Digital Transformation and Expected Implications

Digital Transformation and Expected Implications

Source: Adapted from Van Peteghem (2016).

Digital transformation involves the convergence of technology, data science, processes, and innovation. In particular, digitalization is the convergence of technology and data science.

Digital transformation comes with expectations:

  • First mover. Adopting digital technologies can confer a first-mover advantage, improve competitiveness, and increase market share. It allows a form of differentiation.
  • Demand responsive. Expectations that the organization will be able to respond more effectively to changes in market conditions and adapt accordingly in the provision of goods and services.
  • Cooperation. The ability to cooperate with key suppliers and customers through effective information exchange.
  • Organizational change. The formation of new business models, sources of revenue, and pricing systems.
  • Continuous change. The implementation of new technologies has a continuously disruptive effect that may require enduring adaptation of organizational and managerial processes.
  • Agility and resilience. Similar to the demand responsive approach, information technologies are expected to allow more effective use of infrastructure and assets. So, a similar level of performance is expected to occur with fewer assets.
  • Competencies. Digital technologies and processes require capabilities to be properly integrated and managed.
  • Digital focus. Digital technologies and processes need to be spearheaded through a designated unit responsible for the identification of the processes most likely to benefit.

It is relevant to underline that the above are expectations about digital transformations. This does not mean that these transformations will take place as the role of digital technologies could be exaggerated and their full impacts remain to be fully assessed.