A Study On The Effect Of Digital Transformation Of Select Companies In India

Abstract

The adoption of digital transformation is now the norm and is considered a crucial component of an organization's business transformation. Business operations have undergone a radical transformation. However, the total impact of significant forerunners to the digital transformation on the performance of manufacturing enterprises has not been thoroughly examined in the research. The study aims to identify the root reasons of digital transformation and demonstrates how it mediates company performance.

The future's digital transition is already taking place. Indian consumers are embracing digitization to a greater and greater extent, but Indian enterprises are only adopting it to varying degrees. Due to the fact that multinational organisations are increasingly relying on disruptive technologies like cloud computing, 5G networks, blockchain, internet marketing, and 3D printing to stay competitive on a global scale, Indian businesses must adjust to this new reality. Digital transformation has several benefits that are undeniable in the data-driven, rushed NOW. Utilising dynamic performance evaluation tools such as Operational Breakeven Point, Discriminant Analysis Technique of Altman's Z-score, and Enyi's Relative Solvency Ratio, the study aims to quantify the effects of digital transformation on the long-term profitability and solvency of a subset of listed companies in India. The Going Concern Index, Current Ratio, Index of Digital Transformation Gains, and Markup Ratio were furthermore used in the study. The study employed regression analysis to reach its conclusion.