Journal
CALIFORNIA MANAGEMENT REVIEW
Volume 62, Issue 4, Pages 17-36Publisher
SAGE PUBLICATIONS INC
DOI: 10.1177/0008125620920349
Keywords
agility; business model innovation; digitalization; digital transformation; dynamic capabilities; ecosystems; services; strategy; value capture; value creation
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This article discusses the digitalization efforts of 26 leading manufacturing firms, the difficulties encountered, and how they can be handled. It shows that many firms are far from ready to benefit from digitalization and are mainly focused on achieving greater efficiency through digitalization rather than pursuing a growth agenda. This imbalance is because of the difficulties related to identifying profitable configurations of competencies, assets, and data generated from digital technologies, orchestrating them, and exploiting them in an agile organization. Practical implications of digitalization are highlighted, specifically in terms of strategies for supporting the current business and embracing long-term digital transformation.
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