How do firms reorganize to implement digital transformation?

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Abstract
The paper follows an explorative approach to digital transformation (DT), an organizational transformation achieved through digital technologies such as mobile technologies, social media, cloud, internet‐of‐things, big data analytics, and artificial intelligence. The study involving qualitative research on 14 technology‐intensive firms, attempts to understand structural changes and managerial actions associated with DT. The study has found that medium and large‐sized firms handle innovation and operations separately wherein the small firms build innovation into operations by embedding relevant skills in team members. The small firms focus on process innovation whereas the other firms focus on both process optimization and new market offerings. The study has new findings on DT managerial actions that include organization‐centric activities linked to employee engagement, external stakeholder‐centric activities connected to partner engagement, and technology‐centric activities related to achieving economies of scale. This study provides a basis for both the academicians and practitioners while embarking on DT.

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