Digital transformation: setting the pace
Ari Margiono
Abstract
Purpose This paper aims to identify the paths of digital transformation followed by companies facing disruption and offer recommendations for executives for choosing the appropriate path. Design/methodology/approach This is a conceptual paper. Findings This paper identifies two paths of digital transformation. The offensive path is aggressive and involves the rapid acquisition of digital resources through portfolio investment and merger and acquisition tactics. The defensive path is relatively slow and relies on the organic growth of the digital capabilities of the incumbent companies over time. Research limitations/implications This paper identifies a number of potential factors affecting the choice of the transformation path taken by companies. Further studies can be conducted to investigate these contingent factors. Practical implications This study describes the strategic paths available in a digital transformation and identifies the conditions that might justify a particular approach. Originality/value This paper identifies two types of paths that are generally followed by companies aiming digital transformation – offensive and defensive. This aspect has not been studied in any other research work.