Investigating the Economic and Productivity Effects of Digital Transformation in Project Management

Abstract

Project management is being reshaped by artificial intelligence (AI), cloud computing, automation, data analytics, and digital project management platforms. Yet the expected economic and productivity gains are not always realized due to execution costs, skills gaps, integration challenges, and organizational resistance. This study analyses the effects of digital transformation on economic efficiency, productivity, workflow optimization, and project delivery, and examines the link between employee digital competency and transformation success. A mixed-methods design was used: a quantitative survey of 100 project employees and semi-structured interviews with 10 employees. Quantitative analysis employed frequencies, percentages, and descriptive statistics; qualitative data were analyzed thematically. Overall, perceptions of digital transformation were positive: 68%–78% agreed or strongly agreed that digital technologies improve cost efficiency, resource use, project performance, workflow efficiency, productivity, and delivery outcomes. Moreover, 74% associated higher employee digital competency with improved project results. Five themes emerged: economic efficiency and cost optimization; productivity and workflow optimization; employee digital competency; leadership and organizational culture; and data-driven decision-making and risk mitigation. Key hurdles remain: execution costs, resistance to change, skills gaps, and data quality. The study concludes that successful digital transformation depends on employee competence, effective leadership, organizational readiness, and disciplined execution conditions that can enhance project performance and economic value.