DIGITAL BUSINESS TRANSFORMATION

DIGITAL BUSINESS TRANSFORMATION

Luca Giustiniano

Obiettivi formativi

In today's rapidly evolving digital landscape, the concept of digital transformation is pivotal. Guided by both theoretical insights and practical cases, this course will delve into the cutting-edge trends and challenges related to digital transformation. Topics such as artificial intelligence, blockchain, digital platforms, and the Internet of Things (IoT) will be explored, focusing on their relationship with people, knowing and organizing. This course aims to unpack the mechanisms behind successful digital transformation initiatives and their critical role in enabling businesses to thrive in a digital-first world. We will address: a) the key technologies guiding digital transformation; b) the challenges and opportunities it presents for businesses; c) how to manage the change and implication for organizations. Through this course, participants will obtain a deeper understanding of what is digital transformation and of how to manage it. The course will combine the transfer of academic knowledge with the acquisition of inquiry-based skills. In fact, students will engage in a group project, through which they will be asked to analyze a case of digital transformation in real organization. During the semester, students will be guided in turning their ideas in a feasible project. Through this activity students will also learn by experimenting analytical rigor and reflexivity.

Risultati di apprendimento attesi

Knowledge and understanding. The course will offer key conceptual tools understand and manage digital transformation in organizational settings. This course provides foundational knowledge and analytical resources that will enable students to understand the technology involved in the process, the difficulties of enacting change and consequences of organizational decisions to be implemented on a global scale. Applying knowledge and understanding. Students will be able to: • comprehend the challenge, key trends and nature of digital transformation • analyze the pro and cons associated with digital transformation • improve digital transformation efforts by recognizing related barriers Making judgements. We expect students to be able to dissect complex organizational issues, analyze them and propose solutions. They are expected to be able to discuss and evaluate key organizational choices. Throughout the whole course, students will be invited to critically analyze when, how and why certain organizational choices are pursued. Communications Skills. This course will give the students the possibility to acquire and understand major terms and concepts in order to communicate their ideas, proposals, analysis and critical reasoning in the field of organization design and human resource management. Via the Project Work students will be asked to acquire also communication skills. Learning skills. This course will empower learners giving them the tools to determine why certain organizational choices are made and how different alternatives are assessed. Via the Project Work students will learn the “language and the rigor” or inquiry-based activities.

Contenuti Del Corso

This course introduces students to foundational contents of digital transformation. The goal is to discuss the key technological trends driving digital transformation, their impact on organizations, foundational aspects of how to manage organizational change and individuals’ acceptance of new technologies and key implication of digital transformation on organizational structures and organizing in general. The course materials consist of readings and case studies. The texts and ideas are from various disciplines, including management, information systems and sociology.

Testi Di Riferimento

As reported in the syllabus, week by week. Attending students must refer to the compulsory readings; non-attending students or students declining either the grade of the individual assignment or the project work evaluation (see later) must consider also supplementary readings as mandatory. Before each lesson the students are expected to read the mandatory reading(s), prepare cases and movies as indicated. Unless covered by copyright restrictions, mandatory readings are available via the Luiss Learn on-line platform (i.e., some HBR cases must be acquired by students).

Metodologie Didattiche

Students’ participation during classes is strongly encouraged. In-class activities are synergically complementary to conceptual classes. - Lectures 50% - in class activities, case discussion 25% - Project works 25% Teaching activities integrate explanation of concepts with the analysis of business cases performed by both the instructors and the students. Students will be required to join in-presence training sessions and analyze or discuss, individually or within small groups, case studies focused on the resolution of organizational problems and the definition of the different organizational configurations that can be adopted in different strategic and environmental contexts. These sessions are useful to evaluate students’ ability to put into practice the methods of organizational design and analysis acquired during the lectures.

Modalità di verifica dell'apprendimento

Group project (Project Work): 50% Individual assignment: 20% Final exam: 30% Group project (Project Work): Students will be asked to choose one between three challenges of business transformation. Each of the challenges is related to the project of implementing a new digital technology within an established business. At the end of the projects will be presented by their respective group at the end of the course. Individual Assignment: 5 ChatGPT on 5 topics will be provided. Using the knowledge acquired during the course, students will have to choose a topic for and to critically review ChatGPT's response. Critically reviewing will involve revising the response in light of the concepts and knowledge acquired during the lessons and writing a paragraph of self-reflection on the process. (Max 500 words critical review, max 250 words critical reflection). Final exam: questions focused on applying the theoretical concepts to a business case. For non-attending student the questions will also concern topics part of the supplementary material

Criteri per l’assegnazione dell’elaborato finale

Not having refused a grade above 23/30; no further specific requirements: the sooner the better for choosing subject and methodology. Master thesis assignment is based on a project presented by the student. The project (2/3 pages) must include: • Table of contents • Abstract • Main references

Settimana 1

FRAMING DIGITAL TRANSFORMATION Topics • What is digital transformation • Why is it important • Digital transformation impact on organizations READINGS (COMPULSORY): Bonnet, D., & Westerman, G. (2020). The new elements of digital transformation. MIT Sloan Management Review, 62(2). Kretschmer, T., & Khashabi, P. (2020). Digital transformation and organization design: An integrated approach. California Management Review, 62(4), 86-104. READINGS (SUPPLEMENTARY): Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of business research, 122, 889-901.

Settimana 2

KEY TECHNOLOGICAL TRENDS IN DIGITAL TRANSFORMATION: BLOCKCHAIN TECHNOLOGY AND IOT BASIC AND APPLICATION Topics • Foundations of Blockchain technologies • Blockchain technology impact on organizations • Foundations of IoT • Linking Blockchain technology and IoT • Synthetic knowing READINGS (COMPULSORY): Lacity, M., & Van Hoek, R. (2021). What we’ve learned so far about blockchain for business. MIT Sloan Management Review, 62(3). Monteiro E, Parmiggiani E (2019) Synthetic knowing: The politics of the Internet of things. Management Inform. Systems Quart. 43(1):167–184. READINGS (SUPPLEMENTARY): Lumineau, F., Wang, W., & Schilke, O. (2021). Blockchain governance—A new way of organizing collaborations?. Organization Science, 32(2), 500-521. Lu, Y., Papagiannidis, S., & Alamanos, E. (2018). Internet of Things: A systematic review of the business literature from the user and organisational perspectives. Technological Forecasting and Social Change, 136, 285-297. Michelman, P. (2017). Seeing beyond the blockchain hype. MIT Sloan Management Review, 58(4), 17.

Settimana 3

KEY TECHNOLOGICAL TRENDS IN DIGITAL TRANSFORMATION: ARTIFICIAL INTELLIGENCE IN ORGANIZATIONS BASIC AND APPLICATION Topics: • Foundations of Artificial intelligence technology • What’s new about AI technology • Automation, augmentation and paradox perspective of AI READINGS (Compulsory) Shrestha, Y. R., Ben-Menahem, S. M., & Von Krogh, G. (2019). Organizational decision-making structures in the age of artificial intelligence. California management review, 61(4), 66-83. Iansiti, M., & Lakhani, K. R. (2020). Competing in the age of AI. Harvard Business Review, 3. READINGS (Supplementary) The state of AI in 2023: Generative AI’s breakout year (2023). Chui, M., Yee, L., Hall, B., & Singla, A. McKinsey. Raisch, S., & Krakowski, S. (2021). Artificial intelligence and management: The automation–augmentation paradox. Academy of management review, 46(1), 192-210.

Settimana 4

IMPACT OF ARTIFICIAL INTELLIGENCE ON ORGANIZATIONAL PROCESSES Topics: • Human-AI collaboration • The role of algorithmic brokers • AI impact on organizations READINGS (COMPULSORY) Waardenburg, L., Huysman, M., & Sergeeva, A. V. (2022). In the land of the blind, the one-eyed man is king: Knowledge brokerage in the age of learning algorithms. Organization science, 33(1), 59-82. READINGS (SUPPLEMENTARY) Bankins, S., Ocampo, A. C., Marrone, M., Restubog, S. L. D., & Woo, S. E. (2024). A multilevel review of artificial intelligence in organizations: Implications for organizational behavior research and practice. Journal of Organizational Behavior, 45(2), 159-182. Lebovitz, S., Lifshitz-Assaf, H., & Levina, N. (2022). To engage or not to engage with AI for critical judgments: How professionals deal with opacity when using AI for medical diagnosis. Organization science, 33(1), 126-148.

Settimana 5

IMPACT OF ARTIFICIAL INTELLIGENCE ON ORGANIZATIONAL PROCESSES Topics • Data and algorithms • Knowing in digital age • Organizational implications READINGS (COMPULSORY): Pachidi, S., Berends, H., Faraj, S., & Huysman, M. (2021). Make way for the algorithms: Symbolic actions and change in a regime of knowing. Organization Science, 32(1), 18-41. READINGS (SUPPLEMENTARY): Alaimo, C., & Kallinikos, J. (2022). Organizations decentered: Data objects, technology and knowledge. Organization Science, 33(1), 19-37. Monteiro, E., and E. Parmiggiani. 2019. Synthetic knowing: The politics of the internet of things. MIS Quarterly 43 (1): 167–84.

Settimana 6

FOUNDATIONS OF ORGANIZATIONAL CHANGE • Managing the change • Resistance to change • Organizational change models READINGS (COMPULSORY) Gioia, D. A., & Chittipeddi, K. (1991). Sensemaking and sensegiving in strategic change initiation. Strategic management journal, 12(6), 433-448. Lifshitz-Assaf, H. (2018). Dismantling knowledge boundaries at NASA: The critical role of professional identity in open innovation. Administrative science quarterly, 63(4), 746-782. READINGS (SUPPLEMENTARY) Kotter, J. P. (2007). Leading change: Why transformation efforts fail. Harvard Business Review, 85 (1), pp.96-103

Settimana 7

MANAGING USERS’ ACCEPTANCE OF TECHNOLOGY Topics: • Algorithmic aversion • Relevance vs independence • Implementing technology in organizations READING (COMPULSORY) Van den Broek, E., Sergeeva, A., & Huysman, M. (2021). When the Machine Meets the Expert: An Ethnography of Developing AI for Hiring. MIS quarterly, 45(3). READING (SUPPLEMENTARY) Bankins, S., Ocampo, A. C., Marrone, M., Restubog, S. L. D., & Woo, S. E. (2024). A multilevel review of artificial intelligence in organizations: Implications for organizational behavior research and practice. Journal of Organizational Behavior, 45(2), 159-182. Jussupow, E., Benbasat, I., & Heinzl, A. (2020). Why are we averse towards algorithms? A comprehensive literature review on algorithm aversion.

Settimana 8

DIGITAL PLATFORMS (I) Topics: • What is a digital platform • Algorithmic management READINGS (COMPULSORY) 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.

Settimana 9

DIGITAL PLATFORMS (II) Topics: • Algorithmic management • Actors’ perceptions READINGS (COMPULSORY) Curchod, C., Patriotta, G., Cohen, L., & Neysen, N. (2020). Working for an algorithm: Power asymmetries and agency in online work settings. Administrative science quarterly, 65(3), 644-676.

Settimana 10

NEW ORGANIZATIONAL FORMS: CROWD ORGANIZING Topics: • Organizational trajectories of international evolution • Crowd-open organizing • Crowd-based organizing • Pros and cons of crowd-based organizing READINGS (COMPULSORY): Giustiniano, L., Griffith, L.T., Majchrzak, A. (2019). Crowd-Open and Crowd-Based Collaborations: Facilitating the Emergence of Organization Design. In J. Sydow & H. Berends (Eds): Managing Interorganizational Collaborations – Process Views (Research in the Sociology of Organizations - RSO - Series, ed. by Michael Lounsbury). Griffith, T. L., Majchrzak, A., & Giustiniano, L. (2023). Hyperloop transportation technologies: practices for open organizing across VUCA contexts. Journal of Organization Design. READINGS (SUPPLEMENTARY): Cunha, M.P., Clegg, S., Gaim, M., Giustiniano, L. (2022), Elgar Introduction to Designing Organizations open access, ISBN: 978 1 80392 218 8: Chapter 5 (Less hierarchical organization) and Chapter 7 (Final considerations) HTT – Applegate L. M., Griffith T. L., Majchrzak A. (2017). Hyperloop Transportation Technologies: Building Breakthrough Innovations in Crowd-Powered Ecosystems. Harvard Business School, N9-817-134

Settimana 11

FUTURE DIRECTIONS OF DIGITAL TRANSFORMATION AI-Human interactions Societal ‘platformization’ FINAL ACTIVITIES • Project work presentations • Final observations on digital transformation

Settimana 12

FINAL ACTIVITIES • Project work presentations • Final observations on digital transformation