Digital Transformation and
Strategic Innovation
Articles
,Table of Contents
Week 1: Setting the Stage: Organizing for digital transformation 3
Fitzgerald, M., Kruschwitz, N., Bonnet, D., & Welch, M. (2014). Embracing digital technology: A new
strategic imperative. 3
Furr, N., & Shipilov, A. (2019). Digital doesn’t have to be disruptive: the best results can come from
adaptation rather than reinvention. 4
Week 2: Digital Strategy: Strategy frameworks in today’s digital world 5
Brynjolfsson, E., Hu, Y.J., & Smith, M.D. (2006). From niches to riches: anatomy of the long tail. 5
Porter, M.E. (2001). Strategy and the Internet. 6
Van Alstyne, M.W., Parker, G.G., & Choudary, S.P. (2016). Pipelines, platforms, and the new rules of
strategy. 9
Week 3: Digital Business Models: from digital strategy to new business models 11
Baden-Fuller, C., Giudici, A., Haefliger, S., & Morgan, M.S. (2017). Business models and value: theoretical
types, scale and scope. 11
Week 4: Levers of Digital Transformation: management, organization form, technology and co-creation 13
Birkinshaw, J. (2018). What to expect from agile. 13
Shrestha, Y.R., Ben-Menahem, S.M., & Von Krogh, G. (2019). Organizational decision- making structures
in the age of Artificial Intelligence. 14
Week 5: Enablers and Inhibitors of digital transformation 16
Nell, P. C., Foss, N. J., Klein, P. G., & Schmitt, J. (2020). 'Avoiding Digitalization Traps: Tools For Top
Managers'. 16
Lifshitz-Assaf, H., Tushman, M.L., & Lakhani, K.R. (2018). A study of NASA scientists shows how to
overcome barriers to open innovation. 17
Week 6: Journey of Strategic Transformation: Wrap-up 18
Murray, A., Rhymer, J., & Sirmon, D. G. (2020). 'Humans and Technology: Forms of Conjoined Agency in
Organizations'. 18
Cozzolino, A., Verona, G., & Rothaermel, F. T. (2018). Unpacking the disruption process: New technology,
business models, and incumbent adaptation. 22
, Week 1: Setting the Stage: Organizing for digital transformation
Fitzgerald, M., Kruschwitz, N., Bonnet, D., & Welch, M. (2014). Embracing digital
technology: A new strategic imperative.
Companies want the technology thy use to transform their businesses but are unclear on how to get results.
Often they look at successful high-profile examples and wonder what to do to follow suit.
The research focusses on how digital transformation plays out at large companies and determining the digital
maturity at these companies. The companies were categorized as:
- Digirati: Mature at both technology and management
- Fashionistas: Early adopters of technology bit without effective management skills
- Conservatives: Slow to adopt technologies but effective at managing them
- Beginners: Possessing neither advanced technology nor the ability to manage it
The digital imperative
The connected world creates a digital imperative for companies, they must succeed in creating transformation
through technology, or they’ll face destruction at the hands of competitors that do. But it takes time, effort,
and willpower with executives leading the progress. According to 78% of respondents, achieving digital
transformation will become critical to their organizations within the next two years. Almost half of the
employees thinks digital transformation is upon us, and a third say it looms.
Technology everywhere
The rise of the tech-savvy consumer has changed their expectation of companies. Companies should act like
consumer technology companies by updating frequently and responding effectively and quickly to new
technologies. Digirati outperform their rivals by doing this, creating higher profits and market share.
The benefits of digital transformation
Companies that effectively manage digital technology can expect to gain in one or more of three areas:
- Better customer experiences and engagement
- Streamlined operations
- New lines of business or business models
Most companies had success with improving customer relationships through digital technology, followed by
improvements in operations. However, business model transformation did not see a significant improvement.
The trouble with digital transformation
Most companies struggle to get clear business benefits from new digital technologies, lacking both the
management temperament and relevant experience. The research found nine specific hurdles in three areas.
By solving these hurdles, organizations can find ways forward:
- Leadership: Defining the agenda
1. Lack of urgency: Management feels no urgency, but the workers feel the pace is too slow.
2. The vision thing: When senior leaders shared their vision, they had 93% buy in. But only 36% of
respondents said that senior leaders had actually shared their vision for digital transformation.
3. Picking a direction: Creating a roadmap and ensure alignment on this roadmap.
- Institutional challenges
4. Attitudes of older workers: There’s a profound perception older people will have trouble reframing.
5. Legacy technology: Older systems pose challenges, updating and linking to new systems is complex.
6. Innovation fatigue: Employees can get tired of innovation, but it has to be done continuously.
7. Politics: Internal power centers and politics can impede adoption of digital technology.
- Executing the change
8. Making a case for digital transformation: Many organizations struggle to compute ROI: they have
trouble defining how to successfully define KPI’s; lack of management skills to carry through KPI’s;
and needing cultural changes to make KPI’s work.
9. Incentives: Connecting digital transformation to incentives can improve digital transformation,
easing employee concerns about transformation. They tend to be based on “soft” factors like
recognition and personal advancement.
