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Digital transformation and strategic innovation - comprehensive summary papers

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1.1 Furr, N., & Shipilov, A. (2019). Digital doesn’t have to be disruptive: the best results can come from adaptation rather than reinvention. Harvard Business Review, 97(4): 94- 103. 3 1.2 Schallmo, D., Williams, C.A., & Boardman, L. (2017). Digital transformation of business models-best practi...

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  • December 4, 2019
  • 94
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By: jeroenstadler • 3 year ago

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WEEK 1 – ORGANIZING FOR DIGITAL TRANSFORMATION ................................................................................ 2
FURR, N., & SHIPILOV, A. (2019). DIGITAL DOESN’T HAVE TO BE DISRUPTIVE: THE BEST RESULTS CAN COME FROM ADAPTATION
RATHER THAN REINVENTION. HARVARD BUSINESS REVIEW, 97(4): 94- 103. ...................................................................... 2
SCHALLMO, D., WILLIAMS, C.A., & BOARDMAN, L. (2017). DIGITAL TRANSFORMATION OF BUSINESS MODELS-BEST PRACTICE,
ENABLERS AND ROADMAP. JOURNAL OF INNOVATION MANAGEMENT, 21(8): 1740014-1 – 1740014-17. ........................... 3
MATT, C., HESS, T., & BENLIAN, A. (2015). DIGITAL TRANSFORMATION STRATEGIES. BUSINESS & INFORMATION SYSTEMS
ENGINEERING, 5(5): 339-343. ................................................................................................................................. 4
FITZGERALD, M., KRUSCHWITZ, N., BONNET, D., & WELCH, M. (2014). EMBRACING DIGITAL TECHNOLOGY, A NEW STRATEGIC
IMPERATIVE. MIT SLOAN MANAGEMENT REVIEW, 55(2) 1-12. (1). ................................................................................ 6
LECTURE 1.............................................................................................................................................................. 8
WEEK 2 – DIGITAL STRATEGY & BUSINESS MODELS ....................................................................................... 13
BRYNJOLFSSON, E., HU, Y.J., & SMITH, M.D. (2006). FROM NICHES TO RICHES: ANATOMY OF THE LONG TAIL. MIT SLOAN
MANAGEMENT REVIEW, 47(4): 67-71. .................................................................................................................... 13
VAN ALSTYNE, M.W., PARKER, G.G., & CHOUDARY, S.P. (2016). PIPELINES, PLATFORMS, AND THE NEW RULES OF STRATEGY.
HARVARD BUSINESS REVIEW, 94(4): 54-62. ............................................................................................................. 15
RIETVELD, J., SCHILLING, M., & BELLAVITIS, C. (2019). PLATFORM STRATEGY: MANAGING ECOSYSTEM VALUE THROUGH
SELECTIVE PROMOTION OF COMPLEMENTS. ORGANIZATION SCIENCE. ............................................................................. 17
PORTER, M.E. (2001). STRATEGY AND THE INTERNET. HARVARD BUSINESS REVIEW, 79(3): 62- 79. ................................... 18
LECTURE 2............................................................................................................................................................ 20
EISENMANN, T., PARKER, G., & VAN ALSTYNE, M.W. (2006). STRATEGIES FOR TWO-SIDED MARKETS. HARVARD BUSINESS
REVIEW, 84(10): 92-101. ..................................................................................................................................... 25
PORTER, M.E. (2008). THE FIVE COMPETITIVE FORCES THAT SHAPE STRATEGY. HARVARD BUSINESS REVIEW, 86(1): 25-40 .... 27
WEEK 3 ........................................................................................................................................................... 30
BADEN-FULLER, C., GIUDICI, A., HAEFLIGER, S., & MORGAN, M.S. (2017). BUSINESS MODELS AND VALUE: THEORETICAL TYPES,
SCALE AND SCOPE. WORKING PAPER CASS BUSINESS SCHOOL, CITY UNIVERSITY OF LONDON. ............................................... 30
TEECE, DAVID J. (2010). BUSINESS MODELS, BUSINESS STRATEGY AND INNOVATION. LONG RANGE PLANNING, 43: 172-194. 34
THRIVING IN AN INCREASINGLY DIGITAL ECOSYSTEM (WEILL & WOERNER, 2015) ............................................................. 37
LECTURE 3............................................................................................................................................................ 41
SIGGELKOW, N., & TERWIESCH, C. (2019). THE AGE OF CONTINUOUS CONNECTION. HARVARD BUSINESS REVIEW, 97(3) ....... 46
AVERSA, P., HAEFLIGER, S., & REZA, D. (2017). BUILDING A WINNING A BUSINESS MODEL PORTFOLIO. ................................ 48
OPTIMIZING YOUR DIGITAL BUSINESS MODEL - WEILL, P., & WOERNER, S.L. (2013)..PDF .................................................. 49
THE DIGITAL TRANSFORMATION OF TRADITIONAL BUSINESS - ANDAL-ANCION, A. , CARTWRIGHT, P.A., & YIP, G.S. (2003)...... 52
WEEK 4 ........................................................................................................................................................... 54
BERNSTEIN, E., BUNCH, J., CANNER, N., & LEE, M. (2016). BEYOND THE HOLACRACY HYPE. HARVARD BUSINESS REVIEW ...... 54
BIRKINSHAW, J. (2018). WHAT TO EXPECT FROM AGILE. MIT SLOAN MANAGEMENT REVIEW, 59(2), 39-42..PDF................. 56
SHRESTHA, Y.R., BEN-MENAHEM, S.M., & VON KROGH, G. (2019). ORGANIZATIONAL DECISION-MAKING STRUCTURES IN THE
AGE OF ARTIFICIAL INTELLIGENCE. CALIFORNIA MANAGEMENT REVIEW, FORTHCOMING.PDF ................................................ 57
TRABUCCHI, D., BUGANZA, T., DELL'ERA, C., & PELLIZZONI, E. (2018). EXPLORING THE INBOUND AND OUTBOUND STRATEGIES
ENABLED BY USER GENERATED BIG DATA EVIDENCE FROM LEADING SMARTPHONE APPLIC ..................................................... 60
LECTURE 4............................................................................................................................................................ 63
FOUNTAINE, T., MCCARTHY, B. & SALEH, T. (2019) BUILDING THE AI-POWERED ORGANIZATION. HARVARD BUSINESS REVIEW 64
WEEK 5 ........................................................................................................................................................... 67
GALUNIC, C. (2017). DIGITAL JOURNEY. INSEAD KNOWLEDGE. ................................................................................... 67
LIFSHITZ-ASSAF, H., TUSHMAN, M.L., & LAKHANI, K.R. (2018). A STUDY OF NASA SCIENTISTS SHOWS HOW TO OVERCOME
BARRIERS TO OPEN INNOVATION. HARVARD BUSINESS REVIEW (MAY 2018). ................................................................... 72
LECTURE 5............................................................................................................................................................ 73
WARNER, K.S., & WÄGER, M. (2019). BUILDING DYNAMIC CAPABILITIES FOR DIGITAL TRANSFORMATION AN ONGOING PROCESS
OF STRATEGIC RENEWAL. LONG RANGE PLANNING, 52(3) 326-349 ............................................................................... 77

,WEEK 6 ........................................................................................................................................................... 79
ANSARI, S., GARUD, R., & KUMARASWAMY, A. (2016). THE DISRUPTOR'S DILEMMA ........................................................ 79
COZZOLINO, A., VERONA, G., & ROTHAERMEL, F. T. (2018). UNPACKING THE DISRUPTION PROCESS NEW TECHNOLOGY, BUSINESS
MODELS, AND INCUMBENT ADAPTATION. JOURNAL OF MANAGEMENT STUDIES ................................................................. 82
KHANAGHA, S., RAMEZAN ZADEH, M. T., MIHALACHE, O. R., & VOLBERDA, H. W. (2018). EMBRACING BEWILDERMENT
RESPONDING TO TECHNOLOGICAL DISRUPTION IN HETEROGENEOUS MARKET ENVIRONMENTS. JOURNAL ................................. 86
WEILL, P., & WOERNER, S. L. (2018). IS YOUR COMPANY READY FOR A DIGITAL FUTURE. MIT SLOAN MANAGEMENT REVIEW,
59(2), 21-25 ....................................................................................................................................................... 88
LECTURE 6............................................................................................................................................................ 90
DAVENPORT, T. (2018) DELTA PLUS MODEL & FIVE STAGES OF ANALYTICS MATURITY A PRIMER. INTERNATIONAL INSTITUTE
FOR ANALYTICS ..................................................................................................................................................... 92




1

,Week 1 – organizing for digital transformation
Furr, N., & Shipilov, A. (2019). Digital doesn’t have to be disruptive: the best results can
come from adaptation rather than reinvention. Harvard Business Review, 97(4): 94- 103.
The problem
• Many managers believe that digital transformation involves a radical disruption of the
business, new investments in technology, a complete switch from physical to virtual channels,
and the acquisition of tech start-ups.

Why it happens
• Digital technology is being applied to almost every part of company value chains, making it
difficult for managers to identify priorities.

How to fix it
• The authors dispel five critical myths about digital transformation and offer executives a better
understanding of how to respond to current trends.
o Myth and reality (1). Some managers believe that to achieve digital transformation,
they must dramatically alter their company’s value proposition or risk suffering a tidal
wave of disruption. Although some firms might succeed to aspire to be like apple, we
believe that the customer needs most companies serve will look much the same as
before. The challenge is to find the best way to serve those needs using digital tools.
Understanding that digital transformation does not change the reason your business
exists will help you identify that technologies you should focus on.
o Myth and reality (2). There is no doubt that digital often enables the elination of
inefficient intermediaries and costly physical infrastructure. But that doesn’t mean the
physical goes away entirely. Many retailers are finding ways to create a hybrid of
physical and digital that taps into the advantages of each.
o Myth and reality (3). Often companies try to access new technologies or ideas by
acquiring start-ups and then integrating them. This approach risks killing the start-up’s
culture and chasing away the talent acquired during its creation. Smart companies
prefer to build hybrid relationships with start-ups and allow them to operate as semi-
independent businesses.
o Myth and reality (4). Managers often think that digital transformation is primarily
about technology change. Technology change is involved, but smart companies realize
that transformation is ultimately about better serving customer needs, whether
through more-effective operations, mass customization, or new offers. But in reality,
it is about the customer.
o Myth and reality (5). Digital transformation may ultimately require radically altering
back-end legacy systems but starting with a sweeping IT overhaul comes with great
risk. It’s more often about incremental bridging. Smart companies find a way to quickly
develop front-end applications with slowly replacing their legacy systems in a modular,
agile fashion.
• The keys to success have been a focus on customer needs, organizational flexibility, respect
for incremental change, and awareness that new skills and technology must be not only
acquired but also protected.




2

,Schallmo, D., Williams, C.A., & Boardman, L. (2017). Digital transformation of business
models-best practice, enablers and roadmap. Journal of Innovation Management, 21(8):
1740014-1 – 1740014-17.
Abstract
• The purpose of this paper is to clarify the definition of digital transformation (DT) and to
introduce a structured approach with phases, activities and results. The main findings are that
although DT is a widely known concept, an approach for the structured DT of business models
is missing. The paper offers a clear definition of the DT of business models and phases for the
DT of business models.

Defining DT
Based on the literature, we propose the following definition of DT for our research:
• The DT framework includes the networking of actors such as businesses and customers across
all value-added chain segments, and the application of new technologies. As such, DT requires
skills that involve the extraction and exchange of data as well as the analysis and conversion
of that data into actionable information. This information should be used to calculate and
evaluate options, in order to enable decisions and/or initiate activities. In order to increase the
performance and reach of a company, DT involves companies, business models, processes,
relationships, products, etc.

Approach to the DT of business models
A roadmap is given here based on the presented approaches to DT and based on existing theories
about business model innovation, the roadmap for the DT of business models is explained as follows:
1. Digital reality: the company’s existing business model is sketched along with a value-added
analysis related to stakeholders and a survey of customer requirements. Provides an
understanding of digital reality for this company in different areas.
2. Digital ambition: based on the digital reality, objectives with regards to DT are defined. Digital
ambition put forward which objectives should be considered for the business model.
3. Digital potential: best practices and enables for the DT are established. This serves a starting
point in terms of digital potential and the design of a future digital business model.
4. Digital fit: looks at options for the design of the digital business model, which are evaluated to
determine digital fit with the existing business model.
5. Digital implementation: includes the finalization and implementation of the digital business
model.

Enablers:
Enablers serve to allow applications or services to be used for the DT of the business model. Four
categories for enablers and applications/services are detailed below:
• Digital data: the collection, processing, and analysis of digitized data to facilitate and improve
predictions and decisions.
• Automation: the combination of classical intelligence technologies that enables autonomous
work and self-organizing systems. This reduces error rates, increases speed, and makes it
possible to reduce operating systems.
• Digital customer access: the mobile internet enables direct access to the client, who are thus
provided with high level transparency and new services.
• Networking: mobile or wired networking of the entire value-added chain via high speed
broadband telecommunications allows for the synchronization of supply chains, which leads
to a reduction in production times and innovation cycles.
The digital radar can supplement more enablers and applications/services as needed.




3

, Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business &
Information Systems Engineering, 5(5): 339-343.
Firms conduct a number of initiatives to explore new digital technologies and to exploit their benefits.
Transformation comes around in this process. Companies therefore need to establish management
practices to govern complex transformations. It serves a central concept to integrate the entire
coordination, prioritization, and implementation of digital transformations within a firm.
But academia lacks specific guidelines for firms on how to formulate, implement and evaluate
digital transformation strategies.

Digital transformation is not the same as IT strategy
Digital transformation strategy IT strategy
Business centric perspective = strategies focus on the Mostly define current and future operational activities, the
transformation of products, processes and organizational necessary application systems and infrastructures and the
aspects owing to new technologies. organizational financial framework for providing IT to carry out
business operations.



Scope is more broadly designed and includes digital activities Focus on the management of the IT infrastructure, with rather
at the interface of customers limited impact on driving innovations in business development


Include changes to and implications for products, and Restricts product-centric and customer-centric opportunities
business models as a whole that derive from new technologies

Account for the transformation of products processes and Presents a systems centric road map to the future uses of
structural aspects that go along with the integration of technologies.
technologies.

IT strategies, Digital transformation strategies and
organizational and functional strategies need a close
fit.

IT strategies and business strategies are ‘’digital
business strategies’’.

So, while digital business strategies often describe
desired future business opportunities and strategies for firms that are partly or fully based on digital
technologies, they do typically not include transformational insights on how to reach these future
states. In contrast, a digital transformation strategy is a blueprint that supports companies in governing
the transformations that arise owing to the integration of digital technologies, as well as in their
operations after a transformation.

2 perspectives on Digital Transformation strategies
1. Dimensional aspect: To define digital transformation strategy we first need to define which content
aspects digital transformation strategies should consist of.




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