The Human Side of Digital Business Transformation

Chapter 6Framework for Digital Business Transformation

In the business context, there is often a tendency to distinguish between the corporate or business strategy and a digital strategy. Traditionally, the two terms have had a distinct focus. For example, global strategy platform strategytools.io (Rangen n.d.) makes this distinction by describing the core difference in the underlying logic for each—business transformation driving change in value creation logic, while digital transformation triggers changes in operating logic. However, in the current global business landscape, where customers and markets exist in a physical and digital environment that has mostly converged seamlessly, it is unwise to distinguish corporate strategy from digital. Technology and digital solutions have fundamentally transformed the business landscape by shifting where and how companies create, capture, and deliver value.

For example, platform firms like Google, Amazon, Facebook, Apple, and Alibaba (often referred to as GAFAA) have achieved higher market values and even higher margins, with half the employee count, compared to traditional incumbent players, by leveraging the digital ecosystem to orchestrate value creation. These companies create more value in a shared environment enabled by digital platforms, rather the firm's own value created through product and service offerings.

Technology solutions enable significant improvements in efficiency of current operations through automation and digitization, ...