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Digital Innovation Handbook Summary

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This document is a summary of the manual with the various texts that must be known for the exam

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  • September 30, 2024
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  • 2023/2024
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PART I INTRODUCTION

1. Digital innovation: towards a transdisciplinary
perspective
 Definition and Scope of Digital Innovation: Digital innovation is defined as the creation of
new market offerings, business processes, or models through digital technology. This
includes a range of technologies like mobile computing, social media, blockchain,
virtual/augmented reality, cloud computing, data analytics, machine learning, robotics, the
Internet of Things, and 3D printing.

 Nature of Digital Technology and Innovation: Digital technologies transcend traditional
industry boundaries and bring together networks, ecosystems, and communities. This
accelerates the development and evolution of radical products and services, transforming
industry structures and business practices.

 Transdisciplinary Perspective: Digital innovation is a transdisciplinary topic, drawing from
various fields like economics, psychology, sociology, communication, marketing, and more. It
also necessitates collaboration with computer science and engineering to understand the
features of emerging technologies.

 Impact on Organizational Strategies and Practices: Digital transformation affects
organizations of all types and sizes, introducing new challenges and reshaping innovation
strategies and practices.

 Changing Business Models and Industry Dynamics: Digital innovations affect business
models, value creation, and the very nature of products and services. They also prompt
fundamental changes in market structures and relationships among businesses.

 Digital Innovation as a Systemic Phenomenon: The nature of digital innovation is seen as a
dynamic, complex system, affecting individual, team, firm, and industry levels. It calls for
holistic analysis of these interconnections and their evolving nature.

 Research Agenda and Collaboration: The text emphasizes the need for a broad research
agenda and collaborative efforts across disciplines to fully understand and leverage the
potential of digital innovation. It advocates for building a common understanding and
vocabulary to explore digital innovation across different fields.

 Social and Economic Implications: Digital innovation has far-reaching implications on social,
economic, cultural, and ethical fronts, necessitating careful examination and understanding
of its broader impact.

In essence, this text is a comprehensive overview of the multifaceted nature of digital innovation,
highlighting its transformative impact across industries and the need for a collaborative,
interdisciplinary approach to harness its full potential.

,PART II FOUNDATIONS OF DIGITAL INNOVATION

Introduction to Part II
 New Organizational Forms and Concepts: The part introduces innovative organizational
models and concepts such as "sociotechnical self-orchestration," where individuals in
distributed organizations coordinate themselves using digital platforms and technologies.
This concept is exemplified by case studies like Hyperloop Transportation Technologies Inc.
and ConsenSys, highlighting how digital platforms enable new forms of collaboration and
problem-solving on societal issues.

 Digital Innovation in Emerging Economies: The section also explores digital innovation in the
context of emerging economies, particularly focusing on how digital technologies fill
institutional voids. The case study of Fundación Cardiovascular (FCV) in Colombia is used to
illustrate how digital platforms can compensate for gaps in market and regulatory processes.

 Digital Innovations and Societal Transformation: Another chapter discusses the social
impacts of digital innovations, using the example of M-Pesa in Kenya. This case study shows
how digital technology can empower marginalized groups and transform societal structures.

 Agility as a Root Metaphor in Digital Innovation: The concept of agility as a new root
metaphor for strategy in the digital era is introduced. This idea contrasts with the traditional
metaphor of industrial production and highlights how agility and adaptability are central to
successful digital innovation strategies.

 Detailed Case Studies and Conceptual Exploration: The book format allows for in-depth case
studies and exploration of new concepts, providing rich data for theory development and
offering insights into the dynamics of digital innovation.

 Focus on Organizational Analysis: While the chapters primarily focus on organizations, they
also touch upon micro-level leadership dynamics and macro-level institutional changes. The
introduction suggests that these insights could guide future research and policy
development, particularly in understanding the impact of digital natives in leadership and the
need for agile institutions.

 Theoretical and Practical Foundations: The chapters are commended for laying a foundation
for future exploration in digital innovation, both in theory and practice, and for their
potential to inform policy prescriptions.

In summary, this introduction sets the stage for a comprehensive examination of digital innovation,
highlighting its impact on organizational forms, societal transformation, and the emerging
economies. It underscores the need for agile approaches in understanding and leveraging digital
technologies in the modern era.

2. The new wave of digital innovation: the need for a
theory of sociotechnical self-orchestration

,  focuses on the evolving nature of digital innovation in modern organizations and proposes a
new framework for understanding these changes. Here's a summary of the main points:

 Challenges of Digital Innovation Management: The authors discuss the need to reinvent
digital innovation management research. They highlight the complexity of organizational
designs in the digital age, where contributions and participants are diverse and often
undefined. The focus is on how digital technologies enable and shape collective innovation.

 Concept of Sociotechnical Self-Orchestration: The authors introduce the concept of
sociotechnical self-orchestration to describe modern work dynamics. This concept moves
beyond traditional organizational structures, emphasizing self-organizing teams and
communities enabled by digital platforms.
o SS-o= concept or approach where social and technical elements are coordinated or
managed in a harmonious manner, often with an emphasis on self-organization or
autonomous processes.

 Changing Nature of Organizations: In the digital era, organizations are not limited by
traditional boundaries. The role of managers is redefined, and the distinction between core
and peripheral parties becomes obsolete. The chapter underscores the importance of
multiple, often temporary, formal and informal networks in achieving organizational goals.

 Case Studies – Hyperloop Transportation Technologies and ConsenSys: The authors provide
detailed case studies of two companies, HyperloopTT and ConsenSys, to illustrate
sociotechnical self-orchestration in practice. These companies represent entrepreneurial
digital innovators in their respective industries, showcasing how they are revolutionizing
organizational forms and processes.
o HyperloopTT was established in 2013 following the proposal of the Hyperloop
concept by Elon Musk. The company's mission is to revolutionize transportation by
developing a system that offers fast, efficient, and sustainable travel. The Hyperloop
concept involves transporting passengers and cargo in capsules through low-
pressure tubes at high speeds, potentially surpassing the speeds of commercial
airliners.
o ConsenSys was founded in 2015 by Joseph Lubin, who was also a co-founder of
Ethereum. The company is a blockchain software technology company based in
Brooklyn, New York. It specializes in developing decentralized applications (dApps)
and various developer and end-user tools for blockchain ecosystems, primarily
focusing on the Ethereum platform.

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