Track: Digital Transformation of Business Models

Abstract

This study aims to design an Indonesian digital banking transformation performance management system (PMS-DT IBI) to assist banks in managing digital transformation performance (DX). This study will answer two research questions, namely how to identify dimensions that can be used as a framework for the Indonesian digital banking transformation and how to measure the digital performance of all dimensions within the framework. This research has an important role in formulating DX performance in a comprehensive, systematic, and measurable manner. We conducted a literature review on the dimensions of digital transformation and the contribution of digital transformation to improving company performance. In PMS-DT IBI, we have formulated digital performance indicators (DPI), which are mapped into 23 dimensions spread across four perspectives: strategic management, ecosystem management, information technology, and organizational strategy. From a strategic management perspective, DPI is formulated on the dimensions of DX strategy, business model, finance, P3M (portfolio, program, and project), and operational management. In ecosystem management, DPI is mapped in terms of ecosystem design, customer, partnership, and value dimensions. The information technology perspective consists of DPI for the dimensions of enterprise architecture, IT GRC, IT capabilities, data governance, system development, new technology, and security. And the organizational strategy perspective consists of DPI for the dimensions of organizational design, competence, change management, culture, leadership, and innovation. This research contributes to the importance of defining performance indicators in all subsystems in general system theory and PMS-DT IBI will assist banks in managing DX performance as a managerial application.