It’s easy to acknowledge the game-changing role digital technologies are playing in the modern economy. The challenge, to which most companies have yet to rise, is figuring out how to fully capture the different kinds of value that these technologies offer. Developing a strategy for digital transformation that fully leverages this value is also not easy. Without a comprehensive assessment of what digital technologies can offer, firms tend to assume that any application of modern digital technologies will lead to a digital transformation. Consequently, many of them make ad-hoc business decisions about the use of digital technologies and end up struggling even to maintain competitive parity, despite substantial investments.
The 4 Tiers of Digital Transformation
A framework to ensure your digital investments are driven by strategic objectives.
September 21, 2021
Summary.
Companies often assume that if they embrace digital technology in any way, they’re digitally transforming their business. As a result, they often make only ad hoc changes and investments in the digital arena, with ineffectual results. This article provides an introduction to four distinct tiers of digital transformation, each of which meets different strategic objectives and allows companies to maximize the value they capture from digital technologies.
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HBR Learning
Innovation and Creativity Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Innovation and Creativity. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Unlock your team's curiosity and willingness to take smart risks.