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Mapping ‘Theories of Success’ for Digitalization

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Digital transformation programs do not have an enviable track record of success. The technical potential of digital technologies is seemingly limitless but it must be grounded in a clear understanding of how the firm creates fundamental values. Systems thinking and modeling provides a powerful approach to developing dynamic business models for operationalizing and communicating the utilization of innovative digital technology.

(Further information: https://www.researchgate.net/publication/322096243_And_Then_a_Miracle_Occurs_-_Engaging_the_challenge_of_operationalizing_theories_of_success_in_digital_transformation)

Veröffentlicht in: Leadership & Management
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Mapping ‘Theories of Success’ for Digitalization

  1. 1. Mapping ‘Theories of Success’ for Digitalization Applied Research at FHNW Michael von Kutzschenbach, PhD 01.09.2018
  2. 2. Prof. Michael von Kutzschenbach, Ph.D. 1st September 2018 2 Going “digital” is an adventure … Digital business transformation is one of the significant managerial challenges in organizational development.
  3. 3. Prof. Michael von Kutzschenbach, Ph.D. 1st September 2018 3 We all have our Theory of Success Source: Drucker, P. (1994, p.96). “The Theory of the Business.” Harvard Business Review, September-October, pp. 95-104
  4. 4. Prof. Michael von Kutzschenbach, Ph.D. 1st September 2018 4 The Challenge of Business Model Innovation “I think you should be more explicit here in step two.” (Picture Source: modified from https://pmpaspeakingofprecision.com/2015/03/17/unknow n-controls-to-protect-you-epa-and-ozone-overreach/) Then A Miracle Occurs … If this is true, how good are we at developing, sharing and adapting useful theories of success?
  5. 5. Prof. Michael von Kutzschenbach, Ph.D. 1st September 2018 5 Report from Reality Source: Kane, G.C., D. Palmer, A.N. Phillips, D. Kiron, and N. Buckley (2015). “Strategy, not Technology, Drives Digital Transformation: Becoming a Digitally Mature Enterprise.” http://sloanreview.mit.edu/projects/strategy-drives-digital-transformation/ Feedback Systems Thinking and Modeling addresses these issues {
  6. 6. Prof. Michael von Kutzschenbach, Ph.D. 1st September 2018 6 Is there an Approach to Make the Theory of Success More Explicit? We think, yes it is. The tool to becoming more explicit is applying feedback systems thinking and modeling to the problem.
  7. 7. Prof. Michael von Kutzschenbach, Ph.D. 1st September 2018 7 What Feedback Systems Thinking means… Target Condition intentional action unanticipated action NonTarget Condition 1 coincident action NonTarget Condition 2 secondary inspired action NonTarget Condition 3 tertiary inspired condition Intentional action is taken here. All actions leave traces ... Some are intentional, most are unintentional ... All traces inspire further actions ...
  8. 8. Prof. Michael von Kutzschenbach, Ph.D. 1st September 2018 8 Mastering Complexity and (Un)Intended Consequences When experiements in the real world are impossible, systems thinking and modeling become the main way we can learn effectively about the dynamics of complex systems. (Picture Source: personal exchange with Federico Cosenz)
  9. 9. Prof. Michael von Kutzschenbach, Ph.D. 1st September 2018 9 Readings: Contact:  University of Applied Sciences and Arts Northwestern Switzerland (FHNW) michael.vonkutzschenbach@fhnw.ch, T: +49 172 15 23 713; Twitter: @MvKutzschenbach Systems Thinking and Modeling Resources Meadows, H.D. (2008). Thinking in Systems: A Primer. Vermont: Chelsea Green Publishing. Morecorft, J D.W. (2015). Strategic Modelling and Business Dynamics: A feedback systems approach. 2nd edition, West Sussex: John Wiley & Sons Ltd. Sterman, J.D. (2000). Business Dynamics: Systems Thinking and Modeling for a Complex World. McGraw Hill. von Kutzschenbach, M. (2018). “And Then a Miracle Occurs … - Engaging the challenge of operationalizing theories of success in digital transformation”, Journal of Systemics, Cybernetics and Informatics (JSCI), 15 (6), pp. 101-105.