Understanding of Digital Transformation and Its Background

Abstract

Recent evolutions in technology have enabled the rapid growth of digital companies through ecosystems, which have generated both threats and opportunities for existing companies who are struggling to adapt themselves to this rapidly changing environment. Digital transformation is a company-wide transformation initiative to leverage new business models enacted by multiple recent digital technologies. Digital business depends on ecosystems, which are composed of a platform, and multiple players, such as complementary product providers, competitors, regulators, and others. Companies could leverage platforms from business and/or technology perspectives for value creation, which has added new ways of competition among companies. Companies could take various digital transformation approaches and their step-by-step approaches could improve the success rate of their digital transformation initiatives. In the future marketing research, the impact of digital transformation on a company’s performance, value creation process with complementary product providers, technology capacity development process with IT departments, and identification of the roles and responsibilities of the CDOs and their teams are suggested.