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Management Journal Article hero
Management Journal Article

Is Your Company Seizing Its Digital Value?

The ways in which companies can create and capture value have changed profoundly. Most aren’t keeping up.
By Stephanie L. Woerner, Peter Weill, and Ina M. Sebastian
Abstract

In the digital era, how firms create and capture value has changed profoundly. But with digital transformation, many firms are leaving substantial value on the table, getting caught up in “doing” digital transformation rather than staying focused on how they will create and capture value with digital. To do this, first companies need to understand the three different types of digital value: value from customers (cross-selling, increased loyalty, great customer experience); value from operations (increased efficiency, modularity and reuse of components, automating processes); and value from ecosystems (leveraging partners for both access to more customers and range of products and services). With these types of value in mind, firms can then take action to create digital value by: identifying domain opportunities; building mutually-reinforcing capabilities; tracking digital value with a dashboard; recruiting digital partners; and investing in digital savviness of everyone at the firm. Companies that do this will become truly “future ready.”

About the Authors

MIT CENTER FOR INFORMATION SYSTEMS RESEARCH (CISR)

Founded in 1974 and grounded in MIT's tradition of combining academic knowledge and practical purpose, MIT CISR helps executives meet the challenge of leading increasingly digital and data-driven organizations. We work directly with digital leaders, executives, and boards to develop our insights. Our consortium forms a global community that comprises more than seventy-five organizations.

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