Digital Agility: Conceptualizing Agility for the Digital Era

Abstract

It goes without saying that digital technologies have been forming an increasingly crucial component of companies’ value offerings in recent times. In many industries, this trend has led to converging markets, where traditional firms compete and collaborate with software firms and digital startups. One central competitive factor in these markets is the ability to capitalize on digital options faster than the competition. Prior research on agility in this context has advanced our knowledge on managerial and employee behaviors, as well as structures supporting such behaviors, to enable agility both in traditional and software firms. The challenge for firms in digitally converging markets is that agility now requires a combination of organizational and IS development agility—perceiving these concepts as separate entities is no longer appropriate or instructive. Building on prior work on agile behaviors and structures, and published cases on digital firms, we develop an integrative conception of digital agility in line with the realities of the digital era.