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BPMN4CAI: A BPMN Extension for Modeling Dynamic Conversational AI

BPMN4CAI: A BPMN Extension for Modeling Dynamic Conversational AI

Björn-Lennart Eger, Daniel Rose, and Barbara Dinter
This study develops and evaluates a standard-compliant extension for Business Process Model and Notation (BPMN) called BPMN4CAI. Using a Design Science Research methodology, the paper creates a framework that systematically extends existing BPMN elements to better model the dynamic and context-sensitive interactions of Conversational AI systems. The applicability of the BPMN4CAI framework is demonstrated through a case study in the insurance industry.

Problem Conversational AI systems like chatbots are increasingly integrated into business processes, but the standard modeling language, BPMN, is designed for predictable, deterministic processes. This creates a gap, as traditional BPMN cannot adequately represent the dynamic, context-aware dialogues and flexible decision-making inherent to modern AI. Businesses lack a standardized method to formally and accurately model processes involving these advanced AI agents.

Outcome - The study successfully developed BPMN4CAI, an extension to the standard BPMN, which allows for the formal modeling of Conversational AI in business processes.
- The new extension elements (e.g., Conversational Task, AI Decision Gateway, Human Escalation Event) facilitate the representation of adaptive decision-making, context management, and transparent interactions.
- A proof-of-concept demonstrated that BPMN4CAI improves model clarity and provides a semantic bridge for technical implementation compared to standard BPMN.
- The evaluation also identified limitations, noting that modeling highly dynamic, non-deterministic process paths and visualizing complex context transfers remains a challenge.
Conversational AI, BPMN, Business Process Modeling, Chatbots, Conversational Agent
Generative Al in Business Process Optimization: A Maturity Analysis of Business Applications

Generative Al in Business Process Optimization: A Maturity Analysis of Business Applications

Ralf Mengele
This study analyzes the current state of Generative AI (GAI) in the business world by systematically reviewing scientific literature. It identifies where GAI applications have been explored or implemented across the value chain and evaluates the maturity of these use cases. The goal is to provide managers and researchers with a clear overview of which business areas can already benefit from GAI and which require further development.

Problem While Generative AI holds enormous potential for companies, its recent emergence means it is often unclear where the technology can be most effectively applied. Businesses lack a comprehensive, systematic overview that evaluates the maturity of GAI use cases across different business processes, making it difficult to prioritize investment and adoption.

Outcome - The most mature and well-researched applications of Generative AI are in product development and in maintenance and repair within the manufacturing sector.
- The manufacturing segment as a whole exhibits the most mature GAI use cases compared to other parts of the business value chain.
- Technical domains show a higher level of GAI maturity and successful implementation than process areas dominated by interpersonal interactions, such as marketing and sales.
- GAI models like Generative Adversarial Networks (GANs) are particularly mature, proving highly effective for tasks like generating synthetic data for early damage detection in machinery.
- Research into GAI is still in its early stages for many business areas, with fields like marketing, sales, and human resources showing low implementation and maturity.
Generative AI, Business Processes, Optimization, Maturity Analysis, Literature Review, Manufacturing
AI at Work: Intelligent Personal Assistants in Work Practices for Process Innovation

AI at Work: Intelligent Personal Assistants in Work Practices for Process Innovation

Zeynep Kockar, Mara Burger
This paper explores how AI-based Intelligent Personal Assistants (IPAs) can be integrated into professional workflows to foster process innovation and improve adaptability. Utilizing the Task-Technology Fit (TTF) theory as a foundation, the research analyzes data from an interview study with twelve participants to create a framework explaining IPA adoption, their benefits, and their limitations in a work context.

Problem While businesses are increasingly adopting AI technologies, there is a significant research gap in understanding how Intelligent Personal Assistants specifically influence and innovate work processes in real-world professional settings. Prior studies have focused on adoption challenges or automation benefits, but have not thoroughly examined how these tools integrate with existing workflows and contribute to process adaptability.

Outcome - IPAs enhance workflow integration in four key areas: providing guidance and problem-solving, offering decision support and brainstorming, enabling workflow automation for efficiency, and facilitating language and communication tasks.
- The adoption of IPAs is primarily driven by social influence (word-of-mouth), the need for problem-solving and efficiency, curiosity, and prior academic or professional background with the technology.
- Significant barriers to wider adoption include data privacy and security concerns, challenges integrating IPAs with existing enterprise systems, and limitations in the AI's memory, reasoning, and creativity.
- The study developed a framework that illustrates how factors like work context, existing tools, and workflow challenges influence the adoption and impact of IPAs.
- Regular users tend to integrate IPAs for strategic and creative tasks, whereas occasional users leverage them for more straightforward or repetitive tasks like documentation.
Intelligent Personal Assistants, Process Innovation, Workflow, Task-Technology Fit Theory
Designing Scalable Enterprise Systems: Learning From Digital Startups

Designing Scalable Enterprise Systems: Learning From Digital Startups

Richard J. Weber, Max Blaschke, Maximilian Kalff, Noah Khalil, Emil Kobel, Oscar A. Ulbricht, Tobias Wuttke, Thomas Haskamp, and Jan vom Brocke
This study investigates how to design enterprise systems (ES) suitable for the rapidly changing needs of digital startups. Using a design science research approach involving 11 startups, the researchers identified key system requirements and developed nine design principles to create ES that are flexible, adaptable, and scalable.

Problem Traditional enterprise systems are often rigid, assuming business processes are stable and standardized. This design philosophy clashes with the needs of dynamic digital startups, which require highly adaptable systems to support continuous process evolution and rapid growth.

Outcome - The study identified core requirements for enterprise systems in startups, highlighting the need for agility, speed, and minimal overhead to support early-stage growth.
- Nine key design principles for scalable ES were developed, focusing on automation, integration, data-driven decision-making, flexibility, and user-centered design.
- A proposed ES architecture emphasizes a modular approach with a central workflow engine, enabling systems to adapt and scale with the startup.
- The research concludes that for startups, ES design must prioritize process adaptability and transparency over the rigid reliability typical of traditional systems.
Enterprise systems, Business process management, Digital entrepreneurship
Perbaikan Proses Bisnis Onboarding Pelanggan di PT SEVIMA Menggunakan Heuristic Redesign

Perbaikan Proses Bisnis Onboarding Pelanggan di PT SEVIMA Menggunakan Heuristic Redesign

Ribka Devina Margaretha, Mahendrawathi ER, Sugianto Halim
This study addresses challenges in PT SEVIMA's customer onboarding process, where Account Managers (AMs) were not always aligned with client needs. Using a Business Process Management (BPM) Lifecycle approach combined with heuristic principles (Resequencing, Specialize, Control Addition, and Empower), the research redesigns the existing workflow. The goal is to improve the matching of AMs to clients, thereby increasing onboarding efficiency and customer satisfaction.

Problem PT SEVIMA, an IT startup for the education sector, struggled with an inefficient customer onboarding process. The primary issue was the frequent mismatch between the assigned Account Manager's skills and the specific, technical needs of the new client, leading to implementation delays and decreased satisfaction.

Outcome - Recommends grouping Account Managers (AMs) based on specialization profiles built from post-project evaluations.
- Suggests moving the initial client needs survey to occur before an AM is assigned to ensure a better match.
- Proposes involving the technical migration team earlier in the process to align strategies from the start.
- These improvements aim to enhance onboarding efficiency, reduce rework, and ultimately increase client satisfaction.
Business Process Redesign, Customer Onboarding, Knowledge-Intensive Process, Heuristics Method, Startup, BPM Lifecycle
Dealing Effectively with Shadow IT by Managing Both Cybersecurity and User Needs

Dealing Effectively with Shadow IT by Managing Both Cybersecurity and User Needs

Steffi Haag, Andreas Eckhardt
This study analyzes how companies can manage the use of unauthorized technology, known as Shadow IT. Through interviews with 44 employees across 34 companies, the research identifies four common approaches organizations take and provides 10 recommendations for IT leaders to effectively balance security risks with the needs of their employees.

Problem Employees often use unapproved apps and services (Shadow IT) to be more productive, but this creates significant cybersecurity risks like data leaks and malware infections. Companies struggle to eliminate this practice without hindering employee efficiency. The challenge lies in finding a balance between enforcing security policies and meeting the legitimate technology needs of users.

Outcome - Four distinct organizational archetypes for managing Shadow IT were identified, each resulting in different levels of unauthorized technology use (from very little to very frequent).
- Shadow IT users are categorized into two types: tech-savvy 'Goal-Oriented Actors' (GOAs) who carefully manage risks, and less aware 'Followers' who pose a greater threat.
- Effective management of Shadow IT is possible by aligning cybersecurity policies with user needs through transparent communication and responsive IT support.
- The study offers 10 practical recommendations, including accepting the existence of Shadow IT, creating dedicated user experience teams, and managing different user types differently to harness benefits while minimizing risks.
Shadow IT, Cybersecurity, IT Governance, User Needs, Risk Management, Organizational Culture, IT Policy
The Importance of Board Member Actions for Cybersecurity Governance and Risk Management

The Importance of Board Member Actions for Cybersecurity Governance and Risk Management

Jeffrey G. Proudfoot, W. Alec Cram, Stuart Madnick, Michael Coden
This study investigates the challenges boards of directors face in providing effective cybersecurity oversight. Drawing on in-depth interviews with 35 board members and cybersecurity experts, the paper identifies four core challenges and proposes ten specific actions boards can take to improve their governance and risk management capabilities.

Problem Corporate boards are increasingly held responsible for cybersecurity governance, yet they are often ill-equipped to handle this complex and rapidly evolving area. This gap between responsibility and expertise creates significant risk for organizations, as boards may struggle to ask the right questions, properly assess risk, and provide meaningful oversight.

Outcome - The study identified four primary challenges for boards: 1) inconsistent attitudes and governance approaches, 2) ineffective interaction dynamics with executives like the CISO, 3) a lack of sufficient cybersecurity expertise, and 4) navigating expanding and complex regulations.
- Boards must acknowledge that cybersecurity is an enterprise-wide operational risk, not just an IT issue, and gauge their organization's cybersecurity maturity against industry peers.
- Board members should focus on the business implications of cyber threats rather than technical details and must demand clear, jargon-free communication from executives.
- To address expertise gaps, boards should determine their need for expert advisors and actively seek training, such as tabletop cyberattack simulations.
- Boards must understand that regulatory compliance does not guarantee sufficient security and should guide the organization to balance compliance with proactive risk mitigation.
cybersecurity governance, board of directors, risk management, corporate governance, CISO, cyber risk, board expertise
Successfully Organizing AI Innovation Through Collaboration with Startups

Successfully Organizing AI Innovation Through Collaboration with Startups

Jana Oehmichen, Alexander Schult, John Qi Dong
This study examines how established firms can successfully partner with Artificial Intelligence (AI) startups to foster innovation. Based on an in-depth analysis of six real-world AI implementation projects across two startups, the research identifies five key challenges and provides corresponding recommendations for navigating these collaborations effectively.

Problem Established companies often lack the specialized expertise needed to leverage AI technologies, leading them to partner with startups. However, these collaborations introduce unique difficulties, such as assessing a startup's true capabilities, identifying high-impact AI applications, aligning commercial interests, and managing organizational change, which can derail innovation efforts.

Outcome - Challenge 1: Finding the right AI startup. Firms should overcome the inscrutability of AI startups by assessing credible quality signals, such as investor backing, academic achievements of staff, and success in prior contests, rather than relying solely on product demos.
- Challenge 2: Identifying the right AI use case. Instead of focusing on data availability, companies should collaborate with startups in workshops to identify use cases with the highest potential for value creation and business impact.
- Challenge 3: Agreeing on commercial terms. To align incentives and reduce information asymmetry, contracts should include performance-based or usage-based compensation, linking the startup's payment to the value generated by the AI solution.
- Challenge 4: Considering the impact on people. Firms must manage user acceptance by carefully selecting the degree of AI autonomy, involving employees in the design process, and clarifying the startup's role to mitigate fears of job displacement.
- Challenge 5: Overcoming implementation roadblocks. Depending on the company's organizational maturity, it should either facilitate deep collaboration between the startup and all internal stakeholders or use the startup to build new systems that bypass internal roadblocks entirely.
Artificial Intelligence, AI Innovation, Corporate-startup collaboration, Open Innovation, Digital Transformation, AI Startups
Managing Where Employees Work in a Post-Pandemic World

Managing Where Employees Work in a Post-Pandemic World

Molly Wasko, Alissa Dickey
This study examines how a large manufacturing company navigated the challenges of remote and hybrid work following the COVID-19 pandemic. Through an 18-month case study, the research explores the impacts on different employee groups (virtual, hybrid, and on-site) and provides recommendations for managing a blended workforce. The goal is to help organizations, particularly those with significant physical operations, balance new employee expectations with business needs.

Problem The widespread shift to remote work during the pandemic created a major challenge for businesses deciding on their long-term workplace strategy. Companies are grappling with whether to mandate a full return to the office, go fully remote, or adopt a hybrid model. This problem is especially complex for industries like manufacturing that rely on physical operations and cannot fully digitize their entire workforce.

Outcome - Employees successfully adapted information and communication technology (ICT) to perform many tasks remotely, effectively separating their work from a physical location.
- Contrary to expectations, on-site workers who remained at the physical workplace throughout the pandemic reported feeling the most isolated, least valued, and dissatisfied.
- Despite demonstrated high productivity and employee desire for flexibility, business leaders still strongly prefer having employees co-located in the office, believing it is crucial for building and maintaining the company's core values.
- A 'Digital-Physical Intensity' framework was developed to help organizations classify jobs and make objective decisions about which roles are best suited for on-site, hybrid, or virtual work.
remote work, hybrid work, post-pandemic workplace, blended workforce, employee experience, digital transformation, organizational culture
Managing IT Challenges When Scaling Digital Innovations

Managing IT Challenges When Scaling Digital Innovations

Sara Schiffer, Martin Mocker, Alexander Teubner
This paper presents a case study on 'freeyou,' the digital innovation spinoff of a major German insurance company. It examines how the company successfully transitioned its online-only car insurance product from an initial 'exploring' phase to a profitable 'scaling' phase. The study highlights the necessary shifts in IT approaches, organizational structure, and data analytics required to manage this transition.

Problem Many digital innovations fail when they move from the idea validation stage to the scaling stage, where they need to become profitable and handle large volumes of users. This study addresses the common IT-related challenges that cause these failures and provides practical guidance for managers on how to navigate this critical transition successfully.

Outcome - Prepare for a significant cultural shift: Management must explicitly communicate the change in focus from creative exploration and prototyping to efficient and profitable operations to align the team and manage expectations.
- Rearchitect IT systems for scalability: Systems built for speed and flexibility in the exploration phase must be redesigned or replaced with robust, efficient, and reliable platforms capable of handling a large user base.
- Adjust team composition and skills: The transition to scaling requires different expertise, shifting from IT generalists who explore new technologies to specialists focused on process automation, data analytics, and stable operations. Companies must be prepared to bring in new talent and restructure teams accordingly.
digital innovation, scaling, IT management, organizational change, case study, insurtech, innovation lifecycle
Identifying and Filling Gaps in Operational Technology Cybersecurity

Identifying and Filling Gaps in Operational Technology Cybersecurity

Abbatemarco Nico, Hans Brechbühl
This study identifies critical gaps in Operational Technology (OT) cybersecurity by drawing on insights from 36 leaders across 14 global corporations. It analyzes the organizational challenges that hinder the successful implementation of OT cybersecurity, going beyond purely technical issues. The research provides practical recommendations for managers to bridge these security gaps effectively.

Problem As industrial companies embrace 'Industry 4.0', their operational technology (OT) systems, which control physical processes, are becoming increasingly connected to digital networks. This connectivity introduces significant cybersecurity risks that can halt production and cause substantial financial loss, yet many organizations struggle to implement robust security due to organizational, rather than technical, obstacles.

Outcome - Cybersecurity in OT projects is often treated as an afterthought, bolted on at the end rather than integrated from the start.
- Cybersecurity teams typically lack the authority, budget, and top management support needed to enforce security measures in OT environments.
- There is a severe shortage of personnel with expertise in both OT and cybersecurity, and a cultural disconnect exists between IT and OT teams.
- Priorities are often misaligned, with OT personnel focusing on uptime and productivity, viewing security measures as hindrances.
- The tangible benefits of cybersecurity are difficult to recognize and quantify, making it hard to justify investments until a failure occurs.
Operational Technology, OT Cybersecurity, Industry 4.0, Cybersecurity Gaps, Risk Management, Industrial Control Systems, Technochange
Identifying and Addressing Senior Executives' Different Perceptions of the Value of IT Investments

Identifying and Addressing Senior Executives' Different Perceptions of the Value of IT Investments

Alastair Tipple, Hameed Chughtai, Jonathan H. Klein
This study explores how Chief Information Officers (CIOs) can uncover and manage differing opinions among senior executives regarding the value of IT investments. Using a case study at a U.K. firm, the researchers applied a method based on Repertory (Rep) Grid analysis and heat maps to make these perception gaps visible and actionable.

Problem The full benefits of IT investments are often not realized because senior leaders lack a shared understanding of their value and effectiveness. This misalignment can undermine project support and success, yet CIOs typically lack practical tools to objectively identify and resolve these hidden differences in perception within the management team.

Outcome - Repertory (Rep) Grids combined with heat maps are a practical and effective technique for making executives' differing perceptions of IT value explicit and visible.
- The method provides a structured, data-driven foundation for CIOs to have tailored, objective conversations with individual leaders to build consensus.
- By creating a common set of criteria for evaluation, the process helps align the senior management team and fosters a shared understanding of IT's strategic contribution.
- The visual nature of heat maps helps focus discussions on specific points of disagreement, reducing emotional conflict and accelerating the path to a common ground.
- The approach allows CIOs to develop targeted action plans to address specific gaps in understanding, ultimately improving support for and the realization of value from IT investments.
IT investment value, senior management perception, Repertory Grid, heat maps, CIO, strategic alignment, social alignment
How WashTec Explored Digital Business Models

How WashTec Explored Digital Business Models

Christian Ritter, Anna Maria Oberländer, Bastian Stahl, Björn Häckel, Carsten Klees, Ralf Koeppe, and Maximilian Röglinger
This case study describes how WashTec, a global leader in the car wash industry, successfully explored and developed new digital business models. The paper outlines the company's structured four-phase exploration approach—Activation, Inspiration, Evaluation, and Monetization—which serves as a blueprint for digital innovation. This process offers a guide for other established, incumbent companies seeking to navigate their own digital transformation.

Problem Many established companies excel at enhancing their existing business models but struggle to explore and develop entirely new digital ones. This creates a significant challenge for traditional, hardware-centric firms needing to adapt to a digital landscape. The study addresses how an incumbent company can overcome this inertia and systematically innovate to create new value propositions and maintain a competitive edge.

Outcome - WashTec developed a structured four-phase approach (Activation, Inspiration, Evaluation, Monetization) that enabled the successful exploration of digital business models.
- The process resulted in three distinct digital business models: Automated Chemical Supply, a Digital Wash Platform, and In-Car Washing Services.
- The study offers five recommendations for other incumbent firms: set clear boundaries for exploration, utilize digital-savvy pioneers while involving the whole organization, anchor the process with strategic symbols, consider value beyond direct revenue, and integrate exploration objectives into the core business.
digital transformation, business model innovation, incumbent firms, case study, WashTec, digital strategy, exploration
How to Successfully Navigate Crisis-Driven Digital Transformations

How to Successfully Navigate Crisis-Driven Digital Transformations

Ralf Plattfaut, Vincent Borghoff
This study investigates how digital transformations initiated by a crisis, such as the COVID-19 pandemic, differ from transformations under normal circumstances. Through case studies of three German small and medium-sized organizations (the 'Mittelstand'), the research identifies challenges to established transformation 'logics' and provides recommendations for successfully managing these events.

Problem While digital transformation is widely studied, there is little understanding of how the process works when driven by an external crisis rather than strategic planning. The COVID-19 pandemic created an urgent, unprecedented need for businesses to digitize their operations, but existing frameworks were ill-suited for this high-pressure, uncertain environment.

Outcome - The trigger for digital transformation in a crisis is the external shock itself, not the emergence of new technology.
- Decision-making shifts from slow, consensus-based strategic planning to rapid, top-down ad-hoc reactions to ensure survival.
- Major organizational restructuring is deferred; instead, companies form small, agile steering groups to manage the transformation efforts.
- Normal organizational barriers like inertia and resistance to change significantly decrease during the crisis due to the clear and urgent need for action.
- After the crisis, companies must actively work to retain the agile practices learned and manage the potential re-emergence of resistance as urgency subsides.
Digital Transformation, Crisis Management, Organizational Change, German Mittelstand, SMEs, COVID-19, Business Resilience
How to Design a Better Cybersecurity Readiness Program

How to Design a Better Cybersecurity Readiness Program

Kaveh Abhari, Morteza Safaei Pour, Hossein Shirazi
This study explores the common pitfalls of four types of cybersecurity training by interviewing employees at large accounting firms. It identifies four unintended negative consequences of mistraining and overtraining and, in response, proposes the LEAN model, a new framework for designing more effective cybersecurity readiness programs.

Problem Organizations invest heavily in cybersecurity readiness programs, but these initiatives often fail due to poor design, leading to mistraining and overtraining. This not only makes the training ineffective but can also create adverse effects like employee anxiety and fatigue, paradoxically amplifying an organization's cyber vulnerabilities instead of reducing them.

Outcome - Conventional cybersecurity training often leads to four adverse effects on employees: threat anxiety, security fatigue, risk passivity, and cyber hesitancy.
- These individual effects cause significant organizational problems, including erosion of individual performance, fragmentation of team dynamics, disruption of client experiences, and stagnation of the security culture.
- The study proposes the LEAN model to counteract these issues, based on four strategies: Localize, Empower, Activate, and Normalize.
- The LEAN model recommends tailoring training to specific roles (Localize), fostering ownership and authority (Empower), promoting coordinated action through collaborative exercises (Activate), and embedding security into daily operations to build a proactive culture (Normalize).
cybersecurity training, cybersecurity readiness, mistraining, security culture, employee behavior, LEAN model
How Siemens Democratized Artificial Intelligence

How Siemens Democratized Artificial Intelligence

Benjamin van Giffen, Helmuth Ludwig
This paper presents an in-depth case study on how the global technology company Siemens successfully moved artificial intelligence (AI) projects from pilot stages to full-scale, value-generating applications. The study analyzes Siemens' journey through three evolutionary stages, focusing on the concept of 'AI democratization', which involves integrating the unique skills of domain experts, data scientists, and IT professionals. The findings provide a framework for how other organizations can build the necessary capabilities to adopt and scale AI technologies effectively.

Problem Many companies invest in artificial intelligence but struggle to progress beyond small-scale prototypes and pilot projects. This failure to scale prevents them from realizing the full business value of AI. The core problem is the difficulty in making modern AI technologies broadly accessible to employees, which is necessary to identify, develop, and implement valuable applications across the organization.

Outcome - Siemens successfully scaled AI by evolving through three stages: 1) Tactical AI pilots, 2) Strategic AI enablement, and 3) AI democratization for business transformation.
- Democratizing AI, defined as the collaborative integration of domain experts, data scientists, and IT professionals, is crucial for overcoming key adoption challenges such as defining AI tasks, managing data, accepting probabilistic outcomes, and addressing 'black-box' fears.
- Key initiatives that enabled this transformation included establishing a central AI Lab to foster co-creation, an AI Academy for upskilling employees, and developing a global AI platform to support scaling.
- This approach allowed Siemens to transform manufacturing processes with predictive quality control and create innovative healthcare products like the AI-Rad Companion.
- The study concludes that democratizing AI creates value by rooting AI exploration in deep domain knowledge and reduces costs by creating scalable infrastructures and processes.
Artificial Intelligence, AI Democratization, Digital Transformation, Organizational Capability, Case Study, AI Adoption, Siemens
How Shell Fueled Digital Transformation by Establishing DIY Software Development

How Shell Fueled Digital Transformation by Establishing DIY Software Development

Noel Carroll, Mary Maher
This paper presents a case study on how the international energy company Shell successfully implemented a large-scale digital transformation. It details their 'Do It Yourself' (DIY) program, which empowers employees to create their own software applications using low-code/no-code platforms. The study analyzes Shell's approach and provides recommendations for other organizations looking to leverage citizen development to drive digital initiatives.

Problem Many organizations struggle with digital transformation, facing high failure rates and uncertainty. These initiatives often fail to engage the broader workforce, creating a bottleneck within the IT department and a disconnect from immediate business needs. This study addresses how a large, traditional company can overcome these challenges by democratizing technology and empowering its employees to become agents of change.

Outcome - Shell successfully drove digital transformation by establishing a 'Do It Yourself' (DIY) citizen development program, empowering non-technical employees to build their own applications.
- A structured four-phase process (Sensemaking, Stakeholder Participation, Collective Action, Evaluating Progress) was critical for normalizing and scaling the program across the organization.
- Implementing a risk-based governance framework, the 'DIY Zoning Model', allowed Shell to balance employee autonomy and innovation with necessary security and compliance controls.
- The DIY program delivered significant business value, including millions of dollars in cost savings, improved operational efficiency and safety, and increased employee engagement.
- Empowering employees with low-code tools not only solved immediate business problems but also helped attract and retain new talent from the 'digital generation'.
Digital Transformation, Citizen Development, Low-Code/No-Code, Change Management, Case Study, Shell, Organizational Culture
How Large Companies Can Help Small and Medium-Sized Enterprise (SME) Suppliers Strengthen Cybersecurity

How Large Companies Can Help Small and Medium-Sized Enterprise (SME) Suppliers Strengthen Cybersecurity

Jillian K. Kwong, Keri Pearlson
This study investigates the cybersecurity challenges faced by small and medium-sized enterprise (SME) suppliers and proposes actionable strategies for large companies to help them improve. Based on interviews with executives and cybersecurity experts, the paper identifies key barriers SMEs encounter and outlines five practical actions large firms can take to strengthen their supply chain's cyber resilience.

Problem Large companies increasingly require their smaller suppliers to meet the same stringent cybersecurity standards they do, creating a significant burden for SMEs with limited resources. This gap creates a major security vulnerability, as attackers often target less-secure SMEs as a backdoor to access the networks of larger corporations, posing a substantial third-party risk to entire supply chains.

Outcome - SME suppliers are often unable to meet the security standards of their large partners due to four key barriers: unfriendly regulations, organizational culture clashes, variability in cybersecurity frameworks, and misalignment of business processes.
- Large companies can proactively strengthen their supply chain by providing SMEs with the resources and expertise needed to understand and comply with regulations.
- Creating incentives for meeting security benchmarks is more effective than penalizing suppliers for non-compliance.
- Large firms should develop programs to help SMEs elevate their cybersecurity culture and align security processes with their own.
- Coordinating with other large companies to standardize cybersecurity frameworks and assessment procedures can significantly reduce the compliance burden on SMEs.
Cybersecurity, Supply Chain Management, Third-Party Risk, Small and Medium-Sized Enterprises (SMEs), Cyber Resilience, Vendor Risk Management
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