Critical Success Factors in Agile-Based Digital Transformation Projects
Abstract
1. Introduction
2. Literature Review
2.1. Digital Transformation and Agile
2.2. Critical Success Factor of Agile-Based DT Project
2.3. Rationale for Framework Selection
- Organizational factors include management commitment, organizational environment, and team environment, highlighting the contextual support essential for agile implementation.
- People factors focus on team capability and customer involvement, emphasizing human resource quality and stakeholder collaboration.
- Process factors involve the project management process and project definition process, capturing procedural clarity and adaptability.
- Technical factors consist of agile software techniques and delivery strategy, pointing to the technical foundations of agile execution.
- Project factors relate to project nature, project type, and project schedule, acknowledging the unique features of each project context.
3. Methodology
3.1. Research Design
3.2. Delphi Method
3.3. Sampling Strategy
3.4. Analytic Hierachy Process
4. Findings
4.1. Prioritization of CSF Categories
4.2. Prioritization of Sub-Factors
4.3. Global Prioritization of CSFs
5. Discussion
6. Conclusions
Author Contributions
Funding
Data Availability Statement
Acknowledgments
Conflicts of Interest
Abbreviations
DT | Digital transformation |
CSFs | Critical success factors |
AHP | Analytic hierarchy process |
STS | Socio-technical systems |
APM | Agile project management |
TPM | Traditional project management |
CI | Consistency index |
CR | Consistency ratio |
LW | Local weights |
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Reference | Sector | Original Texts | CSF Dimension |
---|---|---|---|
[62] | Review paper | Empowering leadership | Management commitment |
Aligning digital strategy with overall strategy and culture; Continuous learning and improvement processes; Organizational agility to reconfigure structures, processes, and outputs; Culture of mindfulness toward digital transformation | Organizational environment | ||
Agile IT management; Integration of agile and business analysis | Project manager capability | ||
Use of digital platforms; Creating innovation-focused IT subunits; Developing information processing capabilities | Technological adaptability | ||
Service-Oriented Architecture (SOA); Balancing weak and strong signals using digital tools | Digital solution delivery strategy | ||
[20] | Not specified | Top Management Support | Management commitment |
Stakeholder Input | Customer involvement | ||
Modeler Expertise | Team capability | ||
Project Management Capabilities | Project manager capability | ||
Modelling Tool Usage | Technological adaptability | ||
Process Complexity | Project nature | ||
[25] | Service sector | Remote signing of any type of document; Cloud enables you to manage business operations efficiently; Cloud usage offers new opportunities; Using the cloud allows you to perform specific tasks more quickly; Use of the cloud allows managers to increase business productivity | Technological adaptability |
Skills needed to implement digital transformation; Knowing how the benefits of digital transformation can be used to support operations | Team capability | ||
ERP Cloud; CRM Cloud; Professional management applications in the cloud | Digital solution delivery strategy | ||
Efficiency improvement; Decentralize decisions; Reduce costs; Adaptation to New Technologies; Improve Customer Service; Increase customer loyalty; Increased productivity; Market share increase; Information management | Organizational environment | ||
Management commits to implementing digital transformation; Management leads and is involved in the process; Management is willing to assume risks involved in the adoption of digital transformation | Management commitment | ||
[22] | Conceptual paper | Structure; People; Technology; Processes | Organizational environment; Team environment; Technological adaptability; Project management process |
SMACIT-enabled transformation; Innovation for broader customer focus; Apps to be intuitive and reliable | Technological adaptability; Customer involvement | ||
Agile transformational practices; New operating models | Project definition process; Project nature | ||
Customer feedback loops; Embedded user control; Connected devices | Customer involvement | ||
[63] | Manufacturing | From planning to discovery; Cultural openness; Agile mindset; Innovative mindset; Recruitment of digitally compatible employees | Organizational environment; Team environment |
From scarcity to abundance; Data-rich environment; Data-centered understanding; Recruitment of data-literate employees; Data-centered services | Team capability; Technological adaptability; Digital solution delivery strategy | ||
From hierarchy to partnership; Multi-actor coupling; Reciprocal value propositions; Customer data exchange; Trust-based collaboration | Organizational environment; Customer involvement | ||
[23] | Not specified | Strategic fit; Strategic alignment; Extension of market; Business goals; Improved decision-making | Management commitment; Organizational environment |
Improved morale and attitude; Internal communication network; Employee turnover; Inclusion and diversity | Team environment | ||
Digital skills; Reskilling; Upskilling; Managing workforce changes; Learning space | Team capability | ||
Customer experience; Customer satisfaction; Improved customer feedback; Omnichannel alignment; Ease of doing business; Reduced waiting times | Customer involvement | ||
Production efficiency; Production rates; Turnaround time; Scalability; Capacity | Project management process | ||
Improved digital integration; Digital migration; Platform adoption | Project definition process | ||
Cloud storage; Data lakes; System integration; AI; Chatbots; Predictive maintenance; Mobile applications; Videoconferencing | Technological adaptability | ||
Digital platform strategy; Use of data in business strategy; Personalized value propositions; Development of digital capabilities | Digital solution delivery strategy | ||
Project cost; ROI; Payback period; Completion time; Financial risk; Legal exposure | Project schedule; Project cost | ||
Project risks; Internal operating issues; Management support | Project nature; Project type | ||
[64] | Not specified | Customer Involvement; Customer Decision Making | Customer involvement |
Unit Autonomy and Empowerment; Unit Collaboration; Effective Communication | Organizational environment | ||
Personal Growth; Psychological Safety | Team capability | ||
Value Delivery Planning; Change Orientation | Management commitment | ||
Value Delivery Actualization; Data Driven Dev and Ops; Testing; Design and Coding Practices | Digital solution delivery strategy | ||
Continuous Improvement | Technological adaptability | ||
Iterative and Incremental Value Delivery; Flexibility in Value Delivery | Project management process | ||
[65] | Not specified | Proactive action; securing/developing business model | Management commitment; Digital solution delivery strategy |
Relief of activities; support with complex tasks | Team capability; Project management process | ||
Management has to create the preconditions; teams with agile methods | Management commitment; Team environment; Project management process | ||
Diversification of the workforce; promotion of knowledge exchange; stabilization of change | Organizational environment; Team environment; Team capability | ||
Promoting the targeted exchange of data inside and outside the company | Technological adaptability; Digital solution delivery strategy | ||
Adaptation of work to different levels of performance and demands of employees; transparent communication of objectives | Team environment; Team capability; Project manager capability | ||
Networking beyond industry boundaries on specific topics; set new challenges | Organizational environment; Project nature | ||
Creation of innovation areas; involvement of strategic partners | Management commitment; Organizational environment; Digital solution delivery strategy | ||
[21] | Manufacturing | Business model innovation; Smart products; Data-based service offerings | Digital solution delivery strategy; Project nature |
Digitalization of products and services; Sales channels expansion; Product customization | Digital solution delivery strategy | ||
Digitalization and value chain integration; Information access and real-time sharing with stakeholders | Technological adaptability; Organizational environment; Project management process | ||
Data and analytics as core capabilities; Self-learning; Business intelligence | Project management process; Technological adaptability | ||
Agile IT architecture; Infrastructure integration; Safe data sharing | Technological adaptability; Digital solution delivery strategy | ||
Compliance; Security; Legal and tax | Project definition process | ||
Digital culture; Employee engagement; Collaboration | Organizational environment; Team environment | ||
[66] | Not specified | Create cross-functional teams that extend beyond the IT function, including product design, operations, and consumer behavior roles; Leverage team workshops before a project starts, to build empathy and a common understanding; Balance self-empowerment with accountability with feedback at critical junctures; Establish psychological safe zones for members to take risks and experiment | Team environment |
Include team members who are T-shaped, having both deep, functional expertise and the ability to engage with stakeholders across the business; Use “ninja” teams to bring in specific expertise at different points in a project; Use gamification to model creative behaviors | Team capability | ||
Practice servant leadership to remove barriers | Management commitment | ||
Use stretch goals to go beyond incremental innovation; Ensure continuous alignment between project objectives and business strategy | Project definition process | ||
Pitch for funding over time | Project cost | ||
Gain customer feedback from the outset using design thinking | Customer involvement | ||
Establish digital hubs as centers of excellence for agile and design thinking processes | Digital solution delivery strategy | ||
Train and mentor digital team members through leadership and onboarding programs; Train members on not only agile/design thinking methods, but also leadership behaviors | Project manager capability | ||
[67] | Not specified | ENA06: Support from top management; communication via events with leadership | Management commitment |
ENA02: Appropriate organizational structure for agile adoption; organizational restructurings such as changing HR functions; ENA08: Agile climate assessment; ENA09: Dissemination of agile principles and values | Organizational environment | ||
ENA10: Appreciation of people; ENA11: Adequacy of the physical or virtual work environment | Team environment | ||
ENA04: Training/knowledge transfer; investment in training | Team capability | ||
ENA01: Definition of agile processes; ENA07: Mechanism for improvement and adaptation of the adopted agile processes | Project management process | ||
ENA05: Conducting assessments to understand current maturity and readiness | Project definition process | ||
ENA03: Pilot project creation to experiment with agility | Project nature | ||
[68] | Literature review | F01 Top management support | Management commitment |
F02 Team empowerment F05 Decentralized decision-making F06 Team accountability F10 Adoption of participatory management F11 Good communication F12 Building strong teams | Team environment | ||
F04 Customer focus | Customer involvement | ||
F07 Team personal characteristics F08 Experimentation with new solutions | Team capability | ||
F09 Servant leader mindset | Project manager capability | ||
F03 Adapting the process to agile | Project management process | ||
[69] | Manufacturing (SMEs) | Technological Affordance and Complexity: “Technology affordability refers to the potential behavior possibilities provided by digital technology relative to specific entities… gives rise to different paths of digital innovation realization… facilitates digital devices (reprogrammability)… combination of digital technologies… complexity is widely regarded as the reserve condition for companies to introduce new technologies and implement new strategies.” | Technological adaptability; Digital solution delivery strategy |
Organizational Agility and Unlearning: “Organizational agility… allows enterprises to redesign existing processes and quickly create new ones… proactively identify emerging business opportunities… agile organizations require a flexible front-end and a stable back-end… Unlearning… abandonment of past cognition, dominant logic… continuous updating of situational cognition and knowledge exploration… information sharing mechanisms and workflows.” | Organizational environment; Team capability; Project management process | ||
Environmental Dynamics and Munificence: “Business environment driven by digital technology… variability, complexity, uncertainty… rapid changes in consumer demand, industry competition, policy… high-munificent environment facilitates firms to access resources… firms devoid the necessary resource support when launching innovation strategies… demand for external resources increases… industry competition becomes more serious.” | Project nature; Project type; Project cost | ||
[53] | Manufacturing | Top Management Support | Management commitment |
Organizational Agility; Innovation Attitude | Organizational environment | ||
Team Support; Team Portfolio | Team environment | ||
Employee Domain Knowledge; Employee Technology Knowledge | Team capability | ||
Customer Integration; Customer Knowledge | Customer involvement | ||
Management Domain Knowledge; Management Technology Knowledge; Management Agility | Project manager capability | ||
Project Monitoring; Project Preparation | Project management process | ||
Process Knowledge; Process Design; Process Goal Clarity | Project definition process | ||
Technology Complexity; Technology Maturity; Technology Comprehensibility | Technological adaptability | ||
Infrastructural Readiness; Digital Ambition; Strategy Integration | Digital solution delivery strategy | ||
Project Type; Project Goal Clarity | Project nature | ||
Project Monitoring | Project schedule | ||
[26] | Service sector |
| Management commitment |
| Organizational environment | ||
| Team environment | ||
| Team capability | ||
| Project manager capability | ||
[17] | Manufacturing | “The combination of new technologies... has increased the demand for evolving skills from human capital and constant communication with the marketplace, relational capital.” “Various attributes of structural capital enabled the analytics team (human capital) to more effectively meet the needs of the project management team (relational capital)...” “Teams that have worked together and who are well versed in technological skills are essential to project success.” “The development team... included business SMEs, data engineers, data scientists who had worked in multiple projects…” “...skills and experience base of the development team was found to be an essential element to achieving successful outcomes...” | Team capability; Customer involvement |
“Digital surveys, systemized ticketed feedback, instructional video content, data, data repositories and software systems enabled the analytics team to understand the decision support needs of project teams and stakeholders…” “...to develop and roll out an interactive dashboard that provided critical information for users (customers) to track activities and manage resource utilization.” | Digital solution delivery strategy | ||
“The structural framework of the agile approach including scrums, sprints and MVP enables developers to better manage dynamic project environments.” “...agile methodology promoted the relational capital through the utilization of scrums, MVP and sprints...” | Project management process | ||
“All the elements of IC should be balanced within agile teams to make them efficient.” | Team environment | ||
[70] | Public sector | “Technology is the foundation of digital transformation”; “Choosing the right technology is critical to achieving digital transformation”; “Access to technical resources like hardware, software, and networks is crucial” | Technological adaptability |
“Employee engagement and empowerment to embrace change are essential to success”; “Employees engaged and empowered… can effect significant change”; “Technology alone is insufficient; a successful digital transformation requires combining technology and people” | Organizational environment; Team capability | ||
“Collaborating with suppliers is vital to success”; “Partnerships with vendors such as TETCO and TCO... are essential” | Organizational environment | ||
“A well-planned budget can assist organizations in achieving their objectives”; “Budgeting… is about managing risks and optimizing returns” | Project cost | ||
“Support from upper management… to ensure change is successful”; “Top management support… ensures the success of the Ministry’s digital transformation” | Management commitment | ||
“Existence of a culture of change… is among the main factors”; “Investing in cultural transformation is more important…” | Organizational environment | ||
“Digital transformation strategy aligned with Vision 2030”; “Strategic tasks and objectives taken seriously and responsibly” | Project definition process |
Category | Code | Critical Success Factor | Conceptual Summaries |
---|---|---|---|
1. Organizational | C1 | Management commitment | Active and sustained leadership engagement that champions agile principles and digital transformation goals, ensuring strategic alignment and continuous support. |
C2 | Organizational environment | The structural, cultural, and governance settings that shape agile DT, influencing adaptability, cross-functional collaboration, and an innovative climate. | |
C3 | Team environment | A collaborative and empowered work setting where trust, psychological safety, and transparency foster agile iteration and responsiveness to change. | |
2. People | C4 | Team capability | The skills, diversity, and agile maturity of team members, including their ability to learn, innovate, and collaborate across disciplines in fast-paced DT contexts. |
C5 | Customer involvement | The active participation of end users or clients in shaping requirements, giving feedback, and co-developing agile solutions that meet evolving needs. | |
C6 | Project manager capability | The agile leadership and facilitation skills of project managers, enabling adaptive planning, conflict resolution, and stakeholder communication in DT initiatives. | |
3. Process | C7 | Project management process | Agile planning, sprint monitoring, and feedback-driven control mechanisms that guide DT project execution and align progress with transformation goals. |
C8 | Project definition process | Agile-driven early-stage clarification of scope, user stories, and goals, establishing a flexible yet structured basis for continuous delivery and iteration. | |
4. Technical | C9 | Technological adaptability | The capacity of digital infrastructure to support agile experimentation, rapid integration of emerging technologies, and responsive adjustments to technical changes. |
C10 | Digital solution delivery strategy | Agile deployment practices that prioritize speed, user feedback, and iterative rollouts of digital tools, aligned with transformation goals. | |
5. Project-specific factors | C11 | Project nature | The degree of complexity, uncertainty, and innovation inherent in DT projects, influencing the selection of agile methods and adaptive strategies. |
C12 | Project type | The classification of projects (e.g., ERP, AI, cloud services), shaping how agile practices are applied and success is measured. | |
C13 | Project schedule | Agile timeboxing and milestone tracking approaches that ensure timely delivery through iterative planning and adaptive pacing. | |
C14 | Project cost | Financial management practices that align with agile principles, including flexible budgeting, value-based prioritization, and cost visibility across sprints. |
Expert ID | Expert Type | Expertise Area | Round 1 Response | Round 2 Response |
---|---|---|---|---|
E1 | Professor | Digital Strategy and Agile Transformation | Yes | Yes |
E2 | Professor | Organizational Change and Technology Integration | Yes | Yes |
E3 | Professor | Agile Methodology and Project Evaluation | Yes | Yes |
E4 | Senior Project Manager | Large-Scale Project Delivery | Yes | Yes |
E5 | Senior Project Manager | Enterprise IT Management | Yes | Yes |
E6 | Senior Project Manager | Agile PMO Leadership | Yes | Yes |
E7 | Senior Project Manager | Business Agility and Innovation | Yes | Dropped |
E8 | Senior Project Manager | DT Governance and Risk | Yes | Dropped |
E9 | Consultant | Strategic IT Consulting | Yes | Yes |
E10 | Consultant | Transformation Planning | Yes | Yes |
E11 | Consultant | Agile Adoption and Coaching | Yes | Yes |
E12 | Consultant | Agile Training and Facilitation | Yes | Yes |
E13 | Consultant | Business Process Digitization | Yes | Yes |
Organizational B1 | People B2 | Process B3 | Technical B4 | Project B5 | Wi | |
---|---|---|---|---|---|---|
Organizational B1 | 1 | 1.31 | 3.02 | 2.84 | 2.60 | 0.34 |
People B2 | 0.76 | 1 | 2.12 | 3.11 | 3.20 | 0.30 |
Process B3 | 0.33 | 0.47 | 1 | 1.92 | 1.48 | 0.15 |
Technical B4 | 0.35 | 0.32 | 0.52 | 1 | 2.01 | 0.12 |
Project B5 | 0.38 | 0.31 | 0.68 | 0.50 | 1 | 0.09 |
The Importance of CSF in DT | LWi | AW |
---|---|---|
Organizational B1 | 0.34 | 1.76 |
People B2 | 0.30 | 1.54 |
Process B3 | 0.15 | 0.77 |
Technical B4 | 0.12 | 0.60 |
Project B5 | 0.09 | 0.48 |
Sub-Factor | Local Weight |
---|---|
Organizational B1 | LWi |
C1. Management commitment | 0.48 |
C2. Organizational environment | 0.3 |
C3. Team environment | 0.22 |
People B2 | LWi |
C4. Team capability | 0.48 |
C5. Customer involvement | 0.27 |
C6. Project manager capability and experience | 0.25 |
Process B3 | LWi |
C7. Project management process | 0.55 |
C8. Project definition process | 0.45 |
Technical B4 | LWi |
C9. Technological adaptability | 0.42 |
C10. Digital solution delivery strategy | 0.58 |
Project B5 | LWi |
C11. Project nature | 0.45 |
C12. Project type | 0.22 |
C13. Project schedule | 0.14 |
C14. Project cost | 0.2 |
Category | Code | Sub-Factor Name | Local Weight | Category Weight | Global Weight | Global Rank |
---|---|---|---|---|---|---|
Organizational (B1) | C1 | Management commitment | 0.48 | 0.34 | 0.1632 | 1 |
Organizational (B1) | C2 | Organizational environment | 0.30 | 0.34 | 0.102 | 3 |
Organizational (B1) | C3 | Team environment | 0.22 | 0.34 | 0.0748 | 7 |
People (B2) | C4 | Team capability | 0.48 | 0.30 | 0.144 | 2 |
People (B2) | C5 | Customer involvement | 0.27 | 0.30 | 0.081 | 5 |
People (B2) | C6 | Project manager capability | 0.25 | 0.30 | 0.075 | 6 |
Process (B3) | C7 | Project management process | 0.55 | 0.15 | 0.0825 | 4 |
Process (B3) | C8 | Project definition process | 0.45 | 0.15 | 0.0675 | 9 |
Technical (B4) | C9 | Technological adaptability | 0.42 | 0.12 | 0.0504 | 10 |
Technical (B4) | C10 | Digital solution delivery strategy | 0.58 | 0.12 | 0.0696 | 8 |
Project (B5) | C11 | Project nature | 0.45 | 0.09 | 0.0405 | 11 |
Project (B5) | C12 | Project type | 0.22 | 0.09 | 0.0198 | 12 |
Project (B5) | C13 | Project schedule | 0.14 | 0.09 | 0.0126 | 14 |
Project (B5) | C14 | Project cost | 0.20 | 0.09 | 0.018 | 13 |
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Chen, M.; Sun, X.; Liu, M. Critical Success Factors in Agile-Based Digital Transformation Projects. Systems 2025, 13, 694. https://doi.org/10.3390/systems13080694
Chen M, Sun X, Liu M. Critical Success Factors in Agile-Based Digital Transformation Projects. Systems. 2025; 13(8):694. https://doi.org/10.3390/systems13080694
Chicago/Turabian StyleChen, Meiying, Xinyu Sun, and Meixi Liu. 2025. "Critical Success Factors in Agile-Based Digital Transformation Projects" Systems 13, no. 8: 694. https://doi.org/10.3390/systems13080694
APA StyleChen, M., Sun, X., & Liu, M. (2025). Critical Success Factors in Agile-Based Digital Transformation Projects. Systems, 13(8), 694. https://doi.org/10.3390/systems13080694