L1 - Introduction Flashcards
Defining digital transformation
“A process that aims to improve an entity by triggering significant changes to its properties through combinations of information, computing, communication and connectivity technologies”
(Vial: 2019:121)
Explain the framework from Vial G., 2019: An inductive framework
The framework summarizes the current knowledge of DT in seven steps
Start with the “use of digital technologies”. Then an arrow to disruptions where and arrow afterwards goes up to strategic respones and back to “Use of digital technologies”.
Here after an arrow to “Change in value creation paths”. From here goes two arrows out, one to the “negative impacts” and one to “Positive impacts”.
The box “Change in value creation paths” have two arrows to it, one from “Structural changes” and one from “Organizational barriers”
Explain the box “Technologies” from the Digital transformation framework
Technologies:
• Social, Cloud, IoT, platforms
• combinations of technologies
Most of the digital technologies mentioned within our sample fit with the popular SMACIT acronym: Social, mobile, analytics, cloud, and the internet of things (IoT).
Explain the box “disruptions” from the model to create an overview
(inductive framework)
Disruption of –> is tied into the consumers
The literature describes digital technologies as inherently disruptive, and there are three types of disruptions revealed:
• consumer behavior & expectations
• competitive landscape
• availability of data
–> The whole thing of data is even to sell it or to use it in your own company to keep developing
by Vial
Explain the box “Strategic responses” from the model to create an overview
(inductive framework)
- Opportunities and threats
- Fusion of business and IS strategy, not alignment
We need a fusion between the business and IS strategy -> The people in the IT apartment, know a lot of IT but maybe not that much about business running. So, there is a need to be a fusion and not just an alignment.
Explain the box “Negative impacts” from the model to create an overview
(inductive framework)
- IoT security, cybersecurity
- privacy: “My data”
- ethical challenges in data and technologies
Explain the box “Positive impacts” from the model to create an overview
- Efficiency and effectiveness
- financial performance, growth, reputation
- connectivity with customers and ecosystem: engagement and participation
- health care and social betterment
Explain the box “Structural Changes” from the digital tranformation framework
Structural changes required for changing the value creation process:
- Organizational structure: businesses should foster collaboration across business units and break functional silos.
- Organizational culture: multidisciplinary competence networks.
- Leadership: digital mindset while being capable of responding to the disruptions associated with the use of digital technologies
- Employee roles and skills: Employees should take roles that were traditionally outside of their functions.
Explain the box “Change in value creation paths” from the digital transformation framework
The literature emphasizes the alteration as well as the redefinition of business models in the
context of DT.
- Value propositions: services
- Value networks: collaboration and coodination
- Digital channels: Distribution and smart procurement
- Agility, innovation: Exploration & Exploitation
Explain the box “organizational barriers” from the Digital transformation framework
Organizational barriers: inertia & Resistance –> Two of the most significant barriers to entry
- Culture
- Risk to experiment, agility, incremantal
- Leadership
- Employees capabilities
Describe The Internet of Things (loT) and what it lead to?
loT is the linkage of two vastly different worlds: The internet world and the thing, or product, world.
An Internet of things leads to a connected world
Garrett & Ritchie
Describe and explain The Core Transformation Framework
Shifts in strategies and capabilities will force the need for organizational transformation:
- How to navigate the pattern of industry disruption
- company transformation
- Executive leader’s process to get started
The three levels
- Overcome Dominant Logic Inertia
- Overcome structural inertia
- Industry level
Garrett & Ritchie
Inertia in Organizations
Organizational inertia has been defined as the “delay or failure” of an organization to effectively adapt to events that occur in the external environment.
→ The easiest way to measure the effects of inertia is to consider the delay between the first firm to introduce meaningful connected products or services and the other companies in the industry.
Two different sources of inertia within organizations impact the completion of the First Mile.
• Dominant logic inertia: One sources is within the head of individuals
• Structural Logic Inertia: The second is embedded within the structure of the organization itself
Garret & Ritchie
Define digital business design
“We define digital business design as the holistic organizational configuration of people (roles, accountabilities, structures, skills), processes (workflows, routines, procedures) and technology (infrastructure, applications) to define value propositions and deliver offerings made possible by the capabilities of digital technologies”
Ross et al., 2019
Digital technologies are game changing because they deliver three capabilities
- Ubiquitous data
We don’t guess what customers want, or who they are, or whether they are loyal. We collect data and learn the answer. - Unlimited connectivity
Immediate access to anything digital, eliminating bottlenecks and delays - Massive processing power
We can expect (and afford) systems to crunch all that ubiquitous data to detect relationships humans cannot observe
Ross et al., 2019
