Publication Type

PhD Dissertation

Version

publishedVersion

Publication Date

3-2026

Abstract

Digital transformation has become a critical pathway for the manufacturing sector to break through growth bottlenecks and reshape its core competitiveness. However, in practice, a large number of enterprises are trapped in the transformation paradox of a “discrepancy between perceived consensus and actual outcomes”. The core issue lies in the fact that traditional investment evaluation methods struggle to effectively measure the multi-dimensional value created by digitalization. From the perspective of operational management, this study focuses on the mechanisms and evaluation methods of digital value creation in different manufacturing contexts. A four-dimensional Value Evaluation Framework is proposed, comprise of Value Identification, Value Creation, Value Measure and Value Governance, and an Enhanced Digital Return on Investment (ROI) model is developed. Through empirical study on comparative cases of discrete manufacturing (using the EDS-2 project as an example) and process manufacturing (using the MB project as an example), the following key findings are concluded: 1) The realized digital value exhibits significant “contextual heterogeneity”, value creation in discrete manufacturing relies heavily on Monetized Strategic Gains (MSG) and Synergistic Value (SV), whereas in process manufacturing, it is dominated by tangible Financial Gains (FG); 2) The transparent traceability capabilities of digital production lines generate a “capacity trust premium,” breaking through the traditional physical constraints of “hardware-based order” and enabling the excess order dividends without increasing heavy asset investments; 3) The initial stages of digital transformation are inevitably accompanied by negative cost spillovers, however, after a dynamic payback period of 3-5 years, a robust annualized compound return of 10%-19% can be achieved, validating the strategic value of “long-termism”; and 4) Multi-dimensional data governance serves as a closed-loop mechanism to ensure the sustained release of transformation value, transforming operational “pain points” into future profit growth.

This study bridges the gap left by traditional investment evaluation methods in capturing intangible strategic value at the theoretical level, and it provides enterprises with a systematic methodology that encompasses strategic planning, investment decision-making, and full lifecycle performance tracking at the practical level, helping the manufacturing sector overcome the transformation paradox and achieve high-quality development.

Keywords

Digital Transformation, Value Creation, Enhanced ROI, Contextual Heterogeneity

Degree Awarded

SMU-SJTU Doctor of Business Administration

Discipline

Business Administration, Management, and Operations

Supervisor(s)

LIM, Yun Fong

First Page

1

Last Page

116

Publisher

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Author

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