International Conference on Wirtschaftsinformatik (2025)
The Value of Blockchain-Verified Micro-Credentials in Hiring Decisions
Lyuba Stafyeyeva
This study investigates how blockchain verification and the type of credential-issuing institution (university vs. learning academy) influence employer perceptions of a job applicant's trustworthiness, expertise, and salary expectations. Using an experimental design with 200 participants, the research evaluated how different credential formats affected hiring assessments.
Problem
Verifying academic credentials is often slow, expensive, and prone to fraud, undermining trust in the system. While new micro-credentials (MCs) offer an alternative, their credibility is often unclear to employers, and it is unknown if technologies like blockchain can effectively solve this trust issue in real-world hiring scenarios.
Outcome
- Blockchain verification did not significantly increase employers' perceptions of an applicant's trustworthiness or expertise. - Employers showed no significant preference for credentials issued by traditional universities over those from alternative learning academies, suggesting a shift toward competency-based hiring. - Applicants with blockchain-verified credentials were offered lower minimum starting salaries, indicating that while verification may reduce hiring risk for employers, it does not increase the candidate's perceived value. - The results suggest that institutional prestige is becoming less important than verifiable skills in the hiring process.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers. Today, we're diving into a fascinating new study titled "The Value of Blockchain-Verified Micro-Credentials in Hiring Decisions."
Host: It explores a very timely question: In the world of hiring, does a high-tech verification stamp on a certificate actually matter? And do employers still prefer a traditional university degree over a certificate from a newer learning academy? Here to unpack the findings with us is our expert analyst, Alex Ian Sutherland. Welcome, Alex.
Expert: Great to be here, Anna.
Host: Alex, let's start with the big picture. Verifying someone's qualifications has always been a challenge for businesses. What’s the core problem this study is trying to solve?
Expert: Exactly. The traditional process of verifying a degree is often slow, manual, and costly. It can involve calling universities or paying third-party agencies. This creates friction in hiring and opens the door to fraud with things like paper transcripts.
Host: And that's where things like online courses and digital badges—these "micro-credentials"—come in.
Expert: Right. They're becoming very popular for showcasing specific, job-ready skills. But for a hiring manager, their credibility can be a big question mark. Is a certificate from an online academy as rigorous as one from a university? The big question the study asks is whether a technology like blockchain can solve this trust problem for employers.
Host: So, how did the researchers actually test this? What was their approach?
Expert: They conducted a very clever experiment with 200 professionals, mostly from the IT industry. They created a fictional job applicant, "Alex M. Smith," who needed both IT knowledge and business communication skills.
Host: And they showed this candidate's profile to the participants?
Expert: Yes, but with a twist. Each participant was randomly shown one of four different versions of the applicant's certificate. It was either from a made-up school called 'Stekon State University' or an online provider called 'Clevant Learn Academy.' And crucially, each of those versions was presented either with or without a "Blockchain Verified" stamp on it.
Host: So they could isolate what really influences a hiring manager's decision. What were the key findings? Let's start with the big one: blockchain.
Expert: This is where it gets really interesting. The study found that adding a "Blockchain Verified" stamp did not significantly increase how trustworthy or expert the employers perceived the candidate to be. The technology alone wasn't some magic signal of credibility.
Host: That is surprising. What about the source of the credential? The traditional university versus the modern learning academy. Did employers have a preference?
Expert: No, and this is a huge finding. There was no significant difference in how employers rated the candidate, regardless of whether the certificate came from the university or the learning academy. It suggests a major shift is underway.
Host: A shift toward what?
Expert: Toward competency-based hiring. It seems employers are becoming more interested in the specific, proven skill rather than the prestige of the institution that taught it.
Host: But I understand there was a very counterintuitive result when it came to salary offers.
Expert: There was. Applicants with the blockchain-verified credential were actually offered *lower* minimum starting salaries. The theory is that instant, easy verification reduces the perceived risk for the employer. They’re so confident the credential is real, they feel comfortable making a more conservative, standard initial offer. It de-risks the hire, but doesn't increase the candidate's perceived value.
Host: So, Alex, this is the most important part for our listeners. What does this all mean for business leaders and hiring managers? What are the practical takeaways?
Expert: The first and biggest takeaway is that skills are starting to trump institutional prestige. Businesses can and should feel more confident considering candidates from a wider range of educational backgrounds, including those with micro-credentials. Focus on what the candidate can *do*.
Host: So, should we just write off blockchain for credentials then?
Expert: Not at all. The second takeaway is about understanding blockchain's true value right now. It may not be a powerful marketing tool on a resume, but its real potential lies on the back-end. For HR departments, it can make the verification process itself dramatically faster, cheaper, and more secure. Think of it as an operational efficiency tool, not a candidate branding tool.
Host: That makes a lot of sense. It solves the friction problem you mentioned at the start.
Expert: Exactly. And this leads to the final point: this trend is democratizing qualifications. It gives businesses access to a wider, more diverse talent pool. Embracing a skills-first hiring approach allows companies to be more agile, especially in fast-moving sectors where skills need to be updated constantly.
Host: That’s a powerful conclusion. So, to summarize: a blockchain stamp won't automatically make a candidate look better, but it can de-risk the process for employers. And most importantly, we're seeing a clear shift where verifiable skills are becoming more valuable than the name on the diploma.
Host: Alex Ian Sutherland, thank you so much for breaking down this fascinating study for us.
Expert: My pleasure, Anna.
Host: And a big thank you to our audience for tuning in to A.I.S. Insights, powered by Living Knowledge. Join us next time for more analysis at the intersection of business and technology.
International Conference on Wirtschaftsinformatik (2025)
Taking a Sociotechnical Perspective on Self-Sovereign Identity – A Systematic Literature Review
Lukas Florian Bossler, Teresa Huber, and Julia Kroenung
This study provides a comprehensive analysis of academic literature on Self-Sovereign Identity (SSI), a system that aims to give individuals control over their digital data. Through a systematic literature review, the paper identifies and categorizes the key sociotechnical challenges—both technical and social—that affect the implementation and widespread adoption of SSI. The goal is to map the current research landscape and highlight underexplored areas.
Problem
As individuals use more internet services, they lose control over their personal data, which is often managed and monetized by large tech companies. While Self-Sovereign Identity (SSI) is a promising solution to restore user control, academic research has disproportionately focused on technical aspects like security. This has created a significant knowledge gap regarding the crucial social challenges, such as user acceptance, trust, and usability, which are vital for SSI's real-world success.
Outcome
- Security and privacy are the most frequently discussed challenges in SSI literature, often linked to the use of blockchain technology. - Social factors essential for adoption, including user acceptance, trust, usability, and control, are significantly overlooked in current academic research. - Over half of the analyzed papers discuss SSI in a general sense, with a lack of focus on specific application domains like e-government, healthcare, or finance. - A potential mismatch exists between SSI's privacy needs and the inherent properties of blockchain, suggesting that alternative technologies should be explored. - The paper concludes there is a strong need for more domain-specific and design-oriented research to address the social hurdles of SSI adoption.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. I'm your host, Anna Ivy Summers. Today, we're diving into the world of digital identity and asking a crucial question: who really controls your data online?
Host: We're looking at a fascinating study titled "Taking a Sociotechnical Perspective on Self-Sovereign Identity – A Systematic Literature Review". It provides a comprehensive analysis of what’s called Self-Sovereign Identity, or SSI, a system designed to put you, the individual, back in charge of your digital information.
Host: To help us unpack this, we have our expert analyst, Alex Ian Sutherland. Welcome, Alex.
Expert: Thanks for having me, Anna.
Host: Alex, let's start with the big picture. Every time we sign up for a new app, a new service, or a new account, we're creating another little piece of our digital self that's stored on someone else's server. What's the problem with that?
Expert: The problem is exactly what you described – we've lost control. Our personal data is fragmented across countless companies, and they are the ones who manage, and often monetize, that information. Self-Sovereign Identity is proposed as the solution, a way to give us back the keys to our own digital kingdom.
Expert: But this study found a major disconnect. The academic world has been overwhelmingly focused on the technical nuts and bolts of SSI, especially things like blockchain security.
Host: And that sounds important, doesn't it? Security is key.
Expert: It absolutely is. But what the research highlights is a huge knowledge gap on the social side of the equation. Things like user acceptance, trust, and simple usability. If a system is technically perfect but people don't trust it or find it too complicated to use, it will never be widely adopted. That's the core problem this study tackles.
Host: So how did the researchers get a handle on this? What was their approach?
Expert: They conducted what’s called a systematic literature review. In simple terms, they gathered and meticulously analyzed 78 different academic studies on SSI to map out the entire research landscape. This allowed them to see what topics get all the attention and, more importantly, what critical areas are being ignored.
Host: A bird's-eye view of the research. So, what were the main findings? What did this map reveal?
Expert: It revealed a few key things. First, as we mentioned, security and privacy were by far the most discussed challenges, appearing in over 80% of the studies they reviewed. And these discussions are almost always tied to blockchain technology.
Host: Which leads to what was being missed.
Expert: Exactly. The study found that those crucial social factors we talked about—acceptance, trust, usability—are significantly underrepresented in the research. These are the elements that determine whether a technology actually succeeds in the real world.
Host: So we have the blueprints, but we're not thinking enough about the people who will live in the house.
Expert: A perfect analogy. Another major finding was that over half of the studies discuss SSI in a very general, abstract way. There's a serious lack of focus on specific industries. How would SSI actually work for a hospital, a bank, or a government agency? The research often doesn't go there.
Expert: And one last, slightly more technical point. The study suggests a potential mismatch between SSI's privacy goals and the nature of blockchain. A public blockchain is designed to be permanent and transparent, which can directly conflict with privacy regulations like GDPR's "right to be forgotten."
Host: This is incredibly insightful. Let's shift to the big "so what" for our listeners. What are the practical business takeaways from this study?
Expert: I think there are three crucial ones. First, if your business is exploring identity solutions, don't just focus on the tech. You must invest in the user experience. You need to understand if your customers will trust it and if it's easy enough for them to use. Success depends on the human factors, not just the code.
Expert: Second, context is everything. A generic, one-size-fits-all identity solution is unlikely to work. A system for verifying a patient's identity in healthcare has vastly different requirements than one for verifying age for e-commerce. Businesses need to think in terms of these specific, real-world applications.
Host: And the third takeaway?
Expert: Don't assume blockchain is a magic bullet. This study shows that while powerful, its features can sometimes be a hindrance to privacy and scalability. Businesses should critically evaluate whether it's the right tool for their specific needs or if other technologies might be a better fit.
Host: So, to summarize: Self-Sovereign Identity holds immense promise for giving us control over our digital lives. But for businesses to make it a reality, they must look beyond the technology. The focus needs to be on building user trust, ensuring usability, and designing solutions for specific, practical industry needs.
Host: Alex, this has been an incredibly clear explanation of a complex topic. Thank you for your insights.
Expert: My pleasure, Anna.
Host: And thank you to our listeners for tuning in to A.I.S. Insights, powered by Living Knowledge.
self-sovereign identity, decentralized identity, blockchain, sociotechnical challenges, digital identity, systematic literature review
International Conference on Wirtschaftsinformatik (2025)
Structural Estimation of Auction Data through Equilibrium Learning and Optimal Transport
Markus Ewert and Martin Bichler
This study proposes a new method for analyzing auction data to understand bidders' private valuations. It extends an existing framework by reformulating the estimation challenge as an optimal transport problem, which avoids the statistical limitations of traditional techniques. This novel approach uses a proxy equilibrium model to analytically evaluate bid distributions, leading to more accurate and robust estimations.
Problem
Designing profitable auctions, such as setting an optimal reserve price, requires knowing how much bidders are truly willing to pay, but this information is hidden. Existing methods to estimate these valuations from observed bids often suffer from statistical biases and inaccuracies, especially with limited data, leading to poor auction design and lost revenue for sellers.
Outcome
- The proposed optimal transport-based estimator consistently outperforms established kernel-based techniques, showing significantly lower error in estimating true bidder valuations. - The new method is more robust, providing accurate estimates even in scenarios with high variance in bidding behavior where traditional methods fail. - In practical tests, reserve prices set using the new method's estimates led to significant revenue gains for the auctioneer, while prices derived from older methods resulted in zero revenue.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers. Today, we’re diving into a fascinating study called “Structural Estimation of Auction Data through Equilibrium Learning and Optimal Transport.”
Host: With me is our expert analyst, Alex Ian Sutherland. Alex, this sounds quite technical, but at its heart, it’s about understanding what people are truly willing to pay for something. Is that right?
Expert: That’s a perfect way to put it, Anna. The study introduces a new, more accurate method for analyzing auction data to uncover bidders' hidden, private valuations. It uses a powerful mathematical concept called 'optimal transport' to get around the limitations of older techniques.
Host: So, let’s start with the big picture. What is the real-world problem that this study is trying to solve?
Expert: The problem is a classic one for any business that uses auctions. Think of a company selling online ad space, or a government auctioning off broadcast licenses. To maximize their revenue, they need to design the auction perfectly, for instance by setting an optimal reserve price—the minimum bid they'll accept.
Host: But to do that, you'd need to know the highest price each bidder is secretly willing to pay.
Expert: Exactly, and that information is hidden. You only see the bids they actually make. For decades, analysts have used statistical methods to try and estimate those true valuations from the bids, but those methods have serious flaws.
Host: Flaws like what?
Expert: They often require huge amounts of clean data to be accurate, which is rare in the real world. With smaller or messier datasets, these traditional methods can produce biased and inaccurate estimates. This leads to poor auction design, like setting a reserve price that's either too low, leaving money on the table, or too high, scaring away all the bidders. Either way, the seller loses revenue.
Host: So how does this new approach avoid those pitfalls? What is 'optimal transport'?
Expert: Imagine you have the bids you've observed in one pile. And over here, you have a theoretical model of how rational bidders would behave. Optimal transport is essentially a mathematical tool for finding the most efficient way to 'move' the pile of observed bids to perfectly match the shape of the theoretical model.
Host: Like finding the shortest path to connect the data you have with the theory?
Expert: Precisely. By calculating that 'path' or 'transport map', the researchers can analytically determine the underlying valuations with much greater precision. It avoids the statistical guesswork of older methods, which are often sensitive to noise and small sample sizes. It’s a more direct and robust way to get to the truth.
Host: It sounds elegant. So, what were the key findings when they put this new method to the test?
Expert: The results were quite dramatic. First, the optimal transport method was consistently more accurate. It produced estimates of bidder valuations with significantly lower error compared to the established techniques.
Host: And was it more reliable with the 'messy' data you mentioned?
Expert: Yes, and this is a crucial point. It proved to be far more robust. In experiments with high variance in bidding behavior—scenarios where the older methods completely failed—this new approach still delivered accurate estimates. It can handle the unpredictability of real-world bidding.
Host: That all sounds great in theory, but does it actually lead to better business outcomes?
Expert: It does, and this was the most compelling finding. The researchers simulated setting a reserve price based on the estimates from their new method versus the old ones. The reserve price set using the new method led to significant revenue gains for the seller.
Host: And the old methods?
Expert: In the same test, the prices derived from the older methods were so inaccurate they led to zero revenue. The estimated reserve price was so high that it was predicted no one would bid at all. It’s a stark difference—going from zero revenue to a significant increase.
Host: That really brings it home. So, for the business leaders listening, what are the practical takeaways here? Why does this matter for them?
Expert: The most direct application is for any business involved in auctions. If you're in ad-tech, government procurement, or even selling assets, this is a tool to fundamentally improve your pricing strategy and increase your revenue. It allows you to make data-driven decisions with much more confidence.
Host: And beyond just setting a reserve price?
Expert: Absolutely. At a higher level, this is about getting a truer understanding of your market's demand and what your customers really value. That insight is gold. It can inform not just auction design, but broader product pricing, negotiation tactics, and strategic planning. It helps reduce the risk of mispricing, which is a major source of lost profit.
Host: Fantastic. So, to summarize: for any business running auctions, knowing what a bidder is truly willing to pay is the key to maximizing profit, but that information is hidden.
Host: This study provides a powerful new method using optimal transport to uncover those hidden values far more accurately and reliably than before. And as we've heard, the difference can be between earning zero revenue and earning a significant profit.
Host: Alex, thank you so much for breaking down this complex topic into such clear, actionable insights.
Expert: My pleasure, Anna.
Host: And thanks to all of you for tuning in to A.I.S. Insights — powered by Living Knowledge.
International Conference on Wirtschaftsinformatik (2025)
“We don't need it” - Insights into Blockchain Adoption in the German Pig Value Chain
Hauke Precht, Marlen Jirschitzka, and Jorge Marx Gómez
This study investigates why blockchain technology, despite its acclaimed benefits for transparency and traceability, has not been adopted in the German pig value chain. Researchers conducted eight semi-structured interviews with industry experts, analyzing the findings through the technology-organization-environment (TOE) framework to identify specific barriers to implementation.
Problem
There is a significant disconnect between the theoretical advantages of blockchain for food supply chains and its actual implementation in the real world. This study addresses the specific research gap of why the German pig industry, a major agricultural sector, is not utilizing blockchain technology, aiming to understand the practical factors that prevent its adoption.
Outcome
- Stakeholders perceive their existing technology solutions as sufficient, meeting current demands for data exchange and traceability without needing blockchain. - Trust, a key benefit of blockchain, is already well-established within the industry through long-standing business relationships, interlocking company ownership, and neutral non-profit organizations. - The vast majority of industry experts do not believe blockchain offers any significant additional benefit or value over their current systems and processes. - There is a lack of market demand for the features blockchain provides; neither industry actors nor end consumers are asking for the level of transparency or immutability it offers. - Significant practical barriers include the high investment costs required, a general lack of financial slack for new IT projects, and insufficient digital infrastructure across the value chain.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. I'm your host, Anna Ivy Summers. Host: Today, we're exploring a fascinating case of technology hype versus real-world adoption. Host: We’re diving into a study titled, “‘We don't need it’ - Insights into Blockchain Adoption in the German Pig Value Chain.” Host: With me is our expert analyst, Alex Ian Sutherland. Alex, welcome. Expert: Thanks for having me, Anna. Host: To start, what was this study trying to figure out? Expert: It investigated a simple question: why has blockchain technology, which is so often praised for enhancing transparency and traceability in supply chains, seen virtually no adoption in the massive German pig industry? Host: So there's a real disconnect. We hear constantly about how blockchain can revolutionize food supply chains, but here we have a major industry in Europe that isn't using it. What’s the core problem the researchers were addressing? Expert: The problem is that gap between the theoretical promise of a technology and the practical reality of implementing it. Expert: The German pig value chain is a huge, complex economic sector. You would expect that technological advances would move beyond the research phase and into practice. Expert: But they haven't. The study wanted to identify the specific, real-world factors that are preventing adoption in such a significant industry. Host: How did the researchers go about finding those factors? Expert: They went directly to the source. Instead of just analyzing the technology, they analyzed the *need* for the technology. Expert: They conducted in-depth interviews with eight senior experts from across the value chain. These were decision-makers from slaughterhouses, IT providers, and quality assurance organizations. Expert: They then analyzed these conversations to map out the barriers based on technology, organization, and the wider business environment. Host: And the study’s title, "We don't need it," gives us a pretty big clue about what they found. What were the key discoveries? Expert: The title says it all. The first major finding was that industry stakeholders believe their existing technology solutions are perfectly sufficient. Expert: They already have systems for data exchange and traceability that meet current demands. From their perspective, there is no problem that requires a blockchain solution. Six of the eight experts interviewed saw no additional benefit. Host: That’s a huge point. But what about trust? We're always told that's blockchain's biggest selling point. Expert: That was the second critical finding, and it’s perhaps the most interesting one. The industry doesn't have a trust problem for blockchain to solve. Expert: Trust is already built into the very structure of the industry. They have long-standing business relationships, interlocking company ownership, and neutral, non-profit organizations that oversee quality and data. Expert: These organizational structures have created a trusted environment over decades, making a "trustless" technology like blockchain simply redundant. Host: So the problem that blockchain is famous for solving doesn't actually exist here. Were there any other barriers? Expert: Yes, very practical ones. The experts reported there is simply no market demand. No one—not their business partners, and not the end consumers—is asking for the radical level of transparency blockchain could offer. Expert: On top of that, you have the usual suspects: the high investment costs, a general lack of spare budget for new IT projects, and an insufficient digital infrastructure in some parts of the value chain. Host: Alex, this moves us to the most important question for our listeners. What does this mean for business? What are the key takeaways for leaders considering new technologies? Expert: I think there are three powerful lessons. First, don't start with the technology; start with the problem. Ask yourself, what is the specific, urgent pain point we are trying to solve? If you can't clearly define it, a new technology won't help. Host: A solution in search of a problem. A classic pitfall. What's the second lesson? Expert: Don't underestimate your existing, non-technical systems. This study showed that trust was achieved through business structure and relationships, not software. Expert: Before investing in a technical solution, business leaders should analyze how their current partnerships, contracts, and organizational models are already solving key problems. Sometimes the best system isn't digital at all. Host: A great reminder to look at the human element. And the final takeaway? Expert: Follow the demand. The researchers found no market pull for blockchain's features. If your customers and partners aren't asking for it, you have to question the business case. Expert: The crucial question for any new tech adoption should be: who wants this, and what tangible value will they get from it? If the answer is vague, the risk is high. Host: So, to summarize: the German pig industry isn't using blockchain, not because the technology failed, but because their existing systems work well, they've already built trust through their business structures, and there's no market demand for what it offers. Expert: Exactly. The final verdict from the industry was a clear and simple, “We don’t need it.” Host: A powerful lesson in looking past the hype to the practical reality. Alex Ian Sutherland, thank you for breaking this down for us. Expert: My pleasure, Anna. Host: And thanks to our audience for listening to A.I.S. Insights, powered by Living Knowledge. Join us next time for more actionable insights from the world of business and technology research.
blockchain adoption, TOE, food supply chain, German pig value chain, qualitative research, supply chain management, technology adoption barriers
International Conference on Wirtschaftsinformatik (2025)
The PV Solution Guide: A Prototype for a Decision Support System for Photovoltaic Systems
Chantale Lauer, Maximilian Lenner, Jan Piontek, and Christian Murlowski
This study presents the conceptual design of the 'PV Solution Guide,' a user-centric prototype for a decision support system for homeowners considering photovoltaic (PV) systems. The prototype uses a conversational agent and 3D modeling to adapt guidance to specific house types and the user's level of expertise. An initial evaluation compared the prototype's usability and trustworthiness against an established tool.
Problem
Current online tools and guides for homeowners interested in PV systems are often too rigid, failing to accommodate unique home designs or varying levels of user knowledge. Information is frequently scattered, incomplete, or biased, leading to consumer frustration, distrust, and decision paralysis, which ultimately hinders the adoption of renewable energy.
Outcome
- The study developed the 'PV Solution Guide,' a prototype decision support system designed to be more adaptive and user-friendly than existing tools. - In a comparative evaluation, the prototype significantly outperformed the established 'Solarkataster Rheinland-Pfalz' tool in usability, with a System Usability Scale (SUS) score of 80.21 versus 56.04. - The prototype also achieved a higher perceived trust score (82.59% vs. 76.48%), excelling in perceived benevolence and competence. - Key features contributing to user trust and usability included transparent cost structures, personalization based on user knowledge and housing, and an interactive 3D model of the user's home.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: Today, we're diving into the world of renewable energy and customer decision-making with a fascinating new study titled "The PV Solution Guide: A Prototype for a Decision Support System for Photovoltaic Systems". Host: The study presents a new prototype tool designed to help homeowners navigate the complex process of installing solar panels, using a conversational agent and 3D modeling to personalize the experience. Host: With me to break it all down is our analyst, Alex Ian Sutherland. Alex, welcome. Expert: Thanks for having me, Anna. Host: Alex, let's start with the big picture. Why is a new tool for solar panel guidance even necessary? What's the problem with what’s currently available? Expert: It’s a great question. The core problem is what the study calls decision paralysis. Homeowners are interested in solar, but they face a confusing landscape. Expert: Information is scattered across forums, manufacturer websites, and government portals. It's often incomplete, biased, or too technical. Expert: Existing online calculators are often rigid. They don't account for unique house designs or a person's specific level of knowledge. This leads to frustration, a lack of trust, and ultimately, people just give up on their plans to go solar. Host: So a classic case of information overload leading to inaction. How did the researchers in this study approach solving that problem? Expert: They took a very human-centered approach. First, they conducted in-depth interviews with homeowners—both current solar owners and prospective buyers—to understand their exact needs and pain points. Expert: Using those insights, they designed and built an interactive prototype called the 'PV Solution Guide'. Expert: The final step was to test it. They had a group of users try both their new prototype and a well-established, existing government tool, and then compared the results on key metrics like usability and trust. Host: A very thorough process. And what did they find? How did this new prototype stack up against the established tool? Expert: The results were quite dramatic. In terms of usability, the prototype blew the existing tool out of the water. Expert: It scored over 80 on the System Usability Scale, or SUS, which is an excellent score. The established tool scored just 56, which is considered below average. Host: That’s a huge difference. What about trust? That seems to be a major hurdle. Expert: It is, and the prototype excelled there as well. It achieved a significantly higher perceived trust score. Expert: The study broke this down further and found the prototype scored much higher on 'perceived competence,' meaning users felt it had the necessary functions to do the job, and 'perceived benevolence,' which means they felt the system was actually trying to help them. Host: What features were responsible for that success? Expert: Three things really stood out. First, transparent cost structures. Users could see a detailed breakdown of costs and amortization. Expert: Second, personalization. The system used a conversational agent, like a chatbot, to adapt its guidance based on the user's level of knowledge and their specific house. Expert: And third, the interactive 3D model of the user's home. It allowed people to visually add or remove components and instantly see the impact on the system and the price. Host: This all sounds incredibly useful for a homeowner. But let's zoom out. Why does this matter for our business audience? What are the key takeaways here? Expert: I think there are two major implications. For any business in the renewable energy sector, this is a roadmap for reducing customer friction. Expert: A tool like this can democratize access to high-quality consulting, build trust early, and help companies generate more accurate offers, which saves everyone time and money. It overcomes that decision paralysis we talked about. Host: And for businesses outside of the energy sector? Expert: This study is a powerful case study for anyone selling complex or high-stakes products, whether it's in finance, insurance, or even B2B technology. Expert: It proves that the combination of conversational AI and interactive visualization is incredibly effective at simplifying complexity. It transforms the user from a passive recipient of data into an active participant in designing their own solution. That builds both confidence and trust. Expert: The key lesson is that to win over modern customers, you can't just provide information; you have to provide a guided, transparent, and personalized experience. Host: So, the big takeaways are that homeowners are getting stuck when trying to adopt solar, but a personalized, interactive tool can solve that by dramatically improving usability and trust. Host: And for businesses, this highlights a powerful new model for customer engagement: using technology to guide users through complex decisions, not just present them with data. Host: Alex, this has been incredibly insightful. Thank you for breaking it down for us. Expert: My pleasure, Anna. Host: And a big thank you to our audience for tuning in to A.I.S. Insights. We'll see you next time.
Decision Support Systems, Photovoltaic Systems, Human-Centered Design, Qualitative Research
MIS Quarterly Executive (2024)
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.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers. In today's interconnected world, your company’s security is only as strong as its weakest link. And often, that link is a small or medium-sized supplier.
Host: With me today is our analyst, Alex Ian Sutherland, to discuss a recent study titled, "How Large Companies Can Help Small and Medium-Sized Enterprise Suppliers Strengthen Cybersecurity." Alex, welcome.
Expert: Thanks for having me, Anna. This is a critical topic. The study investigates the cybersecurity challenges smaller suppliers face and, more importantly, proposes actionable strategies for large companies to help them improve.
Host: So let's start with the big problem here. Why is the gap in cybersecurity between large companies and their smaller suppliers such a major risk?
Expert: It’s a massive vulnerability. Large companies demand their smaller suppliers meet the same stringent security standards they do. But for an SME with limited staff and budget, that's often an impossible task. Attackers know this. They specifically target less-secure suppliers as a backdoor into the networks of their bigger clients.
Host: Can you give us a real-world example of that?
Expert: Absolutely. The study reminds us of the infamous 2013 data breach at Target. The hackers didn't attack Target directly at first. They got in using credentials stolen from a small, third-party HVAC vendor. That single point of entry ultimately exposed the data of over 100 million customers. It’s a classic case of the supply chain being the path of least resistance.
Host: A sobering reminder. So how did the researchers in this study approach such a complex issue?
Expert: They went straight to the source. The study is based on 27 in-depth interviews with executives, cybersecurity leaders, and supply chain managers from both large corporations and small suppliers. They gathered insights from people on the front lines who deal with these challenges every single day.
Host: And what were the biggest takeaways from those conversations? What did they find are the main barriers for these smaller companies?
Expert: The study identified four key barriers. The first is what they call "unfriendly regulation." Most cybersecurity rules are designed for big companies with legal and compliance departments. SMEs often lack the expertise to even understand them.
Host: So the rules themselves are a hurdle. What’s the second barrier?
Expert: Organizational culture clashes. For an SME, the primary focus is keeping the business running and getting products out the door. Cybersecurity can feel like a costly, time-consuming distraction, so it constantly gets pushed to the back burner.
Host: That makes sense. And the other two barriers?
Expert: Framework variability and process misalignment. Imagine being a small supplier for five different large companies, and each one asks you to comply with a slightly different security framework. One interviewee described it as "trying to navigate a sea of frameworks in a rowboat, without a map or radio." It creates a huge, confusing compliance burden.
Host: That's a powerful image. It really frames this as a partnership problem, not just a technology problem. So this brings us to the most important question for our listeners: what can businesses actually *do* about it?
Expert: This is the core of the study. It moves beyond just identifying problems to proposing five concrete actions large companies can take. First, provide your SME suppliers with the resources and expertise they lack. This could be workshops, access to your legal teams, or clear guidance on how to comply with regulations.
Host: So it's about helping, not just demanding. What’s the next action?
Expert: Create positive incentives. The study found that punishing suppliers for non-compliance is far less effective than rewarding them for meeting security benchmarks. One CTO put it perfectly: suppliers need to be rewarded for their security efforts, not just punished for failure. This changes the dynamic from a chore to a shared goal.
Host: I like that reframing. What else?
Expert: The third and fourth actions are linked. Large firms should develop programs to help SMEs elevate their security culture. And, crucially, they should coordinate with other large companies to standardize security frameworks and assessments. If competitors can agree on one common questionnaire, it saves every SME countless hours of redundant work.
Host: That seems like such a common-sense solution. What's the final recommendation?
Expert: Bring cybersecurity into the procurement process from the very beginning. Too often, security is an afterthought, brought in after a deal is already signed. This leads to delays and friction. By discussing security expectations upfront, you ensure it's a foundational part of the partnership.
Host: So, to summarize, this isn't about forcing smaller suppliers to fend for themselves. It’s about large companies taking proactive steps: providing resources, offering incentives, standardizing requirements, and making security a day-one conversation.
Expert: Exactly. The study’s main message is that strengthening your supply chain's cybersecurity is an act of partnership. When you help your suppliers become more secure, you are directly helping yourself.
Host: A powerful and practical takeaway. Alex, thank you for breaking this down for us.
Expert: My pleasure, Anna.
Host: And thanks to our audience for tuning in to A.I.S. Insights. Join us next time as we continue to explore the intersection of business, technology, and living knowledge.
Cybersecurity, Supply Chain Management, Third-Party Risk, Small and Medium-Sized Enterprises (SMEs), Cyber Resilience, Vendor Risk Management
MIS Quarterly Executive (2025)
Promoting Cybersecurity Information Sharing Across the Extended Value Chain
Olga Biedova, Lakshmi Goel, Justin Zhang, Steven A. Williamson, Blake Ives
This study analyzes an alternative cybersecurity information-sharing forum centered on the extended value chain of a single company in the forest and paper products industry. The paper explores the forum's design, execution, and challenges to provide recommendations for similar company-specific collaborations. The goal is to enhance cybersecurity resilience across interconnected business partners by fostering a more trusting and relevant environment for sharing best practices.
Problem
As cyberthreats become more complex, industries with interconnected information and operational technologies (IT/OT) face significant vulnerabilities. Despite government and industry calls for greater collaboration, inter-organizational cybersecurity information sharing remains sporadic due to concerns over confidentiality, competitiveness, and lack of trust. Standard sector-based sharing initiatives can also be too broad to address the specific needs of a company and its unique value chain partners.
Outcome
- A company-led, value-chain-specific cybersecurity forum is an effective alternative to broader industry groups, fostering greater trust and more relevant discussions among business partners. - Key success factors for such a forum include inviting the right participants (security strategy leaders), establishing clear ground rules to encourage open dialogue, and using external facilitators to ensure neutrality. - The forum successfully shifted the culture from one of distrust to one of transparency and collaboration, leading participants to be more open about sharing experiences, including previous security breaches. - Participants gained valuable insights into the security maturity of their partners, leading to tangible improvements in cybersecurity practices, such as updating security playbooks, adopting new risk metrics, and enhancing third-party risk management. - The collaborative model strengthens the entire value chain, as companies learn from each other's strategies, tools, and policies to collectively improve their defense against common threats.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge, where we translate complex research into actionable business strategy. I’m your host, Anna Ivy Summers.
Host: Today, we’re talking about a challenge that keeps leaders up at night: cybersecurity. We’ll be discussing a fascinating study titled "Promoting Cybersecurity Information Sharing Across the Extended Value Chain."
Host: It explores a new model for cybersecurity collaboration, one centered not on an entire industry, but on the specific value chain of a single company, aiming to build a more trusting and effective defense against cyber threats.
Host: And to help us unpack this is our analyst, Alex Ian Sutherland. Welcome, Alex.
Expert: Great to be here, Anna.
Host: Alex, we all know cybersecurity is important, but collaboration between companies has always been tricky. What’s the big problem this study is trying to solve?
Expert: The core problem is trust. As cyber threats get more complex, especially in industries that blend physical machinery with digital networks, the risks are huge. Think of manufacturing or logistics.
Expert: Government and industry groups have called for companies to share threat information, but it rarely happens. Businesses are worried about confidentiality, losing a competitive edge, or legal repercussions if they admit to a vulnerability or a breach.
Host: So everyone is guarding their own castle, even though the attackers are collaborating and sharing information freely.
Expert: Exactly. And the study points out that even when companies join traditional sector-wide sharing groups, the information can be too broad to be useful. The threats facing a specific paper company and its logistics partner are very different from the threats facing an automotive manufacturer in the same general group.
Host: So this study looked at a different model. How did the researchers approach this?
Expert: They facilitated and analyzed a real-world forum initiated by a single large company in the forest and paper products industry. This company, which the study calls 'Company A', invited its own key partners—suppliers, distributors, and customers—to form a private, focused group.
Expert: They also brought in neutral university researchers to facilitate the discussions. This was crucial. It ensured that the organizing company was seen as an equal participant, not a dominant force, which helped build a safe environment for open dialogue.
Host: A private club for cybersecurity, but with your own business partners. I can see how that would build trust. What were some of the key findings?
Expert: The biggest finding was that this model works incredibly well. It created a level of trust and relevance that broader forums just can't match. The conversations became much more transparent and collaborative.
Host: Can you give us an example of that transparency in action?
Expert: Absolutely. One of the most powerful moments was when a company that had previously suffered a major ransomware attack openly shared its story—the details of the breach, the recovery process, and the lessons learned. That kind of first-hand account is invaluable and only happens in a high-trust environment. It moved the conversation beyond theory into real, shared experience.
Host: That’s incredibly powerful. So this open dialogue actually led to concrete improvements?
Expert: Yes, that’s the critical outcome. Participants started seeing the security maturity of their partners, for better or worse. This led to tangible changes. For instance, the organizing company completely revised its cybersecurity playbook based on new risk metrics discussed in the forum. Others updated their third-party risk management and adopted new tools shared by the group.
Host: This is the most important part for our listeners, Alex. What does this all mean for business leaders, regardless of their industry? What’s the key takeaway?
Expert: The biggest takeaway is that your company’s security is only as strong as the weakest link in your value chain. You can have the best defenses in the world, but if a key supplier gets breached, your operations can grind to a halt. This model strengthens the entire ecosystem.
Host: So it’s about taking ownership of your immediate business environment, not just your own four walls.
Expert: Precisely. You don’t need to wait for a massive industry initiative. As a business leader, you can be the catalyst. This study shows that an invitation from a key business partner is very likely to be accepted. You have the power to convene your critical partners and start this conversation.
Host: What would you say is a practical first step for a leader who wants to try this?
Expert: Start by identifying your most critical partners—those you share sensitive data or network connections with. Then, frame the conversation around shared risk and mutual benefit. The goal isn't to point fingers; it's to learn from each other's strategies, policies, and tools to collectively raise your defenses against common threats.
Host: Fantastic insights, Alex. To summarize for our audience: traditional, broad cybersecurity forums often fall short due to a lack of trust and relevance. A company-led forum, focused specifically on your own business value chain, is a powerful alternative that builds trust, encourages transparency, and leads to real, tangible security improvements for everyone involved.
Host: It’s a powerful reminder that collaboration isn’t just a buzzword; it’s a strategic imperative for survival in today’s digital world.
Host: Alex Ian Sutherland, thank you so much for your time and expertise today.
Expert: My pleasure, Anna.
Host: And thanks to all of you for listening to A.I.S. Insights, powered by Living Knowledge. Join us next time as we continue to bridge the gap between academia and business.
cybersecurity, information sharing, extended value chain, supply chain security, cyber resilience, forest products industry, inter-organizational collaboration
MIS Quarterly Executive (2025)
How Germany Successfully Implemented Its Intergovernmental FLORA System
Julia Amend, Simon Feulner, Alexander Rieger, Tamara Roth, Gilbert Fridgen, and Tobias Guggenberger
This paper presents a case study on Germany's implementation of FLORA, a blockchain-based IT system designed to manage the intergovernmental processing of asylum seekers. It analyzes how the project navigated legal and technical challenges across different government levels. Based on the findings, the study offers three key recommendations for successfully deploying similar complex, multi-agency IT systems in the public sector.
Problem
Governments face significant challenges in digitalizing services that require cooperation across different administrative layers, such as federal and state agencies. Legal mandates often require these layers to maintain separate IT systems, which complicates data exchange and modernization. Germany's asylum procedure previously relied on manually sharing Excel-based lists between agencies, a process that was slow, error-prone, and created data privacy risks.
Outcome
- FLORA replaced inefficient Excel-based lists with a decentralized system, enabling a more efficient and secure exchange of procedural information between federal and state agencies. - The system created a 'single procedural source of truth,' which significantly improved the accuracy, completeness, and timeliness of information for case handlers. - By streamlining information exchange, FLORA reduced the time required for initial stages of the asylum procedure by up to 50%. - The blockchain-based architecture enhanced legal compliance by reducing procedural errors and providing a secure way to manage data that adheres to strict GDPR privacy requirements. - The study recommends that governments consider decentralized IT solutions to avoid the high hidden costs of centralized systems, deploy modular solutions to break down legacy architectures, and use a Software-as-a-Service (SaaS) model to lower initial adoption barriers for agencies.
Host: Welcome to A.I.S. Insights, the podcast where we connect Living Knowledge to your business. I'm your host, Anna Ivy Summers. Host: Today, we're diving into a fascinating case of digital transformation in a place you might not expect: government administration. We're looking at a study titled "How Germany Successfully Implemented Its Intergovernmental FLORA System." Host: With me is our analyst, Alex Ian Sutherland. Alex, in simple terms, what is this study all about? Expert: Hi Anna. This study is a deep dive into FLORA, a blockchain-based IT system Germany built to manage the complex process of handling asylum applications. It’s a great example of how to navigate serious legal and technical hurdles when multiple, independent government agencies need to work together. Host: And this is a common struggle, right? Getting different departments, or in this case, entire levels of government, to use the same playbook. Expert: Exactly. Governments often face a big challenge: legal rules require federal and state agencies to have their own separate IT systems. This makes sharing data securely and efficiently a real nightmare. Host: So what was Germany's asylum process like before FLORA? Expert: It was surprisingly low-tech and risky. The study describes how agencies were manually filling out Excel spreadsheets and emailing them back and forth. This process was incredibly slow, full of errors, and created huge data privacy risks. Host: A classic case of digital transformation being desperately needed. How did the researchers get such an inside look at how this project was fixed? Expert: They conducted a long-term case study, following the FLORA project for six years, right from its initial concept in 2018 through its successful rollout. They interviewed nearly 100 people involved, analyzed thousands of pages of documents, and were present in project meetings. It's a very thorough look behind the curtain. Host: So after all that research, what were the big wins? How did FLORA change things? Expert: The results were dramatic. First, it replaced those insecure Excel lists with a secure, decentralized system. This meant federal and state agencies could share procedural information efficiently without giving up control of their own core systems. Host: That sounds powerful. What else did they find? Expert: The system created what the study calls a 'single procedural source of truth.' For the first time, every case handler, regardless of their agency, was looking at the same accurate, complete, and up-to-date information. Host: I can imagine that saves a lot of headaches. Did it actually make the process faster? Expert: It did. The study found that by streamlining this information exchange, FLORA reduced the time needed for the initial stages of the asylum procedure by up to 50 percent. Host: Wow, a 50 percent reduction is massive. Was there also an impact on security and compliance? Expert: Absolutely. The blockchain-based design was key here. It provided a secure, transparent log of every step, which reduced procedural errors and made it easier to comply with strict GDPR privacy laws. Host: This is a fantastic success story for the public sector. But Alex, what are the key takeaways for our business listeners? How can a company apply these lessons? Expert: There are three huge takeaways. First, when you're trying to connect siloed departments or integrate a newly acquired company, don't automatically default to building one giant, centralized system. Host: Why not? Isn't that the simplest approach? Expert: It seems simple, but the study highlights the massive 'hidden costs'—like trying to force everyone to standardize their processes or overhauling existing software. FLORA’s decentralized approach allowed different agencies to cooperate without losing their autonomy. It's a model for flexible integration. Host: That makes sense. What's the second lesson? Expert: Deploy modular solutions to break down legacy architecture. Instead of a risky 'rip and replace' project, FLORA was designed to complement existing systems. It's about adding new, flexible layers on top of the old, and gradually modernizing piece by piece. Any business with aging critical software should pay attention to this. Host: So, evolution, not revolution. And the final takeaway? Expert: Use a Software-as-a-Service, or SaaS, model to lower adoption barriers. The study explains that the federal agency initially built and hosted FLORA for the state agencies at no cost. This removed the financial and technical hurdles, getting everyone on board quickly. Once they saw the value, they were willing to share the costs later on. Host: That's a powerful strategy. So, to recap: Germany's FLORA project teaches us that for complex integration projects, businesses should consider decentralized systems to maintain flexibility, use modular solutions to tackle legacy tech, and leverage a SaaS model to drive initial adoption. Host: Alex, this has been incredibly insightful. Thank you for breaking it down for us. Expert: My pleasure, Anna. Host: And thank you to our listeners for tuning in to A.I.S. Insights, powered by Living Knowledge. We'll see you next time.
intergovernmental IT systems, digital government, blockchain, public sector innovation, case study, asylum procedure, Germany
MIS Quarterly Executive (2025)
Transforming Energy Management with an AI-Enabled Digital Twin
Hadi Ghanbari, Petter Nissinen
This paper reports on a case study of how one of Europe's largest district heating providers, called EnergyCo, implemented an AI-assisted digital twin to improve energy efficiency and sustainability. The study details the implementation process and its outcomes, providing six key recommendations for executives in other industries who are considering adopting digital twin technology.
Problem
Large-scale energy providers face significant challenges in managing complex district heating networks due to fluctuating energy prices, the shift to decentralized renewable energy sources, and operational inefficiencies from siloed departments. Traditional control systems lack the comprehensive, real-time view needed to optimize the entire network, leading to energy loss, higher costs, and difficulties in achieving sustainability goals.
Outcome
- The AI-enabled digital twin provided a comprehensive, real-time representation of the entire district heating network, replacing fragmented views from legacy systems. - It enabled advanced simulation and optimization, allowing the company to improve operational efficiency, manage fluctuating energy prices, and move toward its carbon neutrality goals. - The system facilitated scenario-based decision-making, helping operators forecast demand, optimize temperatures and pressures, and reduce heat loss. - The digital twin enhanced cross-departmental collaboration by providing a shared, holistic view of the network's operations. - It enabled a shift from reactive to proactive maintenance by using predictive insights to identify potential equipment failures before they occur, reducing costs and downtime.
Host: Welcome to A.I.S. Insights, the podcast powered by Living Knowledge, where we translate complex research into actionable business strategy. I’m your host, Anna Ivy Summers.
Host: Today, we're diving into a fascinating case study called "Transforming Energy Management with an AI-Enabled Digital Twin." It details how one of Europe's largest energy providers used this cutting-edge technology to completely overhaul its operations for better efficiency and sustainability. With me is our expert analyst, Alex Ian Sutherland. Alex, welcome.
Expert: Thanks for having me, Anna.
Host: So, Alex, let's start with the big picture. Why would a massive energy company need a technology like an AI-enabled digital twin? What problem were they trying to solve?
Expert: Well, a company like EnergyCo, as it's called in the study, manages an incredibly complex district heating network. We're talking about over 2,800 kilometers of pipes. Their traditional control systems just couldn't keep up.
Host: What was making it so difficult?
Expert: It was a perfect storm of challenges. First, you have volatile energy prices. Second, they're shifting from a few big fossil-fuel plants to many smaller, decentralized renewable sources, which are less predictable. And internally, their departments were siloed. The production team, the network team, and the customer team all had different data and different priorities, leading to significant energy loss and higher costs.
Host: It sounds like they were flying with a dozen different dashboards but no single view of the cockpit. So what was the approach they took? What exactly is a digital twin?
Expert: In simple terms, a digital twin is a dynamic, virtual replica of a physical system. The key thing that distinguishes it from a simple digital model is that the data flow is automatic and two-way. It doesn't just receive real-time data from the physical network; it can be used to simulate changes and even send instructions back to optimize it.
Host: So it’s a living model, not a static blueprint. How did the study find this approach worked in practice for EnergyCo? What were the key outcomes?
Expert: The results were transformative. The first major finding was that the digital twin provided a single, comprehensive, real-time representation of the entire network. For the first time, everyone was looking at the same holistic picture.
Host: And what did that unified view enable them to do?
Expert: It unlocked advanced simulation and optimization. Operators could now run "what-if" scenarios. For example, they could accurately forecast demand based on weather data and then simulate the most cost-effective way to generate and distribute heat, drastically reducing energy loss and managing those fluctuating fuel prices.
Host: The study also mentions collaboration. How did it help there?
Expert: By breaking down the data silos, it naturally improved cross-departmental collaboration. When the production team could see how their decisions impacted network pressure miles away, they could make smarter, more coordinated choices. It created a shared operational language.
Host: That makes sense. And I was particularly interested in the shift from reactive to proactive maintenance.
Expert: Absolutely. Instead of waiting for a critical failure, the AI within the twin could analyze data to predict which components were under stress or likely to fail. This allowed EnergyCo to schedule maintenance proactively, which is far cheaper and less disruptive than emergency repairs.
Host: Alex, this is clearly a game-changer for the energy sector. But what’s the key takeaway for our listeners—the business leaders in manufacturing, logistics, or even retail? Why does this matter to them?
Expert: The most crucial lesson is about global versus local optimization. So many businesses try to improve one department at a time, but that can create bottlenecks elsewhere. A digital twin gives you a holistic view of your entire value chain, allowing you to make decisions that are best for the whole system, not just one part of it.
Host: So it’s a tool for breaking down those internal silos we see everywhere.
Expert: Exactly. The second key takeaway is that the human element is vital. The study shows that EnergyCo didn't just deploy the tech and replace people. They positioned it as a tool to support their operators, building trust and involving them in the process. Automation was gradual, which is critical for buy-in.
Host: That’s a powerful point about managing technological change. Any final takeaway for our audience?
Expert: Yes, the study highlights how this technology can become a foundation for new business models. EnergyCo is now exploring how to use the digital twin to give customers real-time data, turning them from passive consumers into active participants in energy management. For any business, this shows that operational tools can unlock future strategic growth.
Host: So, to summarize: an AI-enabled digital twin offers a holistic, real-time view of your operations, it breaks down silos to enable smarter decisions, and it can even pave the way for future innovation. It's about augmenting your people, not just automating processes.
Host: Alex Ian Sutherland, thank you so much for these brilliant insights.
Expert: My pleasure, Anna.
Host: And thank you to our audience for tuning into A.I.S. Insights, powered by Living Knowledge. Join us next time as we uncover more actionable intelligence from the world of research.
Digital Twin, Energy Management, District Heating, AI, Cyber-Physical Systems, Sustainability, Case Study
MIS Quarterly Executive (2024)
How a Utility Company Established a Corporate Data Culture for Data-Driven Decision Making
Philipp Staudt, Rainer Hoffmann
This paper presents a case study of a large German utility company's successful transition to a data-driven organization. It outlines the strategy, which involved three core transformations: enabling the workforce, improving the data lifecycle, and implementing employee-centered data management. The study provides actionable recommendations for industrial organizations facing similar challenges.
Problem
Many industrial companies, particularly in the utility sector, struggle to extract value from their data. The ongoing energy transition, with the rise of renewable energy sources and electric vehicles, has made traditional, heuristic-based decision-making obsolete, creating an urgent need for a robust corporate data culture to manage increasing complexity and ensure grid stability.
Outcome
- A data culture was successfully established through three intertwined transformations: enabling the workforce, improving the data lifecycle, and transitioning to employee-centered data management. - Enabling the workforce involved upskilling programs ('Data and AI Multipliers'), creating platforms for knowledge sharing, and clear communication to ensure widespread buy-in and engagement. - The data lifecycle was improved by establishing new data infrastructure for real-time data, creating a central data lake, and implementing a strong data governance framework with new roles like 'data officers' and 'data stewards'. - An employee-centric approach, featuring cross-functional teams, showcasing quick wins to demonstrate value, and transparent communication, was crucial for overcoming resistance and building trust. - The transformation resulted in the deployment of over 50 data-driven solutions that replaced outdated processes and improved decision-making in real-time operations, maintenance, and long-term planning.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge, the podcast where we turn academic research into actionable business intelligence. I’m your host, Anna Ivy Summers. Host: Today, we’re diving into a fascinating case study titled, "How a Utility Company Established a Corporate Data Culture for Data-Driven Decision Making." Host: It explores how a large German utility company transformed itself into a data-driven organization. To help us unpack this, we have our expert analyst, Alex Ian Sutherland. Welcome, Alex. Expert: Great to be here, Anna. Host: Alex, let's start with the big picture. Most companies know data is important, but this study focuses on a utility company. What was the specific problem they were trying to solve? Expert: It’s a problem many traditional industries are facing, but it's especially acute in the energy sector. They’re dealing with a massive shift—the rise of renewable energy like wind and solar, and the explosion in electric vehicle charging. Host: So the old ways of working just weren't cutting it anymore? Expert: Exactly. For decades, they relied on experience and simple tools. The study gives a great example of a "drag pointer"—basically a needle on a gauge that only showed the highest energy load a substation ever experienced. It didn't tell you when it happened, or why. Host: A single data point, with no context. Expert: Precisely. And that was fine when the grid was predictable. But suddenly, they went from handling a dozen requests for new EV chargers a month to nearly three thousand. The old "rule-of-thumb" approach became obsolete and even risky for grid stability. They were flying blind. Host: So how did the researchers get inside this transformation to understand how the company fixed this? Expert: They conducted a deep-dive case study, interviewing seven of the company’s key domain experts. These were the people on the front lines—the ones directly involved in building the new data strategy. This gave them a real ground-truth perspective on what actually worked. Host: So what were the key findings? What was the secret to their success? Expert: The study breaks it down into three core transformations that were all linked together. The first, and perhaps most important, was enabling the workforce. Host: This wasn't just about hiring a team of data scientists, then? Expert: Not at all. They created a program to train existing employees to become "Data and AI Multipliers." These were people from various departments who became data champions, identifying opportunities and helping their colleagues use new tools. It was about upskilling from within. Host: Building capability across the organization. What was the second transformation? Expert: Improving the data lifecycle. This sounds technical, but it’s really about fixing the plumbing. They moved from scattered, siloed databases to a central data lake, creating a single source of truth that everyone could access. Host: And I see they also created new roles like 'data officers' and 'data stewards'. Expert: Yes, and this is crucial. It made data quality a formal part of people's jobs. Instead of data being an abstract IT issue, specific people became accountable for its accuracy and maintenance within their business units. Host: That makes sense. But change is hard. How did they get everyone to embrace this new way of working? Expert: That brings us to the third piece: an employee-centered approach. They knew they couldn't just mandate this from the top down. They formed cross-functional teams, bringing engineers and data specialists together to solve real problems. Host: And they made a point of showcasing quick wins, right? Expert: Absolutely. This was key to building momentum. For example, they automated a critical report that used to take two employees a full month to compile, three times a year. Suddenly, that data was available in real-time. When people see that kind of tangible benefit, it overcomes resistance and builds trust in the process. Host: This is all fascinating for a utility company, but what's the key takeaway for a business leader in, say, manufacturing or retail? Why does this matter to them? Expert: The lessons are completely universal. First, you can't just buy technology; you have to invest in your people. The "Data Multiplier" model of empowering internal champions can work in any industry. Host: So, people first. What else? Expert: Second, make data quality an explicit responsibility. Creating roles like data stewards ensures accountability and treats data as the critical business asset it is. It stops being everyone's problem and no one's priority. Host: And the third lesson? Expert: Start small and demonstrate value fast. Don't try to boil the ocean. Find a painful, manual process, fix it with a data-driven solution, and then celebrate that "quick win." That success story becomes your best marketing tool for driving wider adoption. Ultimately, this company deployed over 50 new data solutions that transformed their operations. Host: A powerful example of real-world impact. So, to recap: the challenges of the energy transition forced this company to ditch its old methods. Their success came from a three-part strategy: empowering their workforce, rebuilding their data infrastructure, and using an employee-centric approach focused on quick wins. Host: Alex, thank you so much for breaking that down for us. It’s a brilliant roadmap for any company looking to build a true data culture. Expert: My pleasure, Anna. Host: And thank you to our listeners for joining us on A.I.S. Insights — powered by Living Knowledge. We’ll see you next time.
data culture, data-driven decision making, utility company, energy transition, change management, data governance, case study
MIS Quarterly Executive (2024)
How the Odyssey Project Is Using Old and Cutting-Edge Technologies for Financial Inclusion
Samia Cornelius Bhatti, Dorothy E. Leidner
This paper presents a case study of The Odyssey Project, a fintech startup aiming to increase financial inclusion for the unbanked. It details how the company combines established SMS technology with modern innovations like blockchain and AI to create an accessible and affordable digital financial solution, particularly for users in underdeveloped countries without smartphones or consistent internet access.
Problem
Approximately 1.7 billion adults globally remain unbanked, lacking access to formal financial services. This financial exclusion is often due to the high cost of services, geographical distance to banks, and the requirement for expensive smartphones and internet data, creating a significant barrier to economic participation and stability.
Outcome
- The Odyssey Project developed a fintech solution that integrates old technology (SMS) with cutting-edge technologies (blockchain, AI, cloud computing) to serve the unbanked. - The platform, named RoyPay, uses an SMS-based chatbot (RoyChat) as the user interface, making it accessible on basic mobile phones without an internet connection. - Blockchain technology is used for the core payment mechanism to ensure secure, transparent, and low-cost transactions, eliminating many traditional intermediary fees. - The system is built on a scalable and cost-effective infrastructure using cloud services, open-source software, and containerization to minimize operational costs. - The study demonstrates a successful model for creating context-specific technological solutions that address the unique needs and constraints of underserved populations.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: Today we're diving into a fascinating case study from the MIS Quarterly Executive titled, "How the Odyssey Project Is Using Old and Cutting-Edge Technologies for Financial Inclusion". Host: It explores how a fintech startup is combining simple SMS technology with advanced tools like blockchain and AI to serve people without access to traditional banking. Host: Here to break it all down for us is our analyst, Alex Ian Sutherland. Alex, welcome to the show. Expert: Great to be here, Anna. Host: Let’s start with the big picture. Why is a study like this so important? What’s the core problem they're trying to solve? Expert: The problem is massive. The study states that around 1.7 billion adults globally are unbanked. They lack access to even the most basic formal financial services. Host: And what stops them from just walking into a bank? Expert: The study highlights a few critical barriers. Many people live in rural areas, far from any physical bank branch. On top of that, the high cost of services can be prohibitive. Expert: And while modern digital banking exists, it usually requires an expensive smartphone and a reliable internet data plan, which are luxuries for a huge portion of the world’s population. This effectively locks them out of the modern economy. Host: So The Odyssey Project saw this challenge. What was their approach, as detailed in the study? Expert: Their approach was brilliantly pragmatic. Instead of trying to force a high-tech solution onto a low-tech environment, they built their system around a technology that nearly everyone already has and knows how to use: SMS, or simple text messaging. Host: Texting. That feels very old-school in a world of apps. Expert: It is, but that's the point. It's accessible on the most basic mobile phone, it’s cheap, and it doesn't need an internet connection. The true innovation, which the study details, is the powerful, modern engine they built to run on that simple SMS interface. Host: Let's get into those findings. How exactly did they build this engine? Expert: The study identifies a few core components. Their platform, called RoyPay, uses an SMS-based chatbot as the primary user interface. So, a user can send and receive money just by texting this chatbot, which they named RoyChat. Host: And behind the scenes, it’s much more complex? Expert: Exactly. For the core payment mechanism, they use blockchain technology. This is key because it enables secure and transparent transactions at a very low cost, cutting out many of the intermediary fees that make traditional finance so expensive. Host: So the user sees a simple text, but the transaction is happening on the blockchain. Where does AI fit in? Expert: The AI powers the chatbot. It uses machine learning and natural language processing to understand the user’s text messages. This allows it to handle requests, answer questions, and make the whole experience feel conversational and intuitive. Expert: And finally, the study notes the entire system is built on scalable cloud services and open-source software. In business terms, that means it’s incredibly cost-effective to run and can be scaled up to serve millions of users around the world without a massive new investment in infrastructure. Host: This is a powerful combination. For the business leaders listening, what is the big takeaway here? Why does this matter for them? Expert: I think there are two critical lessons. First, it redefines what we think of as innovation. The study shows that groundbreaking solutions don't always come from inventing something brand new. Here, the innovation was creatively combining old technology with new technology to solve a very specific problem. Host: It’s a lesson in using the right tool for the job, not just the newest one. Expert: Precisely. The second lesson is about entering emerging markets. This case is a perfect example of creating a context-specific solution. You can't just take a product built for New York or London and expect it to work in rural Kenya. Expert: By understanding the constraints—no smartphones, no internet, low income—The Odyssey Project built a solution that was perfectly adapted to its users. For any company looking to expand globally, that principle is pure gold: fit the technology to the market, not the other way around. Host: A fantastic summary, Alex. So, to recap: the study on The Odyssey Project shows us that huge global challenges can be met by cleverly blending simple, existing tech with powerful, new platforms. Host: The solution starts with the user’s reality—a basic phone—and builds a low-cost, secure financial tool using blockchain and AI. Host: For business leaders, it's a powerful reminder that true innovation is about creative problem-solving, and success in new markets requires deep adaptation. Host: Alex Ian Sutherland, thank you for sharing your insights with us. Expert: It was my pleasure, Anna. Host: And thank you for listening to A.I.S. Insights, powered by Living Knowledge. We’ll see you next time.
Combining Low-Code/No-Code with Noncompliant Workarounds to Overcome a Corporate System's Limitations
Robert M. Davison, Louie H. M. Wong, Steven Alter
This study explores how employees at a warehouse in Hong Kong utilize low-code/no-code principles with everyday tools like Microsoft Excel to create unofficial solutions. It examines these noncompliant but essential workarounds that compensate for the shortcomings of their mandated corporate software system. The research is based on a qualitative case study involving interviews with warehouse staff.
Problem
A global company implemented a standardized, non-customizable corporate system (Microsoft Dynamics) that was ill-suited for the unique logistical needs of its Hong Kong operations. This created significant operational gaps, particularly in delivery scheduling, leaving employees unable to perform critical tasks using the official software.
Outcome
- Employees effectively use Microsoft Excel as a low-code tool to create essential, noncompliant workarounds that are vital for daily operations, such as delivery management. - These employee-driven solutions, developed without formal low-code platforms or IT approval, become institutionalized and crucial for business success, highlighting the value of 'shadow IT'. - The study argues that low-code/no-code development is not limited to formal platforms and that managers should recognize, support, and govern these informal solutions. - Businesses are advised to adopt a portfolio approach to low-code development, leveraging tools like Excel alongside formal platforms, to empower employees and solve real-world operational problems.
Host: Welcome to A.I.S. Insights, the podcast at the intersection of business and technology, powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: Today, we're diving into a fascinating study titled "Combining Low-Code/No-Code with Noncompliant Workarounds to Overcome a Corporate System's Limitations." Host: It explores how employees at a warehouse in Hong Kong used everyday tools, like Microsoft Excel, to create unofficial but essential solutions when their official corporate software fell short. Host: To help us unpack this, we have our expert analyst, Alex Ian Sutherland. Alex, welcome back. Expert: Great to be here, Anna. Host: So, Alex, let's start with the big picture. What was the real-world problem this study looked into? Expert: It’s a classic story of a global headquarters rolling out a one-size-fits-all solution. The company, called CoreRidge in the study, implemented a standardized corporate software, Microsoft Dynamics. Expert: The problem was, this system was completely non-customizable. It worked fine in most places, but it was a disaster for their Hong Kong operations. Host: A disaster how? What was so unique about Hong Kong? Expert: In Hong Kong, due to the high cost of real estate, the company has small retail stores and one large, central warehouse. The corporate software was designed for locations where the warehouse and store are together. Expert: It simply couldn't handle the complex delivery scheduling needed to get products from that single warehouse to all the different stores and customers. Core tasks were impossible to perform with the official system. Host: So employees were stuck. How did the researchers figure out what was happening? Expert: They went right to the source. It was a qualitative case study where they conducted in-depth interviews with 31 employees at the warehouse, from trainees all the way up to senior management. This gave them a ground-level view of how the team was actually getting work done. Host: And that brings us to the findings. What did they discover? Expert: They found that employees had essentially turned Microsoft Excel into their own low-code development tool. They were downloading data from the official system and using Excel to manage everything from delivery lists to rescheduling shipments during a typhoon. Host: So they built their own system, in a way. Expert: Exactly. And this wasn't a secret, rogue operation. These Excel workarounds became standard operating procedure. They were noncompliant with corporate IT policy, but they were absolutely vital for daily operations and customer satisfaction. The study calls this 'shadow IT', but frames it as a valuable, employee-driven innovation. Host: That’s a really interesting perspective. It sounds like the company should be celebrating these employees, not punishing them. Expert: That’s the core argument. The study suggests that this kind of informal, tool-based problem-solving is a legitimate form of low-code development. It’s not always about using a fancy, dedicated platform. Sometimes the best tool is the one your team already knows how to use. Host: This is the crucial part for our listeners. What are the key business takeaways here? Why does this matter? Expert: It matters immensely. First, it shows that managers need to recognize and support these informal solutions, not just shut them down. These workarounds are a goldmine of information about what's not working in your official systems. Host: So, don't fight 'shadow IT', but try to understand it? Expert: Precisely. The second major takeaway is that businesses should adopt a "portfolio approach" to low-code development. Don't just invest in one big platform. Empower your employees by recognizing the value of flexible, everyday tools like Excel. Expert: It’s about creating a governance structure that can embrace these informal solutions, manage their risks, and learn from them to make the whole organization smarter and more agile. Host: It sounds like a shift from rigid, top-down control to a more flexible, collaborative approach to technology. Expert: That's it exactly. It's about trusting your employees on the front lines to solve the problems they face every day, with the tools they have at hand. Host: So, to summarize: a rigid corporate system can fail to meet local needs, but resourceful employees can bridge the gap using everyday tools like Excel. And the big lesson for businesses is to recognize, govern, and learn from these informal innovations rather than just trying to eliminate them. Host: Alex, this has been incredibly insightful. Thank you for breaking it down for us. Expert: My pleasure, Anna. Host: And a big thank you to our audience for tuning in to A.I.S. Insights. Join us next time as we continue to explore the ideas shaping our world, powered by Living Knowledge.
Low-Code/No-Code, Workarounds, Shadow IT, Citizen Development, Enterprise Systems, Case Study, Microsoft Excel
MIS Quarterly (2025)
SUPPORTING COMMUNITY FIRST RESPONDERS IN AGING IN PLACE: AN ACTION DESIGN FOR A COMMUNITY-BASED SMART ACTIVITY MONITORING SYSTEM
Carmen Leong, Carol Hsu, Nadee Goonawardene, Hwee-Pink Tan
This study details the development of a smart activity monitoring system designed to help elderly individuals live independently at home. Using a three-year action design research approach, it deployed a sensor-based system in a community setting to understand how to best support community first responders—such as neighbors and volunteers—who lack professional healthcare training.
Problem
As the global population ages, more elderly individuals wish to remain in their own homes, but this raises safety concerns like falls or medical emergencies going unnoticed. This study addresses the specific challenge of designing monitoring systems that provide remote, non-professional first responders with the right information (situational awareness) to accurately assess an emergency alert and respond effectively.
Outcome
- Technology adaptation alone is insufficient; the system design must also encourage the elderly person to adapt their behavior, such as carrying a beacon when leaving home, to ensure data accuracy. - Instead of relying on simple automated alerts, the system should provide responders with contextual information, like usual sleep times or last known activity, to support human-based assessment and reduce false alarms. - To support teams of responders, the system must integrate communication channels, allowing all actions and updates related to an alert to be logged in a single, closed-loop thread for better coordination. - Long-term activity data can be used for proactive care, helping identify subtle changes in behavior (e.g., deteriorating mobility) that may signal future health risks before an acute emergency occurs.
Host: Welcome to A.I.S. Insights, the podcast at the intersection of business and technology, powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: Today, we're diving into a topic that affects millions of families worldwide: helping our elderly loved ones live safely and independently in their own homes. Host: We’ll be exploring a fascinating study titled "SUPPORTING COMMUNITY FIRST RESPONDERS IN AGING IN PLACE: AN ACTION DESIGN FOR A COMMUNITY-BASED SMART ACTIVITY MONITORING SYSTEM". Host: To help us unpack this is our analyst, Alex Ian Sutherland. Alex, welcome to the show. Expert: Thanks for having me, Anna. Host: So, Alex, this study details the development of a smart activity monitoring system. In simple terms, what's it all about? Expert: It’s about using simple, in-home sensors not just for the elderly person, but specifically to support the friends, neighbors, and volunteers—the community first responders—who check in on them. These are people with big hearts, but no formal medical training. Host: That’s a crucial distinction. Let's start with the big problem this study is trying to solve. Expert: The problem is a global one. We have an aging population, and the vast majority of seniors want to 'age in place'—to stay in their own homes. But this creates a safety concern. A fall or a sudden medical issue could go unnoticed for hours, or even days. Host: That’s a terrifying thought for any family. Expert: Exactly. The challenge this study tackles is how to give those community responders the right information, at the right time, so they can effectively help without being overwhelmed. The initial systems they looked at had major issues. Host: What kind of issues? Expert: Three big ones. First, unreliable data. A sensor might be in the wrong place and miss activity. Second, a massive number of false alarms. An alert would be triggered if someone was just napping or sitting quietly, leading to what we call 'alarm fatigue'. Host: And the third? Expert: Fragmented communication. A responder might get an SMS alert, then have to jump over to a WhatsApp group to discuss it with other volunteers. It was confusing and inefficient, especially in an emergency. Host: So how did the researchers approach such a complex, human-centered problem? Expert: They used a method called action design research. It’s very hands-on. They didn't just design a system in a lab; they deployed it in a real community in Singapore for three years. Expert: They would release a version of the system, get direct feedback from the elderly residents and the volunteer responders, see what worked and what didn't, and then use that feedback to build a better version. They went through several of these iterative cycles. Host: So they were learning and adapting in the real world. What were some of the key findings that came out of this process? Expert: The first finding was a bit counterintuitive. It’s not just about adapting the technology to the person; the person also has to adapt to the technology. Host: What do you mean? Expert: Well, a door sensor is great for knowing if someone has left the house. But if the person just pops next door to a neighbor's and leaves their own door open, the system incorrectly assumes they're still home. This could lead to a false inactivity alarm later. Expert: The solution was a partnership. They introduced a small, portable beacon the resident could carry when they left home. The user’s small behavioral change made the whole system much more accurate. Host: It's a two-way street. That makes sense. What else did they find? Expert: The second major finding was that context is more valuable than just an alert. A simple message saying "Inactivity Detected" is stressful and not very helpful. Expert: So they redesigned the alerts to include context. For example, an alert might say: "Inactivity alert for Mrs. Tan. Last activity was in the bedroom at 10:15 PM. Her usual sleep time is 10 PM to 7 AM." Host: Ah, so the responder can make a much more informed judgment call. It's likely she's just asleep, not in distress. Expert: Precisely. It empowers human decision-making and dramatically cuts down on false alarms. Host: And you mentioned these responders often work in teams. How did the system evolve to support them? Expert: This was the third key finding: the need for integrated, closed-loop communication. They moved all communication into a single platform where each alert automatically created its own dedicated conversation thread. Expert: Everyone on the team could see the alert, see who claimed it, and follow all the updates in one place. Once the situation was resolved, the thread was closed. It made coordination seamless. Host: It sounds like they also uncovered an opportunity beyond just reacting to emergencies. Expert: They did. The final insight was about shifting from reactive to proactive care. Over months, the system collects a lot of data on daily routines. By visualizing this data, responders could spot subtle changes. Expert: For example, a gradual decrease in movement or more frequent nighttime trips to the bathroom could be early indicators of a developing health issue. This allows for proactive intervention before an acute emergency ever occurs. Host: This is incredibly insightful. So, Alex, let's get to the bottom line. Why does this matter for businesses, especially those in the tech or healthcare space? Expert: There are a few critical takeaways. First is the principle of human-centric design. For any IoT or health-tech product, you have to design for the entire system—the device, the user, and their social environment. User adaptation should be seen as a feature to be designed for, not a bug. Host: So it's about the whole experience, not just the gadget. Expert: Right. Second, data is for insight, not just alarms. The business value isn't in creating the loudest alarm; it's in providing rich, contextual information that augments human intelligence. Help your user make a better decision. Host: What about the business model itself? Expert: This study points towards a "Care-as-a-Service" model. It's not just about selling sensors. It's about providing a platform that enables an ecosystem of care, connecting individuals, community organizations, and volunteers. There are opportunities in platform management and data analytics. Expert: And finally, the biggest opportunity is the shift to preventative health. The future of this multi-billion dollar 'aging in place' market isn’t just emergency buttons. It’s using long-term data to predict and prevent health crises before they happen. That’s the frontier. Host: Fantastic. So, to recap: true innovation in this space means creating a partnership between the user and the technology, providing context to empower human judgment, building platforms that support care teams, and using data to shift from reaction to prevention. Host: Alex, thank you so much for breaking down this complex topic into such clear, actionable insights. Expert: My pleasure, Anna. Host: And a big thank you to our audience for tuning in. Join us next time on A.I.S. Insights, powered by Living Knowledge.
Activity monitoring systems, community-based model, elderly care, situational awareness, IoT, sensor-based monitoring systems, action design research
Communications of the Association for Information Systems (2024)
Design Knowledge for Virtual Learning Companions from a Value-centered Perspective
Ricarda Schlimbach, Bijan Khosrawi-Rad, Tim C. Lange, Timo Strohmann, Susanne Robra-Bissantz
This study develops design principles for Virtual Learning Companions (VLCs), which are AI-powered chatbots designed to help students with motivation and time management. Using a design science research approach, the authors conducted interviews, workshops, and built and tested several prototypes with students. The research aims to create a framework for designing VLCs that not only provide functional support but also build a supportive, companion-like relationship with the learner.
Problem
Working students in higher education often struggle to balance their studies with their jobs, leading to challenges with motivation and time management. While conversational AI like ChatGPT is becoming common, these tools often lack the element of companionship and a holistic approach to learning support. This research addresses the gap in how to design AI learning tools that effectively integrate motivation, time management, and relationship-building from a user-value-centered perspective.
Outcome
- The study produced a comprehensive framework for designing Virtual Learning Companions (VLCs), resulting in 9 design principles, 28 meta-requirements, and 33 design features. - The findings are structured around a “value-in-interaction” model, which proposes that a VLC's value is created across three interconnected layers: the Relationship Layer, the Matching Layer, and the Service Layer. - Key design principles include creating a human-like and adaptive companion, enabling proactive and reactive behavior, building a trustworthy relationship, providing supportive content, and fostering a motivational and ethical learning environment. - Evaluation of a coded prototype revealed that different student groups have different preferences, emphasizing that VLCs must be adaptable to their specific educational context and user needs to be effective.
Host: Welcome to A.I.S. Insights, the podcast where we connect academic research to real-world business strategy, powered by Living Knowledge. I’m your host, Anna Ivy Summers.
Host: Today, we’re exploring a topic that’s becoming increasingly relevant in our AI-driven world: how to make our digital tools not just smarter, but more supportive. We’re diving into a study titled "Design Knowledge for Virtual Learning Companions from a Value-centered Perspective".
Host: In simple terms, it's about creating AI-powered chatbots that act as true companions, helping students with the very human challenges of motivation and time management. Here to break it all down for us is our expert analyst, Alex Ian Sutherland. Welcome, Alex.
Expert: Thanks for having me, Anna. It’s a fascinating study with huge implications.
Host: Let's start with the big picture. What is the real-world problem that this study is trying to solve?
Expert: Well, think about anyone trying to learn something new while juggling a job and a personal life. It could be a university student working part-time or an employee trying to upskill. The biggest hurdles often aren't the course materials themselves, but staying motivated and managing time effectively.
Host: That’s a struggle many of our listeners can probably relate to.
Expert: Exactly. And while we have powerful AI tools like ChatGPT that can answer questions, they function like a know-it-all tutor. They provide information, but they don't provide companionship. They don't check in on you, encourage you when you're struggling, or help you plan your week. This study addresses that gap.
Host: So it's about making AI more of a partner than just a tool. How did the researchers go about figuring out how to build something like that?
Expert: They used a very hands-on approach called design science research. Instead of just theorizing, they went through multiple cycles of building and testing. They started by conducting in-depth interviews with working students to understand their real needs. Then, they held workshops, designed a couple of conceptual prototypes, and eventually built and coded a fully functional AI companion that they tested with different student groups.
Host: So it’s a methodology that’s really grounded in user feedback. What were the key findings? What did they learn from all this?
Expert: The main outcome is a powerful framework for designing these Virtual Learning Companions, or VLCs. The big idea is that the companion's value is created through the interaction itself, which they break down into three distinct but connected layers.
Host: Three layers. Can you walk us through them?
Expert: Of course. First is the Relationship Layer. This is all about creating a human-like, trustworthy companion. The AI should be able to show empathy, maybe use a bit of humor, and build a sense of connection with the user over time. It’s the foundation.
Host: Okay, so it’s about the personality and the bond. What's next?
Expert: The second is the Matching Layer. This is about adaptation and personalization. The study found that a one-size-fits-all approach fails. The VLC needs to adapt to the user's individual learning style, their personality, and even their current mood or context.
Host: And the third layer?
Expert: That's the Service Layer. This is where the more functional support comes in. It includes features for time management, like creating to-do lists and setting reminders, as well as providing supportive learning content and creating a motivational environment, perhaps with gentle nudges or rewards.
Host: This all sounds great in theory, but did they see it work in practice?
Expert: They did, and they also uncovered a critical insight. When they tested their prototype, they found that full-time university students thought the AI’s language was too informal and colloquial. But a group of working professionals in a continuing education program found the exact same AI to be too formal!
Host: Wow, that’s a direct confirmation of what you said about the Matching Layer. The companion has to be adaptable.
Expert: Precisely. It proves that to be effective, these tools must be tailored to their specific audience and context.
Host: Alex, this is the crucial part for our audience. Why does this matter for business? What are the practical takeaways?
Expert: The implications are huge, Anna, and they go way beyond the classroom. Think about corporate training and HR. Imagine a new employee getting an AI companion that doesn't just teach them software systems, but helps them manage the stress of their first month and checks in on their progress and motivation. That could have a massive impact on engagement and retention.
Host: I can see that. It’s a much more holistic approach to onboarding. Where else?
Expert: For any EdTech company, this framework is a blueprint for building more effective and engaging products. It's about moving from simple content delivery to creating a supportive learning ecosystem. But you can also apply these principles to customer-facing bots. An AI that can build a relationship and adapt to a customer's technical skill or frustration level will provide far better service and build long-term loyalty.
Host: So the key business takeaway is to shift our thinking.
Expert: Exactly. The value of AI in these roles isn't just in the functional task it completes, but in the supportive, adaptive relationship it builds with the user. It’s the difference between an automated tool and a true digital partner.
Host: A fantastic insight. So, to summarize: today's professionals face real challenges with motivation and time management. This study gives us a three-layer framework—Relationship, Matching, and Service—to build AI companions that truly help. For businesses, this opens up new possibilities in corporate training, EdTech, and even customer relations.
Host: Alex, thank you so much for translating this complex study into such clear, actionable insights.
Expert: My pleasure, Anna.
Host: And thank you to our audience for tuning in. This has been A.I.S. Insights — powered by Living Knowledge. Join us next time as we uncover more valuable knowledge for your business.
Conversational Agent, Education, Virtual Learning Companion, Design Knowledge, Value
MIS Quarterly (2025)
REGULATING EMERGING TECHNOLOGIES: PROSPECTIVE SENSEMAKING THROUGH ABSTRACTION AND ELABORATION
Stefan Seidel, Christoph J. Frick, Jan vom Brocke
This study examines how various actors, including legal experts, government officials, and industry leaders, collaborated to create laws for new technologies like blockchain. Through a case study in Liechtenstein, it analyzes the process of developing a law on "trustworthy technology," focusing on how the participants collectively made sense of a complex and evolving subject to construct a new regulatory framework.
Problem
Governments face a significant challenge in regulating emerging digital technologies. They must create rules that prevent harmful effects and protect users without stifling innovation. This is particularly difficult when the full potential and risks of a new technology are not yet clear, creating regulatory gaps and uncertainty for businesses.
Outcome
- Creating effective regulation for new technologies is a process of 'collective prospective sensemaking,' where diverse stakeholders build a shared understanding over time. - This process relies on two interrelated activities: 'abstraction' and 'elaboration'. Abstraction involves generalizing the essential properties of a technology to create flexible, technology-neutral rules that encourage innovation. - Elaboration involves specifying details and requirements to provide legal certainty and protect users. - Through this process, the regulatory target can evolve significantly, as seen in the case study's shift from regulating 'blockchain/cryptocurrency' to a broader, more durable law for the 'token economy' and 'trustworthy technology'.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: On today’s episode, we're diving into the complex world of regulation for new technologies. We’re looking at a study titled "REGULATING EMERGING TECHNOLOGIES: PROSPECTIVE SENSEMAKING THROUGH ABSTRACTION AND ELABORATION". Host: The study examines how a diverse group of people—legal experts, government officials, and industry leaders—came together to create laws for a new technology, using blockchain in Liechtenstein as a case study. Here to help us unpack this is our analyst, Alex Ian Sutherland. Welcome, Alex. Expert: Great to be here, Anna. Host: So Alex, let’s start with the big picture. What is the fundamental problem that governments and businesses face when a new technology like blockchain or A.I. emerges? Expert: It’s a classic case of trying to build the plane while you're flying it. Governments need to create rules to protect users and prevent harm, but they also want to avoid crushing innovation before it even gets off the ground. Host: The dreaded innovation killer. Expert: Exactly. The study highlights that this is incredibly difficult when no one fully understands the technology's potential or its risks. This creates what the authors call a "regulatory gap"—a gray area of uncertainty that can paralyze businesses. They don't know if their new business model is legal, so they hesitate to invest. Host: And how did the researchers in this study go about understanding this process? What was their approach? Expert: They conducted an in-depth case study in the European state of Liechtenstein. They essentially got a front-row seat to the entire law-making process for blockchain technology. Expert: They interviewed everyone involved—from the Prime Minister to tech startup CEOs to the financial regulators. They also analyzed hundreds of documents, including early strategy papers and evolving drafts of the law, to see how the thinking changed over time. Host: It sounds like they had incredible access. So, after all that observation, what were the key findings? What did they discover about how to create good regulation? Expert: The biggest finding is that it's a process of what they call 'collective prospective sensemaking'. That’s a fancy term for getting a diverse group of people in a room to build a shared vision of the future. It’s not about one person having the answer; it’s about creating it together. Host: And the study found this process hinges on two specific activities: 'abstraction' and 'elaboration'. Can you break those down for us? Expert: Of course. Think of 'abstraction' as zooming out. Initially, the group in Liechtenstein was focused on regulating "blockchain" and "cryptocurrency." But they realized that was too specific and would be outdated quickly. Expert: So, they abstracted. They asked, "What is the essential quality of this technology?" They landed on the idea of "trust." This allowed them to create a flexible, technology-neutral rule for any "trustworthy technology," not just blockchain. It future-proofed the law. Host: That’s a brilliant shift. So what about 'elaboration'? Expert: If abstraction is zooming out, 'elaboration' is zooming in. Once they had the big, abstract concept—trustworthy technology—they had to add the specific details. Expert: This meant defining roles, specifying requirements for service providers, and creating rules that would give businesses legal certainty and actually protect users. It's the process of giving the abstract idea real-world teeth. Host: So the target itself evolved dramatically through this process. Expert: It really did. They went from a narrow law about cryptocurrency to a broad, durable framework for what they called the "token economy." This was only possible because of that constant dance between the big-picture abstraction and the fine-detail elaboration. Host: This is fascinating, Alex, but let's get to the bottom line. Why does this study matter for business leaders listening right now, even if they aren't in the crypto space? Expert: This is the most crucial part. The study offers a powerful blueprint for how businesses should approach regulation for any emerging technology, whether it's A.I., quantum computing, or synthetic biology. Expert: The first takeaway is proactive engagement. Don't wait for regulation to happen *to* you. The industry leaders in this study who participated in the process helped shape a more innovation-friendly law. By being at the table, you can influence the outcome. Host: So get involved early and often. What else? Expert: Second, understand the power of language. The breakthrough in Liechtenstein happened when they shifted the conversation from a specific technology, blockchain, to a desired outcome, which was trust. For businesses, this is a key strategy: frame the conversation with regulators around the value you create, not just the tech you use. Host: It’s a narrative strategy, really. Expert: Precisely. And finally, this model provides predictability. The process of abstraction and elaboration creates a stable yet flexible framework. For businesses, that kind of regulatory environment is gold. It reduces uncertainty and gives you the confidence to invest and innovate for the long term. This is the path to avoiding that "gray space" we talked about earlier. Host: So to sum up, regulating new technology isn’t a top-down mandate; it's a collaborative journey. The key is to balance flexible, high-level principles with clear, specific rules. For businesses, the lesson is clear: get a seat at the table and help shape a predictable environment where innovation can thrive. Host: Alex Ian Sutherland, thank you for making such a complex topic so clear. Expert: My pleasure, Anna. Host: And thank you for tuning into A.I.S. Insights — powered by Living Knowledge. Join us next time as we continue to explore the ideas shaping business and technology.