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Digital Innovation as a Fundamental and Powerful Concept in the Information Systems Curriculum
Abstract and Figures
The 50-year march of Moore’s Law has led to the creation of a relatively cheap and increasingly easy-to-use world-wide digital infrastructure of computers, mobile devices, broadband network connections, and advanced application platforms. This digital infrastructure has, in turn, accelerated the emergence of new technologies—social media, cloud computing, analytics and “big data,” 3D printing, and intelligent autonomous systems. These types of new technologies enable transformations in how we live and work, how companies organize, and the structure of entire industries.
As a result, it has become increasingly important for all business students (MBAs and undergraduates alike) to have a strong and appropriate grounding in IT in general and digital innovation in particular—in order to manage, lead and transform organizations that can benefit from digital innovation. Yet, at many schools students do not get such grounding, either because the required IS core class is stuck in the past, or because the required business core excludes IS altogether. We present a vision for a redesigned IS core class that adopts digital innovation as a fundamental and powerful concept (FPC). A good FPC serves as both a foundational concept and an organizing principle for a course.
We espouse a particularly broad conceptualization of digital innovation that allows for a variety of teaching styles and topical emphases for the IS core class. This conceptualization includes three types of innovation (i.e., process, product, and business model innovation), and four stages for the overall innovation process (i.e., discovery, development, diffusion, and impact). Based on this conceptualization, we examine the implications of adopting digital innovation as an FPC. We also briefly discuss broader implications relating to: (1) the IS curriculum beyond the core class, (2) the research agenda for the IS field, and (3) the identity and legitimacy of IS in business schools.
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... Additionally, the realities and misconceptions surrounding digital innovation applications are underexplored. Notably, the misconception that digital innovation offers equal benefits for all firms and the reality that digital technologies alone may not significantly enhance performance without proper integration and support (Fichman et al., 2014;Herbert, 2017). ...
... Firstly, the study identifies linkages between agility, the enhancement of firm knowledge and technology, improved communication methods, and effective planning and preparation, which correspond to all four characteristics of knowledge (RQ1, Figure 1). Specifically, using digital innovation to support planning and preparation assists firms in knowledge transfer, aggregation (enhancement), and acquisition, as well as in understanding the types of knowledge required for production (Fichman et al., 2014). ...
... Connections also emerged between regulatory policies (CSPO-G) and production expertise needs. Conversely, aligning with Fichman et al. (2014), knowledge appropriation is intricate and often impractical in this study context, particularly when the organization does not internally develop digital innovation technologies. Regarding RQ4, the subsequent discussion and theoretical implications underscore the significance of emerging conceptual perspectives and supporting categories concerning the KBV. ...
Purpose-This study explores how firms in emerging economies engage in digital innovation, leverage internal and external knowledge and achieve their full potential through digital initiatives. It highlights the pivotal role of knowledge management in facilitating technology-driven transformation, specifically within Ghana's evolving economic landscape. Design/methodology/approach-Using a firm knowledge-based view framework, the study employs a qualitative research approach. Semi-structured, in-depth interviews were conducted with 150 managers across eight industries in Ghana. This method captures detailed insights into how firms utilize digital innovation and knowledge management to gain a competitive edge. Findings-The research reveals that engagement in digital innovation enhances productivity and communication by effectively utilizing internal and external knowledge. Proactive involvement in innovation is strengthened through mentorship, firm support and external consultation, which bolster technological and knowledge capabilities. The study also underscores the importance of managing the human element-termed "human-aided utilization"-as critical for the execution of digital innovation, emphasizing the need for a balanced integration of technology and human capital. Originality/value-This study offers a comprehensive framework for understanding the synergy between digital innovation and knowledge management, particularly in emerging economies. It provides practical insights for managers and decision-makers, emphasizing mentorship, collaboration and effective knowledge utilization as pathways to enhancing digital capacity. The findings are relevant to academics and practitioners seeking to understand knowledge-driven innovation mechanisms and to firms aiming to strengthen their competitiveness in digitally evolving markets.
... Digital service innovation aims to create value (Osmundsen et al. 2018) by realising benefits for stakeholders, such as individuals, organisations and society (Ward and Daniel 2012), by using digital technology to make new or significantly improved healthcare services (Hausvik and Askedal 2023) Hence, benefits are not realised by itself but require significant individual and organisational changes (Fichman et al. 2014). Today's healthcare organisations are argued to be complex, with multiple stakeholders, such as patients and their relatives, healthcare professionals and support staff involved (World Health Organization 2021a). ...
... Digital service innovation aims to create value through the realisation of benefits. However, benefits are not realised by themselves-they require individual and organisational changes (Fichman et al. 2014). Identifying the changes, including enablers necessary for new ways of working, and visualising them in a BDN leads to an increased understanding of the dependencies for realising benefits among the stakeholders. ...
... The contribution of multiple positive effects requires individual and organisational changes (Fichman et al. 2014). Initially, the focus of this digital service innovation was COVID-19 patients. ...
Healthcare organisations stand at a critical juncture, facing pressing challenges such as constrained budgets, growing demands, workforce shortages and heightened public expectations. Now, more than ever, there is a dire need for innovative solutions. Digital service innovation holds immense promise, offering the potential to improve health outcomes, reduce costs, enhance service quality and elevate patient experiences. However, the adoption of these innovations has been slow. The COVID‐19 pandemic served as a catalyst, dramatically accelerating the implementation of digital innovations in healthcare organisations. This rapid transformation was a necessary response to unprecedented conditions. However, there are concerns that the momentum gained during the pandemic is waning, with innovation rates slipping back to pre‐pandemic levels. This paper argues that we must harness the lessons learned from the pandemic to sustain and increase the pace of innovation, addressing healthcare organisations' urgent challenges. It aims to provide practical insights for healthcare managers at various organisational levels, drawing from a compelling case study of digital service innovation during the COVID‐19 pandemic at a Norwegian hospital. Here, practitioners will find six actionable recommendations designed to inspire and empower them to drive innovation in a post‐pandemic era. By embracing these insights, healthcare managers can lead their organisations toward a more resilient, efficient and patient‐centric future. Now is the time to build on the strides made during the pandemic and transform the healthcare landscape for the better.
... What seems to be the new term "physical" is a paraphrase of hardware. Fichman et al., (2014), and Wang (2021), equates digital innovation and IT innovation. ...
... 398). Wang is not alone in equating DT with IT. Fichman et al. (2014) define digital innovation as "A product, process, or business model that is perceived as new, requires some significant changes on the part of adopters, and is embodied in or enabled by IT" (p. 330). ...
... With recent technological advancements, IT is increasingly called digital technology in the broader society (Gartner, 2017;Pullen, 2009;World Bank, 2016). Viewing DT as contemporary IT (Fichman et al., 2014;Wang, 2021) will also push researchers to look beyond the digital label itself into the actual substance of technology and compare it with the previous generations of IT-i.e., a healthy cumulative tradition (Tiwana & Kim, 2019). ...
This paper is a provocation. It points out the concerning trend of framing digital technology as if it is distinct from information technology. While this practice has positive effects (such as conveying relevancy to external stakeholders), it also builds up and generates detrimental externalities, which have gone largely unnoticed-or at least, not brought up to open forums. The key detriments include (1) a hampered cumulative tradition in the IS discipline and (2) the amorphous, ephemeral value we mistakenly create and project about IS studies and majors-especially in this hyper-competitive educational environment. We, IS scholars (young or seasoned), must be cognizant of these harmful externalities and try to minimize them while utilizing the positive ones. This research commentary contributes to the embryonic collective effort by proposing a set of strategic acts rooted in the philosophical tradition of pragmatism.
... -Big Data Analytics: optimising key business processes such as market forecasting, customer insights, supply chain management, etc. [14]. ...
With the rapid development of information technology, digital transformation has become an important strategy for enterprises to enhance competitiveness and optimise resource allocation. Although studies have pointed out that digital transformation may affect firm performance through innovation capability and supply chain efficiency, its underlying mechanism is still controversial. Based on the panel data of Chinese A-share listed companies from 2010 to 2022, this study systematically examines the mechanism of digital transformation on firm performance using OLS regression model and mediated effect analysis. The study finds that: (1) the direct effect of digital transformation on firm performance is not significant, suggesting that there may be high investment and organisational adaptation costs in the early stage of transformation; (2) innovation capability fails to play a mediating role, which may be related to the lack of innovation culture and management mode change in some firms;
... When individuals or organizations have a solid understanding of fundamental principles, they are better equipped to identify novel connections, think critically, and generate innovative ideas ( Van de Ven, 1986). Thus, basic knowledge provides a platform from which individuals and organizations can springboard into new areas or ideas and provides a foundation upon which creativity and innovation can flourish (Fichman et al., 2014). ...
... The pressure on businesses to adapt their business strategies to environmental technological changes has significantly increased with the emergence and growing importance of new digital technologies like Social Media, Cloud Computing, Big Data and Analytics, Embedded Devices, Research 3D-Printing, the Internet of Things, and Artificial Intelligence [137]. They are profoundly changing how businesses operate, the nature of competition, customer behavior, and expectations, as well as how business is conducted, goods are produced and delivered, how people are employed, and eventually, the nature of whole sectors [54]. Therefore, in recent years, practitioners and academics have been closely observing the phenomenon of digital transformation, notably the levers that are essential to success and the obstacles that must be addressed. ...
Despite the rising relevance of digital transformation, there is still a knowledge vacuum due to limited literature available on digital transformation. This study aims to examine the impact of digital transformation on the marketing performance of small and medium enterprises. This research seeks to fill this void by adopting the technology adoption model in order to explore how in a fast-changing technological environment, digital transformation plays its role in firm specific capabilities that are imperative for a firm to adopt, and how they impact firm’s marketing performance. Combination of convenience sampling as well as snowball sampling was used to collect the data. Utilizing survey data from 316 small to medium-sized enterprises in the twin cities (Islamabad & Rawalpindi), Pakistan the results indicate that digital transformation has a positive influence on small and medium enterprises’ marketing performance. This encourages businesses to take advantage of the opportunity presented by new digital technologies and industry-wide digitalization trends by adopting new technologies and improving their digital capabilities in order to increase their productivity, efficiency, and innovation as well as their marketing performance. Hence this study is a practical demonstration of how developing digital transformation may be used to develop novel digital products and services and thereby improve marketing performance that leads to the overall corporate performance. Finally, the study contributes to the literature by evaluating the proposed model that describes the relationships between digital transformation, social media marketing, market turbulence and marketing performance concurrently.
Makale, İslami finans sisteminin gelişimindeki temelleri ve eğilimleri, İslami finans kurumlarının ilkelerini ve İslami finans sistemi içinde kullanılan finansal araçları tartışıyor. İslami ve geleneksel bankaların ayırt edici özellikleri analiz edilir. İslami finans sisteminin gelişmesiyle ilgili sorunlara ve beklentilere özel önem verilmektedir. İslami finansın finansal sisteme entegrasyonunu etkileyen faktörler belirlenmektedir. Makale, İslami finans sistemindeki temel ilkeleri ve gelişen eğilimleri ele alıyor, temel kavramlarına ve çağdaş gelişmelere ışık tutuyor. Bu sistem içerisinde kullanılan çeşitli finansal araçların incelenmesinin yanı sıra, İslami finans kurumlarını yöneten operasyonel ilkelerin derinlemesine araştırılmasını sağlar. İslami ve geleneksel bankacılık modelleri arasında karşılaştırmalar yapan makale, bunların ayırt edici özelliklerini ve operasyonel metodolojilerini inceliyor ve her birinin güçlü ve zayıf yönlerine dair değerli bilgiler sunuyor. Ayrıca makale, İslami finansın gidişatını şekillendiren zorlukların ve fırsatların ele alınmasına özel bir vurgu yapmaktadır. Gelişiminin önündeki engelleri ve büyümenin potansiyel yollarını yakından analiz ederek İslami finansın gelecekteki beklentilerine dair kapsamlı bir bakış açısı sunuyor. Ayrıca makale, İslami finansın daha geniş finansal ekosisteme entegrasyonunu etkileyen çok yönlü faktörleri vurgulayarak finans endüstrisindeki karmaşık dinamiklerin altını çiziyor. Genel olarak makale, İslami finansın incelikli bir incelemesi olarak hizmet etmekte ve okuyuculara hem temel ilkeleri hakkında kapsamlı bir anlayış hem de çağdaş manzaranın anlayışlı bir analizini sunmaktadır. Kapsamlı yaklaşımı sayesinde, İslami finansın doğasında bulunan karmaşıklıkların ve potansiyellerin daha derinlemesine anlaşılmasına katkıda bulunurken, aynı zamanda küresel finansal sistem için daha geniş kapsamlı sonuçlara da ışık tutuyor.
In this short paper, I provide an explanation of what criteria I would consider in making a decision for acquiring BI software, including purchasing, leasing, in-house development, and outsourcing development. I also provide an explanation of what I would change if I were looking to apply “green” principles.
The (A) case describes the evolution between 1999 and 2005 of an unusual innovation team within the office of the chief information officer at oil and gas giant BP. This team helped business units conceive, develop, and implement novel, value-added applications for emerging information technologies. The team leader, vice president and chief technology officer Phiroz Darukhanavala (“Daru”), eschewed a large group and venture budget in favor of a small, lean team intimately engaged with BP's business units. The case describes several mechanisms created by the CTO office during its early evolution: “Blue Chalk” events that expanded executives' appreciation of emerging technology capabilities, a network of relationships through which emerging technologies were scouted and vetted, a structured technology transfer process, and annual “game-changer” projects.
The (B) case describes how the CTO office team members in 2011 again solicited advice from their ecosystem of thought leaders and held workshops to significantly enhance their impact. As a result, they began developing solutions for broader, more fundamental business problems that came to be known as Grand Challenges: extremely difficult business problems whose solutions could potentially create hundreds of millions—or billions—of dollars in business value.
After reading and analyzing the case, students will be able to:
• Understand the management challenges associated with realizing the business value of new technologies
• Explore how innovation management evolves as an innovation team learns from its successes and failures and, more importantly, builds a reputation within and outside the company
• Examine a prototypical “advocate” model of corporate entrepreneurial practice
• Explore a leading example of a successful internal innovation program
