Digital transformation strategies for existed firms: from the perspectives of data ownership and key value propositions

Abstract

The diffusion and embeddedness of cyber technology and big data technology is recognized as an opportunity and infrastructure for firms to innovate and transform. But which digital strategies existed firms in manufacturing and other traditional industries can make is still a question under research. The paper pursues to answer this question from the perspectives of data ownership and key value propositions. From the dimension of data ownership and key value propositions, this research proposes a research framework to guide the analyses of digital transformation strategy. The four firms are used to identify five types of digital strategies, namely new product strategy, new value-added service strategy, customized strategy, product embedded in the platform, and platform service / product strategy based on the framework of digital transformation strategy decision. This research suggests that a firm can select the suitable strategy considering his key value proposition and ownership of data which the firm could use. The research contributes to the research and practices on the digitalization strategy and the digital transformation of firms, especially those in emerging economies.