The term "Digital Firm" originated, as a concept in a series of Management Information Systems (MIS) books authored by Kenneth C. Laudon.
[1] It provides a new way to describe organizations that operate differently than the traditional brick and mortar business as a result of broad sweeping changes in technology and global markets.
These information systems create opportunities for digital firms to decentralize operations, accelerate market readiness and responsiveness, enhance customer interactions, as well as increase efficiencies across a variety of business functions.
Technology adoption has been increasing as digital firms continually look to achieve greater levels cost savings, competitive advantage, and operational performance optimization.
For example, digital networks and information systems allow organizations to connect and integrate supply chains in ways that are real-time, uninterrupted and highly responsive to market conditions.
CRM systems operate as enterprise platforms that provide digital firms with opportunities to closely manage all aspects of interactions with customers through customer-oriented business processes.
[11] However, the lag effects are difficult to measure and based in part on the organization's ability to leverage the new CRM system and adapt to the changes in business operations as a result.