Building Blocks of Successful Digital Transformation: Complementing Technology and Market Issues

Abstract

Strategic transformation is the primary reason why digitalization, artificial intelligence and related changes are on the top of most corporate agendas. Currently, many firms have completed the stage of strategy formulation for their digital transformation and are in the phase of strategy implementation. Here, many firms face major difficulties, which often result from an emphasis on technology issues at the expense of market-related issues. Following the innovation-based view and a conceptual framework of technology push and market pull effects, this conceptual paper presents important building blocks of successful digital transformation. On this basis, it illustrates the typical focus of most firms at present and highlights the limitations of these approaches. To overcome these limitations, several implementation steps are presented. As such, this paper contributes to research into digital transformation and artificial intelligence as well as into managing strategic renewal in light of technological change.