Digital transformation encompasses an organization's ability to adapt, respond, and position itself for success in the face of rapid technology evolution. A critical structure in achieving successful digital transformation is the digital project team, yet there is little research to study how they are created and developed. Much of the focus has been on agile methodologies and processes but there is less research to inform organizations on digital team dynamics such as roles, empowerment, learning, and leadership development. This article describes our findings from a multi-level study of the IT function of 60 companies, including fieldwork at 5 company sites involving more than 130 semistructured interviews with senior level IT professionals. We identify four essential team-based levers that enable digital transformation: (1) diverse and targeted team composition, (2) iterative goal setting, (3) continuous learning, and (4) talent management. Using company examples and practices, we describe how digital leaders are using these levers to propel their organizations forward in the journey toward digital transformation.
Marketers are currently facing a 'crisis of immediacy' challenge: how to meet consumers' need to receive content, expertise, and personalized solutions in real time during their shopping experience. Today's digital technologies-such as video conferencing, location-based mobile apps, and augmented reality-provide a highly personalized and immersive environment that allows for interactivity and rich information exchange between the brand and consumer. We conducted in-depth interviews with over 35 retailers, large-scale surveys with international shoppers, and pilot projects with stores and banking institutions to study how companies are leveraging digital technologies to transform the customer experience. Our findings show that there are two main technology-based models that organizations are deploying to support customers' immediate needs: the remote expert and the digital assistant. We provide company examples of both models, as well as when they are most appropriate and success factors to inform managers.
Enabled by enterprise social software (ESS), online corporate communities are shaking up the management world by revolutionizing many core organizational activities. By creating new channels of interaction among employees, customers and managerial echelons, ESS solutions are democratizing the decision-making process. Many prominent companies see this favourably, which is why they actively use ESS platforms such as Yammer — a private social network that helps employees collaborate across departments, locations and business apps — to transform innovation, talent management, marketing and CSR practices. But democracy in business is a double-edged sword. And when it comes to empowering the corporate masses to heavily influence the decision-making process via ESS, it remains unclear when the C-suite benefits and when it doesn’t. <br><br> This article aims to raise awareness of the perils associated with decision democratization and help managers identify the conditions in which ESS platforms complement the decision-making process and those conditions in which online communities fall short in making a true contribution. We provide a framework to discuss the optimum role of ESS platform functionality for three different types of decision making: operational, tactical and strategic. Our research indicates that there is no question that ESS should indeed be exploited for some intra-firm decision making, but that companies need to be very wary of democratizing the strategic decision-making process.
The Weather Company (TWC) was innovating by leveraging its big data on weather to create new consumer products. Weather was the original big data problem and over the years, TWC has capitalized on this data with its engaging TV coverage on The Weather Channel, as well as its popular website and mobile app. Recently, looking for new uses for its weather data, the company decided to build weather-related apps targeting outdoor enthusiasts. To crowd-source ideas for these apps, TWC invited all employees to a company-wide "hackathon" where they were asked to create a mobile app prototype for a segment of this population. At the end of the three-day event, everyone demonstrated their prototypes and the company executives decided to pursue OutSider, a mobile app for runners. Like most media sites, TWC employed an advertising-based revenue model. While TWC had millions of TV viewers and website visitors, it had limited information about them. However, with the profile information offered up by runners when they registered to use the OutSider app, as well as the data gathered by the smartphone sensors, TWC was poised to charge a premium for the vendor advertisements placed within the app. As well as illustrating the significance of leveraging data assets to create new products and services, the case also provides an example of the intersection of mobile and big data. When asked to name an innovative company, TWC would most likely not be top-of-mind for most individuals, yet the 30-year-old company was very entrepreneurial in its approach to consumer mobile app development. In addition to outlining TWC's ideation process, the case describes the composition of the mobile app development team, the implementation of agile software development methods, and its use of modern big data technologies.
What prompts people to come up with their best ideas? Even Steve Jobs, renowned for his digital evangelism, recognized the importance of social interaction in achieving innovation. As CEO of Pixar Animation Studios, Jobs explicitly instructed the architect of Pixar's new headquarters to design physical space that encouraged staff to get out of their offices and mingle. Jobs believed that serendipitous exchanges released creative juices that fueled innovation. Empirical studies confirm what Jobs intuitively knew. The more diverse a person's social network, the more likely that person is to be innovative. A diverse network provides exposure to people from different fields who behave and think differently. Can Twitter make employees more innovative? Does having more diversity in one's virtual connections mean that good ideas are more likely to surface, as in the face-to-face world? To answer this question, the authors analyzed employee Twitter networks. EMC Corporation, a leading company in the information storage and infrastructure industry, was one of the five companies the authors studied, analyzing hundreds of ideas submitted by EMC employees. The researchers found that, while Twitter users and non-users generally submitted the same number of ideas, the ideas of Twitter users were rated significantly more positively by other employees and experts than the ideas of non-users. The researchers also found that there was a positive relationship between the amount of diversity in one's Twitter network and the quality of ideas submitted. However, the authors argue that just exposing oneself to diverse fields, opinions and beliefs on Twitter by itself is not sufficient to enhance innovativeness. Additional capabilities are needed to ensure that the ideas triggered via Twitter would be transformed into real innovative outcomes. A critical ability is individual absorptive capacity -the ability of employees to identify, assimilate and exploit new ideas.
How do you get your organization to start using social technologies to become more innovative and productive? Where and with whom should you begin? We interviewed over 70 managers across 30 companies and found that the most successful firms employ one of three jumpstart strategies, depending on the organization's mission, work processes, culture, and industry. Some start at the bottom of the organization, finding and enabling 'young experimenters' to use social technologies to enhance their individual productivity. Others start in the middle, finding and helping 'corporate entrepreneurs' in middle management to use social technologies to improve collaboration on teams and projects. Others begin at the top, finding 'enlightened executives' who are open to new technology and the potential of social tools to strengthen their organizational culture. We combine our research with concepts from change management, technology adoption, and social networks to suggest ways managers can best introduce social collaboration tools into their organizations.
Big data is a capability that allows firms to extract value from large volumes of data. When combining two dimensions — business objective and data type — the use of big data can be organized into four main strategies. 1) Performance management involves understanding the meaning of big data in company databases using pre-determined queries and multidimensional analysis. The data used for this analysis are transactional. 2) Data exploration makes heavy use of statistics to experiment and get answers to questions that managers might not have considered. It leverages predictive modeling techniques to predict user behaviour based on past business transactions and preferences. 3) Social analytics examines the vast amount of non-transactional data, often on social media platforms. 4) Decision science involves experiments and analysis of non-transactional data, such as consumer-generated product ideas and product reviews. In addition to explaining these strategies, this article provides a list of popular big data techniques and vendors and identifies three emergent big data practices: a) integrating multiple big data streams; b) building a big data capability; and c) being proactive and creating a big data policy.
This is an MIT Sloan Management Review article. Companies such as Procter & Gamble, Cisco Systems, Genzyme, General Electric and Intel are often credited with having attained market leadership through open innovation strategies. By tapping into and exploiting the technological knowledge that resided beyond their own R&D structures, these companies outmaneuvered rivals. But while other organizations try to follow their example, this research shows that many are failing because they neglect to ensure that the outside ideas reach the people best equipped to exploit them. R&D leaders need to think not only about combing the outside world for new and potentially applicable ideas but also about how to ensure that those ideas receive serious consideration. By understanding the roles of two types of innovation brokers -"idea scouts" and "idea connectors"-in the open innovation process, and by utilizing their talents effectively, managers can preside over major improvements in the conversion of external knowledge into successful outcomes. The authors provide numerous examples, pointing out that success at open innovation depends on the presence of both types of innovation brokers. But despite these innovation brokers'importance to the organization, the people who wound up as idea scouts and connectors often came as a complete surprise to management. Innovation is too important to be left to chance, however. If innovation brokers do not exist, management is obliged to "invent" them -i.e., recruit the right people to perform these valuable roles.
Having analyzed more than 1,100 companies across a range of industries and geographies, the authors outline four strategies firms are using to make smart use of new forms of communication, depending on their tolerance for uncertainty and the levels of results sought.
Organizations that understand the key capability of social technologies to enable employees to connect with others to boost job and organizational performance will realize significant benefits. Accordingly, organizations need to think strategically about using these technologies to help transform themselves into truly collaborative workplaces. This article provides the background on MITRE — an R&D consulting firm with U.S. government clients — and explains the value proposition of social technologies at MITRE and how building social technologies at MITRE resulted in higher performance. Finally, it lists four key lessons learned from social technology, including integrating social technologies into existing work practices and experimenting with various technologies.
Individual consumers have quickly embraced the practice of using a variety of channels through which to make their purchases, as evidenced by the current multichannel shopping average of 65-70%. Indeed, multichannel shoppers (defined as those who utilize a variety of different purchasing channels, including bricks-and-mortar stores, the telephone, and the Internet) are now in the majority, and spend significantly more than single-channel shoppers. Given this reality, it is critical that organizations adopt a multichannel mindset and effectively employ a multichannel marketing program, as they can enhance profitability, the customer experience, and customer satisfaction. Provides firms with guidance in developing an effective multichannel mindset, and in designing a multichannel marketing program for serving end-consumers in Business-to-Consumer (B2C) situations.
Executives today must implement large-scale organizational change initiatives in ever-tighter time frames with fewer resources. Yet, anticipated performance outcomes often do not materialize as internal resistance slows or derails their change initiatives. A combined assessment of culture and informal structure can help identify barriers to change and facilitate change initiatives. Based on work with 10 organizations, demonstrates how this approach can help drive change through people and values in certain network positions; diagnose cultural drivers of network fragmentation; identify dominant beliefs or paradigms impeding cultural change; and intervene with a balanced emphasis on instrumental and expressive relationships.
This is an MIT Sloan Management Review article. When employees leave an organization, they depart with more than what they know; they also leave with critical knowledge about who they know. Thus, the departure of key people can significantly affect the relationship structure and consequent functioning of an organization. In particular, companies should be aware of the unique knowledge held by three important types of employees: "central connectors" (those who are regularly asked for help, typically because they have a high level of expertise in one or more areas), "brokers" (those who act as bridges across subgroups) and "peripheral players" (those who reside on the boundaries of a network but could still possess valuable niche expertise and outside knowledge). Departure of an employee who filled any one of these roles presents knowledge-loss risks that need to be addressed. The departure of a handful of key brokers, for example, could fracture the social network of an organization into isolated subgroups. Thus companies need to take various measures to (1) identify key knowledge vulnerabilities by virtue of both what a person knows and how that individual's departure will affect a network and (2) address specific knowledge-loss issues based on the different roles that employees play in the network.
This is an MIT Sloan Management Review article. How do managers and companies quickly transform new hires into productive employees, a process called "rapid on-boarding"? Contends that companies that are more successful at rapid on-boarding tend to use a relational approach, helping newcomers to establish rapidly a broad network of relationships with coworkers that they can tap into to obtain the information they need to become productive. Most organizations realize the importance of integrating new employees, but many fail in this regard, often because of pervasive myths about the process. Because of those misconceptions, managers frequently rely on practices that can actually hinder new employees from becoming productive.
Montgomery Watson Harza (MWH) was striving to become a global leader in water/environment, energy, and infrastructure sectors through an expanding set of services, products, and construction capabilities by leveraging its global position and knowledge management concepts. MWH executives wanted to continue to expand knowledge management usage across geographic and business divisions. The protagonist, Vic Gulas, had recently expanded his responsibilities to include leading the human resources and information technology groups. By leading the IT, HR, and knowledge management groups, it was possible to devise strategies that addressed both the technology and social aspects of knowledge management. However, limited resources and time pressure to continue to show results presented Gulas with several potentially competing strategies to pursue. His decision on which course of action to take would determine the future role of knowledge management at MWH.