Profiting From Digital Transformation?

Abstract

Many companies have recently started digital transformation initiatives, and they now increasingly focus on artificial intelligence (AI). By means of smart algorithms and advanced analytics, firms attempt to leverage some of the results of their ongoing digital transformation initiatives, for example with regard to data about their established business operations. A conceptual framework underscores the need for combining data management and AI initiatives in order to ensure a firm's digital readiness and to realize digital business opportunities subsequently. An overview of recent trends further illustrates how different companies respond to these managerial challenges. This paper contributes to the literature on digitalization, AI, and ‘integrated intelligence' by highlighting the role of AI for leveraging data from digital transformation initiatives. Specifically, the use of AI applications helps companies to turn data into valuable knowledge and intelligence. In addition, this paper provides new knowledge about achieving superior performance in the digital economy.

Using Artificial Intelligence for Retail Value Chain

“…In addition, based on the results of Guha et al (2021), the introduction of AI technology will be more effective if it focuses primarily not on replacing but on supplementing managers' judgments. Moreover, the authors argue that more value can be gained from integrating AI into retailing by implementing applications focused not on attracting customers, but on optimizing inventory and improving financial performance (Guha et al, 2021), transforming data into valuable knowledge and intelligence for companies, which is in line with the findings (Lichtenthaler, 2021).…”

Pre-Crime Prediction

“…Such lack of evidence was unsurprising. For instance, despite the usefulness of artificial intelligence approaches, human knowledge regarding initiatives involving data management and AI was constrained with respect to strategic initiatives (Lichtenthaler, 2021). Lum and Isaac (2016) and the Human Rights Data Analysis Group (HRDAG) compared police records in Oakland, California, with a "demographically representative synthetic population" (para.…”

Digital Transformation

“…Given the outbreak of COVID-19 and the pandemic's spread across the globe, digital transformation research has gained an increasingly established position of recognition among researchers associated with reliance on the use of digital technologies in socioeconomic activities. The field has attracted hundreds of researchers from diverse areas of the social sciences, including management (e.g., Daradkeh, 2021;Hensellek, 2020;Salman et al, 2022;Sigari et al, 2021), marketing (e.g., Kumbhojkar & Menon, 2022;Xiao et al, 2022), economics (e.g., Anttiroiko, 2021;Maji & Laha, 2020), technology (e.g., Lichtenthaler, 2021;Mydyti & Kadriu, 2021), education (e.g., Coral & Bernuy, 2022;Erskine et al, 2022), and society (e.g., Fan, 2018;Kazim, 2021;Mossberger & Tolbert, 2021;Tebepah, 2020). This has led to a widespread body of literature.…”