1.

Introduction and Background

In today's economic context, organizations that fail to build an effective digital
strategy risk becoming outdated, especially when competing with digitally mature
organizations that have adopted new technological standards. According to Gupta
and Vashishth (2024), traditional organizational strategy principles have changed
because of the rise of digital technology, forcing companies to reconsider how they
achieve a competitive advantage in a global market.
1.1 Overview of Globalization, Digital Strategy, and Change Management.
According to Gemici and Nair (2016), globalization is the process whereby markets
are becoming more integrated and interdependent across national boundaries,
creating new business opportunities and increasing competition. Organizations may
now operate internationally thanks to data-sharing, communication, and
transportation technology developments. To Succeed in this changing business
environment, businesses must remain innovative and flexible. A well-thought-out
digital strategy is now necessary for businesses looking to take advantage of these
opportunities.
A digital strategy incorporates digital technology across a business to improve its
competitive advantage, performance, and innovation ability. In the context of Industry
4.0, digital transformation has fundamentally transformed business processes and
structures across sectors. For example, in South Africa, digitization has increased
operational efficiency and economic growth (Lahiri, 2023). Digitalization has also
benefitted small and medium-sized firms (SME’s), enhancing productivity,
competitiveness, and flexibility (Gawali, 2021).
With a strong digital strategy, organizations can adapt quicker to changes in market
demand and emerging global trends, improving profitability, market share, and
overall innovation (Gashi et al., 2024). Cloud computing and data analytics enable
companies to streamline operations and discover new growth opportunities. These
technologies are instrumental in human resource management, helping
organizations attract, develop, and retain talent that drives innovation in the digital
age (Studies, 2024).
Change management is critical for managing the shifts brought about by
globalization and digitization (Stolzenberg and Heberle, 2013). As companies
integrate digital strategies, significant organizational changes such as processes,
technology, and culture shifts are often necessary. Change management gives an
organized way to executing these changes, allowing organizations to efficiently
manage the transition while reducing opposition and interruption.
In a globalized and digital world, change management ensures that workers and
stakeholders are prepared for and aligned with new strategic objectives. By
encouraging collaboration, resolving possible problems, and providing support
throughout the transformation process, change management helps firms to fully
realize the benefits of their digital initiatives and succeed in the global market.

1.2 The Importance of Digital Strategy in a Globalized World

The globalized business environment demands for organizations to have a clearly
defined digital strategy to be successful. According to Gobble (2018), this approach
boosts efficiency and transforms the way businesses offer value to clients.
Businesses that undergo digital transformation can better adapt to changing market
conditions and technology disruptions by being more customer-focused and flexible
(Kane et al., 2015).
Businesses must constantly innovate and streamline their processes to obtain long-
term growth. Organizational structure, culture, and process changes are frequently
necessary for digital transformation. A company's ability to make better decisions,
adapt to changing market conditions, and better understand its customers’ demands
are all enhanced by implementing an effective digital strategy.
1.3 Objectives of the Discussion
This discussion will explore how digital strategies can be effectively integrated into
change management to capitalize on the challenges and opportunities brought about
by globalization.
A critical case study is the LEGO Group’s transformation journey. With many
financial challenges, LEGO underwent a significant restructuring that relied on
digitalization to enhance its operations. This discussion will analyse LEGO’s strategic
response to the digital economy, highlighting its efforts to become a fully digital
company and the lessons that can be applied to organizations undergoing similar
transformations. As explored in Andersen and Ross (2016), LEGO successfully
integrated digital tools to optimize supply chain management, accelerate product
innovation, and foster global collaboration. The case study will provide valuable
insights for organizations incorporating digital strategies into their change
management processes.
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