Proceedings of the 6th European Conference on Industrial Engineering and Operations Management Lisbon, Portugal, July 18-20, 2023 © IEOM Society International Role of Digital Leadership in Achieving Digital Readiness Through Organizational Optimization. Syed Muhammad Shariq and Felicita Chromjaková Faculty of Management and Economics Department of Industrial Engineering and Information Systems Tomas Bata University in Zlin, Czech Republic shariq@utb.cz, chromjakova@utb.cz Abstract Study determination is to deliver a framework for overpowering the obstacles headed digital readiness of the organizations, which are not prepared for upcoming industrial difficulties. Interrelated theoretical lens of contextual leadership theory and strategic alignment model along with data analysis of 279 top manager from IT sector in Pakistan. Result examination shows that organizational optimizations including top management commitment, strategic planning and inter-organizational collaboration mediates the relationship between digital leadership and firm’s digital readiness. Study consumes significant professional and theoretic suggestion that no matter how strong is the leadership, means through which the desire outcome could be achieve should not be ignore. Key words Digital leadership, big data strategic planning and Strategic alignment model. 1. Introduction Global trade analysis through the lens of contextual leadership theory acknowledges that leader’s art of behaving according to the context is in demand like never before. Industry is approaching towards fourth industrial revolution that is branded by digitalization of business process. G7 countries comprises of Canada, EU, France, Germany, Italy, Japan, UK and US issued a signed declaration with a vision to place technology at the heart of global efforts to digitalize outdated paper-based systems from global trade to serve the customers effectively and efficiently MP (2021). UK digital secretary Oliver Dowden said G7 countries want to establish a convincing vision that how technology should support and enhance societies in the digital age. All the G7 countries have agreed to prioritize digital competition for digital revolution, developing framework addressing domestic reforms for digital transformation of organizations and collaboration among governments and stakeholder to support digital development (MP, 2021). 1.1. Research Problem Highly active and responsive capabilities are observed in smart organizations. Survey based on hundreds of firm shows that the organizations, which are digitally ready to encounter the future demand of fourth industrial revolution earned 16% extra than the average net profit margin of the relevant industry (Weill & Woerner, 2018). Organizations which are not digitally ready to encounter future demands of fourth industrial revolution are most likely to suffer dramatically or even replace by agile competition and new start-ups (Weill & Woerner, 2018). This specific problem is challenging existence of all those organization which are not digitally ready. So pragmatic researcher should derive a frameworks, based on which organization can make a forward move towards digital readiness in true sense for meeting the future demand of industry 4.0 and can align themselves with G7 countries vision regarding digitalization. McAfee, Brynjolfsson, Davenport, Patil, and Barton (2012) claimed that in future successful firm will be those which are digitally ready. Awan et al. (2021) claimed that getting equipped digitally required alignment at strategic level, strategic alignment model also stresses that strategic alignment should be there for achieving the desire outcome (Henderson & Venkatraman, 1992). In current study scenario, desire outcome is digital readiness of firms involved in manufacturing and its export or import. Tijan, Jović, Aksentijević, and Pucihar (2021) has identifies some barriers including lack of vision, strategy, coordination and collaboration whereas success factors were also identified including actively shaping future strategies (strategic planning), clear vison, inter-organizational collaboration and digital leadership. Tijan et al. (2021) has explored the barrier and their potential remedial factors but a quantitative survey study is required to generate the generalizability of these factors. Most important success factor they have identified is digital leadership. Anak Agung Sagung and Sri Darma (2020) and Kane, Phillips, Copulsky, and Andrus (2019) claimed that digital leadership is all about transformative vision, forward locking and collaboration. Anak Agung Sagung and Sri Darma (2020) also claimed that digital leader add value in what we do, which represents it strategic mindset. Strategic mindset represents strategic planning of the leader that where the organization is and where it should be. 871