This paper aims to help managers understand digital disruption and implement strategies that will support the digital transformation of companies. Traditional companies need to learn from disruptive ventures and reimagine their business models based on digitalization.
The study is based on multiple case studies of both disruptive startups and established organizations navigating digital transformations.
The authors introduce three levels of digitalization to build a framework of six different value creation stages that result from digitalization. Companies need to create digital products, enhance their processes with digital technology and most important reimagine their business models.
Managers receive guidance on how to deal with digital disruption. They can learn from pathfinding companies that successfully leveraged digital technology to create and capture new value.
The original contribution of this paper is a simple and useful framework to understand and leverage digital disruption.
