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

2021/01/15 by Lauri Wessel, Abayomi Baiyere, Roxana Ologeanu‐Taddei +2 · 3 citations
Business, Management and Accounting · #Collaboration in agile enterprises #Information Technology Governance and Strategy #Innovation and Knowledge Management

paper · doi:10.17705/1jais.00655

openalex publication_date 2021/01/15 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/31

Abstract

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.

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