CASE STUDY SOLUTION
e
pl
SYNOPSIS
m
IPL Private Ltd. (IPL) started in 2008 to manage local logistics in Rajasthan. Three C-suite executives
Sa
joined the company in 2015 to work with founder and chief executive officer, Harman Singh Arora. In
2020, Arora called a meeting with his top executives because while the digital logistics market was nascent
and the opportunity was huge, the company’s board was focused on providing only basic reporting and
enterprise resource planning solutions. But the three C-suite executives were unhappy with the company’s
n
vision. They all agreed: “Either you move up, or you move out.” After much brainstorming, in April 2019,
the IPL’s C-suite formed a new-age digital company in logistics and transportation called Gtropy.
tio
Gtropy disrupted the market with global position system based fleet management solutions complemented by
exhaustive data analytics. They started well, with quarterly growth of 40 per cent and a vast network of 350+
lu
partners. They had chalked out a two-pronged approach driving digital transformation focused on effective
leadership, a data-driven approach, technology, and platforms with innovation. Even with decent growth,
So
however, Arora was unsatisfied and sought to explore further (and disrupt). Based on customer satisfaction
surveys, he realized that clients were looking for centralized platforms for making all payments digitally and
seamlessly. He also set his eyes on the big-ticket financial technology (fintech) segment. However, the other C-
suite executives were not in favour of moving so quickly, given the risks and complexity. Their concerns
highlight the dilemma of choosing the best path in this new digital world, namely, what and how to transform?
OBJECTIVES
• Understand the best practice concepts for the digital journey of a logistics service provider focused on
technology, innovation, leadership, and data-driven services.
• Focus on success factors of digital transformation in the logistics and transportation start-up.
• Analyze the importance of step-by-step digital (discovery-driven) planning and transformation versus
an all-out digital disruption.
The Case Solution Starts From page 6
, e
pl
m
Sa
n
tio
lu
So
ASSIGNMENT QUESTIONS
1. What are the best practices for digital transformation in logistics technology companies?
2. Given the C-suite executives limited/no experience in independently managing a technology company,
do you think that their decision to form Gtropy was justified?
3. In this digital world of up or out, and to address the elephant in the room, what do you think are the
barriers and motivations for companies like Gtropy?
4. Explain at least five information systems theories relevant in this case focused on digital transformation.
Critically evaluate resource-based view (RBV) theory for Gtropy to venture into the fintech industry.
5. Should Gtropy focus on step-by-step digital transformation or an all-out digital disruption? Do you
think Gtropy should venture toward fintech?
The Case Solution Starts From page 6
,2. Given the C-suite executives limited/no experience in independently managing a technology
company, do you think that their decision to form Gtropy was justified?
Digital maturity is “the degree to which organizations have adapted themselves to a digital business
e
environment and exhibit strong performance”.1 It has two characteristics:
pl
• Agility to transform digitally – flexibility and focus
• Ability to manage transformation – effective leadership, decision making, and communication
m
Sa
• Stylists: Companies with strong digital agility, however, with weak leadership drives for change management
• Launchers: Immature digital abilities and limited focus from management
• Traditionalist: Traditional organizations with strong leadership, but older methods with no focus on
n
digital agility
• Digitalists: Strong vision linked to digital strategy, leadership focus, and culture on transformation and
tio
nimbleness for agile digital products and processes
lu
So
The Case Solution Starts From page 6
, EXHIBIT -1: PARADIGM SHIFT IN LOGISTICS AND TRANSPORTATION COMPANIES
Traditional logistics Smart logistics characteristics
characteristics
Robust value chains Connected value networks
Traditional processes may need Technology and automation act
technology support as an enabler for change Technology and
management and business Platform
strategy
Logistics business is managed with Logistics business has
vendors and clients with manual automated platforms for
record keeping inventory management and
client delivery
e
Data and
Services
pl
m
Sa
Leadership and
Culture
n
tio
Innovation and
Transformation
lu
So
The Case Solution Starts From page 6
, EXHIBIT -4: MOTIVATORS AND BARRIERS TO DIGITAL TRANSFORMATION AT LOGISTICS
AND TRANSPORTATION SERVICE PROVIDERS
Motivator
• Leadership (C-suite) and organizational
culture
•
Digital Business Value
Proposition for
stakeholders
• New products /
e
services
•
pl
DIGITAL
TRANSFORMATION •
m
Sa
Barriers •
• Lack of leadership will and focus on
digitization
•
n
•
•
tio
lu
So
The Case Solution Starts From page 6