Digital transformation - Artikel: Understanding digital transformation: a research agenda

12 important questions on Digital transformation - Artikel: Understanding digital transformation: a research agenda

Vial (2019) researched what we know about Digital transformation. How does the author define DT?

Digital transformation is defined as a process that aims to improve an entity by triggering significant changes to its prosperties through combinations of information, computing, communication, and connectivity technologies.

What is the conceptual definition of DT by the article?

a process that aims to improve an entity by triggering significant changes to its properties through combinations of information, computing, communication, and connectivity technology

Vial (2019) developed a framework in which the building blocks of a DT process on the organizational level is described. How is DT defined in this context?

Based on the framework it can be described at the organizational level as organizations responding to changes (disruptions) using digital technologies to alter their value creation processes. These value creation processes include changes in the value creation paths, also affected by structural change and organizational barriers. This results in negative and positive impacts.
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One of the building blocks is disruptions. What are the three disruptions discussed by Vial (2019)?

- Consumer behavior and expectations
Due to increased access to information and communication capabilities, consumers became an active participant in the dialogue between organization and stakeholders with increasing expectations.

- Competitive landscape
Digital technologies disrupt markets by new (re)combination possibilities, new forms of digital offerings and lowering barriers to entry.

- Availability of data
beyond the operational value, DT is also able to generate data and use it to exploit potential or sell it.

What are the three types of disruptions?

  1. Consumer behaviour and expectations
  2. Competitive landscape
  3. Increasing the availability of data

What is the difference between the following value network strategies: disintermediation, remediation and network-based mediation?

Disintermediation; direct exchange among participants of a value network.

Remediation; close collaboration and coordination among participants, e.g. Using a platform.

Network-based mediation; complex relationships among multiple stakeholders.

Value creation paths: what are the four prominent changes to compete in the digital world?

  1. Value propositions (new)
  2. Value networks (1. Disintermediation - direct exchanges 2. Remediation - close collaboration 3. Network-based - stakeholders)
  3. Digital channels (distribution and sales)
  4. Agility and ambidexterity (adapt to changes in the environment)

Vial (2019) refers to four important structural changes to create the new value creation paths. What are these structural changes?

- Organization structures, in which she argues that a separate silo needs to be developed to be flexible for innovation.
- Organizational culture, in which she argues that a digital culture needs to be developed which is characterized by the willingness to experiment and take risks with digital technologies.
- Leadership; to develop a digital mindset
- Employee role and skills; roles that were traditionally outside of their functions.

What are important structural changes

  1. Organizational structure (organization and IS strategy together)
  2. Organizational culture
  3. Leadership (create a digital mindset)
  4. Employee roles and skills (roles that were traditionally outside of their function --> Develop analytical skills)

As barriers fo DT at the organizational level Vial (2019) describes inertia and resistance. Elaborate on these

Inertia refers to the existing resources and capabilities acting as barriers. The structural components of an organization, tangible and intangible are so embedded in the everyday life practices that they limit innovation and disruptive power of digital technologies.

Resistance; people are innovation tired, resisting further change.

What are the positive impacts on both organizational and societal level, and what are the negative effects on societal level?

Positive effects;
- Organizational level; operational efficiency and organizational performance.
- Industry/societal; improving quality of life, e.g. Healthcare

Negative effects;
- security and privacy

Vial (2019) describes a research agenda including two main avenues with which strategic implications of DT and dynamic interrelations can be better understood. What are those two main avenues?

1. How dynamic capabilities contribute to DT, including:
- Org. Dynamics capabilities to support ongoing DT in a firm
- Role of integrative capabilities in the context of platforms and ecosystems
- how DT unfolds in practice (micro)

2. Strategic importance of ethics in the context of DT

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