The Effect of Digital Transformation on Operational Efficiency in Nigerian Breweries, Kebbi State
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Background of the Study
Digital transformation has become a fundamental driver of business competitiveness, enabling organizations to streamline operations, enhance efficiency, and improve customer experiences (Adegbite & Salisu, 2024). In the manufacturing sector, digital technologies such as automation, artificial intelligence (AI), cloud computing, and data analytics have redefined production processes and supply chain management.
Nigerian Breweries Plc, a leading beverage manufacturer, operates in an industry where efficiency and cost-effectiveness are crucial. With increasing market competition and changing consumer preferences, the adoption of digital transformation strategies is essential for operational efficiency and sustained profitability (Eze & Hassan, 2023). However, while digital transformation holds great promise, the extent to which it has improved operational efficiency in Nigerian Breweries, particularly in Kebbi State, remains underexplored.
This study examines how digital transformation influences the operational efficiency of Nigerian Breweries, identifying key challenges and opportunities associated with its implementation.
Statement of the Problem
Despite the growing adoption of digital technologies in Nigeria’s manufacturing sector, many firms, including Nigerian Breweries, face challenges such as high implementation costs, resistance to change, cybersecurity risks, and skill gaps among employees (Obi & Adeola, 2023). These factors can hinder the effectiveness of digital transformation efforts.
Although research has examined digitalization in Nigerian industries, limited studies focus specifically on its effect on operational efficiency in Nigerian Breweries, Kebbi State. Addressing this gap will provide valuable insights for optimizing digital strategies in the beverage industry.
Objectives of the Study
1. To assess the level of digital transformation adoption in Nigerian Breweries, Kebbi State.
2. To examine the impact of digital transformation on operational efficiency.
3. To identify challenges affecting digital transformation implementation.
Research Questions
1. What digital transformation strategies are adopted by Nigerian Breweries?
2. How does digital transformation influence operational efficiency?
3. What challenges affect the implementation of digital transformation?
Research Hypotheses
1. Digital transformation significantly enhances operational efficiency.
2. The adoption of AI and automation improves production efficiency.
3. Resistance to change negatively impacts digital transformation outcomes.
Scope and Limitations of the Study
The study focuses on digital transformation and operational efficiency in Nigerian Breweries, Kebbi State. Limitations include data accessibility issues and potential reluctance from employees to disclose challenges.
Definitions of Terms
• Digital Transformation: The integration of digital technology into business operations to enhance efficiency.
• Operational Efficiency: The ability of an organization to deliver quality services with minimal waste.
• Automation: The use of technology to perform tasks with minimal human intervention
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