. For instance, predictive analytics can provide real-time insights into operational performance, allowing organizations to identify bottlenecks and inefficiencies more effectively [9]. AI-powered automation can help eliminate repetitive tasks, allowing employees to focus on higher-value activities, thus driving both process efficiency and innovation [10].

Digital transformation also enhances the quality management systems (QMS) of organizations, a critical aspect of operational excellence [11]. Real-time monitoring and feedback mechanisms, supported by digital tools, allow for the continuous assessment of product quality and operational performance [12]. By enabling the instant identification of quality issues, businesses can take proactive steps to address potential problems before they escalate [13]. This shift from reactive to proactive quality management ensures that organizations consistently meet or exceed customer expectations, fostering long-term customer loyalty and competitive advantage [14]. The data collected through real-time monitoring can be analyzed to uncover trends and predict future quality challenges, allowing businesses to refine their processes continuously [15].