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Strategies for Digitalization in Manufacturing Firms

by Joakim Björkdahl

Strategies for Digitalization in Manufacturing Firms
Many manufacturing firms have seen digitalization as a means of increasing efficiency. But too few consider growth.
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This article discusses the digitalization efforts of 26 leading manufacturing firms, the difficulties encountered, and how they can be handled. It shows that many firms are far from ready to benefit from digitalization and are mainly focused on achieving greater efficiency through digitalization rather than pursuing a growth agenda. This imbalance is because of the difficulties related to identifying profitable configurations of competencies, assets, and data generated from digital technologies, orchestrating them, and exploiting them in an agile organization. Practical implications of digitalization are highlighted, specifically in terms of strategies for supporting the current business and embracing long-term digital transformation.




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California Management Review

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Published at Berkeley Haas for more than sixty years, California Management Review seeks to share knowledge that challenges convention and shows a better way of doing business.

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