Navigating Digital Transformation in Management

Richard Busulwa (PhD, MBA, B.Info.Sys) researches and teaches in the Business School at Swinburne University of Technology, home to Australia’s first fully immersed Industry 4.0 facility. His digital transformation research explores different digital technology advancements, how they drive disruption, and their implications for particular industries, business functions, and professions. He is the author of Strategy Execution and Complexity: Thriving in the Era of Disruption (2018); Start-up Accelerators: A Field Guide (2020); Digital Transformation and Hospitality Management (2021); and Digital Transformation in Accounting (2022). Before entering academia, Richard worked as managing director, COO, CFO, middle manager, and frontline manager. He is co-founder of Digital Keys, the world’s first NBIoT smart lock platform.

• Contents List of figures List of tables Part I Digital disruption and the digital transformation imperative 1 Need for this book and research for this book Need for this book Research for this book Structure of this book How to use this book Lears, managers, and supporting professionals Instructors Students Researchers 2 Getting out of the digital terminology zoo Introduction Information systems (IS)Components of an information system Roles of information systems Types of information systems Information technology (IT) and information communications technology (ICT) Strategic information systems and digital technologies Strategic information systems Digital technologies Implications for leaders, managers, and supporting professionals Google and reflect Discussion questions 3 Understanding Digital Disruption Introduction Digital technology advancements and digital disruption Digital technology advancements Digital technology advancements as a source of digital disruption Unpacking digital disruption Disruption of customer expectations and behaviors Disruption of the competitor field and bases of competition Disruption of data availability Existential threats and game changing opportunities Existential threats Game changing opportunities Implications for the leaders, managers, and supporting professionals Google and reflect Discussion questions 4 The digital business and digital transformation imperatives Introduction Digital business Pinning down a slippery term Digital business as a future state Digital business as a change journey or change process Benefits of being a digital business The digital business imperative Digital business transformation Defining digital business transformation Digital business transformation is not just about digital technologies Challenges and risks of digital business transformation The digital transformation imperative Implications for leaders, managers, and supporting professionals Google and reflect Discussion questions Part II Forming and executing digital transformation strategy 5 Forming digital transformation strategy Introduction Learning objectivesDigital Transformation strategy vs digital business strategy Digital Transformation Strategy Caveats Digital transformation is not a single initiative and does not have an overall end state Solutions, requirements, and technologies change fast and continuously during digital transformations It’s extraordinarily easy and dangerous to buy into the hype or cynicism relating to one or more digital technology advancements Among all the changes required, people and cultural changes are the most important Knowing the point at which things are mature enough and should scale is a test of real understanding Digital transformations can’t wait and won’t happen overnight Digital transformation can be financially ruinous, but it doesn’t have to be Digital transformation isn’t just for big companies Traditional IT departments or equivalent technology teams are vital to digital transformation Digital transformation is ultimately about both keeping and creating customers through offering better value Forming the initial and subsequent Strategy Forming the initial digital business strategy and digital transformation strategy Forming the initial digital business strategy Forming the initial digital transformation strategy Subsequent digital business strategy and digital transformation strategy 6 Executing digital transformation strategy Introduction Learning objectivesPrinciples for executing digital transformation Secure ownership and/or top management team commitment Secure Adequate investment Set clear targets or deliverables that are externally benchmarked wherever possible Find ways to continuously and effectively involve, engage, and regularly communicate with all internal and external stakeholders Sequence initiatives so as to continuously deliver value and to build the confidence of the wider organization Get implementation feedback early and continuously Observe and measure the right things, then leverage insights to inform transformation decisions Encourage and promote fast, adaptable, and customer centric ways of working Appoint a leadership team that can effectively influence/lead stakeholders, can attract top talent, and can execute the digital transformation strategy Effective processes or approaches for executing digital transformation strategy Agile program and project management approaches Hoshin Kanri or Lean strategy deployment Change acceleration process Simple rules process Reverse acquisition approaches Implications for leaders, managers, and supporting professionals Part III Leadership and management of digital transformation 7 Building and Leading the Digital Transformation Team Introduction Learning objectivesRequired types of roles and expertise for the digital transformation team Strategic leader or Principal digital transformation leader (e.g., CDO, COO, CIO, CTO) Technology leaders and Technology specialists Technology Implementation leads Customer experience and engagement specialists Security and compliance specialists Business-Technology Liaisons Project managers and change managers Digital business capability leaders and specialists Specialist professional services Implications and Caveats 8 The Digital disruption and transformation of management IntroductionLearning objectives Management Functions and Roles Resilience of Fayol’s management functions Mintzberg’s ten managerial roles Digital disruption and transformation of management functions, roles, and competencies 9 Keeping up with the pace of technology changes IntroductionLearning objectives Importance and challenge of keeping up with digital technologies Common strategies and practices for keeping up with digital technologies Strategies and practices from the research on technological knowledge renewal effectiveness Perceived need for digital technology competencies, appreciation of the technology learning challenge, and tolerance for ambiguity Learning from external experts and learning from internal experts Strategies and practices from practitioners Have an evolving plan for managing information overload Continuously upgrade your learning efficiently Choose the right learning platforms Embrace omnichannel learning Build and leverage thought leaders on social networks Configure your search engines, social media, and email subscriptions Have an effective and sustainable personal information management strategy Participate in hackathons and accelerators Volunteer for a startup Implications for leaders/managers/supporting professionals Google and reflect Discussion questions Part IV Understanding digital business capabilities: Primers for leaders and managers 10 Digital Transformation strategy and Digital Business Strategy Capabilities Introduction Learning objectivesUnderstanding digital business strategy Understanding Digital Transformation Strategy Implications for leaders, managers, and supporting professionals Google and reflect Discussion questions 11 Digital Innovation, digital learning, and Adaptability/Agility capabilities Introduction Learning objectivesDigital innovation Digital innovation vs traditional innovation Implications for leaders and managersDigital Learning Digital learning vs traditional learning Implications for leaders, managers, and supporting professionals Adaptability and ability Implications for leaders, managers, and supporting professionals Google and reflect Discussion questions 12 Digital customer experience, digital customer engagement, and digital stakeholder engagement capabilities Introduction Learning objectivesDigital customer engagement and Digital Stakeholder Engagement Digital Customer Engagement Digital stakeholder engagement Implications for leaders, managers, and supporting professionals Digital customer experience Implications for leaders, managers, and supporting professionals Google and reflect Discussion questions 13 Enterprise architecture management, DT adoption and use, and data management/data analytics/data science capabilities Introduction Learning objectivesEnterprise architecture and enterprise architecture management Enterprise Architecture Enterprise Architecture Management Implications for leaders, managers, and supporting professionals DT adoption and use Implications for leaders, managers, and supporting professionals Data Management, Data Science, and Data Analytics Data Management Data Analytics and Data Science Implications for leaders, managers, and supporting professionals Google and reflect Discussion questions 14 Cybersecurity management, digital risk management, and digital governance capabilities IntroductionLearning objectives Cybersecurity management Cybersecurity Cybersecurity capability and cybersecurity management capability Implications for leaders, managers, and supporting professionals Digital risk management and digital governance Digital risk management and digital governance vs traditional risk management and governance Nature of digital risk and the new risk landscape Role of digital technologies in digital risk management and governance Implications for leaders, managers, and supporting professionals Google and reflect Discussion questions 15 Workforce digital competence, digital culture, and digital ethics capabilities Introduction Learning objectivesWorkforce digital competence Implications for leaders, managers, and supporting professionals Digital culture Implications for leaders, managers, and supporting professionals Digital ethics Information privacy Implications for leaders, managers, and supporting professionals Google and reflect Discussion questions 16 Digital Leadership and Accelerated change/transformation capabilities Introduction Learning objectivesDigital leadership Digital leadership vs. traditional leadership The new or adapted leadership roles of digital leadership Implications for leaders, managers, and supporting professionals Accelerated change and transformation Google and reflect Discussion questions Part V Understanding digital technologies: primers for leaders and managers 17 Data, big data, and data management primer Introduction Learning objectivesData Data as the new oil Types of data Data risks and other issues Big data Data management Google and reflect Example tools and vendors Discussion questions 18 Business intelligence, data analytics, and data science primerIntroduction Learning objectivesBusiness intelligence and business analytics Business intelligence Business analytics Data analytics and data science Data analytics Data science Data visualization Implications for leaders, managers, and supporting professionals Google and reflect Example tools and vendors Discussion questions 19 Internet of Things (IoT), Industry 4.0, smart things, and edge computing primer IntroductionLearning objectives Internet of things (IoT) and internet of everything (IoE) Internet of things Internet of everything Connected vs. smart vs. autonomous Edge computing and the IoT edge Industrial internet of things (IIoT) Cyber-physical systems, the Fourth Industrial Revolution, and Industry 4.0 Smart buildings, smart workspaces, and smart homes Smart buildings Smart workplaces Smart homes Smart infrastructure, smart cities, and smart government Smart infrastructure Smart cities Smart government Risks and other issues Google and reflect Example tools and vendors Discussion questions 20 Artificial Intelligence Primer Introduction Learning objectivesArtificial intelligence (AI) and machine learning (ML) Artificial intelligence General AI vs. narrow AI Bots Machine learning Knowledge graphs, neural networks, and deep learning Knowledge graphs Neural networks and deep learning Natural language processing, speech recognition, and computer vision Natural language processing and speech recognition Computer vision Expert systems Common AI issues and risks Implications for leaders, managers, and supporting professionals Google and reflect Example tools and vendors Discussion questions 21 Blockchain and other distributed ledger technologies primerIntroduction Learning objectivesDistributed ledger technology (DLT) Blockchain What it is and how it works Other blockchain terminology Append-only data structure Permissionless vs. permissioned blockchain Mining vs. miners Proof of work Public key vs. private key Genesis block Smart contract Types of blockchain Public blockchains Private blockchains Consortium or federated blockchains Hybrid blockchains Blockchain applications and use cases Cryptocurrency Smart contracts Banking Data storage Other applications Implications for leaders, managers, and supporting professionals Google and reflect Example tools and vendors Discussion questions 22 Video content analytics, computer vision, and machine vision primer Introduction Learning objectivesVideo analytics or video content analytics (VCA) What is video analytics or video content analytics (VCA)? How video content analytics works Computer Vision (CV) and Machine vision (MV) Business value of VCA and computer vision Example VCA / computer vision / machine vision use cases Google and reflect Example tools and vendors Discussion questions 23 Video content analytics, computer vision, and machine vision primer IntroductionLearning objectives Virtual reality (VR) Augmented reality (AR) Mixed reality (MR) Business value of VR, AR, and MR Google and reflect Example tools and vendors Discussion questions 24 Robots and robotics primer Introduction Learning objectives Robots and robotics Building blocks of robots How robots work Types of robots Business value and use cases of robotics Google and reflect Example tools and vendors Discussion questions 25 Drones primer Introduction Learning objectives Key drone concepts and building blocks What is a drone? Building blocks and functioning of drones Business value and use cases of drones Google and reflect Example tools and vendors Discussion questions 26 3D and 4D printing primer Introduction Learning objectives Key 3D/4D printing concepts and building blocks What are 3D and 4D printing? Building blocks and functioning of 3D and 4D printing Types of 3D printers 3D or 4D printing business value and use cases 3D and 4D printing issues and risks Google and reflect Example tools and vendors Discussion questions 27 6G, 5G, 4G, LTE and other cellular networks primer Introduction Learning objectives Cellular networks and how they work 4G, LTE, and other cellular networks 5G and 6G cellular networks Google and reflect Example tools and vendors Discussion questions 28 GPS III or GPS block III and low Earth orbit satellites primerIntroduction Learning objectives GPS and GPS III and other global navigation satellite systems (GNSS) Low Earth orbit (LEO) satellites Google and reflect Example tools and vendors Discussion questions 29 NBIoT, LoRa, Sigfox and other LPWAN technologies primer IntroductionLearning objectives LPWAN technologies NBIoT LTE-M LoRa/LoRaWAN Other LPWAN technologies Google and reflect Example tools and vendors Discussion questions 30 NFC, Smart Bluetooth, iBeacon and other communication protocols primer Introduction Learning objectives NFC, Smart Bluetooth, iBeacon, and other communication protocols What is NFC and how does it work? What are Bluetooth 5.0 and Bluetooth Low Energy (BLE), and how do they work? What is beacon technology and how does it work? Google and reflect Example tools and vendors Discussion questions Figures 2.1 Components of an information system 2.2 Types of information systems, including example systems and example users 3.1 Kodak failed to effectively respond to disruption from digital cameras and smartphones, despite creating the technology behind them (Kodak invented the first digital camera in 1975) 3.2 Digital technology advancements cause digital disruption but can be leveraged to respond to disruption and recreate value offerings and capabilities 4.1 Digital business maturity models, like this one, attempt to map where an organization is along various digital business capabilities or outcome areas 4.2 Digital business transformation is not just about using digital technologies; it is also about changing organization structures, overcoming change barriers, and managing both digital risks and change risks 5.1 Example initial digital business strategy for a building / construction firm 5.2 Example initial digital transformation strategy for a building / construction firm 5.3 Subsequent digital business and digital transformation strategy is largely about building and optimizing prioritized digital business capabilities 6.1 The Hoshin Planning, Hoshin Kanri, or lean strategy deployment process 6.2 The Change Acceleration process 6.3 The Simple Rules process 8.1 Managerial functions as commonly conceptualized today evolved from Fayol’s research introduced in 1916 8.2 Mintzberg’s ten roles of managers 11.1 Digital business requires new organization capabilities or enhancements of traditional capabilities 12.1 Traditional customer engagement vs. digital customer engagement 12.2 A research-derived taxonomy of digital customer engagement practices 13.1 Example Enterprise Architecture Governance Model 14.1 Ten messages for global leaders from the 2019 World Economic Forum annual meeting on cybersecurity 14.2 NIST cybersecurity capability functions and practices 16.1 Results of a survey of 3,300 MIT Sloan Management Review readers, Deloitte Dbriefs webcast subscribers, and other interested parties regarding what is different about working in a digital business environment 16.2 Results of a survey of 3,300 MIT Sloan Management Review readers, Deloitte Dbriefs webcast subscribers, and other interested parties regarding the most important skill leaders need to succeed in a digital workplace 16.3 Having working knowledge of accelerated change and transformation methodologies like the Change Acceleration Process can be an invaluable tool in digital leaders’ rapid change and transformation arsenal 17.1 An example of different types of data 17.2 Example of sources of big data 18.1 Data management, business intelligence, business analytics, and data science overlaps 18.2 Data-related roles and type of expertise 19.1 The internet of everything extends the internet of things by connecting people, processes, data, and things 19.2 Edge computing brings computation and data storage to the locations where they are needed, instead of requiring sensor data to be sent to the cloud and waiting for the cloud to send the results of computation back to the location 19.3 Cities around the world and their smart city (SC) maturity (e.g., if they have a smart city roadmap or smart city department, and the presence of key smart city domains or application areas) 20.1 Types of AI, their capabilities, and implications for human beings 20.2 Part of a knowledge graph of US politics 20.3 A simple neural network vs. a deep learning neural network 20.4 Computer vision can enable self-driving cars to “see” better than humans 21.1 Each blockchain block contains some data, the hash of the block, and the hash of the previous block. 21.2 A chain of blocks, with each block other than the genesis block having the hash of the previous block 21.3 The funds transfer process in a traditional digital ledger vs in a blockchain network 22.1 An example of VCA/computer vision software developed by Voxel51 22.2 An example of VCA/computer vision software recognizing both people and actions/events 22.3 Computer vision can enable self-driving cars to “see” better than humans 23.1 Using a HoloLens 2 headset 25.1 Components of a drone 25.2 NASA’s proposed space for drone operation: below aircraft space and above suburban infrastructure and dwellings 26.3 Anatomy of a basic 3D printer 27.1 How cellular phones work 28.1 Low Earth orbit (LEO), medium Earth orbit (MEO), and geostationary orbit (GEO) 28.2 Types of satellite or orbit, and what they are used for 30.1 An NFC-enabled phone sets up a current, the NFC tag receives the “induced current,” and – recognizing it is a valid signal – offers connection to the phone and begins data transfer Tables 1.1 Key literatures reviewed at each research stage for this book and the focus of each literature review 5.1 Example initial digital business strategy for a building / construction firm 5.2 Example initial digital transformation strategy for a building / construction firm 5.3: Subsequent digital business and digital transformation strategy is largely about building and optimizing prioritized digital business capabilities 9.1 Top learning tools by category and change in ranking from year to year – Part 1 9.2 Top learning tools by category and change in ranking from year to year – Part 2 9.3 Top learning tools by category and change in ranking from year to year – Part 3 11.1 Impact of digital technology advancements on digital innovation and examples of opportunities that can be leveraged 13.1: Example Enterprise Architecture Management Activities, Tasks and Artifacts 13.2 Benefits of effective enterprise architecture management