The Strategic Implementation of Digital Transformation at Perumda Tirta Pakuan Bogor

Abstract

Background: In 2021, the PERUMDA Tirta Pakuan Bogor initiated a digital transformation program with the primary objective of improving operational efficiency and enhancing customer service. However, after four years of implementation, the transformation has yet to show significant impact, as evidenced by increasing annual expenditures and the company’s continued failure to achieve targeted water supply continuity.
Purpose: This study aims to identify the key factors influencing the implementation of digital transformation at PERUMDA Tirta Pakuan and formulate strategic recommendations to strengthen this implementation. By understanding these driving factors, organizations can enhance their operational performance and service delivery.
Design/methodology/approach: This research employed a non-probability sampling method, gathering valid responses from 200 employees and 4 expert informants. Structural equation modeling–partial least squares (SEM-PLS) was used to test hypotheses and evaluate the complex relationships among variables. In addition, the analytical hierarchy process (AHP) was applied to develop a prioritized strategy to support digital transformation initiatives.
Findings/Results: The findings reveal that organizational culture, resources, and technology have a positive and significant influence on the implementation of digital transformation. Furthermore, among the indirect effects tested, only organizational culture significantly influences digital transformation implementation through the mediating variable of digital transformation acceptance attitude. The strategic analysis using AHP indicates that resources are the top priority factor in supporting digital transformation. Consequently, the most recommended strategy is the optimization of the Supervisory Control and Data Acquisition (SCADA) system, as it is considered capable of enhancing productivity, efficiency, service quality, and overall performance growth.
Conclusion: This study highlights the importance of organizational culture and resources in enabling successful digital transformation, with culture playing a mediating role in shaping attitudes toward change. The strategic prioritization of SCADA system optimization is essential to maximize the benefits of digital initiatives.
Originality/value (State of the art): This study contributes to the growing body of knowledge on public sector digital transformation by offering empirical insights into the interrelationships among organizational culture, resources, technology, and transformation success. It also provides strategic recommendations using a hybrid SEM-PLS and AHP approach, offering practical value to public utilities aiming to modernize their operations

Keywords: digital transformation, organizational culture, technology, public utilities, SCADA system