Defining the Digital Firm
Laudon and Laudon (2007, p. 7) define the digital firm as:
"A digital firm is one in which nearly all of the organization’s significant business relationships with customers, suppliers, and employees are digitally enabled and mediated. Core business processes are accomplished through digital networks spanning the entire organization or linking multiple organizations.
Digital firms sense and respond to their environment far more rapidly than traditional firms, giving them more flexibility to survive in turbulent times."
Why Pursue Digital Status?
Webber (2007) describes six customer-focused reasons why firms pursue a digital strategy. Because most customer contact organizations have not achieved digital status, companies can use these characteristics to evaluate how this strategy can benefit them. Once a company is on the path to becoming a digital firm it can use these benchmarks to assess how far they’ve come.