Page 63 - Kaleidoscope Academic Conference Proceedings 2020

Industry-driven digital transformation

innovation labs in collaboration with a start-up community Business Innovation GmbH) to extend the capabilities of its
and existing accelerator [41], or incremental efforts of existing departments, which enabled the formation of
network building or extension. For example, global trade multidisciplinary teams and networks and changed Audi’s
barriers and the lack of transparency have affected the cost traditional organizational structure to enjoy IT-driven
of shipping for many players in the shipping industry and initiatives for the benefit of business units in 5 years [33].
increased the inefficiency level in international supply chains. Similarly, Volvo established its innovation hub to bring
Maersk, a shipping container company, partnered with IBM different parts of the firm from its executive team, R&D,
and government authorities to deploy blockchain technology global offers, global marketing, accessories, IT, design,
for fast and secure access to end-to-end supply chain product strategy, and customer services to the same table to
information to solve these problems and reinforced its value enable effective knowledge sharing and gain enough
proposition to provide a fast, reliable, cost-efficient shipping momentum to be self-sustaining by digital innovation [34].
service to its core customers [42]. ThyssenKrupp, a German
industrial group with different divisions, developed a data- 4.2.3 Digital metamorphosis
driven system under the external pressure from competitors
and the demand of high-performance elevators with superior Digital metamorphosis is a fundamental endogenous change,
reliability. ThyssenKrupp outfitted its elevator components where proactive initiatives are undertaken in the
with sensors to collect and evaluate relevant technical and participation of internal motivation. Thinking about the
mechanical information through predictive analytics so that process by which a caterpillar morphs into a butterfly, a
employees can receive warning alerts and maintenance caterpillar digests itself using enzymes triggered by
recommendations. It not only allows ThyssenKrupp to hormones and disintegrates all of its tissues except for the
increase profitability by offering a premium maintenance imaginal discs, which are certain highly organized groups of
add-on service, but also enhances transparency regarding cells that put themselves back together into a new shape and
maintenance requirements to benefit customers, employees, grow each body parts of the butterfly. When there is internal
partners, and other stakeholders, in turn, generating new motivation driven by the development of new offerings to
revenue streams for the company [43]. new markets or caused by anticipation of future
opportunities and the need for change to integrate digital
4.2.2 Digital mutation technologies, organizations need to take effective actions to
initiate transformation as soon as possible (if an urgent need
Digital mutation is a non-fundamental endogenous change, to take action to enjoy the first-mover or early adopter
where proactive initiatives are undertaken to participate in advantages), or redefine the strategic vision (if it involves a
internal motivation. A gene mutation is a change in the relatively gradual process of continuous frame bending).
genetic sequence or an induced misspelling of the DNA This type of transformation is proactive and radical in scope.
sequence, resulting from DNA copying mistakes made It can be related to disruption or transformation in a step-by-
during cell division inside the body. When a mutation in step fashion. Digital metamorphosis can refer to newcomers
DNA happens, a change in one or more DNA bases or a to the industry or start-ups that find a fundamentally new way
single base pair is changed into another base pair, then of doing business in the industry. It can change the logic of
different proteins can be produced, affecting an organism's an entire industry, and push organizations to become the
traits. Similarly, organizational reproduction processes may standard for the next generation of products and companies
lead to inconsistencies that manifest as conflicting demands [41] by using a get-out-of-the-building approach [29] and by
on those working in the organization. In the case of digital getting a good understanding of users, suppliers, and
mutation, organizational practices and routines will frame stakeholders. The process of such transformation is
processes to integrate digital technologies at hand to adjust inherently uncertain: changes need to be made provisionally
the inconsistencies. In other words, when there is internal and then adjusted; decisions need to be made quickly, and
motivation and no immediate requirement to change, groups from all over the organization need to get involved
organizations will take a gradualist paradigm to adapt to [44]. For example, Uber’s impact on taxis in the personal
opportunities and engage in continuous incremental change transportation sector [45] and Airbnb’s impact on hospitality
(step-by-step) by using digital technologies. Digital mutation in the accommodation sector [46] are frequently cited
is to alter operational activities in the organization while examples of digital disruption. They affect their respective
maintaining alignment between its original identity, such as industries by introducing business model innovation and a
redesigning the operational process or digitize the inefficient platform logic by instilling competitive processes in the
manual processes, internal communication channels to digital economy, especially the sharing economy. Netflix
improve work efficiency; training employees with required pivoted from DVD delivery to a streaming service, where
skills and competencies to take full advantage of its having access is more important than ownership. The key to
knowledge base. Under the premise of endogenous embarking on a transformational change is to actively sense
motivation without immediate pressure to change, this is the and seize the opportunities associated with digital
most common, least intense, and less risky pathway to go technologies and avoid problems rather than passively
digital. In some cases, digital mutation is deemed to be waiting for things to go wrong or decline before taking action.
internally visible only. For example, to address the Be alert that the need for change may not be obvious to all.
organizational structural and operational requirements of For example, without any external pressure, the CEO with a
deploying big data analytics, Audi created a subsidiary (Audi visionary and cooperative leadership style in AssetCo’s (a

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