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NAVIGATING DIGITAL
TRANSFORMATION IN
MANAGEMENT

N avigating Digital Transformation in Management provides a

thorough introduction to the implications of digital transformation
for leaders and managers. The book clearly outlines what new or
enhanced roles and activities digital transformation requires of them.
The book takes a practical approach and shapes an actionable guide
that students can take with them into their future careers as managers
themselves.
With core theoretical grounding, the book explains how the digital
transformation imperative requires all organizations to continuously
undertake digital business transformation to adapt to ongoing digital
disruption and to effectively compete as digital businesses. The book
discusses the critical roles managers need to play in establishing,
facilitating, and accelerating the day-to-day activities required to build
and continuously upgrade these capabilities.
Drawing on cutting edge research, this textbook:

• Explains how digital technology advancements drive digital

disruption and why digital business transformation and operating as
a digital business are critical to organization survival
• Unpacks the different digital business capabilities required to
effectively compete as a digital business
• Considers the new or digitally enhanced competencies required of
leaders, managers, and their supporting professionals to effectively
play their roles in digital transformation
 • Discusses how leaders, managers, and their supporting professionals
can keep up with digital technology advancements
• Unpacks key digital technology advancements, providing a plain
language understanding of what they are, how they work, and their
implications for organizations.

Enriched with pedagogical features to support understanding and

reinforce learning, such as reflective questions, learning summaries,
and case studies, and supported by a suite of instructor materials,
this textbook is an ideal choice for teachers that want to enable their
information systems, information technology, and digital business
students to compete and thrive in the contemporary business
environment.

RICHARD BUSULWA (PhD, MBA, B.Info.Sys) researches and teaches

in the Business School at Swinburne University of Technology, home
to Australia’s first fully immersed Industry 4.0 facility. His digital
transformation research explores different digital technology advancements,
how they drive disruption, and their implications for particular industries,
business functions, and professions. He is the author of Strategy Execution
and Complexity: Thriving in the Era of Disruption (2018); Start-up
Accelerators: A Field Guide (2020); Digital Transformation and Hospitality
Management (2021); and Digital Transformation in Accounting (2022).
Before entering academia, Richard worked as managing director, COO,
CFO, middle manager, and frontline manager. He is co-founder of Digital
Keys, the world’s first NBIoT smart lock platform.
Business and Digital Transformation

Digital technologies are transforming societies across the globe, the

effects of which are yet to be fully understood. In the business world,
technological disruption brings an array of challenges and opportunities
for organizations, management and the workplace.
This series of textbooks provides a student-centred library to analyse,
explore and critique the evolutionary effects of technology on the
business world. Each book in the series takes the perspective of a key
business discipline and examines the transformational potential of digital
technology, aided by real world cases and examples.
With contributions from expert scholars across the globe, the books in
this series enable critical thinking students to excel in their studies of the
new digital business environment.

Digital Transformation in Accounting

Richard Busulwa and Nina Evans

Demand-Driven Business Strategy

Digital Transformation and Business Model Innovation
Cor Molenaar

Navigating Digital Transformation in Management

Richard Busulwa

For more information about this series, please visit www.routledge.com/

Routledge-New-Directions-in-Public-Relations – Communication-Research/
book-series/BAD
NAVIGATING
DIGITAL
TRANSFORMATION
IN MANAGEMENT
Richard Busulwa
Cover image: © Getty Images
First published 2023
by Routledge
4 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN
and by Routledge
605 Third Avenue, New York, NY 10158
Routledge is an imprint of the Taylor & Francis Group, an informa
business
© 2023 Richard Busulwa
The right of Richard Busulwa to be identified as author of this work
has been asserted in accordance with sections 77 and 78 of the
Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or
reproduced or utilised in any form or by any electronic, mechanical,
or other means, now known or hereafter invented, including
photocopying and recording, or in any information storage or
retrieval system, without permission in writing from the publishers.
Trademark notice: Product or corporate names may be trademarks
or registered trademarks, and are used only for identification and
explanation without intent to infringe.
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloguing-in-Publication Data
Names: Busulwa, Richard, 1980– author.
Title: Navigating digital transformation in management / Richard Busulwa.
Description: First Edition. | New York, NY : Routledge, 2023. |
Series: Business and digital transformation | Includes bibliographical
references and index.
Identifiers: LCCN 2022016411 (print) | LCCN 2022016412 (ebook) |
ISBN 9781032184043 (hardback) | ISBN 9781032184043 (paperback) |
ISBN 9781003254614 (ebook)
Subjects: LCSH: Management—Technological innovations. |
Leadership. | Organizational change.
Classification: LCC HD30.2 .B887 2023 (print) | LCC HD30.2 (ebook) |
DDC 658.4/0380285—dc23/eng/20220406
LC record available at https://lccn.loc.gov/2022016411
LC ebook record available at https://lccn.loc.gov/2022016412
ISBN: 978-1-032-18407-4 (hbk)
ISBN: 978-1-032-18404-3 (pbk)
ISBN: 978-1-003-25461-4 (ebk)
DOI: 10.4324/9781003254614
Typeset in Minion Pro
by Apex CoVantage, LLC
Access the Support Material: www.routledge.com/9781032184043
CONTENTS

List of figures xxvi

List of tables xxix

Part I Digital Disruption and the Digital Transformation

Imperative 1

CHAPTER 1  EED FOR THIS BOOK AND RESEARCH

N
FOR THIS BOOK 3
Need for This Book 4
Research for This Book 5
Structure of This Book 7
How to Use This Book 8
Leaders, Managers, and Supporting
Professionals8
Instructors9
Students10
Researchers10

CHAPTER 2  ETTING OUT OF THE DIGITAL

G
TERMINOLOGY ZOO 11
Introduction12
Learning Objectives 12
Information Systems (IS) 13
Components of an Information System 14
Roles of Information Systems 17
Types of Information Systems 17

vii
 Contents

Information Technology (IT) and

Information Communications
Technology (ICT) 19
Strategic Information Systems and
Digital Technologies 20
Strategic Information Systems 20
Digital Technologies 21
Implications for Leaders, Managers,
and Supporting Professionals 23
Google and Reflect 24
Discussion Questions 24

CHAPTER 3 UNDERSTANDING DIGITAL

DISRUPTION 27
Introduction28
Learning Objectives 28
Digital Technology Advancements and Digital
Disruption29
Digital Technology Advancements 29
Digital Technology Advancements as
a Source of Digital Disruption 29
Unpacking Digital Disruption 30
Disruption of Customer Expectations
and Behaviors 30
Disruption of the Competitor Field
and Bases of Competition 32
Disruption of Data Availability 33
Existential Threats and Game Changing
Opportunities34
Existential Threats 34
Game Changing Opportunities 36
Implications for the Leaders, Managers,
and Supporting Professionals 39
Google and Reflect 40
Discussion Questions 40

viii
 Contents

CHAPTER 4  HE DIGITAL BUSINESS AND DIGITAL

T
TRANSFORMATION IMPERATIVES 45
Introduction46
Learning Objectives 46
Digital Business 47
Pinning Down a Slippery Term 47
Digital Business as a Future State 48
Digital Business as a Change Journey
or Change Process 49
Benefits of Being a Digital Business 50
The Digital Business Imperative 52
Digital Business Transformation 53
Defining Digital Business Transformation 53
Digital Business Transformation is Not
Just About Digital Technologies 54
Challenges and Risks of Digital Business
Transformation54
The Digital Transformation Imperative 56
Implications for Leaders, Managers,
and Supporting Professionals 56
Google and Reflect 59
Discussion Questions 59

Part II Forming and Executing Digital Transformation

Strategy 65

CHAPTER 5  ORMING DIGITAL TRANSFORMATION

F
STRATEGY 67
Introduction68
Learning Objectives 68
Digital Transformation Strategy vs Digital
Business Strategy 69
Digital Transformation Strategy Caveats 71

ix
 Contents

Digital Transformation Is Not a Single Initiative

and Does Not Have an Overall End State 71
Solutions, Requirements, and Technologies
Change Fast and Continuously During
Digital Transformations 72
It’s Extraordinarily Easy and Dangerous
to Buy Into the Hype or Cynicism
Relating to One or More Digital Technology
Advancements73
Among All the Changes Required,
People and Cultural Changes Are
the Most Important 75
Knowing the Point at Which Things
Are Mature Enough and Should Scale
Is a Test of Real Understanding 76
Digital Transformations Can’t Wait
and Won’t Happen Overnight 77
Digital Transformation Can Be Financially
Ruinous, But It Doesn’t Have to Be 78
Digital Transformation Isn’t Just for
Big Companies 78
Traditional IT Departments or Equivalent
Technology Teams Are Vital to Digital
Transformation79
Digital Transformation Is Ultimately
About Both Keeping and Creating
Customers Through Offering
Better Value 80
Forming the Initial and Subsequent
Strategy81
Forming the Initial Digital Business
Strategy and Digital Transformation
Strategy81
Forming the Initial Digital Business
Strategy81
Forming the Initial Digital Transformation
Strategy90

x
 Contents

Subsequent Digital Business Strategy

and Digital Transformation Strategy 93

CHAPTER 6  XECUTING DIGITAL TRANSFORMATION

E
STRATEGY 97
Introduction98
Learning Objectives 99
Principles for Executing Digital
Transformation Strategy 99
Secure Ownership and/or Top Management
Team Commitment 99
Secure Adequate Investment 100
Set Clear Targets or Deliverables
That Are Externally Benchmarked
Wherever Possible 101
Find Ways to Continuously and
Effectively Involve, Engage, and Regularly
Communicate With All Internal and
External Stakeholders 102
Sequence Initiatives so as to
Continuously Deliver Value and to Build
the Confidence of the Wider Organization 102
Get Implementation Feedback Early and
Continuously103
Observe and Measure the Right Things,
Then Leverage Insights to Inform
Transformation Decisions 103
Encourage and Promote Fast, Adaptable,
and Customer Centric Ways of Working 104
Appoint a Leadership Team That Can
Effectively Influence/Lead Stakeholders,
Can Attract Top Talent, and Can Execute
the Digital Transformation Strategy 104
Effective Processes or Approaches for
Executing Digital Transformation Strategy 105

xi
 Contents

Agile Program and Project Management

Approaches107
Hoshin Kanri or Lean Strategy Deployment 108
Change Acceleration Process 110
Simple Rules Process 111
Reverse Acquisition Approaches 112
Implications for Leaders, Managers,
and Supporting Professionals 114

Part III Leadership and Management of

Digital Transformation 119

CHAPTER 7  UILDING AND LEADING THE DIGITAL

B
TRANSFORMATION TEAM 121
Introduction122
Learning Objectives 122
Required Types of Roles and Expertise
for the Digital Transformation Team 123
Strategic Leader or Principal Digital
Transformation Leader (e.g., CDO,
COO, CIO, CTO) 123
Technology Leaders and Technology
Specialists125
Technology Implementation Leads 126
Customer Experience and Engagement
Specialists127
Security and Compliance Specialists 127
Business-Technology Liaisons 128
Project Managers and Change Managers 129
Digital Business Capability Leaders and
Specialists129
Specialist Professional Services 130
Implications and Caveats 130

xii
 Contents

CHAPTER 8  HE DIGITAL DISRUPTION AND DIGITAL

T
TRANSFORMATION OF MANAGEMENT 133
Introduction134
Learning Objectives 134
Management Functions and Roles 135
Resilience of Fayol’s Management Functions 135
Mintzberg’s Ten Managerial Roles 135
Digital Disruption and Digital Transformation
of Management Functions, Roles, and
Competencies139

CHAPTER 9  EEPING UP WITH THE PACE OF

K
TECHNOLOGY CHANGES 147
Introduction148
Learning Objectives 148
Importance and Challenge of Keeping Up
With Digital Technologies 149
Common Strategies and Practices for
Keeping Up With Digital Technologies 149
Strategies and Practices From the Research on
Technological Knowledge Renewal
Effectiveness150
Perceived Need for Digital Technology
Competencies, Appreciation of the
Technology Learning Challenge, and
Tolerance for Ambiguity 150
Learning From External Experts and
Learning From Internal Experts 152
Strategies and Practices from Practitioners 153
Have an Evolving Plan for Managing
Information Overload 153
Continuously Upgrade Your Learning
Efficiently154
Choose the Right Learning Platforms 155
Embrace Omnichannel Learning 155

xiii
 Contents

Build and Leverage Thought Leaders

on Social Networks 159
Configure Your Search Engines,
Social Media, and Email Subscriptions 159
Have an Effective and Sustainable
Personal Information Management Strategy 160
Participate in Hackathons and Accelerators 162
Volunteer for a Startup 164
Implications for Leaders/Managers/Supporting
Professionals164
Google and Reflect 165
Discussion Questions 165

Part IV Understanding Digital Business Capabilities:

Primers for Leaders, Managers, and
Supporting Professionals 171

CHAPTER 10 DIGITAL TRANSFORMATION

STRATEGY AND DIGITAL BUSINESS
STRATEGY CAPABILITIES 173
Introduction174
Learning Objectives 174
Understanding Digital Business Strategy 175
Understanding Digital Transformation Strategy 176
Implications for Leaders, Managers,
and Supporting Professionals 177
Google and Reflect 179
Discussion Questions 179

CHAPTER 11 D
 IGITAL INNOVATION, DIGITAL LEARNING,
AND ADAPTABILITY/AGILITY CAPABILITIES 183
Introduction184
Learning Objectives 184
Digital Innovation 186
Digital Innovation vs Traditional Innovation 186

xiv
 Contents

Implications for Leaders, Managers, and

Supporting Professionals 189
Digital Learning 190
Digital Learning vs Traditional Learning 191
Implications for Leaders, Managers,
and Supporting Professionals 192
Adaptability and Agility 193
Implications for Leaders, Managers, and
Supporting Professionals 194
Google and Reflect 195
Discussion Questions 196

CHAPTER 12 D
 IGITAL CUSTOMER EXPERIENCE,
DIGITAL CUSTOMER ENGAGEMENT,
AND DIGITAL STAKEHOLDER
ENGAGEMENT CAPABILITIES 201
Introduction202
Learning Objectives 203
Digital Customer Engagement and Digital
Stakeholder Engagement 203
Digital Customer Engagement 203
Digital Stakeholder Engagement 207
Implications for Leaders, Managers, and
Supporting Professionals 208
Digital Customer Experience 208
Implications for Leaders, Managers, and
Supporting Professionals 210
Google and Reflect 211
Discussion Questions 212

CHAPTER 13 ENTERPRISE ARCHITECTURE

MANAGEMENT, DT ADOPTION AND
USE, AND DATA MANAGEMENT/DATA
ANALYTICS/DATA SCIENCE CAPABILITIES 215
Introduction216

xv
 Contents

Learning Objectives 216

Enterprise Architecture and Enterprise
Architecture Management 217
Enterprise Architecture 217
Enterprise Architecture Management 219
Implications for Leaders, Managers, and
Supporting Professionals 219
DT Adoption and Use 223
Implications for Leaders, Managers, and
Supporting Professionals 225
Data Management, Data Science, and Data
Analytics226
Data Management 226
Data Analytics and Data Science 227
Implications for Leaders, Managers, and
Supporting Professionals 228
Google and Reflect 229
Discussion Questions 230

CHAPTER 14 CYBERSECURITY MANAGEMENT,

DIGITAL RISK MANAGEMENT, AND
DIGITAL GOVERNANCE CAPABILITIES 235
Introduction236
Learning Objectives 236
Cybersecurity Management 237
Cybersecurity237
Cybersecurity Capability and Cybersecurity
Management Capability 240
Implications for Leaders, Managers, and
Supporting Professionals 242
Digital Risk Management and Digital
Governance243
Digital Risk Management and Digital
Governance vs Traditional Risk
Management and Governance 243

xvi
 Contents

Nature of Digital Risk and the New Risk

Landscape243
Role of Digital Technologies in Digital Risk
Management and Governance 244
Implications for Leaders, Managers, and
Supporting Professionals 245
Google and Reflect 246
Discussion Questions 246

CHAPTER 15 W
 ORKFORCE DIGITAL COMPETENCE,
DIGITAL CULTURE, AND DIGITAL ETHICS
CAPABILITIES 251
Introduction252
Learning Objectives 252
Workforce Digital Competence 253
Implications for Leaders, Managers,
and Supporting Professionals 254
Digital Culture 254
Implications for Leaders, Managers,
and Supporting Professionals 256
Digital Ethics 257
Information Privacy 258
Implications for Leaders, Managers, and
Supporting Professionals 259
Google and Reflect 260
Discussion Questions 260

CHAPTER 16 D
 IGITAL LEADERSHIP AND ACCELERATED
CHANGE/TRANSFORMATION CAPABILITIES 263
Introduction264
Learning Objectives 264
Digital Leadership 265
Digital Leadership vs Traditional
Leadership265

xvii
 Contents

The New or Adapted Leadership Roles

of Digital Leadership 265
Implications for Leaders, Managers,
and Supporting Professionals 269
Accelerated Change and Transformation 269
Google and Reflect 271
Discussion Questions 272

Part V Understanding Digital Technologies:

Primers for Leaders and Managers  275

CHAPTER 17 D
 ATA, BIG DATA, AND DATA
MANAGEMENT PRIMER 277
Introduction278
Learning Objectives 279
Data280
Data as the New Oil 280
Types of Data 281
Data Risks and Other Issues 282
Big Data 284
Data Management 286
Google and Reflect 287
Example Tools and Vendors 287
Discussion Questions 288

CHAPTER 18 B
 USINESS INTELLIGENCE, DATA
ANALYTICS, AND DATA SCIENCE
PRIMER 293
Introduction294
Learning Objectives 294
Business Intelligence and Business Analytics 295
Business Intelligence 295
Business Analytics 295
Data Analytics and Data Science 296

xviii
 Contents

Data Analytics 296

Data Science 297
Data Visualization 298
Implications for Leaders, Managers,
and Supporting Professionals 299
Google and Reflect 300
Example Tools and Vendors 301
Discussion Questions 301

CHAPTER 19 INTERNET OF THINGS (IoT),

INDUSTRY 4.0, SMART THINGS,
AND EDGE COMPUTING PRIMER 305
Introduction306
Learning Objectives 307
Internet of Things (IoT) and Internet
of Everything (IoE) 308
Internet of Things 308
Internet of Everything 309
Connected vs Smart vs Autonomous 311
Edge Computing and the IoT Edge 312
Industrial Internet of Things (IIoT) 313
Cyber-Physical Systems, the Fourth
Industrial Revolution, and Industry 4.0 314
Cyber-Physical Systems 314
The Fourth Industrial Revolution or
Industry 4.0 316
Smart Buildings, Smart Workspaces,
and Smart Homes 317
Smart Buildings 317
Smart Workplaces 318
Smart Homes 319
Smart Infrastructure, Smart Cities,
and Smart Government 320
Smart Infrastructure 320

xix
 Contents

Smart Cities 321

Smart Government 322
Implications for Leaders, Managers,
and Supporting Professionals 323
Google and Reflect 324
Example Tools and Vendors 324
Discussion Questions 325

CHAPTER 20 A
 RTIFICIAL INTELLIGENCE PRIMER 331
Introduction332
Learning Objectives 333
Artificial Intelligence 334
General AI vs Narrow AI 335
Bots337
Machine Learning 337
Knowledge Graphs, Neural Networks,
and Deep Learning 338
Knowledge Graphs 338
Neural Networks and Deep Learning 339
Natural Language Processing, Speech
Recognition, and Computer Vision 340
Natural Language Processing and
Speech Recognition340
Computer Vision 341
Expert Systems 342
Implications for Leaders, Managers,
and Supporting Professionals 342
Google and Reflect 343
Example Tools and Vendors 344
Discussion Questions 344

CHAPTER 21 B
 LOCKCHAIN AND OTHER DISTRIBUTED
LEDGER TECHNOLOGIES PRIMER 347
Introduction348

xx
 Contents

Learning Objectives 349

Distributed Ledger Technology (DLT) 349
Blockchain351
What It Is, and How It Works 351
Key Blockchain Terminology 353
Append-Only Data Structure 353
Permissionless vs Permissioned Blockchain 353
Mining vs Miners 353
Proof of Work 354
Public Key vs Private Key 354
Genesis Block 355
Smart Contract 355
Types of Blockchains 355
Public Blockchains 355
Private Blockchains 356
Consortium or Federated Blockchains 356
Hybrid Blockchains 357
Blockchain Applications and Use Cases 357
Cryptocurrency357
Smart Contracts 360
Banking360
Data Storage 360
Other Applications 361
Implications for Leaders, Managers,
and Supporting Professionals 362
Google and Reflect 362
Example Tools and Vendors 363
Discussion Questions 363

CHAPTER 22 V
 IDEO CONTENT ANALYTICS, COMPUTER
VISION, AND MACHINE VISION PRIMER 369
Introduction370
Learning Objectives 370

xxi
 Contents

Video Analytics or Video Content

Analytics (VCA) 371
What Is Video Analytics or Video Content
Analytics (VCA)? 371
How Video Content Analytics Works 372
Computer Vision (CV) and Machine Vision (MV) 374
Business Value of VCA/Computer
Vision/Machine Vision 376
Example VCA/Computer Vision/Machine
Vision Use Cases 376
Google and Reflect 378
Example Tools and Vendors 378
Discussion Questions 378

CHAPTER 23 V
 IRTUAL REALITY (VR), AUGMENTED
REALITY (AR), AND MIXED REALITY (MR)
PRIMER 381
Introduction382
Learning Objectives 382
Virtual Reality (VR) 383
Augmented Reality (AR) 384
Mixed Reality (MR) 384
Business Value of VR, AR, and MR 385
Google and Reflect 388
Example Tools and Vendors 389
Discussion Questions 389

CHAPTER 24 ROBOTS AND ROBOTICS PRIMER 393

Introduction394
Learning Objectives 394
Robots and Robotics 395
Building Blocks of Robots 395
How Robots Work 396
Types of Robots 397

xxii
 Contents

Business Value and Use Cases of Robots

and Robotics 398
Google and Reflect 401
Example Tools and Vendors 401
Discussion Questions 401

CHAPTER 25 DRONES PRIMER 405

Introduction406
Learning Objectives 406
Key Drone Concepts and Building Blocks 407
What Is a Drone? 407
Building Blocks and Functioning of Drones 408
Business Value and Use Cases of
Drones411
Google and Reflect 413
Example Tools and Vendors 413
Discussion Questions 414

CHAPTER 26 3D AND 4D PRINTING PRIMER 421

Introduction422
Learning Objectives 422
Key 3D/4D Printing Concepts and
Building Blocks 423
What Is 3D and 4D Printing? 423
Building Blocks and Functioning of
3D and 4D Printing 424
Types of 3D Printers 426
3D and 4D Printing Business Value and
Use Cases 427
3D and 4D Printing Issues and Risks 428
Google and Reflect 429
Example Tools and Vendors 429
Discussion Questions 430

xxiii
 Contents

CHAPTER 27 6
 G, 5G, 4G, LTE, AND OTHER CELLULAR
NETWORKS PRIMER 433
Introduction434
Learning Objectives 434
Cellular Networks and How They Work 435
4G, LTE, and Other Cellular Networks 436
5G and 6G Cellular Networks 437
Google and Reflect 438
Example Tools and Vendors 439
Discussion Questions 439

CHAPTER 28 G
 PS III OR GPS BLOCK III AND LOW EARTH
ORBIT SATELLITES PRIMER 441
Introduction442
Learning Objectives 442
GPS and GPS III and Other Global
Navigation Satellite Systems (GNSS) 443
Low Earth Orbit (LEO) Satellites 444
Google and Reflect 446
Example Tools and Vendors 447
Discussion Questions 447

CHAPTER 29 NBIoT, LoRa, SIGFOX AND OTHER

LPWAN TECHNOLOGIES PRIMER 449
Introduction450
Learning Objectives 450
LPWAN Technologies 451
NBIoT452
LTE-M453
LoRa/LoRaWAN453
Other LPWAN Technologies 453
Google and Reflect 454
Example Tools and Vendors 454
Discussion Questions 454

xxiv
 Contents

CHAPTER 30 N
 FC, SMART BLUETOOTH, iBEACON,
AND OTHER COMMUNICATION
PROTOCOLS PRIMER 457
Introduction458
Learning Objectives 458
NFC, Smart Bluetooth, iBeacon, and Other
Communication Protocols 459
What Is NFC, and How Does It Work? 459
What Are Bluetooth 5.0 and Bluetooth Low
Energy (BLE), and How Do They Work? 461
What Is Beacon Technology, and How
Does It Work? 462
Google and Reflect 463
Example Tools and Vendors 463
Discussion Questions 464

Index 466

xxv
FIGURES

2.1 Components of an information system 13

2.2 Types of information systems, including example
systems and example users 19
3.1 Kodak failed to effectively respond to disruption from
digital cameras and smartphones, despite creating
the technology behind them (Kodak invented the first
digital camera in 1975) 35
3.2 Digital technology advancements cause digital
disruption but can be leveraged to respond to
disruption and recreate value offerings and capabilities 39
4.1 Digital business maturity models, like this one,
attempt to map where an organization is along
various digital business capabilities or outcome areas 51
4.2 Digital business transformation is not just about
using digital technologies; it is also about changing
organization structures, overcoming change barriers,
and managing both digital risks and change risks 55
6.1 The Hoshin Planning, Hoshin Kanri, or Lean strategy
deployment process 109
6.2 The Change Acceleration Process 111
6.3 The Simple Rules process 113
8.1 Managerial functions as commonly conceptualized
today evolved from Fayol’s research introduced in 1916 136
8.2 Mintzberg’s ten roles of managers 137
11.1 Digital business requires new organization
capabilities or enhancements of traditional capabilities 185
12.1 Traditional customer engagement vs digital customer
engagement205

xxvi
 Figures

12.2 A research-derived taxonomy of digital customer

engagement practices 206
13.1 Example enterprise architecture governance model 224
14.1 Ten messages for global leaders from the 2019
World Economic Forum annual meeting
on cybersecurity 240
14.2 NIST cybersecurity capability functions and practices 242
16.1 Results of a survey of 3,300 MIT Sloan Management
Review readers, “Deloitte Dbriefs” webcast
subscribers, and other interested parties regarding
what is different about working in a digital business
environment266
16.2 Results of a survey of 3,300 MIT Sloan Management
Review readers, “Deloitte Dbriefs” webcast
subscribers, and other interested parties regarding
the most important skill leaders need to succeed in a
digital workplace 267
16.3 Having working knowledge of accelerated change
and transformation methodologies like the Change
Acceleration Process can be an invaluable tool in
digital leaders’ rapid change and transformation
arsenal270
17.1 An example of different types of data 283
17.2 Examples of sources of big data 284
18.1 Data management, business intelligence, business
analytics, and data science overlaps 298
18.2 Data-related roles and type of expertise 299
19.1 The Internet of Everything extends the Internet of
Things by connecting people, processes, data,
and things310
19.2 Edge computing brings computation and data
storage to the locations where they are needed
instead of requiring sensor data to be sent to the
cloud and waiting for the cloud to send the results
of computation back to the location 313
19.3 Cities around the world and their smart city (SC)
maturity (e.g., if they have a smart city roadmap
or a smart city department and have effected key
smart city domains or application areas) 322

xxvii
 Figures

20.1 Types of AI, their capabilities, and implications for

human beings 336
20.2 Part of a knowledge graph showing information
about key figures in US politics at a point in time 339
20.3 A simple neural network vs a deep learning neural
network340
21.1 Each blockchain block contains some data, the hash
of the block, and the hash of the previous block 351
21.2 A chain of blocks, with each block other than the
genesis block having the hash of the previous block 352
21.3 The funds transfer process in a traditional digital
ledger vs in a blockchain network 361
22.1 An example of VCA/computer vision software
developed by Voxel51 372
22.2 An example of VCA/computer vision software
recognizing both people and actions/events 374
22.3 Computer vision can enable self-driving cars to “see”
better than humans 375
23.1 Using a HoloLens 2 headset 386
25.1 Components of a drone 408
25.2 NASA’s proposed space for drone operation: below
aircraft space and above suburban infrastructure and
dwellings411
26.1 Anatomy of a basic 3D printer 425
27.1 How cellular phones work 436
28.1 Low Earth orbit (LEO), medium Earth orbit (MEO),
and geostationary orbit (GEO) 445
28.2 Types of satellite or orbit, and what they are used for 446
30.1 An NFC-enabled phone sets up a current, the NFC
tag receives the “induced current,” and – recognizing
it is a valid signal – offers connection to the phone
and begins data transfer 460

xxviii
TABLES

1.1 Key literatures reviewed at each research stage for

this book and the focus of each literature review 6
5.1 Example initial digital business strategy for a building/
construction firm 84
5.2 Example initial digital transformation strategy for a
building/construction firm 91
5.3 Subsequent digital business and digital
transformation strategy is largely about building and
optimizing prioritized digital business capabilities 94
9.1 Top learning tools by category and change in ranking
from year to year – Part 1 156
9.2 Top learning tools by category and change in ranking
from year to year – Part 2 157
9.3 Top learning tools by category and change in ranking
from year to year – Part 3 158
11.1 Impact of digital technology advancements on digital
innovation and examples of opportunities that can be
leveraged188
13.1 Example enterprise architecture management
activities, tasks, and artifacts 220
13.2 Benefits of effective enterprise architecture management 222

xxix
 Part I

Digital Disruption
and the Digital
Transformation
Imperative
 CHAPTER 1

Need for This Book

and Research for
This Book

DOI: 10.4324/9781003254614-2
 Need for This Book and Research

NEED FOR THIS BOOK

T he computing field (comprising the disciplines of information

systems, information technology, computer science, computer
engineering, and software engineering) is renowned for its
specialized terminology, jargon, acronyms, and abbreviations.
These can often make it challenging, even for professionals within
the field, to cut through the jargon in order to clearly understand
critical issues. This challenge is particularly accentuated for the
topic of digital transformation. For example, digital transformation
encompasses terms such as digitization, digitalization, digital business
transformation, digital business, digital business strategy, and digital
transformation strategy. Each of these terms has a distinct meaning, yet
they have overlaps, which can impact what is meant in conversations
or literatures using the terms. In addition, digital transformation
encompasses equally similar slippery terms relating to a range of digital
technologies, digital assets, digital capabilities, and digital concepts
that an organization may need to adopt, apply, or understand as
part of its digital business strategy or digital transformation strategy
(e.g., cloud computing, IoT, blockchain, artificial intelligence, digital
platforms, digital ecosystems, digital culture, digital ethics, APIs).
Further, digital transformation is at the nexus of change management,
strategic management, and digital technology. This can add confusion
to leaders’, managers’, and supporting professionals’ understanding
of digital transformation – with the juxtaposition of concepts from
two or more of these fields or disciplines seeming like new age spin or
mere smoke and mirrors. For example, experienced leaders/managers
may roll their eyes and not see the concepts of digital leadership or
digital business strategy as being significant relative to traditional
leadership and strategy. Such attitudes are mostly reflections of easy
misunderstandings. Unfortunately, so much is at stake for leaders
who misunderstand digital transformation. Depending on leaders’
level of influence over the organization, their attitudes resulting
from misunderstandings of digital transformation can put their
organizations’ survival in jeopardy.

4
 Need for This Book and Research

Given the importance of digital transformation to organizations’

survival, it is critical that leaders cut through the noise and understand
it. There are five key aspects to this understanding: making sense
of the slippery terminology, understanding the digital business and
digital transformation imperatives, understanding digital business
capabilities, understanding what is involved in making and executing
digital transformation strategy, and having sufficient understanding of
critical digital technologies driving the digital imperatives (e.g., which
technologies, how they conceptually work, how they can impact business
strategy, how they are currently being used). The aim of this book is to
impart this understanding as simply as possible and to do so as concisely
as possible. To this end, the book has dedicated sections for each of
these five key aspects. Leaders, managers, and supporting professionals
who take the time to read these sections will find an invaluable lens for
understanding digital transformation and digital business that will serve
their careers and leadership undertakings well.

RESEARCH FOR THIS BOOK

The research for this book consisted of five stages. In stage one, a review was
undertaken of the relevant and seminal information systems research on
digital technology advancements, digital disruption, digital transformation,
and digital business. The purpose of this stage was to understand the
implications of these concepts for organization strategy and operations
in general, and for leaders and managers in particular. In stage two, key
practitioner literature on digital technologies, digital transformation,
digital business, and digital business strategy was reviewed. The aim of
this stage was to understand how organizations were undertaking digital
transformation, what digital strategies and digital business models they
were pursuing, what digital capabilities they were building, and how they
were safeguarding themselves against disruption risks. In stage three, case
studies were sought out of organizations successfully leveraging digital
technologies, digital transformation strategies, and digital business strategies.
The aim of this stage was to provide practical examples of technologies,

5
 Need for This Book and Research

Table 1.1 Key literatures reviewed at each research stage for this book and the focus of each
literature review

Research Research activity

stage
Stage 1 Review of the information systems academic research for
discussions of:
• The relationship between traditional information systems
concepts and contemporary digital business concepts
• The link between digital technology advancements and digital
disruption
• The need for digital transformation and digital business
• The capabilities required for digital transformation and digital
business
• The overlapping and/or slippery terms that get in the
way of understanding digital transformation and digital
business
• The managerial competencies required for digital
transformation and digital business
Stage 2 Review key practitioner literature on digital technologies, digital
transformation, digital business, and digital business strategy for
discussions of:
• How organizations are undertaking digital transformation
• What digital business strategies and digital business models are
being pursued by organizations
• What digital business capabilities organizations are building
• How organizations are safeguarding themselves against
disruption risks
Stage 3 Review digital transformation and digital business-related case
studies focusing on:
• Digital transformation initiatives
• Digital business capability building initiatives
• Optimal digital business competencies for leaders, managers,
and supporting professionals
• Digital transformation and digital business challenges, benefits,
and lessons learned
Stage 4 Review relevant and seminal entrepreneurship, innovation,
change management, and general management literature
discussing:
• Digital transformation or the impact of digital technology
advancements on organization strategy or organization
capabilities

6
 Need for This Book and Research

Research Research activity

stage
Stage 5 Synthesize and organize findings so as to:
• Clarify slippery terminologies
• Explain the digital business and digital transformation
imperatives
• Explain digital business capabilities
• Provide a high-level overview of what is involved in making
and executing digital transformation strategy
• Provide sufficient understanding of critical digital technologies
driving the digital imperatives

concepts, and strategies in practice across industries. In stage four, relevant

and seminal entrepreneurship, innovation, change management, and general
management literature discussing digital transformation or the impact of
digital technology advancements on organization strategy or organization
capabilities was reviewed. It was reasoned that these literatures may have
additional digital transformation insights. Finally, in stage five, the varied
findings were synthesized and organized into the book sections focusing on
clarifying slippery terminologies, explaining the digital business and digital
transformation imperatives, explaining digital business capabilities, providing
a high-level overview of what is involved in making and executing digital
transformation strategy, and providing sufficient understanding of critical
digital technologies driving the digital imperatives.

STRUCTURE OF THIS BOOK

This book is organized into five parts. Part I discusses the nature of
digital technology advancements, how they drive digital disruption, the
threats and opportunities of digital disruption, and the digital business
and digital transformation imperatives. This part links contemporary
digital business and digital transformation concepts/terms to traditional
information technology and information systems concepts/terms. In
doing so, it resolves commonly confusing definitional ambiguity that can
get in the way of making sense of digital technology, digital business, and

7
 Need for This Book and Research

digital transformation conversations. Part II provides an overview of the

formation and execution of digital transformation strategy. It first discusses
the aims of digital transformation strategy, the arenas/focus areas/levers
critical to forming digital transformation strategy, and the outputs of
the digital transformation strategy formation process. Subsequently, the
different approaches to executing digital transformation strategy are
discussed. Common caveats and principles to keep in mind when forming
and executing digital transformation strategy are also discussed.

Part III provides an overview of the diverse expertise and roles required on
the team driving the digital transformation strategy. It also discusses how
digital transformation impacts management practice – specifically, how it
changes the roles of line managers or other leaders and the competencies
required by these line managers/leaders. This part also discusses the
challenge of keeping up with digital technology advancements, the
risks of not doing so, and what strategies managers/leaders/supporting
professionals can adopt to keep up with accelerating digital technology
advancements. Part IV provides an overview of the different digital
business capabilities that are important building blocks of digital business
competitiveness and longevity. It discusses what each capability means, how
it differs from its traditional counterpart where one exists, how it impacts
organization competitiveness and longevity, the roles of leaders/managers
in building/sustaining/optimizing the capability, and the competencies
required of leaders/managers to play such roles. Finally, Part V unpacks
more than 36 digital technologies, explaining what they are, how they work,
their implications for operations and strategy, current and future use cases,
and implications for leaders and managers.

HOW TO USE THIS BOOK

LEADERS, MANAGERS, AND SUPPORTING
PROFESSIONALS
The book will provide a great working understanding of the
interrelationships between IT, information systems, digital technologies,
digital disruption, digital transformation, digital business, digital business

8
 Need for This Book and Research

capabilities, and leadership/managerial roles and competencies if read

from end to end. However, it has been written in such a way that each
chapter can be read as a stand-alone chapter. Thus, leaders/managers/
professionals only seeking an explanation of digital disruption can go
straight to Chapter 3. And leaders/managers/professionals only seeking to
understand a particular digital business capability can go straight to the
chapter on that capability. Alternatively, leaders/managers/professionals
who already have a good understanding of digital transformation and
digital business but need a reference book explaining different digital
technologies (e.g., blockchain, mixed reality, IoT, data science etc.) and
their implications for strategy, operations, and management can skip
to the chapter on that specific digital technology in Part V of the book.
Readers should notice that each part and chapter has been unpacked
extensively in the Table of Contents to enable them to efficiently find
and go straight to the specific information they need (e.g., concepts,
technologies, issues).

INSTRUCTORS
Instructors can use this book as the principal book for digital
transformation and digital business-related focused subjects or courses
at postgraduate and undergraduate level to give students a simple,
broad enough, and sufficiently deep digital transformation and digital
business foundation. For example, select chapters can be combined in
such a way as to form a topic to be covered each week over a 12-week
study period. Used this way, the book will provide leaders/managers/
supporting professionals with a comprehensive, practical and integrated
understanding of important digital transformation and digital business
concepts, as well as working knowledge of relevant digital technologies.
Alternatively, instructors can use the book as a supplementary text in
any leadership/management/supporting professional subject or course
which may need to discuss a particular digital technology (e.g., artificial
intelligence, augmented reality), a particular digital technology issue
(e.g., digital ethics, cybersecurity), or a particular digital transformation
and digital business issue (e.g., digital business models, digital business

9
 Need for This Book and Research

capabilities). The book can also be used as an invaluable reference book

for definitions of slippery terms and concepts, which are explained in as
simple a way as possible throughout the book.

STUDENTS
Students doing assessments on digital technology, digital transformation
or digital business-related topics will find this book an invaluable
reference book. It explains key terms, concepts, and issues in simple terms
and from a business and strategic perspective. Students can use the book
as a resource for understanding specific digital technologies where these
come up in an assessment exercise (e.g., researching how the Internet
of Things works and the implications of Internet of Things technologies
for organizations). For more interested and proactive students, a cover-
to-cover read of the book would provide an invaluable framework for
understanding digital technologies, digital transformation, and digital
business. Such a framework would, in turn, provide an invaluable lens for
leadership/managerial/professional decision making and be an invaluable
weapon in career progression.

RESEARCHERS
Finally, researchers investigating a particular digital technology or a
particular digital transformation and digital business issue may find this
book an invaluable starting point. The book provides a plain language
explanation and an integrated picture of how that technology or digital
business issue fits with related technologies and digital business issues as
well as with the broader strategic and operational aims of organizations.
Researchers may also find the review of different technologies invaluable
for identifying unresolved digital transformation/digital business research
questions or other research questions at the intersection between strategy,
digital technology, and management/leadership.

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