Conceptualization

Gene

Marketing

Transformation (genetics)

World Wide Web

Engineering

Information system

Operating system

Biochemistry

Computer science

Business

Value proposition

Leverage (statistics)

Artificial intelligence

Organizational studies

Chemistry

Knowledge management

Organizational engineering

Digital transformation

Information technology

Electrical engineering

Organizational learning

Journal of the Association for Information Systems

Although digital transformation offers a number of opportunities for today’s organizations, information systems scholars and practitioners struggle to grasp what digital transformation really is, particularly in terms of how it differs from the well-established concept of information technology (IT)-enabled organizational transformation. By integrating literature from organization science and information systems research with two longitudinal case studies—one on digital transformation, the other on IT-enabled organizational transformation—we develop an empirically grounded conceptualization that sets these two phenomena apart. We find that there are two distinctive differences: (1) digital transformation activities leverage digital technology in (re)defining an organization’s value proposition, while IT-enabled organizational transformation activities leverage digital technology in supporting the value proposition, and (2) digital transformation involves the emergence of a new organizational identity, whereas IT-enabled organizational transformation involves the enhancement of an existing organizational identity. We synthesize these arguments in a process model to distinguish the different types of transformations and propose directions for future research.

Unpacking the Difference Between Digital Transformation and IT-Enabled Organizational Transformation