Leveraging Digital Innovation

• Title of the book: Leveraging Digital Innovation
• Publisher’s details: Ubiquity Press
• Authors: Christoph Burger and Jens Weinmann
• Where to access: https://www.ubiquitypress.com/site/books/m/10.5334/bda/

Digital technologies offer unprecedented opportunities for organisations. However, organisations can face difficulties in effectively integrating new technologies, preventing them from reaching maximum potential.

Therefore, Christoph Burger, senior lecturer and Executive MBA faculty lead, and Dr. Jens Weinmann, lecturer and programme director for Executive Education, both from ESMT Berlin, have authored “Leveraging Digital Innovation.”

Including case studies from companies like Allianz, Berner Kantonalbank, RWE, Turkcell, and Uniper, they showcase how businesses have successfully implemented digital innovations, illustrating challenges and successes. Focusing on key technologies, such as AI, blockchain, and robotic process automation, Burger and Weinmann offer valuable insights into best practices for digital transformation.

“Leveraging Digital Innovation” which was published on July 16th, provides a roadmap for executives to effectively implement digital innovations and ensure long-term success, emphasising the importance of continuous learning and adaptation in a rapidly changing digital world.

We sat down with Christoph and Jens to find out more…

Can you tell us about the inspiration behind your new business book? What motivated you to write it?

Christoph: In our daily practice of running executive education programmes, we heard many interesting stories how managers implemented disruptive digital technologies in their teams, business units and organisations. Given that enriching and very diverse expertise, we identified a market demand for this topic, because strategy textbooks typically do not provide pragmatic pathways and concrete answers to this highly dynamic and evolving topic.

What are the key takeaways or main ideas that readers can expect to find in your book?

Jens: The ambition of our compilation is to describe digital transformation initiatives and derive insights from the experience of implementing disruptive technologies in a given corporate context. It highlights the advantages and potential pitfalls of differing pathways of implementation, including an internal setup with centres of excellence sharing their expertise with business units, the move towards an ambidextrous organisation, and joint ventures with niche players in the larger innovation ecosystem.

Based on their aggregated experience, this book provides a roadmap for executives how to become agents of change and implement digital transformation in their organisations.

Who is the target audience for your book, and how do you believe it will benefit them?

Christoph: The overarching objective of this book is to provide a hands-on toolkit for executives to leverage digital innovations. In particular, we want to outline best practice cases that may serve as an inspiration for those managers who are in charge of a concrete digital transformation project and are seeking guidance and advice how to start and how to succeed.

Jens: For an academic audience, the testimonials of practitioners offer ethnographic insights that depict the complexity of actual corporate change initiatives within a context of uncertainty and mimetic isomorphism.

What do you think makes this topic particularly relevant or timely in today’s business world, or for the years ahead?

Jens: First, the speed at which digital innovations permeate society and business ecosystems has created a sense of urgency in many organisations. According to UBS research, ChatGPT attained a user base of 100 million within a mere two months of its public release. This unprecedented rate of adoption stands in stark contrast to historical patterns of technological diffusion.

“This book provides a roadmap for executives how to become agents of change and implement digital transformation in their organisations,”

– Jens Weinmann

For instance, mobile phone technology required 16 years to achieve a comparable user base, while the World Wide Web, itself a transformative technology, took approximately seven years to reach the same milestone. Business leaders have the feeling that they must respond to this Great Acceleration to maintain a competitive advantage.

Christoph: Second, managers must decide amidst a societal and economic context of volatility, uncertainty, complexity and ambiguity – the so-called VUCA world. There is no template or one-size-fits-all strategy how to react to these challenges, but we want to provide some examples how organisations have used digital technologies to their advantage.

Can you discuss any specific case studies or real-world examples from your book that illustrate its principles in action?

Jens: Through an analysis of ten best-practice cases, encompassing organisations ranging from startups to multinational corporations and Hidden Champions, we have synthesised a 10-step roadmap for the successful implementation. Step number three in our roadmap highlights the importance of convincing internal stakeholder groups. In particular, obtaining support from top management is observed to be crucial for acceptance within the organisation.

Christoph: One of our interviewees, a representative of a Swiss bank who wanted to introduce a Blockchain solution, reports: “We then returned to the board members and put two TVs in front of them. […] We showed them the matching place and the matching engine. On the execution engine Etherscan, we showed that the transfer was made. This was a key moment in this project because most of the board members did not realise what Blockchain technology was. For the first time, they saw it in action as well as its power. […] This was really a huge moment.”

How does your book add to/expand existing discussions on this topic?

Christoph: As mentioned above, digital technologies evolve at a faster pace than ever before. Organisations move much more slowly, but the mechanisms of dissemination of these technologies in companies are also changing. In particular, collaborations with innovative players from the startup ecosystem, but also ways of establishing consortia to promote platforms based on, say, distributed ledger technologies offer unprecedented opportunities to be one step ahead of competitors. 

“There is no template or one-size-fits-all strategy how to react to these challenges, but we want to provide some examples how organisations have used digital technologies to their advantage.”

– Christoph Burger

Jens: Our compilation of interviews can be used as a source to explore the portfolio of options and choose a pathway that may not (yet) be part of the strategic toolkit of an organisation.

Can you provide some practical tips or strategies from your book that readers can immediately apply to improve their business or career?

We propose a 10-step roadmap as a comprehensive checklist for executives initiating the implementation of disruptive digital technologies. Here are some of the key insights:

• Define a concrete use case: While the adoption of novel technologies may be driven by competitive pressures, the primary focus should be on identifying compelling use cases. These may involve specific process optimisations or new business opportunities requiring innovative technological solutions. – Jens
• Perform market research on digital solutions: Our findings suggest that successful implementers adopt a technology-agnostic approach, prioritising solutions that address the defined use case rather than fixating on specific technologies. In some instances, conventional data analytics may prove sufficient, even when more sophisticated solutions like AI algorithms appear more appealing. – Jens
• Integrate the IT department: The implementation of disruptive digital technologies invariably intersects with existing IT infrastructure. Our case studies consistently highlight the critical role of IT department executives and experts in facilitating resource allocation, implementation processes, and roll-out strategies. – Christoph
• Accept failures and experimentation: The implementation of disruptive technologies inherently involves risk. Organisations must cultivate a corporate culture that fosters psychological safety, encourages error reporting, and promotes a “fail-forward” mentality. This approach is crucial for avoiding stagnation and facilitating long-term innovation and growth. – Jens
• Scale technological expertise: While external knowledge acquisition may be advantageous in the initial phases, our research indicates a prevalent long-term objective of developing internal solutions and proprietary expertise. This can be achieved through various organisational structures, including dedicated competence centres, technology ambassadors, integration of external experts within business units, or the establishment of connected but legally distinct entities. – Christoph

While this framework does not guarantee success, it synthesises the cumulative experiences of successful change agents.

Finally, what book written by another author would you consider essential reading for your audience and why?

Christoph: We firmly believe that change processes in organisations contain a behavioural component that remains largely unaffected by disruptive digital technologies. John P. Kotter’s research on organisational change management and his “8-Step Process for Leading Change,” as published in his seminal book “Leading Change”, would be an essential read yet complementary to our work.

By, Kyle Grizzell

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