Estimating the Benefits, Drawbacks and Risk of Digital Transformation Strategy

Abstract

Corporations are challenged with understanding and evaluating the dynamics that play significant roles in the digital economy. Corporations go through digital transformations to stay relevant in the digital economy. Digital transformation is a highly complex endeavor that potentially impacts the whole corporation. Digital transformation strategy focuses on corporation's journey to achieve the desired future state of being digitally transformed. Since it is very crucial for success in the digital economy, the corporation needs to develop a sound strategy for digital transformation and evaluate it in a holistic approach. To help with decision making on digital transformation, corporations need to measure the cost and benefits of the digital transformation strategic options and their returns on investment. The objective of this paper is to examine relevant dynamics in estimating the benefits of digital transformation strategy while taking into consideration the drawbacks, risks and mitigation plans and develop models for estimating its success under various conditions and scenarios.