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Roaring out of digital transformation

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  • Jacques Bughin
  • Nicolas van Zeebroeck

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.

Suggested Citation

  • Jacques Bughin & Nicolas van Zeebroeck, 2025. "Roaring out of digital transformation," ULB Institutional Repository 2013/386722, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:ulb:ulbeco:2013/386722
    Note: SCOPUS: ar.j
    as

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    References listed on IDEAS

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    1. Nicolas van Zeebroeck & Tobias Kretschmer & Jacques Bughin, 2021. "Digital is Strategy: The Role of Digital Technology Adoption in Strategy Renewal," ULB Institutional Repository 2013/325553, ULB -- Universite Libre de Bruxelles.
    2. Jacques Bughin, 2024. "Doing versus Saying: Responsible AI among Large Firms," Working Papers TIMES² 2024-077, ULB -- Universite Libre de Bruxelles.
    3. Babina, Tania & Fedyk, Anastassia & He, Alex & Hodson, James, 2024. "Artificial intelligence, firm growth, and product innovation," Journal of Financial Economics, Elsevier, vol. 151(C).
    4. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
    5. André Hanelt & René Bohnsack & David Marz & Cláudia Antunes Marante, 2021. "A Systematic Review of the Literature on Digital Transformation: Insights and Implications for Strategy and Organizational Change," Journal of Management Studies, Wiley Blackwell, vol. 58(5), pages 1159-1197, July.
    Full references (including those not matched with items on IDEAS)

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