Value creation paths of organizations undergoing digital transformation
Mira Holopainen, Minna Saunila, Juhani Ukko
Abstract
Abstract This study examined the emergence of value creation during digital transformation. We used case studies to gather empirical evidence of the phenomenon from an organizational perspective. The study tried to closely link theory and practice by identifying the mechanisms that determined the paths of value creation in 11 companies that had taken concrete steps toward digital transformation. It contributed to knowledge management research by building a research framework according to previous literature and outlining three different value creation paths based on the objectives and motivations of the organizations. The conclusions of the study were that (1) the strategic orientation of transformation must exceed a certain level to constitute an actual value creation mechanism; (2) digital transformation paths are driven by changes in the competitive environment; (3) pressure from customers impacts the value creation mechanism in digital transformation, but depends on the value creation path essence; as well as (4) value creation in digital transformation is determined by the extent to which a company manages to balance the existing business with digital transformation. The results also had managerial implications because they assisted managers in considering the key mechanisms of digital transformation.