Roaring out of digital transformation

Jacques Bughin and Nicolas van Zeebroeck

ULB Institutional Repository from ULB -- Universite Libre de Bruxelles

Abstract: Can firms engaged in digital transformation (DT) build new profit streams that over-compensate the risk of market disruption? Using cross-sections of large firms globally, we find that firms are better off better off engaging in DT rather than not; however, the sufficient conditions to bounce forward are for firms to innovate in new products, markets and business models, and complete this renewal posture by strong digital capabilities ahead of peers. Firms failing this orientation may still gain some value compared to no DT but would suffer from profit growth pressure due to digital competition.

Keywords: Digital transformation; disruption; innovation; profitability (search for similar items in EconPapers)
Date: 2025-01-01
Note: SCOPUS: ar.j
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Published in: Applied economics letters (2025),p.1-4

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