May Paper on 'Enabling Digital Transformation: An Analysis Framework' by Thayla Zomer, Andy Neely and Veronica Martinez
Embracing the opportunities offered by digitalisation is one of the main challenges and priorities for contemporary firms. The transformation of business processes to take advantage of new digital technologies, however, is a complex issue that affects all segments of a company and remains poorly understood in both theory and practice. According to Forbes Magazine, one in eight digital transformation initiatives succeeds, and more than 50% fail completely. Moreover, cases of firms that have had their market values languished despite having invested in digital transformation strategies have also been recognised. Why some companies have not achieved the expected outcomes and what are the characteristics of firms that are performing digital initiatives and experiencing a growth in their market value, however, remain scarcely explored in the literature. Therefore, this study attempts to shed light on the firms’ characteristics and the aspects of their digital transformation initiatives that are related to positive performance. We identified strategic, cultural and structural characteristics that distinguish companies that are experiencing positive outcomes and can be considered as digitally maturing firms. This study provides insights for practitioners regarding the relevant dimensions of a successful transformation initiative, as it is critical to understand how organisations manage their digital transformation and the organisational aspects involved in such transformations.
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