The Digital Transformation Risk Matrix: A Tool for Assessing the Impact/Control Nature of Digital Transformation Risk

Digital transformation (DT) has permeated the zeitgeist of information systems research and practice as an integral component of organizational survival with several benefits outlined in the literature such as enhanced cultures, transformed stakeholder capabilities and optimized processes among many others. However, in spite of the benefits, a failure rate of up to 90% has limited DT’s capacity to deliver meaningful digital change, implying that there are risks accompanying DT which impede organizations’ abilities to leverage technology as an enabler of change. Through a series of twenty-five semi-structured interviews, the relationship between a DT risk’s impact and the degree of controllability available to organizations and their stakeholders has been determined through the ‘Digital Transformation Risk Matrix’, a framework to enable organizations to classify risks. The findings also present a comprehensive list of DT risks in addition to proposing potential mechanisms to control these risks, expanding the DT risk body of knowledge.