Study goals
This article aims to highlight the aspects that drove the implementation of Digital Transformation in Magazine Luiza and contribute to the development of the theory about Digital Transformation.
Relevance / originality
Although there are studies about Magazine Luiza (Félix, Tavares, & Cavalcante, 2018, Saccol, 2005, Silva, 2015), no study has evaluated the company's digital initiatives with a broad perspective.
Methodology / approach
We analyzed through a case study the main aspects of the Digital Transformation on the Brazilian retailer Magazine Luiza, which achieved a 43,000% increase in its share price between 2015 and 2020, mainly due to innovations enabled by TI.
Main results
We identify that some of the main aspects in the company's Digital Transformation are not being properly studied in literature, such as the use of a bimodal IT structure and the use and interconnectivity between traditional and new technologies in innovative and even disruptive ways.
Theoretical / methodological contributions
This study contributes to literature by analyzing empirical data on the pillars that supports the implementation of Digital Transformation in an organization, which can be used as input to theory development on Digital Transformation.
Social / management contributions
The Digital Transformation of Magazine Luiza resulted in a large increase in the market value of the company. This, aligned with the company’s expansion and increasingly better results, suggests that technology has the potential to change the company’s strategy and make it succeed, corroborating Bharadwaj’s (2013) view. This study suggests that in a Bimodal IT structure it is possible to unite Business and IT strategy.