An-Najah National University

Faculty of Graduate Studies

INVESTIGATING THE READINESS OF ICT

PALESTINIAN ORGANIZATIONS FOR
DIGITAL TRANSFORMATION

By
Ayman Muraweh Nimer Abu Mansour

Supervisor

Dr. Rabeh Morrar

This Thesis is Submitted in Partial Fulfillment of the Requirements for the Degree of
Master of Engineering Management, at Faculty of Graduate Studies, at An-Najah
National University, Nablus - Palestine.

2022
INVESTIGATING THE READINESS OF ICT
PALESTINIAN ORGANIZATIONS FOR
DIGITAL TRANSFORMATION

By

Ayman Muraweh Nimer Abu Mansour

This Thesis was Defended Successfully on 72/1/2022 and approved by

II
 Dedication

I dedicate this thesis to my beloved family; without their

care, support, and encouragement, this thesis would have

never been completed. In addition, to my mother‟s soul that I am sure she will be
proud of this moment.

III
 Acknowledgment
I cannot find the words to express my special gratitude to all the people who have
generously supported me throughout the stages of writing this thesis.

I am very thankful to my supervisor, Doctor Rabeh Morar, for his valuable input,
support, guidance, motivation, encouragement, and patience to get this work completed.

I am very grateful to my beloved wife, Nuha, for always being there for me and for her
continuous encouragement, support, and unwavering faith in me at all times.

I would like also to express my special gratitude to my dear father for his endless love,
for giving me wisdom, and encouragement, and for his prayers to complete this work
successfully.

I am very grateful to my lovely precious kids Tuqa, Omar, and Karam, for their
unconditional love, and support at all times. Finally, I would like to thank my sisters,
brother, and in-laws for their understanding and encouragement during my work.

IV
V
 List of Contents

Dedication……………………………………………………………………………....III

Acknowledgment……………………………………………………………………….IV

DECLARATION……………………………………………………………………….V

List of Contents………………………………………………………………………...VI

List of Tables…………………………………………………………………………...IX

List of Figures…………………………………………………………………………..X

List of Appendices……………………………………………………………………...XI
Abstract…………………………………………………………………...……...……XII

Chapter One: Introduction…………………………………………………………..…...1

1.1 Introduction…………………………………………………………………...……..1

1.2 Research Problem……………………………………………………………..……..2

1.3 Research Objectives……………………………………………………………..…..3

1.4 Structure of the Thesis…………………………………………………………….....4

Chapter Two: Literature Review…………………………………………………..…….5

2.1 Literature review and theory…………………………………………………..……..5

2.2 History of DT…………………………………………………………………..…….5

2.3 General Definitions…………………………………………………………..………6

2.3.1 Digitization……………………………………………………………………..….6

2.3.2 Digitalization………………………………………………………………..……..6

2.4 DT Definitions…………………………………………………………………….....8

2.5 Readiness Models and Frameworks for DT………………………………………..11

2.6 Digital Transformation Framework (DTF) ………………………………………...13

2.6.1 Use of Technologies Dimension………………………………………………….14

2.6.2 Changes in Value Creation Dimension…………………………………………..15

2.6.3 Structural Changes Dimension…………………………………………………...16

VI
2.6.4 Financial Aspects Dimension…………………………………………………….18

2.7 Digital Transformation in Telecom Service providers and ICT Sectors…………...19

2.7.1 Telecom Service providers Sector: ………………………………………………19

2.7.2 ICT and Software Developing Sectors: ………………………………………….20

Chapter Three: Telecom & ICT sectors in Palestine…………………………………...22

3.1 Palestinian ICT Infrastructure……………………………………………………...22

3.2 ICT Penetration in Palestinian Society……………………………………………..24

3.3 Palestinian ICT influence on Economy…………………………………………….25

3.4 COVID-19 Pandemic impact on Palestinian ICT Sector…………………………..25

3.5 Challenges Impact the Palestinian ICT Sector……………………………………..27

3.6 Palestine and Digital Transformation………………………………………………28

3.7 Palestine DT compare to Arab Countries…………………………………………..29

Chapter Four: Methodology……………………………………………………………32

4.1 Methodology……………………………………………………………………….32

4.2 Study Methodology: ……………………………………………………………….32

4.2.1 Quantitative Approach: …………………………………………………………..32

4.2.2 Qualitative Approach: ……………………………………………………………33

4.3 Study Population and Sample: ……………………………………………………..33

4.4 Research Instrument: ………………………………………………………………33

4.5 Reliability Test: ……………………………………………………………………34

4.6 Validity Test: ………………………………………………………………………35

4.7 Research Variables: ………………………………………………………………..38

4.8 Test of Normality: …………………………………………………………………39

4.9 Statistical Process: …………………………………………………………………39

4.10 Research Sample Specifications: …………………………………………………40

Chapter Five: Results and Discussion………………………………………………….42

5.1 Results and Discussions……………………………………………………………42

VII
5.2 Results and discussion related to the questionnaire: ………………………………42

5.3 Tests Results: ………………………………………………………………………57

5.4 Correlation Tests between dimensions and overall objective Results: …………….55

5.5 Limitations: ………………………………………………………...………………56

Chapter Six: Conclusion and Recommendations………………………………………57

6.1 Conclusion: ………………………………………………………………………...57

6.2 Recommendations: ………………………………………………………………...58

List of Abbreviations…………………………………………………………………...61

References……………………………………………………………………………...62

Interviews………………………………………………………………………………69

Appendices……………………………………………………………………………..70

‫……………………………………………………………………………اٌٍّخض‬..……..‫ب‬

VIII
 List of Tables

Table 2.1: Framework/models of readiness for digital transformation…………….…..12

Table 4.1: Reliability Test using Crombach's Alpha Coefficient……………………....34
Table 4.2: Validity Test for Use of Technology Dimension…………………….……..36
Table 4.3: Validity Test for Value Creation and New Product Dimension…….....……36
Table 4.4: Validity Test for Organization Structure and Procedure Change Dimension
………….……………………………………………………………………………....37
Table 4.5: Validity Test Financial Aspect Dimension…………….…………………...38
Table 5.1: Validity Test for Overall Organization Readiness for DT…………….……42
Table 5.2: Normality Test Results………………………………………….…………..45
Table 5.3: Mean Value Classification Based on Likert Scale…….……………………47
Table 5.4: Percentage Distribution of Sample Respondents based on Control Variables
………………………………………………...………………………………………..50
Table B.1: Descriptive Analysis of Respondents for Use of Technology Dimension
………….………………………………………………………………………………75
Table B.2: Descriptive Analysis of Respondents for Value Creation and New Product
Dimension………………………………………………………………………………76
Table B.3: Descriptive Analysis of Respondents for Organization Structure and
Procedure change Dimension…………………………………………………………..77
Table B.4: Descriptive Analysis of Respondents for Financial Aspects Dimension
………….………………………………………………………………………………77
Table B.5: Results of Respondents Opinions about Use of Technology based on Control
Variables………………………………………………………………………………..77
Table B.6: Results of Respondents Opinions about Value Creation and New Product
based on Control Variables……………………………………………………………..78
Table B.7: Results of Respondents Opinions about Organization Structure and
Procedure Change based on Control Variables …………………………………….….78
Table B.8: Results of Respondents Opinions about Financial Aspects based on Control
Variables………………………………………………………………………………..78
Table B.9: Results of Respondents Opinions about Organization Readiness for DT
based on Control Variables…………………………………………………….……….79
Table B.10: Results of Spearman's Correlation Coefficient between the DT dimensions
and DT Readiness………………………………………………………………………79

IX
 List of Figures
Figure 2.1: Digital transformation in context……………………………………............8
Figure 2.2: Digital transformation Frame………………………………………….…...14
Figure 3.1: Overall score in GEMS 2021…………………………………….………...30
Figure 3.2: Changes in GEMS values between 2020 and 2021………….…………….31

X
 List of Appendices

Appendix A: Questionnaire Details:……………………………………………………70

Appendix B: Tables of Study: …………………………………………………………75

Appendix C: Statistical Analysis Results: ……………………………………………..80

XI
 INVESTIGATING THE READINESS OF ICT PALESTINIAN
ORGANIZATIONS FOR DIGITAL TRANSFORMATION

By
Ayman Abu Mansour “ Hamarsheh”
Supervisors
Dr. Rabeh Morrar

ABSTRACT

Background: The digital transformation (DT) shows the changes within society in all
human life aspects. It became an important subject in the last decades both in academics
and consultancy, due to the massive growth in digital technologies. Therefore, top
management levels realize this significance, and they think about how to implement it
within their organizations to get new opportunities, competitive advantages, new
revenue streaming, and customer experience.

On the other hand, DT implementation may face many challenges and barriers, which
may lead to a risk of failure in implementation. In order to minimize this risk, they need
to apply readiness assessment for the organizations prior to the DT considering it the
initial stage of the process.

Objective: In Palestine, the ICT sector experienced high growth. Penetration ratio of
technology is high within Palestinian society, and government represented by MTIT
gives the DT the highest priority in its agenda to improve all over governmental e-
services that are offered to citizens. All of these factors have led the ICT and Telecom
organizations in Palestine to consider the DT process the top point in their agenda.
However, there is a considerable gap in digital transformation studies inside Palestine.
Hence, this study aims to fill this gap and to measure the readiness of Palestinian
Telecom, and ICT organization or DT process and implementation, since these sectors
are considered the cornerstone in any DT process in the sense that if they are ready, all
other sectors can follow them.

Methodology: To fulfill the study objectives, the Digital Transformation Frame has
been espoused to assess organizations‟ readiness by shedding the light on four main
factors and drivers in this research: the use of technology, value creation, and new

XII
products, organization structure change, and financial aspects. The quantitative
approach is used by preparing a questionnaire targeting to assemble data that measure
the mentioned factors. The survey sample has targeted top managerial or decision-
making levels (Telecom, ISPs, ICT, and Software development) organizations.
Furthermore, the quantitative results were validated by using semi-structure interviews
approach with expertise in the targeted fields.

Results: The results of statistical tests on collected data have shown that targeted
organization are ready to proceed with DT for the four measured drivers. Results have
also depicted that 82% of opinions that agreed on using the technology, and create
marketing value and new products are main dimensions for apply and implement digital
transformation. While 75% of the respondents have agreed that organizational structure
and procedure change. Besides, 83.6% of the respondents have agreed that financial
aspects constitute the driving force for implementing digital transformation.

Results have also affirmed that there is a difference in respondents‟ answers regarding
the overall organization readiness for DT. Their answers juggle between the
organization size based on the number of employees and the availability of IT
department in the organization. Furthermore, the results have indicated a strong
correlation among all dimensions, also with the main objective of the study since the
lowest Spearman's correlation coefficient was (0.833) which is very high positive
relation and near to one.

Conclusion: This concludes that Palestinian Telecom and ICT organizations are ready
for DT process. On the opposite side, interviews showed many challenges and obstacles
related to Palestinian political situation which narrow and limit the expansion in DT
process among different sectors.

The outputs of this study can be regarded as a viable option to be used for other
academic studies the same topic in Palestine, and may be used as reference for other
organizations studies.

Keywords: digital transformation (DT), information and communication technology

(ICT), readiness models, digital transformation framework (DTF), value creation,
financial aspects, organization structural and procedures.

XIII
 Chapter One

Introduction

1.1 Introduction

In recent years, there has been a revolutionary growth in digital technologies which was
reflected in the whole economic and life aspects [1]. Many organizations now are
dealing with new technologies, emerging new competition, and IT-based innovative
models. Companies frequently recognize that they must alter and evolve in order to
remain relevant in the new digital era; yet, selecting where to begin this process is not
easy to them.

Blockbuster and Kodak are famous examples of organizations that left their market-
leading positions due to erroneous strategic decisions and poor technological adoption
decision-making. Meanwhile, giant firms like Google, Amazon and Apple have thrived
and expanded in the market due to their successful management to integrate in the new
digital landscape [2].

Although the digital transformation will create viable opportunities for organizations,
there are still some challenges impeding the implementation of digital transformation
within organizations such as the unavailability or obsolescence of legal and institutional
framework, weak infrastructure, resistance to change, low support from the top
management in the digital transformation process, lack of trained and skilled employee,
financing and cost, and risk to proceed with changes [3].

In the last years, Palestine has experienced noticeable growth in ICT sector and digital
infrastructure. According to the figures from the Palestinian Centre Bureau of Statistics,
more than 65% of households in Palestine were connected to the internet in 2018 [4]. In
addition, more than 37% of households own personal computer (Desktop, laptop, tablet)
in 2018 and around 96% of them has at least one mobile phone line, with wide use of
smart phones. Meanwhile, some sectors have started their journey into digitalization by
focusing on integrating digital technologies in their businesses [3]. For example, in the
banking sector, many Palestinian banks have started projects related to digital transform
and Fintech. Bank of Palestine, one of the fastest growing banks in the Middle East, has
invested in Fintech dramatically, [5].

1
The Palestinian governmental institutions are currently suffering from a lack of digital
infrastructure and interconnectivity across the board. As a result, poor communication
between both government establishments and private organizations has led to
ineffective services for individuals and businesses, [6].

Although Palestinian national economy has some successful stories in development of

ICT services and systems, it is still miles away from Digital Transformation since this
requires re-engineering process of the most government and non-government
operations, services, and systems through providing high quality service in line with the
best industry practices and standards using up-to-date technologies, [7].

The aim of this study is to explore and assess the readiness of Palestinian
telecommunication, Internet service providers, and ICT organizations for digital
transformation, based on their existing ICT infrastructure and new digital technologies
besides exploring how this will affect their business and process.

1.2 Research Problem

The integration and exploitation of new digital technologies is one of the biggest
challenges that companies currently encounter. No sector or organization can defy or
resist the effects of digital transformation. The effect of digital technologies is often
wider than products, business processes, sales channels, and supply chains. However,
the entire business models are being reshaped and frequently overturned [8].

Thus, the importance of digital transformation has gone viral in the business world as
many organizations have started to integrate digital technologies into their business
models [9]. Nevertheless, Business leaders must create and execute digital strategies
that drive greater operational performance in order to meet the digital transformation
challenge and remain competitive in their sectors. Unfortunately, there have been
numerous recent examples of businesses failing to keep up with the new digital reality.

Digital transformation is a complicated subject that impacts many or all aspects of a

business. Managers must constantly balance the discovery and exploitation of their
companies' resources in order to create organizational agility, which is a prerequisite for
effective business transformation. Managers are frequently confused by the various
alternatives and factors they must examine in their digital transformation efforts. As a
2
result, they risk overlooking critical aspects of digital transformation or overlooking
solutions that are better suited to a company's specific situation.

Some studies try to deal with digital transformation in organizations. [10] For instance,
there is a study that provides some explanation of the effects of digital transformation
on organizations in creative industries and addresses the consumers‟ insights of
organizations. Westerman has examined the digital channels and platforms while [11]
focusing on the changing relationship between consumers and the organization due to
digital technologies. Recent works in academia have been largely concerned with
providing guidance on certain aspects of digital transformation; nonetheless, they have
not adopted a holistic approach to the development of a company-wide digital
transformation strategy, which is required to have successful digital transformation
implementation. [12]. The majority of recent research has concentrated on the
technology components of digital transformation, while others have emphasized the
necessity for organizational reforms to achieve digital transformation. Furthermore,
there have been proposals to apply STS theory to a broader spectrum of complicated
problems.[13]

The use of a holistic digital transformation framework to assess organizations readiness

for digital transformation is essential and crucial for organizations, so they can measure
their position against the digital transformation implementation decision.

If we consider the importance of digital transformation, we can conclude that there is no

previous academic research conducted to measure the readiness of Palestinian
organization to the digital transformation. In this Thesis, we assess and measure the
readiness of Palestinian organization that work in telecom, internet service provider, and
ICT industry.

1.3 Research Objectives

Undeniably, the literature that tackles the effect of digital transformation on Palestinian
organizations and assesses its readiness to digital transformation is very rare. That being
said, this research is very important as it aims to identify the position and measure the
readiness of telecom and ICT Palestinian organizations against the digital
transformation. To fulfill this goal, the study has considered the following objectives:

3
1. Measure the readiness of Palestinian telecom and ICT organizations for digital
transformation.

2. Analyze the Palestinian organizations success and failure factors from digital
transformation implementation aspects.

3. Highlight the main reasons for failure digital transformation implementation and
suggest solution to overcome this drop.

1.4 Structure of the Thesis

This thesis comprises of six main chapters organized as follows:

 Chapter two includes an overview of the main literature published in this regard.
The definition of digital transformation, DT impact on different sectors, and main
DT readiness models/frameworks are provided.

 Chapter three discusses the ICT sector in Palestine and its importance to the
Palestinian economy.

 Chapter four sheds the light on the research methodology and the digital
transformation. Information about the data used in the study provided.

 Chapter five breaks down the research results and processes them thoroughly.

 Chapter six, the result discussed and in chapter seven, the concluding remarks
provided with limitations and suggestions for further research.

4
 Chapter Two

Literature Review

2.1 Literature review and theory

This chapter shows the theoretical academic studies that handle the DT. It will add more
clarification about the history of DT, definitions of DT, list of readiness models that
considered in DT, more details will be explained about the selected DT frame for this
study, and lastly, the importance of DT on Telecom, and ICT sectors since they are the
selected sector for this study.

2.2 History of DT

In the 1950s, DT's history began with the integration of computer hardware and
software [14]. Ten years later, the first mainframes were introduced. At the very
beginning, Since the 1960s, various studies have looked into the effects of IT
investment and digitalization on businesses [15]. As IT and digital communication
technologies merged in the 1980s, DT processes across industries and communities
gained public attention [14].

The worldwide growth of the internet in the mid-1990s ushered in a new era of DT,
which was followed by the advent of mobile internet in 1998, as well as enormous
advancements in hardware, software, services, and new business models [16].

Brynjolfsson claims that 'Second Machine Age,' also known as 'Artificial Intelligence,'
(AI) is a new invention age that allows for the employment of smarter machines [17].
Furthermore, Vogelsang emphasizes that a few forerunners in IT innovation and the
digital environment paved the way for a slew of technological advancements that
defined the information era, which called today as fifth wave [18].

SMAC (social, mobile, analytics, and cloud) technologies are the fifth wave. [19]. Each
IT wave is expected to tenfold the number of connected devices, resulting in a minimum
of 25 billion mobile instruments by 2020 [20]. SMAC technologies are the most
effective digital technology in corporate innovation, according to extant literature,
impacting social and economic life equally [21].

5
After this brief of history for DT, the below section clarifies the differences between
some terms that interrelated with DT. This will remove the misconception between DT,
digitization, and digitalization.

2.3 General Definitions

Many people has a misconception about the digital transformation and other terms that
related to other applications of information technology like digitization (of analog
information) and digitalization (of processes) [22]. „Digitization‟ and „digitalization‟ are
two concepts that are closely associated and often used interchangeably in a broad range
of literatures [23]. There is a considerable value in understanding the distinction
between these terms before diving into the digital transformation

2.3.1 Digitization

The conversion of analog information to digital (zero and one) which allows the
computer to store, process, and send information. Digitization, according to Schallmo
and Williams, is the path to moving from analog to digital form. An example of
digitization is the process of converting handwritten or typewritten text into a digital
format [24].

Likewise, Gassmann defines digitization as “ability to turn existing products or services

into digital variants, and thus offer advantages over tangible products”[25]. Digitization
however is most often referred to as “ the process of changing from analogue to digital
that makes it more feasible to archive, readily access, and share information” [26].

As a result, digitization is described as a technical process of altering and converting

analog information into a digital representation throughout this thesis.

2.3.2 Digitalization

In a 1971 piece published in the North American Review, the term "digitalization" was
first time used [27]. According to the Oxford English Dictionary (2016), digitization
refers to an organization, industry, country, or other entity choosing digital or computer
technology [28].

6
Digitalization is frequently described as a paradigm change that affects both traditional
enterprises and entire communities [26]. Brennen and Kreiss describe digitalization in
terms of economics as "the acceptance or increased use of digital or computer
technology by an organization, industry, or country." Digitalization is defined as
"creating products in a digital form, virtually composing and exercising components
before manufacturing the product, and maintaining the relationship between a sold or
rented product, its users, and the producing company" in the manufacturing industry
[29].

Gartner defines digitalization in the business world as "a company's use of digital
technologies to modify its business model and move toward a digital business." While,
from an organizational standpoint, Digitalization is often referred to as digital
technology affecting organizational cultures, business models, infrastructure procedures,
and products [30].

Digitalization, according to the Gartner glossary (2018), is the use of modern digital
technology to alter a plan of action and create new income and value-producing
opportunities. It's the path to become a digital company. "Digitalization is a perpetual
transformation that focuses on discovering new digital solutions for implementing
business operations," according to Janowski [31].

SCOOP, a digital business consultant, provides a succinct description of digitalization.

"Digitalization" is defined as "the use of digital technologies and data to generate
income, improve business, replace/transform business processes (rather than merely
digitizing them), and build a digital business environment with digital information at its
core." [32]

Digitalization is defined as the process of moving to digital business and transformation,

as well as the reorganization of many aspects of social life around digital
communication and media infrastructures. As a result, digitalization is defined as "... the
integration of digital technology into daily life through the digitization of everything
that can be digitized." [33].

7
Figure 2.1

Digital transformation in context [22]

The aforementioned figure depicts the stages that leads to DT which defined as "A
sequence of deep and coordinated cultural, workforce, and technology movements that
enable new educational and operating models and restructure an institution's operations,
strategic directions, and value offer" [22]. On the other hand, DT definitions differs
based on the domain of study, objective from DT, type of applied technologies, and
challenges and barriers convert to DT. The following sections highlights many of these
definitions, which are considered the bulk of this thesis.

2.4 DT Definitions

Currently There is no overall consensus on accepted definition for the DT, consider that
DT term is interchangeable with the terms like digitalization and the digitization as
explained in previous section a universal definition has not yet been established. From
an economic and business perspective, Lucas defines the DT as “fundamentally
transforming old ways of conducting business by redefining corporate capabilities,
processes, and connections” [34]. DT is defined by several researchers as developments
in digital technology that affect human environments as well as organizational settings
[11]. Based on DT's technological perspective, Liu emphasizes "the integration of
digital technology into business operations" [35]. Furthermore, the technical part of DT

8
is described by Schuchmann as the “realignment of technology to interact digital
customers more efficiently at every touch point throughout the customer experience
lifecycle”. [36]

From an organizational standpoint, Bharadwaj DT described as "an organizational

strategy designed and executed by using digital resources to produce differential value"
[21]. Furthermore, Mithas and Westerman highlight the importance of DT's IT
engagement in improving organizational performance [37]. Hess, Benalin, Matt, and
Wiesböck are also "concerned about the changes digital technology can bring about in a
company's business model, such as changing products, organizational structures, or
process automation." [38]

BMWi States, "Digitization refers to the entire interconnection of all sectors of the
economy and society, as well as the ability to gather, analyze, and translate important
data into actions. Changes provide benefits and possibilities, but they often present
entirely new obstacles." [39]

Digital Business Transformation (DBT) is defined by Bowersox as “The process of

reinventing a company in order to digitize operations and establish wider supply chain
links. The DBT leadership challenge is about reenergizing firms that are already
successful in order to fully use the potential of information technology throughout the
entire supply chain”. [40]

According to Westerman DT is becoming a hot topic for businesses all around the
world. Executives across all industries are transforming customer connections, internal
processes, and value propositions by leveraging digital innovations like analytics,
mobility, social media, and smart embedded devices, as well as optimizing their use of
older technology like ERP.[9]

Based on Mazzone, digital transformation is the strategic and tactical digital evolution
of a firm, business model, idea process, or methodology. [41].

Fitzgerald defines digital technologies (DT) as the application of emerging digital

technologies, such as social media, mobile, analytics, or embedded devices, to enable
big business benefits such as improving customer experience, optimizing operations, or
generating new business models [42]. McDonald makes a business connection between
9
the DT and revenue claiming that Digital Transformation goes beyond simply digitizing
resources, resulting in the creation of value and money from digital assets. [43]

Stolterman defines DT as the changes that digital technology causes or impacts in all
facets of human life .[44]

Martin argues that DT increasingly often characterized as the use of information and
communication technology to generate fundamentally new capacities in business,
government, and people's and society's lives, rather than simple automation. [45]

Hess defined the DT as the changes in a company's business model that digital
technologies can bring about, such as new products, organizational structures, or
process automation. [46].

The conceptualized definition of digital transformation, according to Vial, is, a method

for improving an entity by causing major changes in its attributes by combining
information, computation, communication, and connectivity technologies [47].

Lee Congdon, CIO of Red Hat Linux corporations, (2015) defined the DT as The
integration of digital technology into all elements of a business, radically changing how
you operate and give value to clients.

Because digital transformation has varied meanings in different firms and even within
the same business, coming up with an unifying definition is difficult. So, based on the
literature, in our study will define digital transformation of a company as the integration
of digital technology into all areas of business (organization, manufacturing, etc.) that
can result in major changes to how organizations function and give value to their
consumers. It also necessitates employee acceptance of the fact that frequent changes in
operations and duties are unavoidable. [16].

Once company has been digitally transformed or has set the bases to adopt new
technologies depending on the market requirements, it inevitably has to be prepared for
failure as the transitional period brings many challenges for all organizations that
attempt it but also benefits to the ones that succeed [9].

However, in order to avoid the risk of failing due to digital transformation

implementation, organizations must identify their position against the digital
10
transformation implementation. This achieved by apply the digital transformation
readiness assessment on the organizations based on holistic digital transformation
framework. The following section will highlight about major readiness models used for
assess the DT.

2.5 Readiness Models and Frameworks for DT

As introduced, the digital transformation is a holistic term that affect all levels in
organization. Thus, measuring the readiness of organization to implement successful
digital transformation becomes a crucial factor. Lezina presents different approaches to
assessing organizations' readiness for digital transformation which are listed in below
table.[48].

11
Table 2.1
Framework/models of readiness for digital transformation.
Framework/Model name Institution/Source Assessment approach
The five digital business KPMG Suggested domains: vision &
aptitude strategy, digital talent, digital
domains first processes, sourcing and
infrastructure, governance
The Digital Maturity Forrester/Gill and Four dimensions determine
Model 4.0. VanBoskirk digital maturity: culture,
organization, technology,
insights
Digital Acceleration Index BCG The 4 building blocks
evaluated:
business strategy driven by
digital, digitize the core, new
digital growth, enablers
Industry 4.0 Maturity Schumacher, 62 maturity items which are
Model Eril, Sihn grouped into nine dimensions:
strategy, leadership,
customers, products,
operation, culture, people,
governance, technology
Digital REadiness De Carolis, etc. Evaluation the maturity
Assessment indexes of company‟s process
MaturitY model area: design and engineering;
production management;
quality management;
maintenance management;
logistics management
Digital Services Capability Wulf, Mettler, 17 capabilities of digital
Model Brenner transformation in eight
classes: consumers, services,
processes and activities,
organization, information,
technologies and
infrastructure,
strategies, environment
Organizations digital Sánchez, Zuntini External and internal analysis
readiness including: ecosystem
framework collaboration, five forces
analysis, resources and
capabilities, value chain
analysis, initial conditions,
barriers
Interrelationship between Schumann, Assessment in three
the digital transformation, Tittmann dimensions:
strategy and organizational digital transformation, digital
capability business strategy,
organizational capability
Digital transformation Matt, Hess, The four different dimensions:
framework Benlian use of technologies, changes
in value creation, structural
changes, financial aspects
12
Table (2.1) shows that some of the assessment approaches have a large number of
assessment factors like (Industry 4.0 Maturity Model), and (Digital Services Capability
Model) which is difficult to apply them on study and needs more time. The (Digital
REadiness Assessment MaturitY model) approach concerns on how to measure the
engineering processes, and how to manage it. This is out of the study scope. The
remaining approaches have common assessment factors, which are related to
technology, organization, and business strategy and value.

Using a holistic digital transformation framework to achieve the goal of the study by
assessing organizations readiness for digital transformation is essential and crucial for
organizations, so they can measure their position against the readiness for digital
transformation implementation. The Digital Transformation Framework (DTF)
prepared by Matt and Hess represents a first step in this direction. This conceptual
framework for measure the readiness of digital transformation process within
organization.[49] The framework identifies the four key dimensions and common
elements of every digital transformation endeavor as, use of technologies, changes in
value creation, structural changes, and financial aspects [49], the following section
provide more details about the frame and its main dimensions.

2.6 Digital Transformation Framework (DTF)

Formulating a digital transformation process as a fundamental concept to combine the

complete coordination, prioritization, and implementation of digital changes within a
corporation is an important strategy. The potential benefits of digitization are numerous,
including increased sales or productivity, value creation innovations, and unique
consumer interactions, among others. This leads that whole business models might be
formulated and reshaped [8].

The digital transformation framework takes a different approach and has different
objectives. They focus on the transformation of products, processes, and organizational
characteristics as a result of new technology from a business standpoint. Figure (2.1)
depicts the interdependencies between the various dimensions as part of the Digital
Transformation Framework (DTF), which assists businesses in assessing their current
capabilities and developing a digital transformation strategy.

13
Figure 2.2
Digital transformation frame [49]

Dimensions of the Digital Transformation Framework (DTF) are used to create

guidance for businesses in the form of questions to assess their readiness for digital
transformation. List the important issues concerning digital transformation that
management must address for each dimension, as well as a range of solutions from
which management can choose when they respond to the questions. In combination,
these answers and feedback on questions cover all relevant aspects of assessment of
organization readiness for digital transformation process. The following sections show
more details about each dimension and highlight its importance in DT readiness
process.

2.6.1 Use of Technologies Dimension

The introduction of digital technologies is driving digital transformation. As a result,

how a corporation uses new digital technology is an important aspect of its digital
transformation preparedness. Emerging digital technologies can provide businesses with
new prospects and may be critical to gaining a competitive advantage. Nonetheless, the
importance of IT and its strategic function differs greatly between businesses.[49]

14
Some businesses see IT as a catalyst for new business opportunities. Others, on the
other hand, employed IT to support and improve established business requirements.
Thus, in some companies, a new digital technology is the primary driver of change,
whereas in others, other business challenges drive the change process, and an
appropriate technology to enable the change must be identified.[50]

Companies can approach the process of disseminating new digital technologies in a

variety of ways, regardless of the role of IT. Firms that are more conservative may use
well-known technology solutions, while others may use innovative technology solutions
that are still in the early stages of development. Acting as an innovator and creating and
introducing new technology solutions into markets is a more aggressive approach.[51]

The examples show that a company's digital technology ambitions are mostly driven by
its own circumstances. Firms should examine their existing technological skill, the
extent of their technology spending, and their size when determining where they should
ideally be on the technology ambition spectrum.[38]

Part of organization readiness for DT is to use of technologies include how it's used to
facilitate the cross-functional cooperation within company, investment on new
technologies and develop existing one, and follow standards and regulations of data and
IT security.

2.6.2 Changes in Value Creation Dimension

Changes in value production are frequently associated with the adoption of new
technology. These considerations have an impact on a company's digital transformation
readiness, or how much new digital operations stray from the traditional core business.
On the other hand, Further deviations provide chances to expand and enrich the current
product and service portfolio; yet, they are frequently accompanied by a greater demand
for alternative technology and product-related competences, as well as increased risks
due to the new field's lack of expertise. Digital technologies modify a company's
business model, resulting in changes in value production.[49]

Rather than merely converting formerly analog products and services to the digital
world, many businesses want or need to take use of digital technology's capabilities and
expand into new markets. Managers must assess how far their company should diversify
15
its operations into the digital realm. Finding new revenue streams is critical for future
business success and is therefore an essential component of digital transformation
readiness. Companies should be prepared to recognize how they may create value and
so generate income when building new digital products and services. [38]

Organizations should consider smart products, which come as a result of the integration
of physical things with digital advances such as mobile apps and sensor technology. In
addition, Smart services that are based on or facilitated by digital technologies can help
businesses widen their value propositions. New solutions that extend existing service
offerings, digital services that enhance physical products, and hybrid product-service
bundles are all examples of such services. IT is an inherent aspect of the product in this
regard.[26]

Moreover, The current tendency of individualization opens up new possibilities for

creative value offerings. Customers want products that are personally personalized or
self-designed to meet their own needs. As a result of this, Companies should offer
customizable products or product pieces by involving existing consumers in the design
process (e.g., bespoke banking products) or by providing personalized services based on
customer analytics (e.g., individual book recommendations). This is enabled via new
digital manufacturing technologies that allow for tiny batch sizes or newly generated,
acquired, and analyzed customer data enable this (e.g., demographics, preferences,
product or service use patterns, online activities).[52]

2.6.3 Structural Changes Dimension

The organizational structures of a corporation are affected by digital transformation, just

like any other sort of transformation. The Digital Transformation Framework's
structural dimension is concerned with who will be in control of the transformation
effort. The readiness of many firms to embrace digital transformation is determined by
two factors: top management support and the commitment of key staff within
organization to the strategy. [49]

Because digital transformation can completely disrupt a company's business model, one
of the most pressing concerns for executives is where to place new digital business
operations within the organization. They must determine whether to include new

16
operations into existing departments or to structure them as separate, unique entities
(perhaps as a newly formed subsidiary). Both options will have benefits and drawbacks.
Integration within the existing business structure usually necessitates less reorganization
initiatives. If close collaboration between conventional and new digital businesses is
required, the integration strategy may be preferable. In this context, it's critical to see if
there are any synergies that may be leveraged between traditional domains and new
digital activity. In contrast, organizing new digital activities in separate structures and
entity makes it easier for companies to expressly segregate their old and new operations
(physically and ideologically). They can also create appropriate structures for new
digital operations from the ground up, which are often more innovative and allow
greater flexibility. [38]

Different types of operational modifications are required for digital transformation

readiness. To begin with, new technologies have the potential to drastically alter the
current products and services offered to clients. These modifications can apply to both
finished products and any pre-products required to provide the final result. Second,
digital technologies can help businesses change their procedures. Business processes
can be categorised as operational, support, or managerial, however operational
processes are typically the focus of digital transformation activities. Digital technology,
for example, might speed up the execution of business processes, involve different
skills, necessitate different resources, or completely automate some tasks. As a result, a
company must completely identify its processes and determine which of them may be
impacted by digital transformation activities, as well as the potential consequences. In a
digitally transformed business, the essential changes in products, services, and business
processes, as well as the continuous operations, are more likely to necessitate new
talents. Organizations must carefully evaluate their current technological capabilities
and determine the new skills that will be required.[53]

The optimal solution will be largely determined by the firm's existing competencies and
financial resources, as well as the planned timeframe for digital efforts. The first
alternative is for businesses to expand on their existing capabilities and acquire the
necessary skills on their own (e.g., by either training current staff or hiring new
employees). This method, however, usually takes time. As a result, collaborating with
other organizations that may already have specific skills to assist integration processes

17
is another alternative. This method lowers the chances of failure. If the jointly shared
activities are of critical strategic importance, acquiring the partner company may be a
viable alternative for keeping the shared resources and knowledge in-house. [38]

Outsourcing the technology procedures required for digital transformation is another

alternative if they are well-structured and not unduly complex. Both partnership and
outsourcing alternatives can have advantages in terms of reduced initial investments and
risk distribution as compared to building the requisite competences domestically.
However, the disadvantage of these two methods is that they raise the danger of losing a
required expertise as well as becoming reliant on a third party. By keeping the
procedures and expertise necessary for digital transformation in-house, a company can
gain a competitive advantage from future digital transformation activities. [38]

2.6.4 Financial Aspects Dimension

An important part of digital transformation efforts is the financial dimension of digital

transformation preparedness. Increasing financial strain on the current core business
could be the catalyst that convinces management that action is required. To carry out
transformative activities, the organization's financial readiness will be required.[49]

Top management's willingness to put in the necessary work and accept the associated
risks of digital transformation initiatives is frequently determined by the viability of the
current core business. Managers may not recognize the need for digital transformation
activities or be ready to incur the risks if the company's present core business continues
to generate sufficient revenues.[54]

Markets, on the other hand, can shift quickly, and acting too late can be disastrous for
businesses. Rather than waiting for the projected tectonic shifts in the way revenues are
made in their industries, companies should take digital transformation seriously and
address its possible implications and take appropriate precautions right away. [49]

DT is used by an organization to maximize value creation, future revenues, and profits.

Firms can choose between internal and external financing solutions to fund their digital
transformation projects. The financial viability of a transformation project is determined
by the existing state of the company and its future possibilities. Any investor must
believe that the digital transformation will benefit the company and that their
18
investments will eventually pay off. As a result, if a company is already in financial
distress, its alternatives for funding digital reforms will be severely limited. [38]

Since this study is concerned with measuring the readiness of DT for Telecom and ICT
sectors, the following section will highlight the spots on how important DT is for them
and the need to move on with DT implementation.

2.7 Digital Transformation in Telecom Service providers and ICT Sectors

Telecommunication and ICT industries similar to other industries are facing pressing
changes related to digital transformation. Both sectors suffer from serious hiccups due
to DT and new players in the sectors leads them, who are working hard to modify their
business approach to get maximum benefit from DT.[55]

2.7.1 Telecom Service providers Sector:

The disruption of DT affects the traditional communication services such as SMS, and
Voice, and force the service providers to use latest technologies like 4G-LTE,
messaging services such as (WhatsApp, Facebook, and Skype), and on the top like
Netflix streaming and Video on demand. (Westerman et al., 2011).

Many drivers and factors support the telecom service providers to consider the digital
transformation in their strategies:

 Developed technologies make everything connected to the internet and required

service provider network infrastructure to make this connectivity stable example the
connected vehicles.

 New players such as Google, Apple, Facebook, and Microsoft which offering new
digitize services and products and their service move to cloud which force telecom
service providers to have direct connectivity with them to offer acceptable quality of
experience for end consumer.

 Customer expectation is changed as his social lifestyle become highly depends on

internet connectivity to digitize services. [56]

19
 Traditional services revenue declining which affects the financial position of
telecom service providers. (Kendall, 2014).

Telecom service providers need to overcome these challenges and get benefit from new
opportunities by have their own digital strategy. This achieved by built network
connectivity infrastructure to serve future demands, and create new products and value
for their customers in line with new global platforms. All of this has to be within proper
time and with acceptable cost.

2.7.2 ICT and Software Developing Sectors:

Fundamentally, the ICT and software systems are considered the main corner in the
digital transformation for other industries and sectors. They still face technical and
organizational challenges due to digital transformation that listed below and it should be
taken in consideration to get the ability to compete with other competitors and stay in
the market. [57]

1. Reduced Time-To-Market

New innovations, products, and features for existing products are expected by the
customers to be available as soon as possible [58]. Thus, the time to market has to be
reduced. On top of that, ICT companies have to enhance and modify their internal
process in way that allows deploying new functionality continuously.

2. New Disciplines, Devices, and technologies

Big Data, IoT, Industry 4.0, and Machine Learning are all difficult issues that can be
used to produce competitive goods. Customers also use new gadgets such as mobile
phones, virtual reality glasses, smart watches, and all of the intelligent devices in a
smart home. [59]. All of this compelled ICT firms to grasp these concepts and products
in order to create new opportunities and remain competitive in the market [58].

3. Consumer-/ Customer-Orientation

Berman believes that the ability to improve products and services improves the
consumer experience [60]. Furthermore, Leimeister et al. stress the importance of

20
developing consumer-oriented solutions. [61]. ICT companies must place a greater
emphasis on end-user goods than in the past.

4. Combination with Legacy IT

The rapid speed with which new gadgets and technologies emerge causes existing IT to
age more quickly [59]. The existing IT, especially in mature landscapes such as those
found in larger firms, cannot be updated quickly. As a result, ICT organizations must
consider where the supplied solutions will be implemented and be prepared for a
rigorous integration and deployment process to integrate new and modern systems with
legacy IT.

As a result of the aforementioned challenges, ICT and software developing companies

must adapt to the changes caused by Digital transformation overall organization levels
which includes strategy, organizational structure, implemented technologies, and new
products and services.

In the forthcoming chapter, the Palestinian ICT will introduced by shedding light on the
ICT position in Palestine, penetration of ICT within Palestinian society, raised the main
challenges that impact the growth in ICT sector, and lastly combine it with digital
transformation.

21
 Chapter Three

Telecom & ICT sectors in Palestine

3.1 Palestinian ICT Infrastructure

“The Palestinian ICT sector is gaining more and more recognition both within the
Palestinian Territory and around the rest of the world. For a small economy with a
young and well-educated population, this sector has the potential to make a strong
contribution to balanced sustainable growth. In recent years, there has been an increase
in the number of companies, as well as inward investment from international names
such as Cisco and Intel. This special feature documents this growth, and considers what
factors might need to be addressed to help the sector deliver its potential.” [62].

The importance of ICT draws the developing countries‟ attention to building of the
capacity of ICT sectors and utilization of its products in different areas in order to
develop and enhance their economy.

In the early 1980s, Palestine‟s ICT focuses on hardware retailing and wholesale of
computers and electronics. However, after Oslo Accord was signed and the Palestinian
National Authority was established, the demand for ICT products and services increased
especially by the Palestinian Authority‟s institutions, local municipalities, the private
sector and the utility companies. The demand was mainly for provision of software
solutions such as accounting solutions [63].

In 1997, the Palestinian Telecommunications Company (Paltel) started its operations in

the Palestinian market as a fixed line operator. Paltel signed with the Palestinian
National Authority two exclusive licenses to develop the telecoms sector. The first was
a 10-year exclusive license for the fixed line and the second was a 5-year license for the
cellular phone. [64]

This agreement allowed Paltel to invest in the West Bank and the Gaza Strip telecoms
infrastructure. A large digital network was installed, offering different services such as
voice, internet, and VPN for corporate business services. [65]

In 1999, the first mobile operator Jawwal was established with 65% stake for Paltel. In
2003, Paltel got full ownership of Jawwal, offering mobile services and providing
22
internet using the Second Generation (2G) Global System for Mobile Communications
(GSM), and the Enhanced Data Rates for GSM Evolution (EDGE) technology. [64]

In 1999, owing to the ICT sector‟s growth, and the increasing number of ICT
companies, PITA was established. Its objectives were to work as the ICT ambassador
for Palestine globally, set up a command position for the Palestinian ICT industry,
become the main representative of the ICT sector in Palestine, and encourage
innovation and support building a Palestinian knowledge- based economy [66].

The Palestinian telecoms market was known for its monopoly status until 2006 when
the Palestinian government ended the exclusivity of mobile license and opened the
mobile and internet market for competition, promoting fair competition and liberal
environment, allowing more services with affordable prices for customers from both the
existing operator and the newly licensed one. In 2009, a second mobile operator,
Wataniya Mobile, entered the market with $354-million license fee, after a delay period
of two years and a half waiting for the Israeli approval to get the required frequency to
start its operations [64].

In 2010, Palestinian MTIT break the monopoly of providing internet services by open
the market to many Internet Service Providers (ISPs) and Voice over Internet Protocol
(VOIP) providers to operate in the market, offering different services over the internet at
competitive prices. As a result there has been an increase in demand for these kinds of
services and for the development of ICT infrastructure including the mobile and the
digital network for the internet [67].

In 2018, the ICT sector took a major step forward with the launch of 3G services in the
West Bank and with the introduction of Ooredoo (Mobile Company) phone and data
service in Gaza. [64]

Nowadays the services offered by the ICT companies in Palestine range from
telecommunications and software industry products (finance and accounting, human
resource management and management information systems) to web products (web
development, e-businesses and ICT consultancy) and mobile phone applications and
animations.

23
3.2 ICT Penetration in Palestinian Society

The Household Survey about the results of Information and Communications

Technology prepared by Palestinian Central Bureau of Statistics (PCBS) in 2019
showed that 33% of the households own a computer (desktop, laptop, or tablet) in
Palestine. By the same token, the percentage of individuals (10 years and above) who
used the computer from any location was 26% in Palestine.[68]

According to MTIT, there was an increase in the mobile cellular subscriptions by the
end of 2020, reaching 4.3 million subscribers in Palestine compared to 2.6 million at the
end of 2010, with 64%. In return, this is reflected in the mobile penetration rate per 100
persons that reached 83 mobiles at the end of 2020 compared to 64 mobiles at the end of
2010 [69], while in UAE the mobile penetration reached to 186.1 mobiles per hundred
subscriptions on December 2020.

In addition, the data of the Household Survey on Information and Communications

Technology, 2019 showed that 97% of the households in Palestine have at least one or
more cellular mobile lines. The results also showed that the percentage of households
with one Smartphone or more was 86% in Palestine. [68]

Data from the Ministry of Telecom and Information Technology indicated that there had
been an expansion in the fixed network infrastructure, accompanied by increased use by
households and institutions of this network and related services, especially the internet
service. The number of landlines reached 466,283 telephone lines (Home, Commercial,
Governmental) in Palestine at the end of 2020 compared with 360,402 lines at the end
of 2010, with an increase of 29%. [69]

In addition, the total number of ADSL subscribers in Palestine increased to about 373
thousand subscribers by the end of 2020 compared with 119 thousand subscribers by the
end of 2010, with an increase of 213%. The average internet speed was 13.5 Mbps at
the end of 2020 compared with 0.5 Mbps at the end of 2010.

Based on above the Household Survey results on Information and Communications

Technology, 2019 showed that 80% of the households in Palestine have internet access
in 2019. Moreover, the percentage of individuals (18 years and above) who used the

24
internet from anywhere reached 72% in Palestine (76% in the West Bank and 67% in
the Gaza Strip). [68]

3.3 Palestinian ICT influence on Economy

According to PITA, today the ICT sector is increasingly competitive and plays an
increasingly important role in the Palestinian economy, accounting for 8% of the gross
domestic product (GDP) with expected growth to 10% of GDP, and contributing $530
million in annual value-add to the economy. [63]

There are 250 ICT companies with 5000 direct employees and 15000 indirect
employees. Workers in the ICT sector are significantly more productive than workers in
other sectors. Even through ICT workers comprise 3% of the total workforce, they
account for more than 8% of GDP. [63]

50% of Palestine ICT companies have partnerships outside Palestine and they built
partnerships with major multinational companies such as Intel, Microsoft, HP, and
Cisco. What is more, 30% of the companies are exporting services and products to
international markets include USA, Europe, Middle East, and Arab Gulf. [63]

3.4 COVID-19 Pandemic impact on Palestinian ICT Sector

The COVID-19 Pandemic highlighted the crucial role of technology necessary to ensure
the continued functioning of societies in different fields. This leads all countries to take
advantage of information and communication technology to develop digital policy
strategies to respond effectively to challenging times.

Data of the Population, Housing and Establishments Census, 2017 indicated that the
number of establishments working in the ICT sector accounted for 1,008 establishments
out of the total economic operating establishments of (158,573).[70]

The COVID-19 Business Pulse Survey results in Palestine during the period (5/3/2020–
31/5/2020) indicated that 90% of information and communication sector establishments
reported that the sales/production size has decreased during the three months of the
lockdown by 54% when compared with the normal situation. The results also indicated
that 69% of the operating establishments in the information and communication sector
were closed for many days due to the restriction measures taken by the government
25
during the mentioned period. The COVID-19 Pandemic cast its shadow on the
information and communication sector and decreased the average sales/production of
more than half during the closure period compared to the normal situation.[71]

On the opposite side, the use of Digital Solutions has been a lifeline for establishments
during the Pandemic. The COVID-19 Business Pulse Survey results in Palestine during
the period (5/3/2020 – 31/5/2020) indicated that 13% of the establishments started using
or have increased the use of the internet online social media networks, specialized apps,
or digital platforms in response to the COVID-19 outbreak. In comparison, the primary
use of such digital solutions was for marketing with 69%, 53% for business
administration, and 40% for service delivery. During three months (88 days), starting
from March 5th until May 31st, 2020, establishments reported that the percentage of
employees who were working remotely from home was 6% of the total number of
employees; mainly in the telecommunication sector (18% of the total number of
employees) and construction sector (8% of the total number of employees). The main
results also showed that the highest percentage of employees working remotely from
home was among large establishments with a rate of (12%). [71]

The results of the Impact of COVID-19 Pandemic (Corona virus) on the Socio-
economic Conditions of Palestinian Households Survey during the period (23/8/2020–
31/12/2020) indicated that 84% of households that have children in the age of (4-18)
years in Palestine, their children participated in educational activities (online education)
during that period; (81% in the West Bank and 87% in the Gaza Strip). [71]

While 46% of households whose children did not participate in online education
activities indicated that the lack of a computer (laptop, desktop, or tablet) at home or
even its insufficient availability prevented their children from participating in online
educational activities during the mentioned period (43% in the West Bank and 52% in
the Gaza Strip). [71]

In addition, 50% of the households whose children did not participate in online
education activities indicated that the lack of internet access at home or its insufficient
availability prevented their children from participating in online educational activities
during the mentioned period (44% in the West Bank and 60% in the Gaza Strip). [71]

26
3.5 Challenges Impact the Palestinian ICT Sector

Since the Israeli occupation of the Palestinian territories in 1967, Israel took complete
control of the ICT infrastructure and sector in the West Bank and Gaza, impeding
development and blocking the establishment of an independent network, instead making
Palestinians entirely dependent on the Israeli occupation authorities. In defiance of the
Oslo Accords, which stipulate that Israel must gradually transfer control over the ICT
sector to the Palestinians, Israel has tightened its control over the Palestinian ICT
infrastructure, resulting in severe violations of Palestinian digital rights. [72]

Due to restrictions and policies forced by the Israelis, telecommunication operators,

Internet Service Providers and ICT companies continue to have difficulty in building
telecom networks in Area C, acquiring the needed frequencies for existing wireless
networks and importing needed equipment. All of the mentioned issues are considered
main constraints that impede ICT firms‟ growth in Palestine. The political situation that
limits the ability to travel and move good and services, which causes the need for
technology to have virtual communications. [69]

In addition, Israeli refused to provide 3G services in Gaza strip for Palestinian mobile
companies which is recently launched in west bank. Meanwhile, 4G takes the lead in
2019, while 5G moves from trials to early commercialization in China, the US and
Japan. This provides advantage to Israeli mobile providers to operate in Palestinian
areas without any restrictions or licenses. [69]

The ICT sector in Palestine still suffers from numerous local challenges that need to be
overcome such as lack of ICT penetration in businesses, education & government, the
absence of coordination between private and public sector groups, the limited access to
foreign and international markets, the lack of innovation and creativity in product and
service development, the weaknesses in the legal and regulatory framework. In addition,
to the gap between the skills that ICT students receive at schools and universities with
the labor market needs and requirements.

27
3.6 Palestine and Digital Transformation

Investing in the digital economy is more important than ever to mitigate the impact of
the accumulating crises. The pandemic has forced Palestinians to isolate and
government facilities to shut down at a time when families most need public services. In
the absence of reliable internet connectivity and a citizen-centric e-government
platform, many citizens and businesses have found it increasingly difficult to access
essential information and services.

Digital solutions have already played an important role in maintaining economic and
social continuity, the public and private sectors have encouraged employees to work
from home, used social media to keep citizens informed, and even introduced home-
based learning to some schools. [73]

However, this rapid transformation to digitization has increased inequalities between

those with connection to the internet and those without. People and businesses in remote
areas are particularly disadvantaged, and municipal government buildings often lack
internet connectivity themselves. On March 26, following a year of analytical work and
discussions with the Ministry of Telecommunications and Information Technology
(MTIT), the World Bank approved a $20-million grant to support the Palestinian
territories‟ transition to the digital economy. The “Digital West Bank and Gaza” project
will assist the PA in accelerating digital transformation under an ecosystem approach,
targeting several areas of the digital economy simultaneously in order to maximize
impact. [74]

From an institutional perspective, the project will support the MTIT in setting up the
necessary regulatory environment to facilitate the development of the digital sector. The
design of a Public Key Infrastructure (PKI) and certificate authority (CA) for e-
signatures will allow for the introduction of a range of digital transactions. An
emergency response center will be established to bring together all emergency response
services and utilize modern communications systems to coordinate emergency
dispatches. [75]

28
Focusing on the telecom sector, the engagement will support the creation of an
independent regulatory body for the sake of promoting competition and transparency.
Support will be directed towards increasing access to high-speed internet by expanding
the PA‟s fiber-optic infrastructure and by funding the purchase of bandwidth for public
facilities in remote areas, improving local government service provision in the process.
[76]

The World Bank will also assist the PA in embracing a whole-of-government approach
to e-service delivery, including the development of a national e-government strategy,
enterprise architecture, and a modern e-procurement system. This will be followed up
with the introduction of impactful government-to-citizen (G2C) e-services that will be
accessible to the public through an online portal, helping launch a process of
digitalization across the PA that can span various sectors, from water and energy to
education and skills. [75]

Ultimately, the World Bank‟s engagement aims to unleash the development of a digital
economy in the Palestinian territories at a critical time. Digital solutions will help
Palestinians to maximize their opportunities in an environment where their movement is
restricted and in-person transactions are increasingly limited; an integrated and
technology-enabled emergency response unit will facilitate rapid, data-driven responses
to a range of incidents, and potentially save lives. [73]

Until restrictions on infrastructure, movement, and broadband spectrum are lifted, it will
be difficult to realize the full potential of the Palestinian economy. However, by
investing in digital transformation, the Palestinian territories will be well-equipped to
deal with the current and future crises and will open the door to numerous opportunities
of growth, particularly for young graduates and entrepreneurs.

3.7 Palestine DT compare to Arab Countries

ESCWA report published in December 2021 for measuring the government electronic
and mobile services (GEMS) shows that Palestine located on 11th position out of 13
countries participate in the study as shown in figure (3.1). [77]

29
Figure 3.1
Overall score in GEMS 2021 Source: ESCWA calculations

However, there is progress about the development of government services and DT of

2021 compared with 2020. Even all countries suffered from COVID-19 that forced the
world to depends on technology and remote services, but the report shows weak
improvement in Palestine to depend on e-services. The report represents that 3.67% is
the progress in e-service in 2021 compare to 2020 in Palestine, which is indication to
slow improvement in DT compare to other Arab countries as shown in below figure
(3.2).

30
Figure 3.2
Changes in GEMS values between 2020 and 2021 Source: ESCWA calculations

Above reports highlight the huge gap between Palestine and other Arab countries in
term of digital transformation. So, this study helps to assess the readiness of ICT sector
for DT and other enablers that can help to bridge this gap.

31
 Chapter Four

Methodology

4.1 Methodology

A thorough knowledge of the organization's level of digitization is an important first

step toward a successful digital transformation. They should utilize this knowledge to
explore possible methods within the company for digital technologies to effect and
maybe use to produce beneficial prospects for the organization once they have a
sufficient awareness of their level of digital readiness.

The Methodology chapter describes methods used in this study, in particular, the
chapter explains the research approach being used, the literature review process,
continues with the data collection and data analysis methods, and concludes with the
quality of research.

4.2 Study Methodology

The methodology used in this study adopts the mixed approach that consists of
quantitative and qualitative approaches:

4.2.1 Quantitative Approach

It is considered one of the analysis forms, and organized exploratory to describe a

phenomenon. To fulfill the study objective which is assessing the readiness of
Palestinian Telecom and ICT organizations for DT, the data collected from the survey
forms was statistically analyzed using SPSS. Descriptive statistics, reliability analysis,
normality testing, and a non-parametric methodology using the Kruskal-Wallis test,
Mann-Whitney test, Spearman correlation test were utilized as techniques. Lastly, it
highlights the statistical processes in data analysis that leads for the results.

In this research, two sources were used to collect the data, which summarized below:

1. Primary Source: This is achieved by designing a questionnaire that contains four

dimensions. Each of each is listed in the literature review, in order to assess and
measure the DT readiness in Palestinian Telecom and ICT organization.

32
2. Secondary Sources: it is based on books and previous scientific articles related to
DT topic and concern about its readiness within organizations. in addition, data
collected from national ministry and establishments like MTIT and PCSB.

4.2.2 Qualitative Approach

Since this study does not create a new framework to assess and measure the readiness of
DT, and it depends on well known and published framework. In order to validate the
quantitative results of the survey, and to reflect the especial situation of Palestine state
under the Israeli occupation. This can be achieved using the qualitative approach by
conducting semi-structure interviews with experts in the ICT sectors which handle top
management levels in their organizations.

Selected Experts work in sectors that targeted in survey sample, such as Telecom
companies (Fixed, Mobile, and ISP), ICT, Software development, and external
consultant work with MTIT in DT project. Refer to interview section for more details
about interviewers.

Interviews were open discussion measuring their understanding about DT, how their
organization works to achieve DT, and what is the major enablers and challenges they
faced in DT journey.

4.3 Study Population and Sample

The population of study consists from the Telecom, local internet service providers
(ISPs), ICT, and software developing companies that legally registered in Palestine.
Since the objective of study is to explore their organization readiness for DT
implementation. According to that, 75 questionnaires were distributed to targeted
positions which they have full knowledge about companies‟ strategies and they can take
a decision regarding digital transformation, while 61 responses were collected with
response rate around 81.3%, which consider enough to this study.

4.4 Research Instrument

Specialized questionnaire was designed to explore and assess the readiness of

Palestinian Telecom and ICT organization for DT implementation. It contained from
five main parts, the first one will have general information about the organizations and
33
the other four main parts measure the four dimensions that concluded from digital
transformation frame that explained in the literature review.

The first part contains from four questions that asking about in which sector the
organization is working, size of organization in terms of employee, areas that
organization offer its services, and the availability of IT department within the
organization. Also, the position of respondent was requested.

The second part contains from (7) items that measuring the readiness of organization for
DT based on use of technology and existing infrastructure. The third part contains of (6)
items that measuring the organization's ability and readiness to create marketing value
and products from DT. The fourth part contains from (10) items that measuring the
institution's readiness to structure and change procedures in line with the institution's
DT process. Lastly, the fifth part contains from (4) items that measuring the company's
financial readiness and ability in the DT process.

4.5 Reliability Test

The reliability of the questionnaire tested based on Crombach‟s alpha coefficient. As

shown in table (4.1) below the Crombach‟s alpha results for the (4) DT readiness
dimensions of in the questionnaire which follows the (5) point Likert scale. The results
show Crombach‟s alpha value for each dimension above of 0.65, which denotes a high
degree of internal consistency among the items included in each of the DT readiness
dimensions and therefore a high degree of reliability. Also, the questionnaire overall
Crombach‟s alpha value is (0.949).

Table 4.1
Reliability Test using Crombach's Alpha Coefficient
Reliability Statistics
Summary Crombach's N of
Alpha Items
Using technology for digital transformation 0.855 7
Measuring the organization's ability and readiness to create marketing 0.868 6
value and products from digital transformation.
The institution's readiness to structure and change procedures in line 0.885 10
with the institution's digital transformation process.
The company's financial readiness and ability in the digital 0.842 4
transformation process.
Palestinian Telecom, and ICT Organization Readiness for DT 0.949 27

34
4.6 Validity Test

The validity test for research instrument in our case the questionnaire was applied, this
will identify that whether or not the research instrument will measure what it claim and
built to test. Two types of validity tests were applied as explained below:

A. Content-related Validity

The questionnaire content validity was tested by asking group of experts and specialists
from different fields such as academic and research, IT, and management to review it.
In order to make sure that questionnaire is clear and the items are interrelated and able
to achieve the goal of the study. Based on that all received feedbacks taken in
consideration and reflected on the questionnaire to get the final version.

B. Validity by Spearman Correlation Test

This test aimed to measure the correlation between questionnaire items, which reflected
the measured dimension of digital transformation. In addition, it tests the correlations
between different dimensions and the main goal of the study, which is measuring the
readiness of Palestinian Telecom, and ICT organization to impalement DT.

1. Spearman correlation test for Use of technology for digital transformation

dimension

Below table (4.2) shows, the results of Spearman coefficient test the correlation between
each item and Use of technology dimension. The results show the significant level less
than 0.05 and high relationship between each item and the total score of items.
Therefore, the test shows high validity for each items included in the use of technology
dimension.

35
Table 4.2
Validity Test for Use of Technology Dimension
Item Using technology for digital transformation
Correlation Coefficient Sig. (2-tailed) N
A1 0.827** 0.000 61
A2 0.787** 0.000 61
A3 0.720** 0.000 61
A4 0.753** 0.000 61
A5 0.649** 0.000 61
A6 0.648** 0.000 61
A7 0.385** 0.002 61

2. Spearman correlation test for organization's ability to create marketing value and
products from digital transformation dimension

Below table (4.3) shows, the results of Spearman coefficient test the correlation between
each item and the organization ability to create marketing value and products
dimension. The results show the significant level less than 0.05 and high relationship
between each item and the total score of items. Therefore, the test shows high validity
for each item included in the organization ability to create marketing value and products
dimension.

Table 4.3
Validity Test for Value Creation and New Product Dimension
Item Measuring the organization's ability and readiness to create marketing
value and products from digital transformation.
Correlation Coefficient Sig. (2-tailed) N
**
B1 0.423 0.001 61
B2 0.800** 0.000 61
**
B3 0.703 0.000 61
**
B4 0.694 0.000 61
**
B5 0.820 0.000 61
B6 0.795** 0.000 61

3. Spearman correlation test for institution's readiness to structure and change

procedures in line with the institution's digital transformation process dimension

Below table (4.4) shows, the results of Spearman coefficient test the correlation between
each item and the institution's readiness to structure and change procedures dimension.

36
The results show the significant level less than 0.05 and high relationship between each
item and the total score of items. Therefore, the test shows high validity for each item
included in the institution's readiness to structure and change procedures dimension.

Table 4.4
Validity Test for Organization Structure and Procedure Change Dimension
The institution's readiness to structure and change procedures in line with the
Item institution's digital transformation process.
Correlation Coefficient Sig. (2-tailed) N
C1 0.717** 0.000 61
C2 0.490** 0.000 61
C3 0.607** 0.000 61
C4 0.685** 0.000 61
C5 0.685** 0.000 61
C6 0.764** 0.000 61
C7 0.819** 0.000 61
C8 0.612** 0.000 61
C9 0.594** 0.000 61
C10 0.766** 0.000 61

4. Spearman correlation test for company's financial readiness and ability in the digital
transformation process dimension

Below table (4.5) shows, the results of Spearman coefficient test the correlation between
each item and the financial readiness and ability in the digital transformation process
dimension. The results show the significant level less than 0.05 and high relationship
between each item and the total score of items. Therefore, the test shows high validity
for each item included in the financial readiness and ability in the digital transformation
process dimension.

37
Table 4.5

Validity Test Financial Aspect Dimension

The company's financial readiness and ability in the digital transformation process.
Item
Correlation Coefficient Sig. (2-tailed) N
D1 0.714** 0.000 61
D2 0.758** 0.000 61
D3 0.759** 0.000 61
D4 0.823** 0.000 61

5. Spearman correlation test for company's overall readiness and ability to the digital
transformation process.

Table (B.1) in Appendix - B shows the results of Spearman correlation coefficient test
between each item and the overall organization readiness for DT. The results show the
significant level less than 0.05 and high relationship between each item and the total
score of items. Therefore, the test shows high validity for each items included in the
overall organization readiness for DT.

4.7 Research Variables:

The study four independent variables and four Control variables as listed below:

Independent Variables:

1. Use of Technology

2. Value marketing and products.

3. Organization structure, processes, and procedures.

4. Finance position.

Control Variables:

1. Sector of organization.

2. Organization Size from employee point view.

3. Areas where organization offer its services.

38
4. Availability of IT department in the organization.

4.8 Test of Normality

The normality test applied on collected data for each main dimension include in the
study. The test used (Kolmogorov-Smirno) and (Shapiro-Wilk) tests to identify the
accurate and suitable tests that will be used to assess and measure the readiness of
Palestinian Telecom, and ICT organization for DT implementation. The results of the
normality test in Appendix B (Table B.2) shows that data not normally distributed since
the probability value of test acceptance is less than 0.05, accordingly the ( Non
Parametric Tests ) will be considered in testing the main objective of the study.

4.9 Statistical Process

The following statistical processes used on the collected data, in order to have
acceptable results according to designed methodology:

1. The questionnaire was depending on the (Likert Scale) from (5) answers. These
answers summarized as the following, (1) strongly disagree, (2) disagree, (3)
normal, (4) agree, and (5) strongly agree.

2. Applying the Reliability test for the questionnaire based on (Crombach's Alpha)
value. Also, apply the validity test based on Spearman Correlation Coefficient to
measure the items inter correlation within the dimension.

3. Applying descriptive analysis to collected data and calculate the Mean, and standard
deviation for each item in the questionnaire.

4. Classifying the Mean value based on the Likert Scale, by calculation the length of
interval, which was equal to 0.8. The results shown in table (B.3) in Appendix -B.

5. Applying the normality test for data to identify the accurate test methods need to be
considered to test the questionnaire results against the objective of the study.

6. Using the (Kruskal Wallis Test) to test the differences between respondents‟
feedback for each of Control variables on the independent variables, this used for
variables have more than 2 options.

39
7. Using the (Mann-Whitney Test) to test the differences between respondents‟
feedback for each of Control variables on the independent variables, this used for
variables have only 2 options.

4.10 Research Sample Specifications

Table (B.4) in appendix -B highlights the specification of targeted sample and their
responds for Control variables Sector of organization, Organization Size from employee
point view, Areas where organization offer its services, and Availability of IT
department in the organization.

Regarding the sector in which the organization operates the distribution sample shows
that highest percentage from the sample operates in (Software Development) with
32.8%, followed by (Information & Communication Technology - ICT) sector with
24.6%, while remaining sectors (Telecom, ISP, and others) get (14.8%, 13.1%, 14.8%)
respectively. The representation of sectors is inconsistence with current situation of the
field since there is many of Startup Company that work in software development as
outsourcing, in addition to improvement in ICT sector to offer new solutions. On the
other side, the Telecom and ISP sectors have lower percentage due to the fact that huge
amount of investments need to work in these fields and large competition with Israeli
companies.

Regarding the size of the organization with respect to number of employees the
distribution sample shows that highest percentage of organization size from the sample
has employee (10 -49) employees with 36.1%, followed by (50 - 500) employees with
34.4%, followed by (less than 10) employees with 16.4%, and lastly (above than 500)
employees with 13.1%. The representation of organization size is inconsistence with
working sectors since the majority of software development and ICT organizations have
employees with mention ranges. While only the large national organizations, which
work in Telecom sector, some of outsource software development organizations, and
multinational companies that have branches in Palestine have employees above 500. As
state, there are many of startup organization work as software development and their
organization size is less than 10 employees.

40
Regarding the areas in which the organization offer their services the distribution
sample shows that highest percentage from the sample has for areas cover (Palestine
and foreign countries) with 37.7%, followed by (West Bank and Gaza Strip) area with
34.4%, followed by (West Bank) area with 16.4%, and lastly (Palestine, including the
territories occupied in 1948) employees with 11.5%. The representation of working
areas is logic since the majority of organization targeting to offer services inside
Palestine and extend it for foreign countries especially the Arabic one in order to
increase their revenues and this shown by the highest two percentages. While the lowest
percentage for organization offers their services inside Israeli and this due to lack of
trust and a lot of restrictions stand as obstacle to offer the services.

Lastly, the variable of existing IT department within the organizations the distribution
sample shows that highest percentage from the sample that the majority of organization
has IT department (Yes) with 85.2%, while the remaining organization don't have IT
department ( No) with 14.8%. The representation of having IT department is logic since
the majority of organization working in technology fields as shown form their sectors
and this leads to have IT department by default.

41
 Chapter Five

Results and Discussion

5.1 Results and Discussions

The results of questionnaire analysis will be discussed and explained in the following
section. These results have been concluded after we apply all type of tests on the
questionnaire output in order to assess and measure the readiness of Palestinian
Telecom, and ICT organizations for DT. It will show the respondents‟ answers for each
dimension that considered in the study, and the overall item, which measures the
organization readiness. In addition to display, the respondent's differences based on the
Control variables.

5.2 Results and discussion related to the questionnaire:

1. Respondents feedback on use of technology dimension:

The questionnaire has (7) items to measure the use of technology in DT

implementation. The below table (5.1) shows the percentage distribution of
respondents‟ answers and opinions, the mean value, and standard deviation value for
each item. Furthermore, the overall uses of technology dimension results shown in the
table.

Table 5.1
Descriptive Analysis of Respondents for Use of Technology Dimension
Item Mean N Std.
Deviation
A1 3.70 61 1.35
A2 3.93 61 1.11
A3 3.82 61 1.06
A4 3.95 61 1.10
A5 4.18 61 0.83
A6 4.23 61 0.80
A7 3.95 61 0.86
Using technology for digital transformation 3.97 61 0.75

42
 The results in the above table show there is high agree on respondents‟ answers
since the mean vary between 3.70 and 4.23, and the maximum STD value was 1.35
which is acceptable.

 There are around 20% of answers which do not agree that IT department able to
collect and analyze the available data; this is consistent with the fact that this task
requires highly skills knowledge to do such analysis.

 Around 70% of answers agreed that IT department strategy in line with vision and
strategy of organization.

 65% of responses agreed on use the latest digital technologies. However, most of
them refer to mobile applications to provide digital solutions, compare with other
digital technologies like Data Mining, IoT, and Cloud services.

 80% of answers agree on updating and use the latest security measures, use the
technology within cooperation department to transfer knowledge, and have their
own hardware and software that will reduce the cost of operations.

 The data collection, analysis, and evaluation readiness of ICT companies had the
lowest mean (3.70). In this context, it refers to a lack of knowledge and expertise
that can analyze the massive amount of data related to the company's customers.
Also, most of these companies are ranked as medium and small businesses, which
do not have the infrastructure and techniques suited for storing such massive
amounts of data.

 Based on the results, the 2nd lowest mean (3.82) is influenced to the availability of
modern techniques such as IoT, Cloud, and Big Data. Clearly this has a direct
impact on the collection and analysis of the data as explained in previous point.
There is a reason for it: investing in new technologies is extremely costly, and these
technologies require highly skilled manpower to operate them.

 Overall, there are 82% of opinions agree on using the technology is a main
dimension and factor for apply and implement digital transformation.

43
 Even the statistics results show promising situation bout technology infrastructure,
the interviewee highlights many of challenges that limit Palestinian companies to
built updated infrastructure. All interviewees Consensus that Israel controls the
access of infrastructure devices and technology which is considered the main
enabler to DT. The following are examples of these devices Fiber cables,
Microwave devices, transmission devices, 4G/5G mobile devices.

 As per interviewees, Israel's control does not stop with granting device access
privileges. But it's expanded to control and manage the needed frequencies to
operate 4G/5G mobile services, and to give approvals for devices features and
licenses of latest technology provided by network and telecom vendors.

 Interviewees highlight even if Palestinian companies possess the needed technology

and devices, they still need to get approval to work in many areas controlled by
Israel like areas categorized as (area - C). Also, nothing can be accessed to Gaza
strip without their approval and monitoring which may take several years.

 Despite of interviewees feedback about challenges facing the technology

infrastructure. All of them agreed that current and available infrastructure is enough
and can handle the DT process, and it was tested during the COVID-19 period since
many of private sectors managed to run their business remotely such as banking,
education, and ICT.

In general, the respondent's answers and interviewees agree about the importance of
technology using as a main factor in any organization to be ready for digital
transformation process. This result is in line with global definitions of DT and drivers
that need to be consider in DT migration cycle as state in the literature review chapter.

2. Respondents feedback on value creation and new products:

The questionnaire has (6) items to measure the change value and new product creation
in DT implementation. The below table (5.2) shows the percentage distribution of
respondents‟ answers and opinions, the mean value, and standard deviation value for
each item. Furthermore, the overall organization ability and readiness to create marking
value and new product dimension results shown in the table.

44
Table 5.2
Descriptive Analysis of Respondents for Value Creation and New Product Dimension
Item Mean N Std.
Deviation
B1 4.23 61 0.84
B2 3.98 61 1.01
B3 3.90 61 1.09
B4 3.84 61 1.07
B5 3.95 61 1.09
B6 4.13 61 1.01
Measuring the organization's ability and readiness to 4.01 61 0.79
create marketing value and products from digital
transformation.

 The results in above table show there is high agree on respondents‟ answers since
the mean vary between 3.84 and 4.23, and the maximum STD value was 1.09 which
is acceptable.

 There is around 80% of answers have a digital communication with its customers
and subscribers, this is consistence with fact that mobile and internet penetration
within Palestinian society as shown in literature review chapter.

 around 72% of answers agreed that they monitoring the external markets for new
business patterns and technologies, consult external partner to offer new services
and products, supports its services and products with digital and smart offers, and
lastly analyze their customer needs to offer customized services and products.

 A lower mean is determined by the results related to the creation of new services
and products based on analyzing the needs of customers (3.84). There is a point of
consistency with information technology infrastructure when it comes to collecting
and analyzing customer data. By giving this a significant amount of attention, the
company will be in a position to introduce new products and services that will
promote their competitive advantage, and this will increase the company's revenues
and market shares.

45
 A second lower mean (3.90) is related to coordination among external partners and
suppliers in order to provide customers with digital transformation services. This
output is expected from companies in the ICT sector since they strive to provide
basic services to their customers such as online customer care. Additionally, despite
its role as a main actor in the digital transformation process, the government
contributes insufficiently.

 Overall, there are 82% of opinions agree on organization ability and readiness to
create marketing value and new products in DT, which is a main dimension and
factor for apply and implement digital transformation.

 Even the statistics results appeared that Palestinian organizations are ready to create
value and new products and services. The interviewees agreed that there is a major
challenge which related to the readiness of Palestinian government for DT.

 Interviewees highlight that many organizations create new service depends on DT

based on their customers feedbacks, and to reach new segment of customers. As an
example, Jawwal creates Plus application to allow customers apply to new SIM
without visiting the showrooms but unfortunately the process has not been
completed since government still didn't issue the law and regulation to have e-
signature. A similar case faced by Paltel which creates an application to get the
needed services, but still the end users have to visit the showroom offices to sign in
the application due to lack of regulation and e-signature.

 Even there is a lot of efforts and supports from MTIT in order to launch an e-
government services. Interviewees agreed that government in early stage since many
of government ministries and organizations are still far from DT. Government still
doesn‟t have a unified payment platform due to lack of legislations. This leads even
if the Palestinian private organizations developed services or applications to
facilitate the process on the citizens, they faced an issue that governmental
organizations themselves are not ready to handle these services.

 On the opposite side according to the interviewees, the government issued the
legislations of electronic wallets (e-wallets) like Jawwal-Pay owned by Paltel
Group, and Pal-Pay owned by Palestinian Investment Fund (PIF) which will

46
 increase the demand on DT since it will force the commercial companies to consider
this as a solution for their customers. Also, it has been working on a project to
change the 100 of Postal offices to be a Digital Access Point to offer many
governmental services provided to citizens which will make it easier especially in
area- C.

In general, the respondent's answers and interviewees agree about the importance of
changing value and new products as a main factor in any organization to be ready for
digital transformation implementation. This result is in line with global definitions of
DT and drivers that need to be consider in DT migration cycle as state in the literature
review chapter.

3. Respondents feedback on structural and procedure organization change:

The questionnaire has (10) items to measure the structural and procedure organization
changes in DT implementation. The below table (5.3) shows the percentage distribution
of respondents‟ answers and opinions, the mean value, and standard deviation value for
each item. Furthermore, the overall of structural and procedure organization changes
dimension results shown in the table.

Table 5.3
Descriptive Analysis of Respondents for Organization Structure and Procedure change
Dimension
Item Mean N Std. Deviation
C1 4.11 61 0.84
C2 4.08 61 0.80
C3 4.03 61 0.80
C4 3.13 61 1.36
C5 3.98 61 0.85
C6 4.05 61 0.90
C7 3.75 61 1.01
C8 3.79 61 0.93
C9 3.64 61 1.00
C10 3.72 61 1.13
The institution's readiness to structure and change 3.83 61 0.68
procedures in line with the institution's digital
transformation process.

47
 The results in above table show there is high agree on respondents‟ answers since
the mean vary between 3.13 and 4.11, and the maximum STD value was 1.36 which
is acceptable.

 There are around 39% of answers not plan to add separated unit to manage the
digital transformation roles and tasks. This may refer to extra cost needed to have
this unit and to the fact that 70% of organization categorized as small and medium
size organizations.

 Above 70% of answers agreed that senior and top management support the DT
process, employees have positive attitude toward the DT changes and they informed
about organization direction toward the DT implementation. In addition, they agreed
that organizations followed the new method of work and periodically review the
existing procedures and work to enhance its flexibility. These are a crucial item to
make organization ready for DT since the top management support and leadership
will facilitate the process and give it importance within organization, and eliminate
any change resistance that may appeared from employees. Furthermore, enhance
internal procedures and develop them using digital technologies will add more
flexibility and increased the productivity.

 A round 60% of responses agreed that company uses digital forms continuously to
plan, design and monitor the procedures, employees‟ competences are matched with
digital transformation challenges, companies consider the digital competences in
employee assessments, and companies provide needed training for employees to
make them able to handle the new digital technologies. All of these items will create
an atmosphere among the organization employees will definitely make the
organization ready to DT process.

 Considering the results of the study, the lower mean (3.13) was related to adding a
new department within the organization while managing the DT process. Companies
avoid to create separated department because of the investments needed to create
this department and train the staff needed to handle this process. Moreover,
Palestine's majority of ICT companies are smaller and medium-sized, which makes
it difficult for them to create a department specifically devoted to handling DT
processes.
48
 The 2nd lower mean (3.64) result is related to consider the DT as part of employees‟
evaluation process. It may be related to the fact that HR doesn't consider DT as part
of their responsibilities when evaluating the manpower of the company.

 Overall, there are 75% of opinions agree on organizational structure and procedure
changes are main dimension and factor for apply and implement digital
transformation.

 The importance of organizational structure and procedure adjustments was evident

even in the statistical results. The interviewees agreed that DT is important in
organizations and has a positive impact on development. All of them agreed about
the benefits of DT on the organizations by saving the efforts, time, resources and
enhance the services offer to the consumer.

 Interviewees highlighted that even they faced a culture resistance by employees on

early stage of applying the new process and procedures. However, the culture of
employee get improved and they start asking for new services to fulfill their needs
and tasks.

 Furthermore, interviewees highlight to expand the awareness about the importance

of DT to cover the top management and decision making within Palestinian local
boards. Also, they add spots to establish a Telecommunication Regulatory Authority
to organize and control the Telecom, ICT, and Digital Transformation sectors.

In general, the respondent's answers and interviewees agree about the importance of
change the structure and procedure of organizations to be ready for digital
transformation process. This result is in line with the holistic approach of DT, which
affects all levels of organizations, not only the technology part. Also, in order to have a
successful DT implementation organization has to be considered as main player for this
process.

4. Respondents feedback on financial aspects:

The questionnaire has (4) items to measure the financial aspects in DT implementation.
The below table (5.4) shows the percentage distribution of respondents‟ answers and

49
opinions, the mean value, and standard deviation value for each item. Furthermore, the
overall of financial aspects dimension results shown in the table.

Table 5.4
Descriptive Analysis of Respondents for Financial Aspects Dimension
Item Mean N Std. Deviation

D1 4.21 61 0.80
D2 3.98 61 0.99
D3 3.93 61 0.98
D4 3.98 61 0.99
The company's financial readiness and ability in the 4.03 61 0.78
digital transformation process.

 The results in above table show there is high agree on respondents answers since the
mean vary between 3.93 and 4.21, and the maximum STD value was 0.99 which is
acceptable.

 There is around 80% of answers consider the implementation of new digital

technologies as an opportunity to emphasize their financial positions and increase
the revenue. This result consistence with the importance of digital technologies to
open new markets and chances, and allow organizations to have new opportunity to
compete on that markets and add new revenues. Furthermore, as states previously
using new digital technologies will leads to have new value, service, and product,
which will add competitive advantage to the organization.

 70.5% of answers agreed that organizations financial position allow them to proceed
with DT implementation.

 A round 69% of responses agreed that company invest in modern digital

technologies and solutions that will develop the existing technical infrastructure.

 A round 73% of responses agreed that top management level they financially
support the organization to proceed with DT process.

 According to the results of the study, investing part of an organization's revenue on

DT process has the least mean value of 3.93. Owners and top management are more
50
 interested in investing in new fields that will yield large revenues. Furthermore, they
don't realize the importance of DT for keeping their organization competitive.
Lastly, most organizations invest in normal network expansion but do not consider
holistic development processes within company that will lead to major disruption
within the organization.

 Overall, there are 83.6% of opinions agree on financial aspects as a main dimension
and factor for apply and implement digital transformation.

 Even the statistics results appeared the importance of financial aspects on the DT
process. The interviewees agreed how the DT will lead to finance saving. As
example changing to e-bill instead of distributing paper bills saved millions of
Shekels from the cost of Paltel and Jawwal to issue the bills to their customers. This
also apply to the showrooms, dealers, customer support which are in process to be
replaced by applications.

 Interviewees confirmed that government depends totally on external supports and

funds to run the DT projects and the main reason for having weak infrastructure and
e-government services. However, the COVID-19 forced the government to work on
DT in order to facilitate the affected sectors work such as education, commercial,
and government organizations. In order to bridge the gaps, MTIT get fund from
international world bank to accelerate the DT process within government ministries
and organizations which will have a reflection on all Palestinian sectors to move
forward to DT.

In general, the respondent's answers and interviewees agree about the importance
financial aspects and position for organizations to be ready for digital transformation
process. This result is agreed with the holistic approach of DT in order to have
successful DT implementation organizations have to be financially able to invest in new
technologies, hire experts of know-how to implement these technologies, and get
advantage of having new market via digital products and solutions which will increase
their revenue.

51
5.3 Tests Results

The analysis of collected data highlights if the respondents have different answers and
opinions against main variables and dimensions in addition to the overall objective of
the study. The analysis tested using (Kruskal Wallis Test) for variable has more than
two options, while using (Mann-Whitney Test) for variable has only two options.

1. Control variables against the use of technology dimension:

Table (B.5) in appendix-B summarized the results for all Control variables with the use
of technology dimension, the results show the following:

 There is no difference on respondent answers regarding the use of technology

irrespective to the sector that organization operation, since the significant value was
(0.859) which is more than significant level 0.05.

 There is difference on respondent answers regarding the use of technology depend

on organization size based on the number of employees, since the significant value
was (0.025) which is less than significant level 0.05. To explain the results, the
(Mean Rank - Appendix C) outputs checked and found that when the size of
organization get larger the dependency on use of technology get more and vise versa
which is in line with the fact that in order to facilitate large number of employees
more techniques and advance technology need to be used and implemented.

 There is no difference on respondent answers regarding the use of technology

irrespective to the area where organization offer its services, since the significant
value was (0.171) which is more than significant level 0.05.

 There is difference on respondent answers regarding the use of technology depend

on the availability of IT department in the organization, since the significant value
was (0.002) which is less than significant level 0.05. To explain the results, the
(Mean Rank - Appendix C) outputs checked and found that when the organization
has IT department will get larger rank compare with don't have IT department which
is in line with the fact that the organization has IT department will use the
technology more than others.

52
2. Control variables against the value creation and new product dimension:

Table (B.6) in appendix-B summarized the results for all Control variables with the use
of technology dimension, the results show the following:

 There is no difference on respondent answers regarding the value creation and new
product dimension irrespective to the sector that organization operation, since the
significant value was (0.57) which is more than significant level 0.05.

 There is no difference on respondent answers regarding the value creation and new
product dimension irrespective to the organization size based on the number of
employees, since the significant value was (0.053) which is more than significant
level 0.05.

 There is no difference on respondent answers regarding the value creation and new
product dimension irrespective to the area where organization offer its services,
since the significant value was (0.05) which is equal to significant level 0.05.

 There is difference on respondent answers regarding the value creation and new
product dimension on the availability of IT department in the organization, since the
significant value was (0.034) which is less than significant level 0.05. To explain the
results, the (Mean Rank - Appendix C) outputs checked and found the organization
which has IT department will get larger rank compare with do not have IT
department. This is in line with the fact that the organization has IT department will
be able to use existing resources to create and develop new services, products, and
add more values to existing one.

3. Control variables against the structural and procedure organization change

dimension

Table (B.7) in appendix-B summarized the results for all Control variables with the use
of technology dimension, the results show the following:

 There is no difference on respondent answers regarding the structural and procedure

organization change dimension irrespective to the sector that organization operation,
since the significant value was (0.382) which is more than significant level 0.05.

53
 There is no difference on respondent answers regarding the structural and procedure
organization change dimension irrespective to the organization size based on the
number of employees, since the significant value was (0.121) which is more than
significant level 0.05.

 There is no difference on respondent answers regarding the structural and procedure

organization change dimension irrespective to the area where organization offer its
services, since the significant value was (0.203) which is more than significant level
0.05.

 There is no difference on respondent answers regarding the structural and procedure

organization change dimension irrespective to the availability of IT department in
the organization, since the significant value was (0.117) which is more than
significant level 0.05.

4. Control variables against the financial aspects dimension:

Table (B.8) in appendix-B summarized the results for all Control variables with the use
of technology dimension, the results show the following:

 There is no difference on respondent answers regarding the financial aspects

dimension irrespective to the sector that organization operation, since the significant
value was (0.547) which is more than significant level 0.05.

 There is no difference on respondent answers regarding the financial aspects

dimension irrespective to the organization size based on the number of employees,
since the significant value was (0.053) which is more than significant level 0.05.

 There is no difference on respondent answers regarding the financial aspects

dimension irrespective to the area where organization offer its services, since the
significant value was (0.321) which is more than significant level 0.05.

 There is no difference on respondent answers regarding the financial aspects

dimension irrespective to the availability of IT department in the organization, since
the significant value was (0.315) which is more than significant level 0.05.

54
5. Control variables against the organization readiness for DT:

Table (B.9) in appendix-B summarized the results for all Control variables with the use
of technology dimension, the results show the following:

 There is no difference on respondent answers regarding the organization readiness

for DT irrespective to the sector that organization operation, since the significant
value was (0.439) which is more than significant level 0.05.

 There is difference on respondent answers regarding the organization readiness for

DT depend on organization size based on the number of employees, since the
significant value was (0.022) which is less than significant level 0.05. To explain
that we refer to the analysis output in the (Mean Rank- Appendix C) and found that
when the size of organization gets larger the organization readiness gets more and
vise versa especially in Palestine since these organization looking to compete with
Israeli companies, and they are in good financial position to proceed with DT.

 There is no difference on respondent answers regarding the organization readiness

for DT irrespective to the area where organization offer its services, since the
significant value was (0.096) which is more than significant level 0.05.

 There is difference on respondent answers regarding the organization readiness for

DT depend on the availability of IT department in the organization, since the
significant value was (0.021) which is less than significant level 0.05. To explain the
results, the (Mean Rank - Appendix C) outputs checked and found that when the
organization has IT department will get larger rank compare with don't have IT
department which is in line with the fact that the organization has IT department
will have more readiness to proceed with DT compare with other organization don't
have IT department.

5.4 Correlation Tests between dimensions and overall objective Results

The correlation test applied between the dimensions individually to check the
correlation relationship among them. In addition, same test applied between the
dimensions and the overall objective of the study, which is the Palestinian Telecom and
ICT organization readiness for DT.

55
Based on normality test shown previously that data distribution is not normal,
accordingly, we use non-parametric test to check the correlation. (Spearman's rho)
correlation coefficient used to test the amount of correlation mentioned above.

Table (B.10) in appendix-B shows the results of the test and display the strong
correlation among all dimensions, also with the main objective of the study since the
lowest Spearman's correlation coefficient was (0.833) which is very high positive
relation and near to 1. In addition, it has shown that organization structural and
procedure change has the highest relationship with the overall objective, as the value
was (0.936).

5.5 Limitations

During the study many limitations faced which can be listed as below:

 As the study targeting the readiness of ICT companies to DT, and this new trend
based on top management instruction. It was difficult to reach them to fill the survey
and collect the needed data.

 Most of ICT companies that listed in Palestine market consider very small as has
from 3 - 5 employee. These companies exclude from the study, which decrease the
study sample size.

 The study includes all regions under the Palestinian authority (West Bank, and Gaza
Strip). So, there was limitations to identify all Gaza companies working in ICT
sector, which affect to have full view about DT readiness for Gaza ICT companies.

 There were no interviewers to validate the results from Gaza side due to access
limitation and communication with Gaza.

56
 Chapter Six

Conclusion and Recommendations

6.1 Conclusion

The digital transformation became a hot topic last decades both in academic and
consultancy sides, due to the massive growth in digital technologies. Digital
technologies such as smart phones, IoT, Cloud Solutions, AI, ML, and Social networks
generate huge amount of data that used by organization to get new opportunities,
competitive advantages, new revenue streaming, and customer experience.

So all leaderships and top management levels realize the importance of DT and they
think how to implement it within their organizations without any failure issues and to
overcome the challenges that may be faced. The initial stage of the implementation
process is to assess and measure the readiness of the organizations to have such change.

In Palestine, the ICT sector experienced high growth, in addition to high technology
penetration ratio within Palestinian society. Furthermore, government represented by
MTIT give the DT highest priority in its agenda to improve all over governmental e-
services that offered to citizens. However, there is a gap in digital transformation studies
inside Palestine. So that this research aimed to fulfill this gap and highlight the spots on
DT by assess and measure the readiness of Palestinian Telecom, and ICT organization
or DT process and implementation, since these sectors considered as stone coroner in
any DT process and if they are ready all other sectors can follow them.

The Digital Transformation Frame used in this research and by using a quantitative
approach to analyze the collected data from targeted sample (Telecom, ISPs, ICT, and
Software development) organizations. The questionnaire measured the organization
from four different factors affecting the DT readiness, the use of technology, value
creation and new products, organization structure change, and financial aspects. Based
on results and applied statistical tests on collected data it concluded that Palestinian
Telecom and ICT organizations are ready for DT process. Furthermore, the quantitative
results were validated by using semi-structure interview approach with expertise in the
targeted fields, The results and interviewees feedback show high correlation and
relationships between all factors and main objective of the study. In addition, it showed

57
high relationships among the factors to each other. At the same time, many challenges
were highlighted related to Palestinian political situation which narrow and limit the
expansion in DT process among different sectors.

This study with its outputs can used for other academic studies on subject topic in
Palestine, and used as reference for other organizations studies.

6.2 Recommendations

After studying the DT readiness in Palestinian Telecom and ICT organizations to

achieve the goal of the study, the following are the proposed recommendations related
to study results and other recommendation for further studies in DT:

 It's recommended for an organization to hire expertise that can analyze the massive
amount of data related to the company‟s customers. This will help policy makers
and top management to update their business strategies according to their customers
feedback, so companies will be able to create new value and products/services.

 It's recommended for SMB companies to host and rent the needed infrastructure
and techniques suited for storing such massive amounts of data from available Data
Centers. So, they can refer to this data and apply required analysis.

 As new technologies will be expensive to be implemented in SMB companies. So,

it's recommended for companies to use external cloud resources like Microsoft,
Google, etc. in order to run their business. Also, to consider third party outsourcing
which have skilled staff.

 It's required and recommended that government represented by MTIT to raise

Palestinian voice in international conferences to get our full rights in accessing
technologies, devices, frequencies and licenses. Furthermore, to grab the ability to
work and extend infrastructure in all lands under Palestinian authority without any
restrictions from Israel side. This will increase the level of infrastructure which is
the corner stone on DT process, also it will minimize the cost by using latest
technologies.

58
 It's recommended for Palestinian organization to enhance the relationship with
external vendors, suppliers, partners, and technology innovators to be updated with
latest technology, and offered products/services in similar sectors.

 It's recommended to have national committee includes government represented by

MTIT and all stakeholders and players in DT process. This will encourage the
corporation and coordination to determined the current challenges and limitations
which has to be resolved to get actual DT environment in the sectors.

 It's recommended that government to release the needed laws and regulations to
have e-signature and to have the Telecommunication Regulatory Authority which
will be consider as third party to control movement toward the DT. Also, MTIT has
to arrange for awareness workshops to other government ministries to highlight
importance of DT and its impact on overall development.

 It's recommended that government to launch e-government services and to have a

unified payment platform. Furthermore, MTIT has to force all related entities within
government to use them in order to built needed culture within citizens and
organizations to use applications to get their services.

 It's recommended to have a new and separated department within the organization
to manage the DT process. Also, to train the staff to handle this process. Moreover,
it's recommended to consider the DT knowledge part of HR employee evaluation
within an organization to force employee to be ready for a new stage of DT.

 It's recommended to highlight the importance of DT to companies Owners and top

management, and its financial impact on companies‟ resources since investing in
developing the services and technologies will leads to decrease the overhead costs
and increase the company's revenue.

 It is highly recommended to study the DT readiness in other sectors or industries

like government, municipalities, education, healthcare, and finance sectors.

 It is highly recommended to study in details a fully digital transformed organization

to get the benefit and identify the faced challenges during the transformation
process.
59
 It is highly recommend focusing the study on one factor to have more details about
its actual impact on DT of organizations.

60
 List of Abbreviations

Abbreviation Meaning

2G Second Generation
3G Third Generation
AI Artificial Intelligence
CA Certificate authority
DT Digital Transformation
GDP Gross domestic product
GEMS Government Electronic and Mobile Services
G2C Government to Citizen
ML Machine Learning
MTIT Ministry of Telecommunication and Information
Technology
ICT Information and Communication Technology
IoT Internet of Things
ISP Internet Service Provider
PA Palestinian Authority
PCBS Palestinian Central Bureau of Statistics
PITA Palestinian Information Technology Association
PKI Public Key Infrastructure
SMAC Social, Mobile, Analytics, and Cloud
STS Sociotechnical systems
VOIP Voice over IP

61
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Interviews
[1] Aref Hanaysheh, Project Manager at I-Connect, Ramallah, 2022

[2] Helmi Hajj, IT and digital Senior Department Head at Paltel, Nablus, 2022

68
[3] Qutaiba Khuwaireh, Digital Consultant at International World Bank, Ramallah,
2022

[4] Raed Hijawi, Program Manager Officer ( PMO ) at Jawwal, Ramallah, 2022

[5] Tareef AbdelHalaim, Core Network Senior Department Head at Paltel, Nablus,
2022

[6] Yazan Jaber, Co-founder and General Manager at Telnet, Ramallah, 2022

69
 ‫‪Appendices‬‬
‫‪Appendix A‬‬

‫‪Questionnaire Details‬‬

‫أخي الفاضل ‪ /‬أختي الفاضمة‬

‫تحية طيبة وبعج‪،،‬‬

‫يقؽم الباحث بإجخاء دراسة بعشؽان " قياس جاهدية شخكات التكنهلهجيا لمتحهل الخقمي " كستطمب‬
‫لمحرؽل عمى درجة الساجدتيخ في اإلدارة اليشجسية مؼ جامعة الشجاح الؽطشية‪.‬‬

‫نخجؽ مؼ حزختكػ مخاعاة السؽضؽعية والسرجاقية في تعبئة اإلستبانة عمسا بإنو سيتػ مخاعاة الدخية‬
‫في البيانات التي ستجلؽن بيا وأن ىحه البيانات سيتػ استخجاميا ألغخاض البحث العمسي فقط‪.‬‬

‫ولكػ مشي جديل الذكخ والتقجيخ‬

‫السذخف عمى الخسالة‪ :‬د‪ .‬رابح مخار‬

‫الباحث‪ :‬أيسؼ مخوح نسخ حسارشة‬

‫‪70‬‬
 ‫القدم األول‪:‬‬

‫يحتؽي ىحا القدػ معمؽمات عؼ السؤسدة وعؼ الذخص السدؤول عؼ تعبئة ىحه االستسارة‪.‬‬

‫اٌّؼٍ‪ِٛ‬اخ اٌؼاِح‬

‫‪ ‬القطاع التي تعسل بو الذخكة‪:‬‬

‫االذظاالخ ‪ ٚ‬اٌّ‪ٛ‬تا‪(Telecom Sector ) ً٠‬‬ ‫‪.1‬‬

‫ِض‪ٚ‬د أرشٔد ) ‪( Internet Service Provider‬‬ ‫‪.7‬‬
‫ِط‪ٛ‬س تشاِح )‪(Software Development‬‬ ‫‪.3‬‬
‫‪Information & Communication Technology - ICT‬‬ ‫‪.4‬‬
‫أخش‪ٜ‬‬ ‫‪.5‬‬
‫‪ ‬حجػ الذخكة مؼ حيث عجد السؽظفيؼ‪:‬‬

‫‪ .1‬أقل مؼ ‪ 10‬مؽظف‬
‫‪ .2‬مؼ ‪ 49 - 10‬مؽظف‬
‫‪ .3‬مؼ ‪ 500 - 50‬مؽظف‬
‫‪ .4‬أكثخ مؼ ‪ 500‬مؽظف‬

‫‪ ‬السشاطق التي تقجم فييا الذخكة خجماتيا ‪:‬‬

‫‪ .1‬الزفة الغخبية فقط‬

‫‪ .2‬الزفة الغخبية وغدة‬
‫‪ .3‬فمدطيؼ و الجاخل السحتل‬
‫‪ .4‬فمدطيؼ و الجول االجشبية‬

‫‪ ‬ىل تذتسل الذخكة عمى قدػ إلدارة تكشؽلؽجيا السعمؽمات‪:‬‬

‫‪ .1‬نعػ‬
‫‪ .2‬ال‬

‫‪71‬‬
 ‫‪ ‬السشرب الحي تذغمو داخل الذخكة‪:‬‬

‫القدم الثاني‪:‬‬

‫يتكؽن ىحا القدػ مؼ أربع أجداء رئيدية‪:‬‬

‫‪ ‬الجدء األول‪ :‬يتعمق بقياس معيار استخجام التكشؽلؽجيا والتقشية وجاىدية السؤسدة‬
‫لمتحؽل الخقسي‪.‬‬

‫‪ ‬الجدء الثاني‪ :‬يتعمق بقياس قجرة وجاىدية السؤسدة عمى خمق قيسة تدؽيقية‬
‫ومشتجات مؼ التحؽل الخقسي‪.‬‬

‫‪ ‬الجدء الثالث‪ :‬يقيذ جاىدية السؤسدة عمى الييكمة وتغييخ االجخاءات بسا يتساشى‬
‫مع عسمية التحؽل الخقسي لمسؤسدة‪.‬‬

‫‪ ‬الجدء الخابع‪ :‬يقيذ جاىدية وقجرة الذخكة ماليا في عسمية التحؽل الخقسي‪.‬‬

‫‪72‬‬
 ‫‪ (A‬معيار جاهدية البنية التحتية في المؤسدة واستخجام التكنهلهجيا والتقنية لمتحهل الخقمي‬

‫ال أ‪ٚ‬افك‬ ‫ال أ‪ٚ‬افك‬ ‫ِحا‪٠‬ذ‬ ‫أ‪ٚ‬افك‬ ‫أ‪ٚ‬افك‬

‫تشذج‬ ‫تشذج‬

‫ذّرٍه اٌششوح دائشج ذمٕ‪١‬ح ِؼٍ‪ِٛ‬اخ لادسج ػٍ‪ ٝ‬خّغ ‪ٚ‬فحض‬ ‫‪A1‬‬
‫‪ٚ‬ذحٍ‪ٚ ً١‬ذم‪ ُ١١‬اٌث‪١‬أاخ اٌخاطح تاٌّشرشو‪ٚ ٓ١‬إٌّرداخ تشىً‬
‫ف‪ٛ‬س‪ِ ٞ‬ا ‪٠‬ساػذ ػٍ‪ ٝ‬اخز اٌمشاساخ إٌّاسثح ف‪ ٟ‬ػٍّ‪١‬ح اٌرح‪ٛ‬ي‬
‫اٌشلّ‪ٟ‬‬

‫ذؼًّ إداسج ذمٕ‪١‬ح اٌّؼٍ‪ِٛ‬اخ ػٍ‪ ٝ‬ذحم‪١‬ك اال٘ذاف االسرشاذ‪١‬د‪١‬ح‬ ‫‪A2‬‬

‫ٌٍششوح ‪ٚ‬ذسش‪٠‬غ ػٍّ‪١‬ح اٌرح‪ٛ‬ي اٌشلّ‪ٟ‬‬

‫ذسرخذَ اٌششوح أحذز اٌرمٕ‪١‬اخ اٌشلّ‪١‬ح تشىً س‪ٚ‬ذ‪ِٚ ٟٕ١‬سرّش‬ ‫‪A3‬‬

‫ِثً‬
‫( ‪Cloud solutions, mobile end devices, IoT,‬‬
‫)‪Data Mining, AI, etc‬‬

‫ذسثّش اٌششوح ػٍ‪ ٝ‬اسرمذاَ آخش اٌرمٕ‪١‬اخ تح‪١‬س ذى‪ ْٛ‬اٌشائذج‬ ‫‪A4‬‬
‫ف‪ِ ٟ‬داٌ‪ٙ‬ا ِّا ‪ّ٠‬ىٕ‪ٙ‬ا تاالسرح‪ٛ‬ار ػٍ‪ ٝ‬اٌس‪ٛ‬ق ‪١ٌٚ‬سد ذاتؼح‬
‫ٌآلخش‪.ٓ٠‬‬

‫ذؼرّذ اٌششوح ‪ٚ‬ذرثغ اٌّؼا‪١٠‬ش ‪ٚ‬اٌرٕظ‪ّ١‬اخ اٌّؼرّذج ف‪ ٟ‬أِٓ‬ ‫‪A5‬‬

‫اٌّؼٍ‪ِٛ‬اخ ٌحّا‪٠‬ح اٌث‪١‬أاخ اٌخاطح تاٌششوح ‪ِٚ‬شرشو‪ٙ١‬ا‬

‫ذؼرّذ اٌششوح تشىً وث‪١‬ش ػٍ‪ ٝ‬اسرخذاَ ‪ٚ‬سائً اٌرمٕ‪١‬ح‬ ‫‪A6‬‬

‫‪ٚ‬االذظاالخ ٌرط‪٠ٛ‬ش اٌرؼا‪ ْٚ‬ت‪ ٓ١‬االلساَ اٌّخرٍفح ‪ٔٚ‬مً اٌّؼشفح‬
‫ف‪ ٟ‬اٌششوح ِا ‪٠‬س‪ ًٙ‬ػٍّ‪١‬ح اٌرح‪ٛ‬ي اٌشلّ‪.ٟ‬‬

‫ذّرٍه اٌششوح اٌرمٕ‪١‬اخ ‪ٚ‬االخ‪ٙ‬ضج ‪(Hardware, and‬‬ ‫‪A7‬‬

‫)‪ٚ Software‬اٌر‪ ٟ‬ذخفف ذىٍفح األذّرح ‪ٚ‬اٌرح‪ٛ‬ي اٌشلّ‪.ٟ‬‬

‫معيار جاهدية لمؤسدة المنافدة و خمق منتجات و تغييخ الكيمة التدهيكية من خالل التحهل‬
‫‪ (B‬الخقمي‬
‫ال أ‪ٚ‬افك‬ ‫ال أ‪ٚ‬افك‬ ‫ِحا‪٠‬ذ‬ ‫أ‪ٚ‬افك‬ ‫أ‪ٚ‬افك‬
‫تشذج‬ ‫تشذج‬
‫‪ٛ٠‬خذ ف‪ ٟ‬اٌششوح ذ‪ٛ‬اطً سلّ‪ِ ٟ‬غ صتائٕ‪ٙ‬ا ‪ِٚ‬شرشو‪ٙ١‬ا‬ ‫‪B1‬‬
‫ذشالة اٌششوح تشىً ِسرّش ‪ِٕٚ‬رظُ اٌس‪ٛ‬ق اٌخاسخ‪ٟ‬‬ ‫‪B2‬‬
‫‪ٚ‬اٌرط‪ٛ‬س اٌرمٕ‪ٌ ٟ‬رحذ‪٠‬ذ االّٔاط اٌدذ‪٠‬ذج ٌرط‪٠ٛ‬ش االػّاي‬
‫اٌرداس‪٠‬ح ‪ ٚ‬اسرغالي اٌفشص‬
‫اٌششوح ذسرش‪١‬ش اٌششواء اٌخاسخ‪ ( ٓ١١‬اٌّ‪ٛ‬سد‪ ، ٓ٠‬اٌششواء‬ ‫‪B3‬‬
‫اٌرداس‪ ، ٓ١٠‬اٌضتائٓ ) ف‪ ٟ‬ذط‪٠ٛ‬ش إٌّرداخ ‪ ٚ‬اٌخذِاخ‬
‫اٌشلّ‪١‬ح‬
‫ذحًٍ اٌششوح تشىً ػٍّ‪ِٚ ٟ‬سرّش اٌث‪١‬أاخ اٌّدّؼح سلّ‪١‬ا‬ ‫‪B4‬‬
‫ِٓ أخً ذط‪٠ٛ‬ش ِٕرداخ ‪ ٚ‬خذِاخ خذ‪٠‬ذج‬
‫ذذػُ اٌششوح تشىً واًِ ِٕرداذ‪ٙ‬ا ‪ ٚ‬خذِاذ‪ٙ‬ا تؼش‪ٚ‬ع‬ ‫‪B5‬‬
‫سلّ‪١‬ح ‪ ٚ‬رو‪١‬ح ٌٍرس‪ ً١ٙ‬ػٍ‪ ٝ‬صتائٕ‪ٙ‬ا‬
‫ذؼًّ اٌششوح ػٍ‪ ٝ‬ذحٍ‪ ً١‬احر‪١‬اخاخ صتائٕ‪ٙ‬ا ‪ ٚ‬ذؼًّ ػٍ‪ٝ‬‬ ‫‪B6‬‬
‫ذط‪٠ٛ‬ش خذِاخ ‪ِٕ ٚ‬رداخ ٌىً صت‪ ْٛ‬تّا ‪٠‬رالءَ ِغ ِرطٍثاذٗ‬

‫‪73‬‬
 ‫‪ (C‬معيارجاهدية المؤسدة لمهيكمة وتغييخ االجخاءات في عممية التحهل الخقمي‬

‫ال أ‪ٚ‬افك‬ ‫ال أ‪ٚ‬افك‬ ‫ِحا‪٠‬ذ‬ ‫أ‪ٚ‬افك‬ ‫أ‪ٚ‬افك‬

‫تشذج‬ ‫تشذج‬
‫ذذػُ ‪ٚ‬ذم‪ٛ‬د االداسج اٌؼٍ‪١‬ا تشىً وث‪١‬ش ػٍّ‪١‬ح اٌرح‪ٛ‬ي اٌشلّ‪ ٟ‬ف‪ٟ‬‬ ‫‪C1‬‬
‫اٌششوح‬
‫‪ٛ٠‬خذ ٌذ‪ ٜ‬اٌّ‪ٛ‬ظف‪ ٓ١‬تاٌششوح اٌسٍ‪ٛ‬ن اال‪٠‬دات‪ ٟ‬ذداٖ ػٍّ‪١‬ح‬ ‫‪C2‬‬
‫اٌرح‪ٛ‬ي اٌشلّ‪ِ ٚ ٟ‬ا ‪٠‬رشذة ػٍ‪ٙ١‬ا ِٓ ذغ‪١١‬شاخ‬
‫‪٠‬رُ إػالَ اٌّ‪ٛ‬ظف‪ ٓ١‬تإٌشاطاخ اٌخاطح تاٌرح‪ٛ‬ي اٌشلّ‪ٌٍ ٟ‬ششوح‬ ‫‪C3‬‬
‫ف‪ٙ١‬ا تّا ‪٠‬خذَ اٌر‪ٛ‬خٗ ‪ ٚ‬ذحم‪١‬ك اٌ‪ٙ‬ذف‬
‫ذخطظ اٌششوح إلضافح إداسج ‪ٚ‬حذج ِسرمٍح ‪ ٚ‬خاطح ٌؼٍّ‪١‬اخ‬ ‫‪C4‬‬
‫اٌرح‪ٛ‬ي اٌشلّ‪ ٟ‬اٌدذ‪٠‬ذج‬
‫ذسرخذَ اٌششوح تشىً وث‪١‬ش اٌ‪ٛ‬سائً اٌدذ‪٠‬ذج ف‪ ٟ‬اٌؼًّ ‪ ٚ‬اٌر‪ٟ‬‬ ‫‪C5‬‬
‫ذساُ٘ تّ‪ٛ‬سٔح أداص االػّاي ٌٍّؤسسح تاالػرّاد ػٍ‪ ٝ‬اٌرمٕ‪١‬اخ‬
‫اٌشلّ‪١‬ح اٌحذ‪٠‬ثح‬
‫ذشاخغ اٌششوح تشىً د‪ٚ‬س‪ ٞ‬اخشاءاخ اٌؼًّ ‪ ٚ‬ذؼًّ ػٍ‪ٝ‬‬ ‫‪C6‬‬
‫ذط‪٠ٛ‬ش٘ا تاسرخذاَ اٌرمٕ‪١‬اخ اٌشلّ‪١‬ح ٌض‪٠‬ادج ِش‪ٔٚ‬ر‪ٙ‬ا‬
‫ذسرخذَ اٌششوح إٌّارج اٌشلّ‪١‬ح تشىً ِسرّش ٌٍرخط‪١‬ظ ‪ ٚ‬ذظّ‪ُ١‬‬ ‫‪C7‬‬
‫‪ِ ٚ‬شالثح االخشاءاخ اٌخاطح تؼًّ اٌششوح ِّا ‪٠‬ساُ٘ ف‪ ٟ‬ذ‪ٛ‬ص‪٠‬غ‬
‫االد‪ٚ‬اس ‪ ٚ‬اٌّسؤ‪١ٌٚ‬اخ ف‪ ٟ‬اٌّؤسسح‬
‫ذرالئُ اٌىفاءاخ اٌّحرشفح ٌٍّ‪ٛ‬ظف‪ ٓ١‬تّا ‪٠‬ساُ٘ تاٌرغٍة ػٍ‪ٝ‬‬ ‫‪C8‬‬
‫ذحذ‪٠‬اخ اٌرح‪ٛ‬ي اٌشلّ‪ ٟ‬ف‪ ٟ‬اٌششوح‬
‫ذؼرّذ اٌششوح ف‪ ٟ‬ذم‪ّٙ١١‬ا ألداء اٌّ‪ٛ‬ظف‪ ٓ١‬ػٍ‪ ٝ‬اٌىفاءاخ اٌشلّ‪١‬ح‬ ‫‪C9‬‬
‫ٌذ‪ٌ ُٙ٠‬رى‪ ْٛ‬لادسج ػٍ‪ ٝ‬اٌرؼاًِ اٌسش‪٠‬غ ِغ االحر‪١‬اخاخ اٌّرغ‪١‬شج‬
‫ٌٍرح‪ٛ‬ي اٌشلّ‪ٟ‬‬
‫ذمذَ اٌششوح تشاِح اٌرذس‪٠‬ة ‪ٚ‬اٌرؼٍ‪ ُ١‬اٌضش‪ٚ‬س‪٠‬ح ٌٍّ‪ٛ‬ظف‪ٌ ٓ١‬ض‪٠‬ادج‬ ‫‪C10‬‬
‫ِ‪ٙ‬اساذ‪ ُٙ‬ف‪ ٟ‬اٌرؼاًِ ِغ اخش اٌرط‪ٛ‬ساخ ف‪ ٟ‬اٌرمٕ‪١‬اخ اٌشلّ‪١‬ح‬

‫‪ (D‬معيار الجاهدية المالية لمتحهل الخقمي‬

‫ال أ‪ٚ‬افك‬ ‫ال أ‪ٚ‬افك‬ ‫ِحا‪٠‬ذ‬ ‫أ‪ٚ‬افك‬ ‫أ‪ٚ‬افك‬
‫تشذج‬ ‫تشذج‬
‫ذؼرثش اٌششوح اٌرمٕ‪١‬اخ اٌشلّ‪١‬ح اٌحذ‪٠‬ثح فشطح ٌرؼض‪٠‬ض اٌ‪ٛ‬ضغ اٌّاٌ‪ٌٙ ٟ‬ا‬ ‫‪D1‬‬
‫‪٠‬سّح اٌ‪ٛ‬ضغ اٌّاٌ‪ٌٍ ٟ‬ششوح ترطث‪١‬ك ػٍّ‪١‬ح اٌرح‪ٛ‬ي اٌشلّ‪ٟ‬‬ ‫‪D2‬‬
‫ذسرثّش اٌششوح خضء ِٓ اِ‪ٛ‬اٌ‪ٙ‬ا ف‪ ٟ‬اٌحٍ‪ٛ‬ي اٌشلّ‪١‬ح اٌحذ‪٠‬ثح ‪ٚ‬اٌر‪ ٟ‬ذؼًّ ػٍ‪ ٝ‬ذط‪٠ٛ‬ش‬ ‫‪D3‬‬
‫اٌثٕ‪١‬ح اٌرمٕ‪١‬ح اٌّ‪ٛ‬خ‪ٛ‬دج ٌٍششوح‬
‫ذذػُ االداسج اٌؼٍ‪١‬ا ف‪ ٟ‬اٌششوح ِاٌ‪١‬ا تشىً وث‪١‬ش اٌرح‪ٛ‬ي اٌشلّ‪ ٟ‬ف‪ ٟ‬اٌششوح‬ ‫‪D4‬‬

‫مالحعات أخخى تخغب بإضافتيا‪:‬‬

‫‪---------------------------------------------------------‬‬
‫‪---------------------------------------------------------‬‬

‫شك اخ الهتمامكم بالبحث العممي وناسف إلزعاجكم ونقجر وقتكم الثمين‬

‫‪74‬‬
 Appendix B

Tables of Study

Table B.1
Validity Test for Overall Organization Readiness for DT
All Components
Sig.
Correlation (2-
Coefficient tailed) N
The company has an information technology department capable of .652** .000 61
collecting, examining, analyzing and evaluating data on subscribers
and products in real time, which helps to take appropriate decisions in
the process of digital transformation.
The Information Technology Department works to achieve the .735** .000 61
strategic goals of the company and accelerate the process of digital
transformation
The company routinely and continuously uses the latest digital .688** .000 61
technologies such as (Cloud solutions, mobile end devices, IoT, Data
Mining, AI, etc)
The company invests in bringing in the latest technologies so that it is .576** .000 61
the leader in its field, which enables it to take over the market and is
not affiliated with others.
The company adopts and follows the approved standards and .574** .000 61
regulations in information security to protect the data of the company
and its subscribers
The company relies heavily on the use of technology and .625** .000 61
communications to develop cooperation between different departments
and transfer knowledge in the company, which facilitates the process
of digital transformation.
The company owns the technologies and devices (Hardware, and .598** .000 61
Software) that reduce the cost of automation and digital
transformation.
The company has digital communication with its customers and .411** .001 61
subscribers
The company continuously and regularly monitors the external market .644** .000 61
and technical development to identify new patterns of business
development and exploitation of opportunities
The company consults external partners (suppliers, business partners, .627** .000 61
customers) in the development of digital products and services
The company scientifically and continuously analyzes the digitally .802** .000 61
collected data in order to develop new products and services
The company fully supports its products and services with digital and .752** .000 61
smart offers to facilitate its customers
The company analyzes the needs of its customers and works to .622** .000 61
develop services and products for each customer in line with their
requirements
Senior management greatly supports and leads the company's digital .734** .000 61
transformation process
The company's employees have a positive attitude towards the digital .489** .000 61
transformation process and the resulting changes

75
 Employees are informed of the company‟s digital transformation .534** .000 61
activities in order to serve the direction and achieve the goal
The company plans to add a separate unit management, especially for .707** .000 61
the new digital transformation operations
The company makes great use of new methods of work that contribute .749** .000 61
to the flexibility of doing business for the organization by relying on
modern digital technologies
The company periodically reviews work procedures and works to .775** .000 61
develop them using digital technologies to increase their flexibility
The company uses digital forms continuously to plan, design and .771** .000 61
monitor the procedures for the company‟s work, which contributes to
the distribution of roles and responsibilities in the organization
The professional competencies of employees are matched, which .574** .000 61
contributes to overcoming the challenges of digital transformation in
the company
The company bases its employee performance assessment on their .588** .000 61
digital competencies to be able to quickly deal with the changing
needs of digital transformation
The company provides the necessary training and education programs .782** .000 61
for employees to increase their skills in dealing with the latest
developments in digital technologies
The company considers modern digital technologies an opportunity to .605** .000 61
enhance its financial position
The financial position of the company allows the implementation of .587** .000 61
the digital transformation process
The company invests part of its money in modern digital solutions that .795** .000 61
develop the existing technical infrastructure of the company
The company's senior management financially supports the digital .863** .000 61
transformation of the company
All Components 1.000 61

Table B.2
Normality Test Results
Tests of Normality
Kolmogorov-
Shapiro-Wilk
Smirnova
Statistic df Sig. Statistic df Sig.
Using technology for digital transformation .107 61 .077 .944 61 .008
Measuring the organization's ability and readiness to create
.153 61 .001 .912 61 .000
marketing value and products from digital transformation.
The institution's readiness to structure and change
procedures in line with the institution's digital transformation .077 61 .000 .976 61 .000
process.
The company's financial readiness and ability in the digital
.114 61 .047 .929 61 .002
transformation process.
All Components .081 61 .000 .966 61 .090

76
Table B.3
Mean Value Classification Based on Likert Scale
Interval Classification
1.00 - 1.80 Strongly Low
1.81 - 2.60 Low
2.61 -3.40 Middle
3.41 - 4.20 High
4.21 - 5.00 Strongly High

Table B.4
Percentage Distribution of Sample Respondents based on Control Variables
Variable Items Frequency Percent (%)
Telecom Sector 9 14.8
Internet Service Provider 8 13.1
Software Development 20 32.8
The sector in which the company
Information &
operates
Communication 15 24.6
Technology - ICT
Other fields 9 14.8
Less than 10 employees 10 16.4
The company size in terms of the 10-49 employees 22 36.1
number of employees 50-500 employees 21 34.4
More than 500 employees 8 13.1
West Bank 10 16.4
West Bank and Gaza Strip 21 34.4
The areas in which the company Palestine, including the
7 11.5
provides its services territories occupied in 1948
Palestine and foreign
23 37.7
countries
Does the company include a Yes 52 85.2
department for information
No 9 14.8
technology management

Table B.5
Results of Respondents Opinions about Use of Technology based on Control Variables
Item Test Type Significant Value
Sector of organization. Kruskal Wallis Test 0.859
Organization Size from
Kruskal Wallis Test 0.025
employee point view.
Areas where organization
Kruskal Wallis Test 0.171
offer its services.
Availability of IT department
Mann-Whitney Test 0.002
in the organization.

77
Table B.6
Results of Respondents Opinions about Value Creation and New Product based on Control
Variables

Item Test Type Significant Value

Sector of organization. Kruskal Wallis Test 0.57
Organization Size from
Kruskal Wallis Test 0.053
employee point view.
Areas where organization
Kruskal Wallis Test 0.05
offer its services.
Availability of IT department
Mann-Whitney Test 0.034
in the organization.

Table B.7
Results of Respondents Opinions about Organization Structure and Procedure Change based on
Control Variables

Item Test Type Significant Value

Sector of organization. Kruskal Wallis Test 0.382
Organization Size from
Kruskal Wallis Test 0.121
employee point view.
Areas where organization
Kruskal Wallis Test 0.203
offer its services.
Availability of IT department
Mann-Whitney Test 0.117
in the organization.

Table B.8
Results of Respondents Opinions about Financial Aspects based on Control Variables

Item Test Type Significant Value

Sector of organization. Kruskal Wallis Test 0.547
Organization Size from
Kruskal Wallis Test 0.053
employee point view.
Areas where organization
Kruskal Wallis Test 0.321
offer its services.
Availability of IT department
Mann-Whitney Test 0.315
in the organization.

78
Table B.9
Results of Respondents Opinions about Organization Readiness for DT based on Control
Variables

Item Test Type Significant Value

Sector of organization. Kruskal Wallis Test 0.439
Organization Size from
Kruskal Wallis Test 0.022
employee point view.
Areas where organization
Kruskal Wallis Test 0.096
offer its services.
Availability of IT department
Mann-Whitney Test 0.021
in the organization.

Table B.10
Results of Spearman's Correlation Coefficient between the DT dimensions and DT Readiness
Value Organization Palestinian
Use of Creation structural and Financial Telecom and ICT
Item
Technology and new procedure Aspect organization
Product change Readiness for DT
Use of
1.000 0.654 0.657 0.616 0.833
Technology
Value Creation
and new 0.654 1.000 0.713 0.607 0.839
Product
Organization
structural and
0.657 0.713 1.000 0.811 0.936
procedure
change
Financial
0.616 0.607 0.811 1.000 0.849
Aspect
Palestinian
Telecom and
ICT
0.833 0.839 0.936 0.849 1.000
organization
Readiness for
DT

79
 Appendix C

Statistical Analysis Results

Sample Profile Results:

The sector in which the company operates:

Valid
Frequenc Percen Cumulativ
Percen
y t e Percent
t
Telecom Sector 9 14.8 14.8 14.8
Internet Service Provider 8 13.1 13.1 27.9
Software Development 20 32.8 32.8 60.7
Vali
d Information & Communication Technology -
15 24.6 24.6 85.2
ICT
Other fields 9 14.8 14.8 100.0
Total 61 100.0 100.0

The company size in terms of the number of employees:

Valid
Frequency Percent Cumulative Percent
Percent
Less than 10 employees 10 16.4 16.4 16.4
10-49 employees 22 36.1 36.1 52.5
Valid 50-500 employees 21 34.4 34.4 86.9
More than 500 employees 8 13.1 13.1 100.0
Total 61 100.0 100.0

The areas in which the company provides its services

Valid Cumulati
Frequenc Perce
Perce ve
y nt
nt Percent
West Bank 10 16.4 16.4 16.4
West Bank and Gaza Strip 21 34.4 34.4 50.8
Vali Palestine, including the territories occupied in
7 11.5 11.5 62.3
d 1948
Palestine and foreign countries 23 37.7 37.7 100.0
Total 61 100.0 100.0

Does the company include a department for information technology management:

Valid Cumulative
Frequency Percent
Percent Percent
Yes 52 85.2 85.2 85.2
Valid No 9 14.8 14.8 100.0
Total 61 100.0 100.0

80
 Descriptive Analysis Results:

Respondents feedback on use of technology dimension:

Item Std.
Strongly Strongly
Disagree Neutral Agree Mean N Deviati
disagree agree
on
The company has an information technology department capable of
collecting, examining, analyzing and evaluating data on subscribers and
9.8% 11.5% 14.8% 26.2% 37.7% 3.70 61 1.35
products in real time, which helps to take appropriate decisions in the
process of digital transformation.
The Information Technology Department works to achieve the strategic
goals of the company and accelerate the process of digital 4.9% 4.9% 19.7% 32.8% 37.7% 3.93 61 1.11
transformation
The company routinely and continuously uses the latest digital
technologies such as (Cloud solutions, mobile end devices, IoT, Data 1.6% 11.5% 21.3% 34.4% 31.1% 3.82 61 1.06
Mining, AI, etc)
The company invests in bringing in the latest technologies so that it is
the leader in its field, which enables it to take over the market and is not 4.9% 6.6% 13.1% 39.3% 36.1% 3.95 61 1.10
affiliated with others.
The company adopts and follows the approved standards and
regulations in information security to protect the data of the company 0.0% 3.3% 16.4% 39.3% 41.0% 4.18 61 0.83
and its subscribers
The company relies heavily on the use of technology and
communications to develop cooperation between different departments
0.0% 3.3% 13.1% 41.0% 42.6% 4.23 61 0.80
and transfer knowledge in the company, which facilitates the process of
digital transformation.
The company owns the technologies and devices (Hardware, and
1.6% 4.9% 14.8% 54.1% 24.6% 3.95 61 0.86
Software) that reduce the cost of automation and digital transformation.
Using technology for digital transformation 0.0% 6.6% 11.5% 44.3% 37.7% 3.97 61 0.75

81
Respondents feedback on value creation and new products:
Item Std.
Strongly Strongly
Disagree Neutral Agree Mean N Deviati
disagree agree
on

The company has digital communication with its customers and

0.0% 3.3% 16.4% 34.4% 45.9% 4.23 61 0.84
subscribers

The company continuously and regularly monitors the external market

and technical development to identify new patterns of business 3.3% 4.9% 16.4% 41.0% 34.4% 3.98 61 1.01
development and exploitation of opportunities

The company consults external partners (suppliers, business partners,

3.3% 9.8% 14.8% 37.7% 34.4% 3.90 61 1.09
customers) in the development of digital products and services

The company scientifically and continuously analyzes the digitally

4.9% 6.6% 16.4% 44.3% 27.9% 3.84 61 1.07
collected data in order to develop new products and services

The company fully supports its products and services with digital and
3.3% 8.2% 16.4% 34.4% 37.7% 3.95 61 1.09
smart offers to facilitate its customers

The company analyzes the needs of its customers and works to develop
1.6% 8.2% 9.8% 36.1% 44.3% 4.13 61 1.01
services and products for each customer in line with their requirements

Measuring the organization's ability and readiness to create

0.0% 8.2% 9.8% 37.7% 44.3% 4.01 61 0.79
marketing value and products from digital transformation.

82
Respondents feedback on structural and procedure organization change:
Std.
Strongly Disagre Strongly
Neutral Agree Mean N Deviati
disagree e agree
on
Senior management greatly supports and leads the company's digital
0.0% 3.3% 19.7% 39.3% 37.7% 4.11 61 0.84
transformation process
The company's employees have a positive attitude towards the digital
0.0% 3.3% 18.0% 45.9% 32.8% 4.08 61 0.80
transformation process and the resulting changes
Employees are informed of the company‟s digital transformation
1.6% 1.6% 14.8% 55.7% 26.2% 4.03 61 0.80
activities in order to serve the direction and achieve the goal
The company plans to add a separate unit management, especially for
13.1% 26.2% 14.8% 26.2% 19.7% 3.13 61 1.36
the new digital transformation operations
The company makes great use of new methods of work that contribute
to the flexibility of doing business for the organization by relying on 0.0% 3.3% 26.2% 39.3% 31.1% 3.98 61 0.85
modern digital technologies
The company periodically reviews work procedures and works to
0.0% 4.9% 23.0% 34.4% 37.7% 4.05 61 0.90
develop them using digital technologies to increase their flexibility
The company uses digital forms continuously to plan, design and
monitor the procedures for the company‟s work, which contributes to 0.0% 13.1% 26.2% 32.8% 27.9% 3.75 61 1.01
the distribution of roles and responsibilities in the organization
The professional competencies of employees are matched, which
contributes to overcoming the challenges of digital transformation in 0.0% 9.8% 26.2% 39.3% 24.6% 3.79 61 0.93
the company
The company bases its employee performance assessment on their
digital competencies to be able to quickly deal with the changing needs 3.3% 8.2% 29.5% 39.3% 19.7% 3.64 61 1.00
of digital transformation
The company provides the necessary training and education programs
for employees to increase their skills in dealing with the latest 3.3% 13.1% 21.3% 32.8% 29.5% 3.72 61 1.13
developments in digital technologies
The institution's readiness to structure and change procedures in
0.0% 1.6% 23.0% 47.5% 27.9% 3.83 61 0.68
line with the institution's digital transformation process.

83
Respondents feedback on financial aspects:
Strongly Strongly
Disagree Neutral Agree Mean N Std. Deviation
disagree agree

The company considers modern digital technologies 37.7

0.0% 1.6% 18.0% 42.6% 4.21 61 0.80
an opportunity to enhance its financial position %

The financial position of the company allows the 34.4

3.3% 1.6% 24.6% 36.1% 3.98 61 0.99
implementation of the digital transformation process %

The company invests part of its money in modern

36.1
digital solutions that develop the existing technical 3.3% 1.6% 26.2% 32.8% 3.93 61 0.98
%
infrastructure of the company

The company's senior management financially 39.3

3.3% 3.3% 19.7% 34.4% 3.98 61 0.99
supports the digital transformation of the company %

The company's financial readiness and ability in 36.1

1.6% 3.3% 11.5% 47.5% 4.03 61 0.78
the digital transformation process. %

84
Spearman's rho Correlation Results:

Correlations
The institution's
Measuring the
readiness to structure The company's
organization's ability
and change financial readiness
Using technology for and readiness to create
procedures in line and ability in the All Components
digital transformation marketing value and
with the institution's digital transformation
products from digital
digital transformation process.
transformation.
process.
Correlation
1.000 .654** .657** .616** .833**
Using technology for Coefficient
digital transformation Sig. (2-tailed) .000 .000 .000 .000
N 61 61 61 61 61
Measuring the Correlation
.654** 1.000 .713** .607** .839**
organization's ability and Coefficient
readiness to create Sig. (2-tailed) .000 .000 .000 .000
marketing value and
products from digital N 61 61 61 61 61
transformation.
The institution's Correlation
.657** .713** 1.000 .811** .936**
readiness to structure and Coefficient
Spearman's rho
change procedures in Sig. (2-tailed) .000 .000 .000 .000
line with the institution's
digital transformation N 61 61 61 61 61
process.
The company's financial Correlation
.616** .607** .811** 1.000 .849**
readiness and ability in Coefficient
the digital transformation Sig. (2-tailed) .000 .000 .000 .000
process. N 61 61 61 61 61
Correlation
.833** .839** .936** .849** 1.000
Coefficient
All Components
Sig. (2-tailed) .000 .000 .000 .000
N 61 61 61 61 61

85
Control Variables Test Results:

Ranks
Mean
The sector in which the company operates: N
Rank
Telecom Sector 9 32.83
Internet Service Provider 8 25.81
Software Development 20 33.13
Using technology for digital transformation
Information & Communication Technology - ICT 15 31.53
Other fields 9 28.17
Total 61
Telecom Sector 9 35.39
Internet Service Provider 8 23.19
Measuring the organization's ability and readiness to create Software Development 20 33.50
marketing value and products from digital transformation. Information & Communication Technology - ICT 15 31.43
Other fields 9 27.28
Total 61
Telecom Sector 9 35.39
Internet Service Provider 8 23.63
The institution's readiness to structure and change procedures in line Software Development 20 32.35
with the institution's digital transformation process. Information & Communication Technology - ICT 15 34.77
Other fields 9 23.89
Total 61
Telecom Sector 9 33.50
Internet Service Provider 8 23.25
The company's financial readiness and ability in the digital
Software Development 20 31.70
transformation process.
Information & Communication Technology - ICT 15 35.13
Other fields 9 26.94

86
 Total 61
Telecom Sector 9 35.28
Internet Service Provider 8 22.69
Software Development 20 33.38
All_Com
Information & Communication Technology - ICT 15 33.10
Other fields 9 25.33
Total 61

Test Statisticsa,b
The institution's
Measuring the
readiness to The company's
organization's ability
structure and financial readiness
and readiness to
Using technology for digital change procedures and ability in the
create marketing All_Com
transformation in line with the digital
value and products
institution's digital transformation
from digital
transformation process.
transformation.
process.
Chi-Square 1.316 2.928 4.181 3.065 3.766
df 4 4 4 4 4
Asymp. Sig. .859 .570 .382 .547 .439
a. Kruskal Wallis Test
b. Grouping Variable: The company size in terms of the number of employees:

87
 Ranks
Mean
The company size in terms of the number of employees: N
Rank
Less than 10 employees 10 17.55
10-49 employees 22 30.07
Using technology for digital transformation 50-500 employees 21 34.48
More than 500 employees 8 41.25
Total 61
Less than 10 employees 10 17.90
10-49 employees 22 33.57
Measuring the organization's ability and readiness to create
50-500 employees 21 31.45
marketing value and products from digital transformation.
More than 500 employees 8 39.13
Total 61
Less than 10 employees 10 18.85
10-49 employees 22 33.30
The institution's readiness to structure and change procedures in line
50-500 employees 21 32.55
with the institution's digital transformation process.
More than 500 employees 8 35.81
Total 61
Less than 10 employees 10 19.75
10-49 employees 22 29.80
The company's financial readiness and ability in the digital
50-500 employees 21 33.45
transformation process.
More than 500 employees 8 41.94
Total 61
Less than 10 employees 10 16.20
10-49 employees 22 31.68
All_Com 50-500 employees 21 33.88
More than 500 employees 8 40.06
Total 61

88
 Test Statisticsa,b
The
Measuring the
institution's
organization's The
readiness to
ability and company's
structure and
readiness to financial
change
create readiness and
Using technology for digital transformation procedures in All_Com
marketing ability in the
line with the
value and digital
institution's
products from transformation
digital
digital process.
transformation
transformation.
process.
Chi-Square 9.325 7.667 5.821 7.674 9.631
df 3 3 3 3 3
Asymp. Sig. .025 .053 .121 .053 .022
a. Kruskal Wallis Test
b. Grouping Variable: The company size in terms of the number of employees:

89
 Ranks
Mean
The areas in which the company provides its services N
Rank
West Bank 10 21.35
West Bank and Gaza Strip 21 29.86
Using technology for digital transformation Palestine, including the territories occupied in 1948 7 31.29
Palestine and foreign countries 23 36.15
Total 61
West Bank 10 21.25
West Bank and Gaza Strip 21 28.67
Measuring the organization's ability and readiness to create Palestine, including the territories occupied in 1948 7 27.43
marketing value and products from digital transformation.
Palestine and foreign countries 23 38.46
Total 61
West Bank 10 22.75
West Bank and Gaza Strip 21 30.81
The institution's readiness to structure and change procedures in line
Palestine, including the territories occupied in 1948 7 26.36
with the institution's digital transformation process.
Palestine and foreign countries 23 36.17
Total 61
West Bank 10 23.25
West Bank and Gaza Strip 21 30.07
The company's financial readiness and ability in the digital
Palestine, including the territories occupied in 1948 7 30.14
transformation process.
Palestine and foreign countries 23 35.48
Total 61
West Bank 10 21.05
West Bank and Gaza Strip 21 29.88
All_Com Palestine, including the territories occupied in 1948 7 27.86
Palestine and foreign countries 23 37.30
Total 61

90
 Test Statisticsa,b
The
Measuring the
institution's
organization's The
readiness to
ability and company's
structure and
readiness to financial
change
create readiness and
Using technology for digital transformation procedures in All_Com
marketing ability in the
line with the
value and digital
institution's
products from transformation
digital
digital process.
transformation
transformation.
process.
Chi-Square 5.009 7.793 4.612 3.498 6.352
df 3 3 3 3 3
Asymp. Sig. .171 .050 .203 .321 .096
a. Kruskal Wallis Test
b. Grouping Variable: The areas in which the company provides its services

91
 Ranks
Mean Sum of
Does the company include a department for information technology management: N
Rank Ranks
Yes 52 33.94 1765.00
Using technology for digital transformation No 9 14.00 126.00
Total 61
Yes 52 32.99 1715.50
Measuring the organization's ability and readiness to create
No 9 19.50 175.50
marketing value and products from digital transformation.
Total 61
Yes 52 32.48 1689.00
The institution's readiness to structure and change procedures
No 9 22.44 202.00
in line with the institution's digital transformation process.
Total 61
Yes 52 31.94 1661.00
The company's financial readiness and ability in the digital
No 9 25.56 230.00
transformation process.
Total 61
Yes 52 33.18 1725.50
All_Com No 9 18.39 165.50
Total 61

92
 Test Statisticsa
The institution's
Measuring the
readiness to The company's
organization's ability
structure and financial readiness
and readiness to
Using technology for digital change procedures and ability in the
create marketing All_Com
transformation in line with the digital
value and products
institution's digital transformation
from digital
transformation process.
transformation.
process.
Mann-Whitney U 81.000 130.500 157.000 185.000 120.500
Wilcoxon W 126.000 175.500 202.000 230.000 165.500
Z -3.120 -2.115 -1.569 -1.004 -2.310
Asymp. Sig. (2-tailed) .002 .034 .117 .315 .021
a. Grouping Variable: Does the company include a department for information technology management:

93
 ‫جــــامعــــــــة النجاح الهطنية‬
‫كميـــــة الجراســــــــات العميــــــا‬

‫بحث واستكذاف مجى جاهدية مؤسدات التكنهلهجيا في‬

‫فمدطين لعممية التحهل الخقمي‬

‫إعجاد‬
‫أيمن مخوح نمخ أبه منرهر ( حمارشة)‬

‫إشخاف‬
‫د‪ .‬رابح مخار‬

‫قجمت هحه اإلطخوحة استكماال لمتطمبات الحرهل عمى درجة الماجدتيخ في اإلدارة الهنجسية‪ ،‬من كمية الجراسات‬

‫العميا‪ ،‬في جامعة النجاح الهطنية‪ ،‬نابمذ ‪ -‬فمدطين‪.‬‬

‫‪2022‬‬
 ‫بحث واستكذاف مجى جاهدية مؤسدات التكنهلهجيا في فمدطين لعممية التحهل الخقمي‬

‫إعجاد‬
‫أيمن مخوح نمخ أبه منرهر ( حمارشة)‬
‫إشخاف‬
‫د‪ .‬رابح مخار‬

‫الممخص‬

‫الخمفية النظخية‪ :‬يتبيؼ مؼ عسمية التحؽل الخقسي في التغييخات التي تحجث في السجتسع ومجى تأثيخىا عمى‬

‫شتى مجاالت الحياة‪ .‬ولحلغ أصبح مؽضؽع التحؽل الخقسي ودراستو مؼ اىػ السؽاضيع في العقج األخيخ‬

‫لجى كال مؼ االكاديسييؼ والذخكات االستذارية وىحا يعؽد الى حجػ الشسؽ الزخػ في التقشيات الخقسية‪ .‬وقج‬

‫أدى ىحا التطؽر القيادات واصحاب السشاصب االدارية الى ادراك مجى اىسية التحؽل الخقسي وحاجتيػ اليو‬

‫في مؤسداتيػ مؼ أجل الحفاظ عمييا واستغالل الفخص الججيجة‪ ،‬واكتداب ميدة تشافدية عؼ مشافدييػ‪،‬‬

‫زيادة ارباح مؤسداتيػ‪ ،‬واخي اخ لتحقيق الخجمة االمثل وااليدخ لدبائشيػ‪.‬‬

‫في السقابل فان عسمية تطبيق التحؽل الخقسي في السؤسدات قج يؽاجو بالعجيج مؼ السذاكل والتحجيات والتي‬

‫قج تؤدي الى خطخ الفذل في تطبيق التحؽل الخقسي‪ .‬ومؼ اجل التقميل مؼ ىحه السخاطخ فال بج بالسخحمة‬

‫االولي مؼ تقييػ وقياس مجى جاىدية السؤسدات لعسمية التحؽل الخقسي السشذؽدة‪.‬‬

‫الهجف‪ :‬في فمدطيؼ فإن قطاع تكشؽلؽجيا السعمؽمات واالتراالت قج شيج نسؽا واضحا‪ ،‬كسا ان ندبة‬

‫اختخاق التقشية والتكشؽلؽجيا في السجتسع الفمدطيشي مؼ حيث استخجام اليؽاتف الحكية واالشتخاك بخجمة‬

‫االنتخنت تعتبخ مؼ الشدب العالية‪ ،‬إضافة الى اىتسام الحكؽمة مسثل بؽازرة االتراالت وتكشؽلؽجيا‬

‫السعمؽمات ووضع التحؽل الخقسي عمى رأس اولؽياتيا مؼ أجل التطؽيخ والتعديد الذامل لمخجمات الحكؽمية‬

‫االلكتخونية السقجمة لمسؽاطشيؼ مسا يديل عمييػ الكثيخ في ظل وضع االحتالل‪ .‬ولكؼ ىحه العؽامل السبذخة‬

‫تؽاجو بفجؽة كبيخة عمى مدتؽى الجراسات العمسية واألكاديسية والتي تتشاول مؽضؽع التحؽل الخقسي في‬
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‫فمدطيؼ ومؼ ىشا أتى أىسية ىحه الجراسة والتي تيجف إالى التقميل مؼ ىحه الفجؽة‪ ،‬باإلضافة الى تقييػ‬

‫وقياس مجى جاىدية السؤسدات الفمدطيشية العاممة في قطاع تكشؽلؽجيا السعمؽمات واالتراالت لعسمية‬

‫التحؽل الخقسي باعتبار ىحا القطاع حجخ االساس في عسمية التحؽل الخقسي وانو اذا كان جاى اد فان اي‬

‫قطاع آخخ في فمدطيؼ يدتطيع االعتساد عميو و المحاق بو‪.‬‬

‫الطخيقة‪ :‬ومؼ اجل تحقيق ىجف الجراسة فقج تػ اعتساد اطار نعخي مشذؽر في السجالت العمسية و معتسج‬

‫في عسمية قياس مجى جاىدية السؤسدات لمتحؽل الخقسي وىؽ (إطار التحؽل الخقسي)‪ ،‬والحي يعتسج بذكل‬

‫رئيذ عمى قياس اربع عؽامل رئيدة ومؤثخة في عسل الذخكات والتي تتمخص بسا يمي‪ :‬عامل استخجام‬

‫التقشية في السؤسدات‪ ،‬وعامل خمق قيػ تدؽيقية ومشتجات ججيجة باالعتساد عمى التقشية‪ ،‬وعامل هيكمة‬

‫السؤسدة ادارية واجخائية‪ ،‬واخي اخ العامل السالي يتسثل بؽضع الذخكة السالي‪ .‬وقج تػ اعتساد مشيجية كسية‬

‫مؼ خالل تحزيخ استبانة تحتؽي عمى ‪ 22‬بشج لجارسة وجسع بيانات عؼ العؽامل االربعة السختمفة‪ ،‬وقج تػ‬

‫اعتساد عيشة االستبانة لتكؽن مؼ القيادات العميا او اصحاب القخار في السؤسدات السدتيجفة مؼ االستبيان‬

‫وىػ شخاكات االتراالت‪ ،‬شخكات تكشؽلؽجيا السعمؽمات‪ ،‬مدودي خجمة االنتخنت‪ ،‬ومطؽري البخامج‪ .‬و مؼ‬

‫أجل التحقق مؼ صحة نتائج االستبيان ولعكذ الؽاقع الفمدطيشي الدياسي واالقترادي وتأثيخه عمى عسمية‬

‫التحؽل الخقسي فقج تػ إجخاء مقابالت مؼ أشخاص ذوي خبخة في مجال التحؽل الخقسي ويعسمؽن في مؽاقع‬

‫حداسة وخبخاء في شخكاتيػ‪.‬‬

‫النتائج‪ :‬وقج اظيخت الشتائج مؼ االختبارات االحرائية عمى البيانات السجسعة ان السؤسدات السدتيجفة‬

‫في الجراسة قادرة و جاىدة لعسمية التحؽل الخقسي بشاءا عمى العؽامل االربعة‪ ،‬فقج اظيخت الشتائج عالقة‬

‫ارتباط كبيخة بيؼ العؽامل فيسا بعزيا وبيؼ العؽامل واليجف الخئيدي وىؽ قياس جاىدية السؤسدات لمتحؽل‬

‫الخقسي‪.‬‬

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‫الخالصة‪ :‬وىحا يؤدي الى نتيجة مفادىا ان السؤسدات الفمدطيشية العاممة في قطاع تكشؽلؽجيا السعمؽمات‬

‫واالتراالت جاىدة لعسمية التحؽل الخقسي وتستمغ االدوات لشجاح عسمية التحؽل‪ .‬ان مخخجات ىحه الجراسة‬

‫ونتائجيا تسثل أساس لجراسات عمسية واكاديسية تعشى بالتحؽل الخقسي في فمدطيؼ‪ ،‬وقج تعتبخ مخجعا‬

‫لمسؤسدات الفمدطيشية السختمفة عشج دراستيا مؽضؽع التحؽل الخقسي‪.‬‬

‫الكممات المفتاحية‪ :‬التحؽل الخقسي‪ ،‬تكشؽلؽجيا االتراالت والسعمؽمات‪ ،‬نساذج الجاىدية‪ ،‬إطار التحؽل‬

‫الخقسي‪ ،‬إبجاع وخمق القيسة‪ ،‬الجؽانب السالية‪ ،‬الييكل التشعيسي وإجخاءات السؤسدة‪.‬‬

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