What is different about digital strategy? From quantitative to qualitative change

Abstract

The recent attention paid to the challenge of digital transformation signals an inflection point in the impact of digital technology on the competitive landscape. We suggest that this transition can be understood as a shift from the quantitative advances that have historically characterized digital progress (e.g., Moore's law, Metcalf's law) to qualitative changes embodied in three core processes underlying modern digital transformation: representation, connectivity, and aggregation. We consider the implications for firm strategy and raise questions for future strategy research.