Both Radical and Incremental Digitally Enabled Change Work Well
Name
2019_0801_DigitalTransformationApproach_WoernerWeillShah.pdf
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304.75 KB
Format
Adobe PDF
Checksum (MD5)
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Author(s)
Woerner, Stephanie L.
Weill, Peter
Shah, Aman
Date Issued
August 15, 2019
Publisher
Cambridge, Mass.: Center for Information Systems Research, Sloan School of Management, Massachusetts Institute of Technology
Citation
Woerner, Stephanie L., Peter Weill, and Aman Shah. “Both Radical and Incremental Digitally Enabled Change Work Well.” MIT CISR Research Briefing Volume XIX, no. 8 (August 2019). https://dspace.mit.edu/handle/1721.1/174852.
Series/Report no.
MIT CISR Research Briefing, Vol. XIX, No. 8
Abstract
Two years ago, when MIT CISR asked companies whether they were on a digitally enabled journey to become Future Ready, nearly all 93 percent of companies said they were. In 2019, working with Harvey Nash, we studied results from more than four thousand companies to assess which of two approaches to business change using digital technologies incremental improvement or radical transformation was associated with better financial performance. We found that the top performers taking each approach achieved significant benefits from their change efforts, strongly outperforming their peers in revenue growth and net margin. Counterintuitively, there was no difference between the two approaches in regards to the risk of financial underperformance. In this briefing, we look at the differences between the incremental improvement and radical transformation approaches to business change and what it takes in dollars and digital savvy to succeed.
Subjects
Business Models
Business Model Transformation
Business Agility
IT-based Business Transformation
Terms of Use
CC BY-NC 4.0 (Attribution-NonCommercial 4.0 International)
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