Introductory description

The main aim of the DBS module is to offer a broad perspective on the design and implementation of effective digital business strategies for contemporary organizations.

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

The transformative potential of digital technology for strategy and strategizing is significant, and we are increasingly recognizing how this potential is turning into a new business reality. The pervasive use of digital technology as reflected in, for instance, self-driving cars, robotic technology, and language technology is impressive in itself. It will most certainly promise to challenge what we know about transportation, service work, and intellectual activity. In this regard, digital technology is no longer merely a way of more efficiently supporting business processes, but also something that will radically shape the core of what companies do.

At a time when progress in digital technology has made what seemed impossible, possible, the implications for strategy and strategizing are profound. It is therefore useful to more closely investigate traditional strategy approaches and how they are shaped for making strategy work in the digital age. Such strategy approaches include the ideas of strategically positioning the firm within a competitive landscape, leveraging existing resources and capabilities, or continuously seeking to seize emerging opportunities.

A starting-point of the module is that platforms and platform ecosystems are increasingly important as firms strategise.

First, many digital ventures develop new platform-based business models that challenge traditional ones. For instance, AirBnB challenges the traditional hotel business, and Turo challenges the traditional rental car business. At the same time, established and successful firms like General Electric are making significant attempts to transform themselves by using platform-based models.

Another part of the module concerns digital transformation and how firms can accomplish change management by leveraging digital technology. This part of the module will include a group project that deals with strategic planning of digital transformation.

Learning outcomes

By the end of the module, students should be able to:

• Demonstrate an understanding of how digital technology affects the process by which business strategies are created, and the context in which they are implemented.
• Demonstrate an understanding of platform strategy and how it can used to develop new concepts of digital innovation and related digital business strategies
• Review key challenges and dilemmas faced by organisational stakeholders such as Chief Information Officer (CIO) and the Chief Digital Officer (CDO)
• Critically analyse digital business strategies.

Indicative reading list

Book:

Parker, G.G., Van Alstyne, M.W., and Choudary, S.P. 2016. Platform Revolution: How Networked Markets Are Transforming the Economy and How to Make Them Work for You. New York and London: W. W. Norton & Company.

Teaching Cases:

Busquets, J. (2018). 'Multiasistencia: Transforming the Digital Ecosystem'. Journal of Information Technology Teaching Cases, 8, 97-109.

Dremel, C., Wulf, J., Maier, A., and Brenner, W. 2018. "Understanding the value and organizational implications of big data analytics: the case of AUDI AG," Journal of Information Technology Teaching Cases , 8(2), pp. 126–138.

Articles:
Barney, J., 1991. Firm resources and sustained competitive advantage. Journal of Management 17, 99-120.

Baldwin, C.Y., Clark, K.B., 1997. Managing in an age of modularity. Harvard Business Review Sept/Oct (1997), 84-93.

Bharadwaj, A., Sawy, El, O. A., Pavlou, P. A., & Venkatraman, N. 2013. "Digital Business Strategy: Toward a next generation of insights," MIS Quarterly, 37(2), pp. 471–482.
Brynjolfsson, E. and McAfee, A. (2017) The Business of Artificial Intelligence. Harvard Business Review. July 18, 2017. Available at: https://org/cover-story/2017/07/the-business-of-artificial-intelligence
Constantinides, P., Henfridsson, O., and Parker, G. 2018 "Platforms and Infrastructures in the Digital Age," Information Systems Research, 29(2), pp. 381-400.
Ghazawneh, A., and Henfridsson, O. 2013. "Balancing Platform Control and External Contribution in Third-Party Development: The Boundary Resources Model," Information Systems Journal, 23(2), pp. 173-192.
Gregory, R. W., Henfridsson, O., Kaganer, E., and Kyriakou, H. 2021. "The Role of Artificial Intelligence and Data Network Effects for Creating User Value," Academy of Management Review (46:3), pp. 534-551.
Henfridsson, O., Nandhakumar, J., Scarbrough, H., & Panourgias, N. (2018). Recombination in the open-ended value landscape of digital innovation. Information and Organization, 28(2), 89–100.
Lindebaum, D., Vesa, M., and Den Hond, F. 2020. "Insights from "the Machine Stops" to Better Understand Rational Assumptions in Algorithmic Decision Making and Its Implications for Organizations," Academy of Management Review (45:1), pp. 247-263.

Pachidi, S., Berends, H., Faraj, S., and Huysman, M. 2021. "Make Way for the Algorithms: Symbolic Actions and Change in a Regime of Knowing," Organization Science (32:1), pp. 18-41.

Raisch, S. and Krakowski, S. (2021). 'Artificial Intelligence and Management: The Automation–Augmentation Paradox'. Academy of Management Review, 46, 192-210.

Thomas, L.D.W., Ritala, P., 2021. Ecosystem legitimacy emergence: A collective action view. Journal of Management Studies.

Thomas, L.D.W., Tee, R., 2021. Generativity: A systematic review and conceptual framework. International Journal of Management Reviews.

Volberda & Elfring (2001). Rethinking Strategy - Chapter 1, London: Sage Publications. (added to my.wbs)
Von Krogh, G. (2018). Artificial Intelligence in Organizations: New Opportunities for Phenomenon-Based Theorizing. Academy of Management Discoveries, 4(4), 404–409.
Yoo, Y., Henfridsson, O., and Lyytinen, K. 2010. "The New Organizing Logic of Digital Innovation: An Agenda for Information Systems Research," Information Systems Research (21:4), pp 724-735.
Zhang, Z., Nandhakumar, J., Hummel, J. T., and Waardenburg, L. 2020. "Addressing the Key Challenges of Developing Machine Learning Ai Systems for Knowledge-Intensive Work," MIS Quarterly Executive (19:4), pp. 221-238.

Research element

studying industry to develop a platform in

Interdisciplinary

ability to work with people in group assessment from different educational backgrounds.

International

group work is international, and platform can be developed in any country in the world.

Subject specific skills

Apply platform strategy including notions such as network effects, multi-sided markets, platform architecture, core interaction, and platform governance.
Generate digital business strategies

Transferable skills

Communication skills