Course at the Rijksuniversiteit Groningen 2022-2023
Digital Transformation Strategy Literature Summary 2022-2023
Lecture 1: Introduction to digital Transformation Strategy
Paper 1: Adner, R., Puranam, P., & Zhu, F. 2019. What is different about digital strategy? From
quantitative to qualitative change. Strategy Science, 4(4): 253–261.
The paper "What is different about digital strategy? From quantitative to qualitative change" by Adner,
Puranam, and Zhu explores the differences between traditional and digital strategy and the
implications of these differences for organizations. The authors argue that while traditional strategy
focuses on achieving quantitative goals such as market share and profitability, digital strategy requires
a shift towards qualitative goals such as creating new value for customers and fostering innovation.
The paper begins by discussing the ways in which digital technology is changing the business landscape,
including the increasing importance of data and analytics, the rise of platform-based business models,
and the emergence of new technologies such as artificial intelligence and the Internet of Things. The
authors then argue that these changes have led to a shift in the nature of strategy, with traditional
quantitative goals becoming less important and qualitative goals such as customer value and
innovation becoming more critical.
The authors also propose that the change from quantitative to qualitative strategy is happening in
two different dimensions: "horizontal" and "vertical" dimension.
First, in the horizontal dimension, digital strategy involves creating new opportunities by connecting
and coordinating different business activities, products and services, and customer segments. This is
different from traditional strategy, which focuses on optimizing individual business activities.
Second, in the vertical dimension, digital strategy also involves creating new value by leveraging digital
technologies to transform products and services and disrupt established industries. This is different
from traditional strategy, which focuses on competing within established industry boundaries.
The paper concludes by noting that while the shift towards digital strategy may present challenges for
organizations, it also offers significant opportunities for those that are able to adapt. The authors
suggest that organizations can take steps such as investing in digital capabilities, building partnerships
and ecosystems, and focusing on creating value for customers in order to succeed in the digital age.
Overall, the authors main contribution is to elaborate the qualitative changes that are brought by the
digital technologies comparing to traditional strategy. Also, they suggest the two different dimensions
(horizontal, vertical) that the changes occur.
, Course at the Rijksuniversiteit Groningen 2022-2023
Paper 2: Nambisan, S., Wright, M., & Feldman, M. 2019. The digital transformation of innovation
and entrepreneurship: Progress, challenges and key themes. Research Policy, 48(8): 103773.
The paper focuses on the impact of digital technologies on innovation and entrepreneurship. The
authors review the literature on this topic and identify several key themes that have emerged.
Firstly, the authors found that digital technologies have led to an increase in the number of
opportunities for entrepreneurs to identify and exploit. This is because digital technologies have made
it easier for entrepreneurs to access information, connect with customers and partners, and create
new products and services.
Secondly, the authors found that digital technologies have led to a shift in the way innovation occurs.
Traditional innovation was primarily driven by large firms, but with the rise of digital technologies,
innovation is now taking place across different types of organizations, including start-ups, small
businesses and large firms. This allows for more diversity of innovation and a more dynamic innovation
ecosystem.
Thirdly, the authors found that digital technologies are leading to changes in the way that businesses
are organized and managed. For example, many firms are now adopting agile methodologies, which
allow for faster development and deployment of products and services. Additionally, digital
technologies are facilitating the rise of platform-based business models, which allow for more efficient
use of resources and increased scalability.
The authors also noted some challenges arise with the increasing adoption of digital technologies.
There are concerns that digital technologies are exacerbating inequality and also lead to a loss of jobs
as automation is increasing. They also noted that there are challenges related to data privacy, security
and governance.
Overall, the authors found that digital technologies are having a significant impact on innovation and
entrepreneurship, but there are also challenges that need to be addressed. They recommended that
policymakers and organizations need to pay close attention to these trends in order to facilitate the
benefits and mitigate the challenges.
, Course at the Rijksuniversiteit Groningen 2022-2023
Paper 3: Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein,
M. 2021. Digital transformation: A multidisciplinary reflection and research agenda. Journal of
Business Research, 122: 889–901.
The paper by Verhoef et al. (2021) presents a comprehensive overview of the concept of digital
transformation and its various dimensions. The authors argue that digital transformation is a complex
phenomenon that affects multiple aspects of organizations, such as strategy, operations, and customer
interactions. The paper reviews existing literature on digital transformation and suggests a
multidisciplinary research agenda to advance the understanding of this topic. The authors define digital
transformation as the "process of fundamentally changing how organizations operate and deliver
value to customers, by leveraging digital technologies" (p. 889). They note that digital transformation
is not just about adopting new technologies, but also about changing organizational culture, processes,
and business models. The paper presents several dimensions of digital transformation, including:
Strategic: the authors argue that digital transformation requires organizations to rethink their business
models, value propositions, and strategic positioning in the marketplace.
Operational: the authors highlight the importance of digital transformation for improving
organizational efficiency, productivity, and scalability.
Cultural: the authors note that digital transformation requires a change in organizational culture,
particularly in terms of how employees think, work, and collaborate.
Customer-centric: the authors argue that digital transformation must be designed around the
customer, and must focus on creating personalized and seamless experiences.
The paper also suggests multidisciplinary research agenda for further understanding of the concept by
discussing the research opportunities in the areas of:
1) Advancement of measurement and assessment frameworks for digital transformation.
2) Understanding the factors that influence the success or failure of digital transformation
efforts.
3) Examination of the impact of digital transformation on various aspects of organizations, such
as strategy, operations, and customer interactions.
4) Exploration of the role of digital transformation in shaping the future of industries and society
at large.
In summary, the paper provides a comprehensive overview of the concept of digital transformation
and its various dimensions. It suggests that it affects multiple aspects of organizations and proposes a
multidisciplinary research agenda to advance the understanding of this topic.
