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Three types of chief digital officers and the reasons organizations adopt the role

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Digital innovation impacts every industry, and in response, many organizations have introduced a new C-suite leadership role-the chief digital officer (CDO). Based on interviews with 35 CDOs from various sectors, we have identified the domains where successful CDOs build digital capabilities (digital innovation, data analytics and customer engagement) and three types of CDOs-digital accelerators, digital marketers and digital harmonizers. Each type focuses specifically on one of the digital capabilities. The article concludes by considering the relationship between CDOs and CIOs.
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June 2017 (16:2) | MIS Quarterly Executive 121
The Rise of the Chief Digital Officer12

3
        4     
               

            
             
         
5          
1 Jeanne Ross is the accepting senior editor for this article.
2 The authors gratefully acknowledge the support and time of all the CDOs who participated in the study, as well as the editorial
and review team for detailed and insightful feedback. This research was funded by the Research Fund of the University of Liech-
tenstein (Forschungsförderungsfonds der Universität Liechtenstein) in frames of the project wi-1-14 “Institutional Logics of Digital
Innovation.”
3 Rickards, T., Smaje, K. and Sohoni, V. “Transformer in chief: The new chief digital ofcer,” McKinsey & Company, 2015.
4 Grossman, R. and Rich, J. The Rise of the Chief Digital Ofcer, Russell Reynolds Associates, 2016.
5  Singh, A. and Hess, T. “How Chief Digital Ofcers Promote the Digital Transformation of their Companies,” MIS Quarterly
Executive (16:1), March 2017, pp. 1-17.
Three Types of Chief Digital Officers and
the Reasons Organizations Adopt the Role
Digital innovation impacts every industry, and in response, many organizations have

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-
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Sanja Tumbas
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Nicholas Berente
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Jan vom Brocke
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122 MIS Quarterly Executive | June 2017 (16:2) misqe.org | © 2017 University of Minnesota
Three Types of Chief Digital Ofcers and the Reasons Organizations Adopt the Role
      
     
      
     
     
       
    
     
   
     
    

   
   
     
      
      
       

       
       

      
      
     
    
      
     
      
     
      

   

      
   
     
      

         
     
    6 

 7    

6  Peppard, J., Edwards, C. and Lambert, R. “Clarifying the ambigu-
ous role of the CIO,” MIS Quarterly Executive (10:2), June 2011, pp.
115-117.
7  Weill, P. and Woerner, L. S. Top-Performing CIOs in the Digital
Era, MIT Sloan CISR Research Breing, Vol XVI, Number 5, May, 
2016
Characteristics of a
Successful CDO

     
       
       

     
      
      
     
      
      
     
      
    
       

      
      

      
    


    
      
       
    
     
     
     
       
     
       


fundamental way that we changed the
organization … digital is really integrated
into the experience while you’re in the
      
       
  
     
        
       

June 2017 (16:2) | MIS Quarterly Executive 123
Three Types of Chief Digital Ofcers and the Reasons Organizations Adopt the Role
     
     8 
  
       
8  Pseudonyms have been used for each of the companies.
      
       
    
      
Table 1: Overview of Respondents
Company8 Industry Sector Time in Posion (years) Country
FinancialServ 1 Banking and nance 0.25 U.S.
FinancialServ 2 Banking and nance 0.85 U.K.
InsuranceFirm Insurance 0.85 U.S.
HealthRelated Healthcare 1Europe
RetailOrg Retail 1.25 Australia
Manu&Retail Retail and manufacturing 1 U.S.
RetailCommunicaon Retail 3Europe
Manufacturing 1 Custom part manufacturing 2Europe
Manufacturing 2 Hard manufacturing 5.5 Canada
Manufacturing 3 Transportaon vehicle 1.5 Europe
ArchitectureDesign Architecture, engineering and construcon 4 U.S.
SowareCom 1 Soware 0.85 Europe
SowareCom 2 Soware 1 U.S.
FinancialServ 3 Banking and nance 0.5 Europe
Media Publisher 1 News publishing 1.25 Europe
Media Publisher 2 News publishing 1.85 Europe
Media Publisher 3 Specialized publisher 2Europe
Media Publisher 4 Specialized publisher 5.5 Europe
Media Publisher&TV 5 News publishing and broadcasng 0.5 Europe
Media Film 6 Film producer educaon/non-prot 4 Canada
Media TV 7 TV broadcasng 3.5 U.S.
Media Adversing 8 Adversing 1Europe
Media Adversing 9 Adversing 2 U.S.
Media Adversing 10 Adversing 1South America
Media Adversing 11 Adversing 1 U.S.
GovInstuon Governmental/non-prot 0.5 Europe
Labor Union Associaon/non-prot 0.25 U.S.
EducaonOrg 1 Educaon/non-prot 4 U.S.
CultureHouse 1 Culture/non-prot 1.5 U.S.
CultureHouse 2 Culture/non-prot 4 U.S.
DevelopSkill Leadership educaon/non-prot 1Europe
EducaonOrg 2 Educaon 2 U.S.
ConsumerGood 1 Consumer goods 1.5 U.S.
ConsumerGood 2 Consumer goods 1 U.S.
FinancialServ 4 Banking and nance 1Europe
124 MIS Quarterly Executive | June 2017 (16:2) misqe.org | © 2017 University of Minnesota
Three Types of Chief Digital Ofcers and the Reasons Organizations Adopt the Role
       

  
Paid … includes channels such as Google
     
      
     
    


       
      
     
      
     
    
     

The Digital Innovation CDO Domain

    
      
       
     

         
people to do something non-conventional
that normally happens in a conventional
        
 
      
are things that are traditionally done in a

       
        
    
     
Table 2: Digital Capabilities of CDOs
CDO’s Domain Relevant Capability Example Quotes
Digital
Innovaon
Building digital capabilies
for intense experimentaon;
pursuing strategic changes
to organizaonal processes,
products, services and business
models.
“I think my largest problem is … how can you transform
a business model from the print age. ... I think this is the
hardest challenge: how do you do that step-wise in a
certain amount of years [while] protecng the business
you already have but also building a new model.” CDO,
Media Publisher 1
Data Analycs Building capabilies for data
analysis to gain insights into
both internal and external data
sources.
“With one of our design businesses—designing hotels,
resorts and such—we were able to look at … Trip
Advisor for … reviews of the facilies that we designed.
… We’re also looking at ways [of using] something from
Trip Advisor. What is public data, what can we use
from that and how do we do it? Likewise with design
forums or discussion groups and [so on]. Those are
the … non-structured data sets that we’re interested in
understanding: what’s the general conversaon, what’s
the general pulse?” CDO, ArchitectureDesign
Customer
Engagement
Establishing capabilies
for providing intense focus
on relaonships with the
organizaon’s customers;
delivering outstanding
customer experience by also
streamlining internal processes.
“In healthcare, our customers [are] pharmaceucal
companies, doctors and paents. Their expectaons are
changing from analog services to digital services. As a
result, one of the things that I do is study my customers’
customers’ needs so that I can ancipate as a vendor
what I should be supplying them with. In many ways, I’m
studying paent needs and … doctor needs to gure out
what pharmaceucal companies are going to need so
that we become the … next generaon supplier.” CDO,
SowareCom 2
June 2017 (16:2) | MIS Quarterly Executive 125
Three Types of Chief Digital Ofcers and the Reasons Organizations Adopt the Role
   
      
     
    
    
     
       
      

       
      

   
target audience more times in the day, as
well as to offer products to more people
      
very lightly, very agilely and very much
focused on speed and getting something
      
      
start learning together with the consumer
      
      
    

      
       
   

The Data Analytics CDO Domain
       
     
       
      

  
      
       


sets that we’re interested in understanding:
what’s the general conversation, what’s
      
hospitality world, our hotel and resort

      
       
 


       
         
     
      
        
         
      
      
   
    
      
    
        
   

The Customer Engagement CDO
Domain
     
   
     
      
       
 
      
    
       
   



      
       

As a university student or a company, you
        
       
    
        
 

      
       

126 MIS Quarterly Executive | June 2017 (16:2) misqe.org | © 2017 University of Minnesota
Three Types of Chief Digital Ofcers and the Reasons Organizations Adopt the Role
     

    
       
     
lot of our partners come to us for social
    


        
      
      
     
         

       
       
     
    
       
      
      
      
      
        
       

      
     

Three Types of CDOs
       
     

Digital Accelerator CDOs
     
      
    
       
     
      
     
    
    
     
     
  
     

      
     
    
Table 3: The Digital Accelerator CDO Approach
Dimension Characteriscs Illustrave Quotes
Key Capability Digital innovaon “My primary KPI [key performance indicator] that I set for
myself is to create a digital experience that includes other
things as well. [We are] a mobile bank, we provision and
sign up bank accounts, savings, lines of credit only via the
mobile phone. We have a website as well, but there are no
branches.” CDO, FinancialServ 1
Primary
Objecve
Experimentaon and
implementaon
“[The IT department] had a very tradional approach,
wanng to buy very expensive analycs packages … have a
two-year roll-out. I was not willing to take that me. … I’m
very careful to say we don’t do educaon or training ... we
are not in the business of training people in Google analycs
or training people very hands on.” CDO, EducaonOrg 1
Reason for
Establishing
the Role
To adopt bimodal IT, allowing
the IT funcon to focus on the
underlying infrastructure
“In the old-fashioned way, [the IT funcon] worked very
[well]. I don’t know how much you are familiar with this
bimodal way of working [described by] Gartner … I think we
are very good in this mode, mode one I think is the lower
one … the [old IT] processes in this company are not made
for fast failure and [trial] and error.” CDO, FinancialServ 3
June 2017 (16:2) | MIS Quarterly Executive 127
Three Types of Chief Digital Ofcers and the Reasons Organizations Adopt the Role
     
       
      
    
          
    
      
     


 
    
        
      
need to transform the technology and the
       

      
        
       
      
     
     
       
      
      


pressures to deliver and execute and support
the operational systems … Digital was

of those pressures to deliver and execute the

   
    
 
    
    
      
      
      
       
    

     
      
    
    
      
     
     
    
       
       
     
      
      

      

      
        

       
  “we don’t
    
     

     
       
       
      
      


 

    
     
       
       
      

    
      
   
     

Digital Marketer CDOs
      
      
    
       
  
      
      

128 MIS Quarterly Executive | June 2017 (16:2) misqe.org | © 2017 University of Minnesota
Three Types of Chief Digital Ofcers and the Reasons Organizations Adopt the Role
      
    
     
   
      

     
       
      
       




     


   
      
       
    
    

       
      
      

      
      
        

        
       
     

         
    
       
    
     


      

    
     
       
      
      
    
     
  
    

Table 4: The Digital Marketer CDO Approach
Dimension Characteriscs Illustrave Quotes
Key Capability Data analycs “Our clients are hotel chains like Hilton, the Regent, … but [hotel
users now parcipate in] online communies about design, about
the spaces that are being built, etc. … We track these … sites looking
for [informaon]. We also look at … how [we] can learn from [things]
like Trip Advisor, … design forums or discussion groups and [so on].
CDO, ArchitectureDesign
Primary
Objecve
Customer inmacy “He [the CMO] asked for some advice from someone like me to …
show him what was possible on a digital front. I gave him some
comparables of companies who, in the consumer goods space, could
demonstrate real power of the brand, real strategic advantages
[from] … digital … and presented a new customer face that was more
in keeping with the millennial market and the younger markets,
which he wanted to aract.CDO, ConsumerGood 1
Reason for
Establishing
the Role
To create a consistent
customer experience
across digital and
non-digital channels
“Markeng falls within my responsibility but also internal markeng,
external communicaons and so on. Eecvely, our customers or
potenal customers have mulple dierent touchpoints [from which]
they can reach out to us. Eecvely, I have to manage all of those.”
CDO Manufacturing 1
June 2017 (16:2) | MIS Quarterly Executive 129
Three Types of Chief Digital Ofcers and the Reasons Organizations Adopt the Role
      
having a direct-direct relationship with the
    
      
where previously they were dealing with
    
    
    
    

       
       
      
       

   

   
        

      
content, and an e-commerce store where
  
      
      
    

       
       
        
      

     

        
      
      

    

Digital Harmonizer CDOs
       
      
        
      
       
     
       
     
      
9      
     
     
    
     
  
      
      

   

       
     
      
     
a company, you see a lot of things pop up
   

    
going on across divisions, and teams and
     
      
       


      
         
    
    

      
culture and the approach, the strategic
      
       
      
     
direction, as opposed to children in parallel
play doing their own thing, which was how

       


     
     
9 Grossman, R. and Rich, J.,“The Rise of the Chief Digital Of-
cer,” Russell Reynolds Associates, Harvard Business School
Publishing, 2016.
130 MIS Quarterly Executive | June 2017 (16:2) misqe.org | © 2017 University of Minnesota
Three Types of Chief Digital Ofcers and the Reasons Organizations Adopt the Role
       
     
     
      
          
    
      
      
       
       


organizations that were really innovation
     
    

    
         
     
     
    
     
 
        
        
     

        
       
      
       
      
      
      
    
    

      
     
    
    
      
       

Table 5: The Digital Harmonizer CDO Approach
Dimension Characteriscs Illustrave Quotes
Key Capability Customer
engagement
“It’s a complete shi in the way we deliver customer value because
we understood that … other organizaons like LinkedIn and other job
posngs [were] opening up their doors for anyone to look and see
without having a payroll. We [asked ourselves] ‘How do we make our
organizaon more accessible to anyone?’” CDO, DevelopSkill
Primary
Objecve
Enterprise
integraon
“One of the things that I did was [to] build a digital strategy and a
strategic plan for the next 10 years and … a road map. … [I] then
worked with government, so that instead of everyone doing their own
individual digital projects … there was a process in place where a group
of people … at the working level [would] look at [digital ideas] and then
… very senior [managers would] look at [the ideas] and set priories
and connue to evolve those priories.CDO, Culture House 2
Reason for
Establishing
the Role
When business
silos are liming
the impact of
digital innovaon
“When we set up new programs or projects, we create a team to
work on [them]. … We call [these teams] “squads” in the same way
that Spofy uses that term. [Thus] we create [a] central team of skills
from [within] the organizaon. [For] example, … we put a couple of
developers, a soluon architect, a user researcher [together with] a
data scienst and a designer [into a squad] … so [we] have the data
side very much represented within the digital side as well. We make
sure that we cover all relevant areas. These cross-funconal teams
[are] created from across … the dierent divisions, including digital,
data and technology.CDO, GovInstuon
June 2017 (16:2) | MIS Quarterly Executive 131
Three Types of Chief Digital Ofcers and the Reasons Organizations Adopt the Role
Comparison of Three CDO Types
       
       10 
         
      
    

       
     
     
      

Bridging Traditional IT
(CIO’s Domain) and Digital
Innovation (CDO’s Domain)
       
        
     
      
      
       
11  

     
       

10  Other researchers have recently identied additional CDO 
types, including entrepreneur, digital evangelist and coordinator (see
Singh, A., and Hess, T., op. cit., March 2017).The digital accelerator
encompasses the entrepreneurial spirit; the digital marketer has some
characteristics of the digital evangelist but focuses primarily on de-
veloping digital marketing activities; the digital harmonizer to some
extent is equivalent to the coordinator role but with a strong goal to
streamline internal processes for achieving customer engagement
11  Agarwal, R. and Sambamurthy, V. “Principles and Models for 
Organizing the IT Function,” MIS Quarterly Executive (1:1), March
2002, pp. 158-162.
12  Guillemette, M. and Pare, G. “Toward a New Theory of the 
Contribution of the IT Function in Organizations,” MIS Quarterly
(36:2), 2012, pp. 529-551.
    
        
       
     
      
    
       
   
     
     
      
     
          
    
      
   


      
legacy systems, maintaining all of the
right stuff for legal matters, compliance,

     

        
     
     
       
amounts of information that you need to

 
      
     
     
     
         


Table 6: Overview of the Three Types of CDOs and Their Key Characteristics
Dimension Digital Accelerator Digital Marketer Digital Harmonizer
Key Capability Digital innovaon Data analycs Customer engagement
Primary
Objecve
Experimentaon and
implementaon
Customer inmacy Enterprise integraon
Reason for
Establishing
the Role
To adopt bimodal IT while
allowing the IT unit to
focus on the underlying
infrastructure
To create a consistent
customer experience across
digital and non-digital
channels
When enterprise business
silos are liming the impact
of digital innovaon
132 MIS Quarterly Executive | June 2017 (16:2) misqe.org | © 2017 University of Minnesota
Three Types of Chief Digital Ofcers and the Reasons Organizations Adopt the Role
     
      
    
      13
      
      
       
14     
     
15     
 
     
    
    
      
     16
       
17
      
     
       
      
     18  
        
       
       
     
         



function, there’s usually a strategy shift
which comes with it as well, and there’s no
       
  

13 Henderson, J. C. and Venkatraman, H. “Strategic Alignment: Le-
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business/21591201-information-technology-everywhere-com-
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      



        
      
      
     
    
       
       
         

    
        


     

      
   
  
 

      


       











  
    
       
    
    
  19    
19 Gregory, R. W., Keil, M., Muntermann, J. and Mähring, M.
“Paradoxes and the Nature of Ambidexterity in IT Transformation 
Programs,” Information Systems Research (26:1), 2015, pp. 57-80.
June 2017 (16:2) | MIS Quarterly Executive 133
Three Types of Chief Digital Ofcers and the Reasons Organizations Adopt the Role
     
        
    
     
    
       
 
        

       
     
      
     
      
    

        
       

     
       
    
     
        

       
    


        
 

     
      
      
       

     
       
       
     
     
    
  
        
       

20  vom Brocke, J. “Interview with Martin Petry on ‘Digital Innova-
tion for the Networked Society,’” Business & Information Systems
Engineering (58:3), 2016, pp. 239-241.
21  Weill, P. and Woerner, L. S., op. cit., 2016.


     
       
       
  
      
    
      
     
       
      
       
        


Concluding Comments
     
     
     
     
     
 
  
     
  
      

    
     
       
   


      
 
       
      

 
    
      
       
        
     
22  Peppard, J., Edwards, C. and Lambert, R., op. cit., June 2011.
23  Bird, J. “Fierce competition for chief digital ofcers,” Financial
Times, September 29, 2015.
24 Singh, A. and Hess, T., op. cit., March 2017.
134 MIS Quarterly Executive | June 2017 (16:2) misqe.org | © 2017 University of Minnesota
Three Types of Chief Digital Ofcers and the Reasons Organizations Adopt the Role
       
       
         
       
     
         

      

Appendix: Research Methodology
     


        



      
        
       

        
   
   
   
 
  

 
       
     

      
       
   


About the Authors
Sanja Tumbas
    
      
     
       
    
   
      
     

Nicholas Berente
    
    
      
       
     
      

     

Jan vom Brocke
    
      
     
    
     
      

    
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... This is because many firms have created a new C-suite leadership role-the chief digital officer (CDO)-to oversee the establishment of digital capabilities in the company (Haffke et al., 2016;Horlacher, 2016). Although several authors agree that the CDO role is critical to ensure the improvement of a company's competitive position through DT processes (Haffke et al., 2016;Earley, 2017;Tumbas et al., 2017;Singh et al., 2020), it remains unclear what CDO functions are essential to master a successful DT. ...
... However, since the CDO role is still very new and not fully consolidated, it implies different things to different organizations. Recently, researchers have discussed the CDO role in business practice (Haffke et al., 2016;Earley, 2017;Tumbas et al., 2017) and listed CDOs' responsibilities and functions in drawing different profiles of them. However, there is a lack of consensus about the key functions they must develop. ...
... To meet this end, we conducted a Delphi study in which 14 specialist professionals participated. For this purpose, we first agree on our conceptual lens of DT, and subsequently, we adopt the digital dynamic capabilities (DDC) framework by Warner and Wäger (2019) to unify the criteria about CDO functions observed in previous literature (Haffke et al., 2016;Earley, 2017;Tumbas et al., 2017;Singh et al., 2020). ...
Article
Given that the Chief Digital Office (CDO) is a new business position, it is not yet clear what the key functions they must develop to successfully undertake the company digital transformation process. Although previous literature has tentatively covered this issue, there are still gaps in knowledge about which functions are truly relevant. The aim of this paper is to fill this gap by (1) clarifying the key CDO functions through a Delphi study, validated by a digital dynamic capabilities (DDC) framework (Warner and Wäger 2019), and (2) presenting a measurement instrument useful for assessing the degree of the key CDO functions performance. The findings highlight that key CDO functions are those mainly related to the ability to scan the external environment for unexpected digital trends. In contrast, there is an interesting agreement not to consider CDO responsible for maintaining and advancing the current IT infrastructure and architecture. Our study contributes to understanding the role of a new emergent Csuite position that strategically integrates business and technological knowledge in successfully managing the digital transformation process.
... Yet, CDOs build DCs by observing the market of emerging digital technologies. However, they do not know the results of their actions and so to accomplish digitalization they need to be familiar with iterative experimentations and cope with indeterminacy [63]. This is confirmed by many authors [33], [57], [62], that point to resilience, change leadership, and change management skills as some of the core adaptation capabilities. ...
... A significantly positive relationship is also found for adaptation capability and digitalization (H2) (B = 2.293, tvalue = 2.896; p = 0.006 * * ). Once more, finding support H2, in line with managerial and business literature [33], [57], [62], [63]. Instead, the relation between change capability and digitalization in European SMEs results is not significant (B = −0.297, ...
... According to [71], CDOs act to solve problems and cope with a complex and multidimensional position. They observe the market data to understand how to employ emerging digital technologies to get business value [63]. They also need to be comfortable with iterative experimentations and multidimensional approaches [46]. ...
Article
Abstract—Through the microfoundation lens, this article explores how dynamic capabilities (DCs) of Chief Digital Officers (CDOs) trigger digitalization and organizational creativity of 2124 small to medium enterprises (SMEs) across 39 different European countries. As a result, the significant DCs are substantive and adaptive capabilities, which are offering new solutions, seizing new opportunities, and coping with changes. Besides, those two DCs also assume a mediator role in triggering organizational creativity within SMEs. In terms of theoretical and managerial implications, threefold contributions are provided: the first one offers a fresh study on the digital transformation context of SMEs through a microfoundation perspective; the second emphasizes the crucial role of CDOs as supported and remarked upon previous studies; and, then, the third one stresses out the importance of the individual leverage to generate creativity by the moderating role of DCs. By highlighting the originality of the research, since CDOs are seen to be the spark of unique ideas and innovations in the organization, further insights are proposed to position the need for conceptualizing new paths for developing technologies toward organizational creativity and humanity. Index Terms—Chief Digital Officer (CDO) organizational creativity, digital transformation (DT), dynamic capabilities (DCs), microfoundation.
... The literature analysis brought up four main research themes related to bimodal IT: forms, antecedents, facilitators and barriers, and outcomes of bimodal IT. The research themes are described in Table 3. Organizational structures and alignment in which bimodal IT is embodied [1][2][3][4], [10], [30], [36][37][38][39][40][41][42], [40], ...
... The literature analysis brought up four main research themes related to bimodal IT: forms, antecedents, facilitators and barriers, and outcomes of bimodal IT. The research themes are described in Table 3. Organizational structures and alignment in which bimodal IT is embodied [1][2][3][4], [10], [30], [36][37][38][39][40][41][42], [40], ...
... Another decision to be made when defining bimodal forms of IT is the reporting line, which refers to the functional and hierarchical superior of the bimodal IT organization. Setting up the right management structure can help avoiding barriers faced when balancing the conflicting and often competing activities of exploration and exploitation [36,40]. Engesmo and Panteli [36] found that, within their four studied scenarios of structures and leadership for the IT function, it is most often the Chief Digital Officer (CDO), in contrary to the Chief Information Officer (CIO), who takes the leadership to enable bimodal IT. ...
Conference Paper
Full-text available
Bimodality of the information technology (IT) function is one answer to the changed expectations towards and perceptions of IT’s role within an organization. Bimodal IT aims at leveraging ambidextrous capabilities, allowing to engage in explorative and exploitative activities at the same time. Research interest of this phenomenon is growing, but there is a lack of cumulative knowledge on bimodal IT including research on the related concepts of structural ambidexterity and IT ambidexterity. Through a systematic literature review of 42 papers published in a wide range of academic outlets, we identify and describe four research themes which are summarized in a conceptual model of forms of bimodal IT, antecedents, facilitators and barriers, and outcomes. Furthermore, we discuss the critique the phenomenon is facing in practice and propose a research agenda. The study contributes to both research and practice by synthesizing existing knowledge and providing guidance for further research.
... Aufgrund der hohen Komplexität und notwendiger Anpassungen in der gesamten Organisation kann dies von einer einzelnen Führungskraft neben ihren ursprünglichen Aufgaben oftmals nicht mehr bewältigt werden (Singh und Hess 2017). In der Praxis ist daher zunehmend die Etablierung einer neuen Top-Management Position zu beobachten: der Chief Digital Officer (CDO) (Tumbas et al. 2017). Die Auswirkungen digitaler Technologien durchdringen jedoch das gesamte Unternehmen, so dass sich die komplette Führungsebene mit der digitalen Agenda befassen muss, zumal ein hohes Maß an digitaler Kompetenz immer wichtiger wird (Wrede et al. 2020). ...
... Folgerichtig nehmen Topmanager hierbei eine tragende Rolle ein. Als Antwort auf die Herausforderungen des digitalen Wandels werden in Organisationen vermehrt hochrangige Führungskräfte mit einem Fokus auf dem Thema der digitalen Transformation eingestellt, namentlich CDOs (Tumbas et al. 2017). Grundsätzlich sind CDOs mit verschiedenen Aspekten der digitalen Transformation betraut und für die Entwicklung und Umsetzung einer Strategie für die digitale Transformation mitverantwortlich. ...
Article
Full-text available
Zusammenfassung Die schnellen Entwicklungs- und Diffusionszyklen von digitalen Technologien stellen Organisationen branchenübergreifend vor enorme Herausforderungen. Im Zuge ihrer digitalen Transformation müssen sich Unternehmen Gedanken machen, wie sie die Potenziale digitaler Technologien bestmöglich nutzen. Um diesen Anforderungen zu entsprechen, werden zunehmend Chief Digital Officers etabliert. Daneben zeigt sich in der Praxis, dass der Chief Executive Officer aufgrund der hohen strategischen Relevanz auch maßgeblich an der Steuerung der digitalen Transformation beteiligt ist. Zu der genauen Rolle des Chief Executive Officers bei der digitalen Transformation ist bisher jedoch wenig bekannt. Insbesondere gibt es noch keine Untersuchungen zu seiner Zusammenarbeit mit dem Chief Digital Officer. Anhand von vier Fallstudien zeigen wir explorativ auf, wie die Aufgabenverteilung und Interaktion von Chief Executive Officer und Chief Digital Officer in der Praxis ausgestaltet ist. Unsere Ergebnisse weisen darauf hin, dass der Chief Executive Officer oftmals die Vision und die strategischen Vorgaben für die digitale Transformation festlegt. Zudem ist er an ausgewählten Themen aktiv beteiligt. Die konkrete Umsetzung der Leitlinien liegt hingegen beim Chief Digital Officer. Dabei hat er häufig einen gewissen Ermessensspielraum und kann ferner auch eigene Projekte unabhängig vorantreiben. Schließlich hat sich gezeigt, dass eine enge Abstimmung von Chief Executive Officer und Chief Digital Officer Grundvoraussetzung ist, um die digitale Transformation zielführend zu steuern.
... When it comes to governance and leadership questions, we expected to discover new C-level roles. Especially the idea of introducing a "chief digital officer (CDO)" to promote the digital transformation is gaining more and more recognition in the academic debate recently (Singh and Hess 2017;Tumbas et al. 2017). To this end, only three firms have already a CDO in place and Eurobank plans to introduce the role in the near future. ...
Research
Full-text available
Throughout the last decade, digitalization has fundamentally transformed the business world and put into question traditional strategy wisdom. As (digital) information technologies (IT) are the drivers of this transformation, we can expect it to have an even more profound influence on IT/IS strategy thinking. While several scholars have acknowledged the fundamental changes induced by digitalization on the conceptual level, research on emerging IT/IS strategy contents is still missing. This paper intends to fill this gap by revealing both practically relevant and theoretically valid concerns worth considering when developing IT/IS strategies for/in the digital age. Based on a working definition of digitalization, we present a set of hypotheses on how IT/IS strategies might respond to trends in digitalization. We also put these hypotheses to discussion in ten interviews with IT/IS managers in practice. Our research adds to a better understanding of the complex phenomenon of digitalization and its implications for IT/IS strategy development. Our research responds to calls for a stronger focus on strategy contents and more practice-oriented IT/IS strategy research.
... As digital strategy requires strong leadership (Sia et al., 2016), organizations must prioritize alignment with business strategy (Preston & Karahanna, 2009). Therefore, some organizations implement a chief digital officer to embed digital transformation in their executive boards (Tumbas et al., 2017). However, organizations must simultaneously rethink their digital strategies and address change management to persuade all stakeholders (Giebe, 2019). ...
Thesis
The widespread adoption of digital technologies continues to drive the changing environment of pre-digital organizations. Social, mobile, analytics, cloud, IoT technologies, and blockchain platforms increase the amount of available data and enable new business models. Against this background, incumbents must deal with several challenges and respond to emerging opportunities. While customers' expectations of digital offerings are rising, digital technologies are lowering market-entry barriers, leading to intensified competition. This poses a major challenge for incumbent organizations with a traditional, pre-digital business model. However, these organizations are mostly not designed for digital technologies and their implications because of their inherent structures. Therefore, pre-digital organizations striving for new value creation paths must develop the capabilities required to successfully adopt digital technologies. Furthermore, pre-digital organizations must often change existing routines and established structures to drive digital transformation. This study investigates three areas from a generalized view of the digital transformation of pre-digital organizations. First, how can pre-digital organizations adopt digital technologies? Second, how do they implement structures for digital transformation? Third, how do they organize themselves for new value creation paths? This study includes six research papers, two of which can be assigned to each of these three areas. The first paper examined how pre-digital organizations may approach digital platforms and develop a platform strategy. The second paper investigated the adoption of AI-enabled systems and the effects of the techno-organizational context during the experimentation phase. The third paper introduced various approaches to developing digital capabilities regarding speed and applicability. The fourth paper investigated how pre-digital organizations manage multiple concurrent digital transformation initiatives, demonstrating how beneficial interplay management leads to complementary duality in organizational ambidexterity. The fifth and sixth research papers explored the relationship between organizational agility and organizational reliability. Therefore, the papers elaborate on the decoupling strategy and how organizations should manage their digital debt. In summary, this study examined the complexities of managing digital transformation from the perspective of pre-digital organizations, contributing to a better understanding of digital transformation.
... However, the rise of digital technologies, such as the internet of things, platforms, and artificial intelligence, are disrupting the established perspective on IT governance and the leadership role of CIOs (Fitzgerald et al., 2014;Weill & Woerner, 2013). To successfully face these challenges, numerous companies have reconsidered their governance structures and appointed new managerial roles, such as the Chief Digital Officer (CDO) (Tumbas et al., 2017, Drechsler, Wagner & Reibenspiess 2019. CDOs are positioned at the intersection between business and IT to coordinate and orchestrate digital initiatives, such as the development of digital innovation, across the company. ...
Conference Paper
Full-text available
While AI provides many business opportunities across industries, the organizational implications of AI are still largely unclear. We investigate governance roles related to AI use in practice, and undertake first steps to define the role profiles of a Chief AI Officer (CAIO) and an AI Risk Officer (AIRO). We base our inquiry on two sources: a literature review and evaluative interviews with nine AI professionals from small-and medium-sized companies. We find that, whereas the roles and activities associated with the CAIO and AIRO are commonly deemed relevant for such companies in the long run, today only a few companies have implemented them. Especially the creation of the CAIO position seems justified, due to the complexity of AI and the need for extensive interaction and coordination related to AI governance.
... Kutnjak et al. [32] emphasised the fact that the position of CDO is highly complex, as digital organisational change often involves balancing between two "worlds" that may not be aligned: managers (economic and domain experts) and IT experts (technology experts). A CDO should be a bridge/buffer between IT and the business [24,39], which means interactions between the CIO and the CDO are crucial. There is, however, a lack of clarity in the manner in which a CIO and a CDO cooperate [24], and the complexity of their relationship is further accentuated by the fact that both are at the same level of hierarchy and report directly to CEO [21,28]. ...
Article
Full-text available
Digital transformation is becoming more ingrained into everyday life and is a talking point among researchers today. It has been evident from the growing number of publications that have focused on various aspects of digital transformation in the last few years. Based on the number of papers published, one of them is of much less interest to researchers: the managerial role of Chief Digital Officer (CDO) inherent in digital transformation. Having this in mind, a systematic literature review was conducted to elucidate the CDO’s role, duties, and required competencies. In this paper, the results and conclusions of 22 papers are presented based on the search criteria outlined by the Web of Science and Scopus index databases. It is obvious that managing digital transformation is becoming more important as digital transformation affects almost every sector of business. The purpose of this study is to examine the position of Chief Digital Officer in terms of its position, role, and responsibilities as well as its necessary competencies. The results of this study could serve as the basis for future research in this area, which judging by the relevance of the topic, will certainly be more intensive.
Chapter
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Zusammenfassung Wir bezeichnen den Prozess der organisatorischen Transformation durch den Einsatz digitaler Technologien zur radikalen Umgestaltung von Organisationen als digitale Transformation. Jedoch herrschen innerhalb und zwischen der Management-, Organisations- und Information-Systems-Literatur noch erhebliche Inkonsistenzen bezüglich der Merkmale der digitalen Transformation einer Organisation. Daher haben wir eine transdisziplinäre Recherche von 175 Artikeln zu digitaler Transformation durchgeführt. Als Ergebnis haben wir zwölf Denkschulen identifiziert, die das Phänomen der digitalen Transformation diskutieren. Wir zeigen, dass die digitale Transformation auf bestehenden und neuen Denkansätzen aufbaut, wie beispielsweise digitale Innovation und Ökosysteme.
Article
Businesses and academia alike agree upon the significant influence of digitalization on the business world. Hence, digital transformation is a very topical issue. While researchers underline that the movement toward digitalization is a challenge influencing various dimensions, studies to date have largely focused on the technological and organizational aspects of digitalization. Consequently, there is a gap in digital transformation concerning the role of human resources and employee competency. This paper adopts a human-centered view of digitalization at the intersection of digital and human transformation. Drawing on design science research (DSR), we developed a framework as an artifact that takes into account individual employee competency related to an organization's level of digital transformation. As suggested by DSR, the framework was developed in iterations and refined after evaluation by various domain experts in academia and business. The final framework illustrates the interplay between the individual and organizational levels; in particular, employees’ transformation competency (intrapreneurial and digital competencies) driving digital transformation. Our findings suggest that the development of intrapreneurial competencies is dynamic. Based on an intrapreneurial journey, employee competencies function as triggers to reach the next level of digital transformation. As such, employee competency is crucial in enabling an organization's transformation toward digitalization.
Article
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CIOs and other senior executives face the challenge of how to handle the opportunities and risks of digital transformation. To help managers address this challenge more systematically, we describe how three German media companies successfully approached digital transformation. Based on their experiences, we provide a list of 11 strategic questions and possible answers managers can use as guidelines when formulating a digital transformation strategy.
Article
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The emergence of digital technology represents a paradigmatic historical shift. As a process transforming sociotechnical structures, digitalization has had pervasive effects on organizing structures and business logics, as well as contemporary society as a whole. In recent years, these effects have been particularly salient in the content-based (e.g. music and imaging), and most recently the print-media (e.g. newspapers and magazines) industries. Facing dramatically declining sales of print media products, publishers have sought to leverage digital technology for innovation. However, the digital revenues still do not yet typically compensate for the decline in print media sales. This thesis explores the organizational implications of digitalization in the media domain. Scholars have increasingly stressed that digital technology has some distinct characteristics that have fundamental implications for innovation. This thesis examines aspects of these implications that have been far from fully explored, including the roles of digital technologies as enablers of process innovation (new methods, procedures or responsibilities), product innovation outcomes (which shift or expand an organization's domain) and associated changes in organizational cognition and identity. The thesis is based on four empirical investigations, reported in appended papers, of the evolution of digital platforms, the new content creation practices they enable, and how traditional print media firms have sought to innovate and reorient themselves in relation to these novel phenomena. The composite analysis illustrates how the distinct characteristics of digital technologies are complicit in transitions from stable to fragile product categories, highlights the need for a dynamic approach to identity orientation, and discusses and proposes key concerns in scholarly studies of digital innovation in organizations based on insights generated by the underlying studies.
Chapter
This chapter will cover digital recruitment from its definition thru to its history in recruitment and trends. The subject itself could cover an entire book or an entire module at university, so this chapter will broadly touch upon the key elements and considerations. Under cultural perspective, the recruitment life cycle will be broken down into its individual parts, and digital solutions will be examined for each individual part of the process together with the impact this has on the knowledge and challenges for the manager and team. The economic perspective will assist in prioritizing initiatives and building a business case for the introduction of digital recruiting solutions. The risk perspective will raise awareness of the potential pitfalls and the operational perspective on the key considerations for a successful implementation. Finally, the key messages of this chapter are summarized in the Do’s and Don’ts.
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It is cleaaar that eventhough information technology (I/T) has evolved form its traditional orientation of administrative support toward a more strategic role within an organization, there is still a glaring lack of fundamental frameworks within which to understand the potential of I/T for tomorrow's organizations. In this paper, we develop a model for conceptualizing and directing the emerging area of strategic management of information technology. This model, termed the Strategic Allgnment Model, is defined in terms of four fundamental domains of strategic choice: business strategy, information technology strategy, organlzational infrastructure and processes, and information technology Infrastuvture and processes--each with its own underlying dimenslons. We illustrate the power of this model in terms of two fundamental characteristics fo strategic management: strategic fit (the interrelationships between external and internal components) and functional Integration (integration between business and functional domains). More specifically, we derive foru perspectives for gulding management practice in this Important area.
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This article focuses on the potential impact of social media on organizational leadership and governance at the C-level. Although IT governance in general has become more shared across C-level leaders over time, social media initiatives have elevated the importance of an IT governance role for the chief marketing officer (CMO). Based on case studies and interviews with CIOs, CMOs and other C-level leaders, this article presents four leadership/governance models and describes their challenges and perceived success. The findings of this study also provide evidence for the paradigm shift in the CIO role that has been predicted by other researchers.