Orchestrating the digital transformation of a business ecosystem

Abstract

The nature, scope, and impact of digital transformation reaches well beyond the boundaries of a single firm. This suggests information systems research should consider how digital transformation unfolds within business ecosystems that consist of multiple interdependent firms, and how this process can ideally be managed. We pursue this research opportunity by introducing orchestration as a concept through which to view digital transformation in business ecosystems, and by presenting empirical insights from a longitudinal in-depth case study that highlights how a focal firm became the orchestrator of digital transformation in its business ecosystem. We explain that becoming an orchestrator of digital transformation occurs through three distinct phases: initiating, opening-up, and integrating. We also identify the interplay of activities by which a focal firm strategizes, mobilizes, and aligns other actors and their resources, as it orchestrates the digital transformation of its business ecosystem. We conclude by outlining how our work serves as an important foundation for future information systems research and offer managerial guidelines outlining how to orchestrate digital transformation processes within business ecosystems.