Performance Management in Digital Transformation

Abstract

This chapter gives a holistic overview of digital transformation and its impact on firm performance and highlights the strategy firms can adopt to become sustainable in the long run. Digital transformation has become a well-known phrase that is often used to describe a major IT overhaul. New digital technologies provide the game-changing potential for and grave dangers to businesses that established their success in the pre-digital era. Customer engagement and digitized solutions are two critical digital strategies that give the necessary direction for a digital transformation in any firm. With advanced information and communication technology (ICT), enterprises may create new content, apps, or services to provide them with a competitive edge. A digital services platform and an operational backbone are important for implementing the firm's business strategies. Digital transformation can improve business performance and contribute to sustainability. Sustainability has become an entrenched and overarching aspect of strategic planning for firms.