Conceptualizing digital transformation using semantic decomposition

Conceptualizando transformación digital por medio de descomposición semántica

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Abstract

Economic and social disruption generated by COVID-19 increased research on digital transformation processes; however, consensus about the formal conceptual definition of digital transformation is yet to be reached. A concise and clear concept built using existing definitions in literature is needed for empirical research in the business and management fields. Using semantic decomposition method to systematically decompose the extant definitions collected from the business literature, this study proposes the following formal conceptual definition of digital transformation: “a process that aims to improve society by triggering significant changes to the enterprise business model using digital technologies”. Consistent measurable properties caused by a formal conceptual definition support academic research and enable practitioners to exploit new knowledge essential when adapting the firm's business model to the new digital reality.

Keywords: Digital transformation; definition; semantic decomposition

#	Definition	Source(s)	Primitive #1: Target entity	Primitive #2: Scope	Primitive #3: Means	Primitive #4: Expected outcome
			Unit of analysis affected by DT	The extent of the changes taking place within the target entity's	The element involved in creating the change within the target entity	The outcome of DT
1	DT describes the fundamental transformation of the entire business world through the establishment of new technologies based on the internet with a fundamental impact on society as a whole.	(PwC, 2013)	Society	Transformation	New technologies base on the internet	N/A
2	We define digital transformation as the use of new digital technologies (social media, mobile, analytics or embedded devices) to enable major business improvements (such as enhancing customer experience, streamlining operations or creating new Business Models)	(Fitzgerald et al., 2014)	Business (implicit)	Use	New digital technologies (social media, mobile, analytics or embedded devices)	Major business improvements (customer experience, creating new Business Model)
3	Digital transformation involves leveraging digital technologies to enable major business improvements, such as enhancing customer experience or creating new business models.	(Piccinini et al., 2015)	Business	N/A	Digital Technologies	Enhancing customer experience or creating new business models
4	Digital transformation is the profound and accelerating transformation of business activities, processes, competencies, and models to fully leverage the changes and opportunities brought by digital technologies and their impact across society in a strategic and prioritized way	(Demirkan et al., 2016)	Business & Society	Changes	Digital Technologies	Business Model, activities, processes and competencies
5	The changes digital technologies can bring about in a company's business model, which result in changed products or organizational structures or automation of processes.	(Clohessy et al., 2017)	Company	Changes	Digital Technologies	Business Model.
6	An evolutionary process that leverages digital capabilities and technologies to enable business models, operational processes and customer experiences to create value.	(Morakanyane et al., 2017)	Business (implicit)	Leverage (use)	Digital capabilities and digital technologies	Business Model, create value
7	The use of new digital technologies, in order to enable major business improvements in operations and markets such as enhancing customer experience, streamlining operations or creating new business models.	(Paavola et al., 2017)	Business	Use	Digital Technologies	Business Model, customer experience, operations
8	The DT framework includes the networking of actors such as businesses and customers across all value-added chain segments, and the application of new technologies. As such, DT requires skills that involve the extraction and exchange of data as well as the analysis and conversion of that data into actionable information. This information should be used to calculate and evaluate options, in order to enable decisions and/or initiate activities. In order to increase the performance and reach of a company, DT involves companies, business models, processes, relationships, products, etc.	(Schallmo et al., 2017)	Company	Application (use)	New Technologies, skills	Business Model, processes, relationships, products
9	Digital transformation is a process of reinventing and re-engineering a business to digitize a company. This transformation is the deliberate and ongoing digital evolution of a company's business model, strategically, tactically, and operationally	(Bowersox et al., 2005; Mazzone, 2014; Saul & Gebauer, 2018)	Business	Reinventing and re-engineering	Digital Technologies (implicit in digitize)	Business Model
10	Digital Transformation (DT) considers the continuous digitalization process of a company, which uses digital and data-driven innovation to improve existing processes, change distinct business model (BM) elements, or reinvent its BM entirely	(Barann et al., 2019)	Company	Use	Digital (technologies implicit) and data-driven innovation	Business Model
11	The digitization or Digital Transformation of product firms is the transition process companies are facing when moving from previous industrial stages to an interconnected smart enterprise of the Industry 4.0 era supported by these base technologies	(Frank et al., 2019; Kagermann et al., 2013)	Firms	Transition	Technologies	N/A
12	Digital transformation encompasses an organization's ability to adapt, respond, and position itself for success in the face of rapid technology evolution	(Guinan et al., 2019)	Organization	Adapt	N/A	Success
13	Digital transformation is an ongoing process of strategic renewal that uses advances in digital technologies to build capabilities that refresh or replace an organization's business model, collaborative approach, and culture.	(Warner & Wäger, 2019)	Organization	Use	Digital Technologies	Business Model
14	This phenomenon, also known as digitalization, refers to a business model driven by the changes associated with the application of digital technology in all aspects of human society	(Crupi et al., 2020; Stolterman & Fors, 2004)	Society	Changes	Digital Technologies	Business Model
15	Digital transformation is, therefore, defined as the pursuit of innovation, agile business, and operation models driven by technological evolvement, processes, analytics, and talent capabilities to modernize customers' touchpoints, enabling infrastructures and creating new values for employees and stakeholders	(Haaker et al., 2021)	Business	Pursuit	Technologies and talent	Creating new values and infrastructure
16	The term digital transformation is used today to signify the transformational or disruptive implications of digital technologies for businesses and society	(Jafari-Sadeghi et al., 2021; Matt et al., 2016; Nambisan et al., 2018)	Business & Society	Transformations	Digital Technologies	N/A
17	Digital transformation is the most pervasive phase, and describes a company-wide change that leads to the development of new business models, which may be new to the focal firm or industry	(Iansiti & Lakhani, 2014; Kane et al., 2015; Pagani & Pardo, 2017; Verhoef et al., 2021)	Company	Develop	N/A	Business model
18	Digital transformation involves integrating digital technologies and solutions into every area of a business. This is as much a cultural change as a technological one as it requires organizations to make fundamental shifts in the ways they operate and how they deliver customer experiences and benefits. Digital solutions also help to augment the workforce and can lead to business process and business model transformation.	(SAP Insights, 2021)	Business	Integrate	Digital Technologies	Business Model, customer experience, benefits
19	Digital transformation in turn can be defined as the integration of digital technology into all aspects and operations of an organization, which in turn leads to infrastructural changes in how the organization is operated and delivers value to its customers	(Kraus et al., 2022)	Organization	Integrate	Digital Technologies	Delivers value to its customers, infrastructure, operations

Definition	Authors	Citations	Journal	JIF 2021 - JCR Quartile	SSCI Category	CiteScore - Rank
Digital transformation is the most pervasive phase, and describes a company-wide change that leads to the development of new business models, which may be new to the focal firm or industry	Verhoef et al. (2021)	383	Journal of Business Research	10.969 Q1	Business	11.2 Q1
Digital transformation is an ongoing process of strategic renewal that uses advances in digital technologies to build capabilities that refresh or replace an organization's business model, collaborative approach, and culture.	Warner & Wäger (2019)	339	Long Range Planning	7.825 Q1	Business, Management	14.4 Q1
The term digital transformation is used today to signify the transformational or disruptive implications of digital technologies for businesses and society	Jafari-Sadeghi et al. (2021)	59	Journal of Business Research	10.969 Q1	Business	11.2 Q1
Digital transformation in turn can be defined as the integration of digital technology into all aspects and operations of an organization, which in turn leads to infrastructural changes in how the organization is operated and delivers value to its customers	Kraus et al. (2022)	16	International Journal of Information Management	18.958 Q1	Information Science	28.8 Q1
The digitization or Digital Transformation of product firms is the transition process companies are facing when moving from previous industrial stages to an interconnected smart enterprise of the Industry 4.0 era supported by these base technologies	Frank et al. (2019)	275	Technological Forecasting and Social Change	10.884 Q1	Business	13.7 Q1

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[TFN1] Note. Source: Adapted from Wacker, J. G. (2004) . A theory of formal conceptual definitions: Developing theory-building measurement instruments. Journal of Operations Management, 22(6), 629-650. https://doi.org/10.1016/j.jom.2004.08.002

Rule 1	Definitions should be formally defined using primitives and derived terms.
Rule 2	Each concept should be uniquely defined.
Rule 3	Definitions should include only unambiguous and clear terms.
Rule 4	Definitions should have as few as possible terms.
Rule 5	Definitions should be consistent within their field.
Rule 6	Definitions should not make any term broader.
Rule 7	New hypotheses cannot be introduced in the definitions.
Rule 8	Statistical test for content validity must be performed after the terms are formally defined.