Abstract
The prevalence of digital technologies is luring organizations to transcend into the digital firm. While the idea and the notion of the digital firm seem attractive to many traditional firms, embarking on this journey brings a plethora of challenges due to the disruptive nature of digital technologies. The chapter underscores that even though digital technologies lead to value creation, in many cases their adoption in firms is driven by hype and competitive pressures. We provide evidence for this by discussing how a flurry of digital startups has emerged over the past years, but a lot of them do not scale up. The chapter describes what a digital firm is and discusses the challenges legacy firms encounter in transitioning to a digital firm. The chapter discusses how traditional businesses need to address several issues such as appropriate organizational structures, change management programs, managing digital talent to be able to extract value from their digital transformation programs.
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Gaur, A. (2022). Companies and Digital Transformation. In: Castelli, G., Meregalli, S., Pennarola, F. (eds) The Post-Digital Enterprise. Future of Business and Finance. Springer, Cham. https://doi.org/10.1007/978-3-030-94837-5_1
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