Communications of the Association for Information Systems (2025)
Enhancing Healthcare with Artificial Intelligence: A Configurational Integration of Complementary Technologies and Stakeholder Needs
Digvijay S. Bizalwan, Rahul Kumar, Ajay Kumar, Yeming Yale Gong
This study analyzes over 11,000 research articles to understand how to best implement Artificial Intelligence (AI) in healthcare. Using topic modeling and qualitative comparative analysis, it identifies the essential complementary technologies and strategic combinations required for successful AI adoption from a multi-stakeholder perspective.
Problem
Healthcare organizations recognize the potential of AI but often lack a clear roadmap for its successful implementation. There is a research gap in identifying which complementary technologies are needed to support AI and how these technologies must be combined to create value while satisfying the diverse needs of various stakeholders, such as patients, physicians, and administrators.
Outcome
- Three key technologies are crucial complements to AI in healthcare: Healthcare Digitalization (DIG), Healthcare Information Management (HIM), and Medical Artificial Intelligence (MAI). - Simply implementing these technologies in isolation is insufficient; their synergistic integration is vital for success. - The study confirms that the combination of DIG, HIM, and MAI is the most effective configuration to satisfy the interests of multiple stakeholders, leading to better healthcare service delivery.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: Today, we’re unpacking a fascinating and timely study titled "Enhancing Healthcare with Artificial Intelligence: A Configurational Integration of Complementary Technologies and Stakeholder Needs". Host: In short, it’s a deep dive into how to actually make AI work in healthcare. The researchers analyzed over 11,000 articles to find the secret sauce—the right mix of technologies needed for successful AI adoption that benefits everyone involved. Host: With me to break it all down is our analyst, Alex Ian Sutherland. Welcome, Alex. Expert: Great to be here, Anna. Host: Alex, let's start with the big picture. We hear about AI revolutionizing healthcare all the time, but this study suggests it's not that simple. What’s the real-world problem they’re trying to solve? Expert: Absolutely. The problem is that while everyone in healthcare sees the immense potential of AI, most organizations don't have a clear roadmap to get there. They know they need AI, but they don't know where to start. Expert: The study highlights that healthcare has a very diverse group of stakeholders—patients, doctors, nurses, hospital administrators, even regulators. Each group has different needs and concerns. A tool that helps an administrator cut costs might not be helpful to a doctor trying to make a diagnosis. Host: So there's a risk of investing in complex AI systems that don't actually create value for the people who need to use them. Expert: Exactly. The core challenge is figuring out which other technologies you need to have in place to support AI, and how to combine them in a way that satisfies everyone. That’s the gap this study aimed to fill. Host: It sounds like a massive undertaking. How did the researchers even begin to approach this? Expert: It was a multi-phased approach. First, they used a form of AI itself, called topic modeling, to analyze the abstracts of over 11,000 research articles published in the last decade. This allowed them to identify the core technological themes that consistently appear in successful AI healthcare projects. Expert: Then, they used a powerful method called qualitative comparative analysis. The key thing for our listeners to know is that this method doesn't just look for a single "best" factor. Instead, it looks for the most effective *combinations* or configurations of factors that lead to a successful outcome. Host: So it’s not about finding one magic bullet, but the right recipe. After all that analysis, what was the recipe they found? What were the key findings? Expert: They found three essential technological ingredients. The first is **Healthcare Digitalization**, or DIG. This is the foundational layer—think electronic health records, smart wearables that collect patient data, and cloud computing infrastructure. It’s about creating digital versions of healthcare processes and assets. Host: Okay, so that’s step one: get your data and systems digitized. What’s the second ingredient? Expert: The second is **Healthcare Information Management**, or HIM. Once you’ve digitized everything, you have a flood of data. HIM is about having the systems to properly collect, process, and analyze that data, turning it from raw noise into useful, accessible information. Host: And I assume the third ingredient is the AI itself? Expert: Precisely. The third is what they call **Medical Artificial Intelligence**, or MAI. These are the specific AI algorithms that perform tasks like helping to detect diseases from CT scans, predicting patient risk factors, or optimizing hospital bed management. Host: So, Digitalization, Information Management, and Medical AI. But the big reveal wasn't just identifying these three things, was it? Expert: Not at all. The most critical finding was that implementing these in isolation is not enough. They must be integrated and work in synergy. The study proved that robust Digitalization is essential for effective Information Management. And you need both of those firmly in place to get any real value from Medical AI. An AI tool is useless without high-quality, well-managed data. Host: That makes perfect sense. And this all ties back to the stakeholders you mentioned earlier? Expert: Yes. The study's ultimate conclusion is that the single most effective path to success is the combination of all three—Digitalization, Information Management, and Medical AI. This specific configuration is what works best to satisfy the interests of all stakeholders, from patients to practitioners to administrators. Host: This is the core of it. For the business and tech leaders listening, what is the practical, actionable takeaway from this study? How does this change their strategy? Expert: The most important takeaway is to think in terms of a sequence, a roadmap. First, don't just go out and buy a flashy AI solution. Assess your foundation. Invest in **Digitalization**. Make sure your data capture, from patient records to data from monitoring devices, is comprehensive and robust. Host: Build the foundation before you build the house. Expert: Exactly. Second, once that data is flowing, focus on mastering **Information Management**. Can you easily access it? Is it accurate? Do you have the tools to process it and make it available for analysis? This is the bridge between your data and your AI. Host: And the final step? Expert: Only then, with that strong foundation, should you deploy targeted **Medical AI** applications to solve specific, high-value problems. And throughout this entire process, you must constantly engage with your stakeholders. The goal isn't just to implement technology; it's to deliver better healthcare. Host: So, it's a strategic, phased approach, not a one-off tech purchase. The path to AI success in healthcare is a journey that starts with digital foundations and is guided by stakeholder needs. Expert: That’s the roadmap the study provides. It’s a much more deliberate and, ultimately, more successful way to approach AI transformation in healthcare. Host: A clear and powerful message. Alex, thank you for making such a comprehensive study so accessible for us. Expert: My pleasure, Anna. Host: And thanks to all of you for tuning in to A.I.S. Insights. Join us next time as we continue to explore the ideas shaping business and technology.
AI, Healthcare, Digitalization, Information Management, Configurational Theory, Stakeholder Interests, fsQCA
HMD Praxis der Wirtschaftsinformatik (2023)
Mehr als Vollzeit: Fractional CIOs in KMUs
Simon Kratzer, Markus Westner, Susanne Strahringer
This study investigates the emerging role of 'Fractional CIOs,' who provide part-time IT leadership to small and medium-sized enterprises (SMEs). It synthesizes findings from a research project involving 62 Fractional CIOs across 10 countries and contextualizes them for the German market through interviews with three local Fractional CIOs/CTOs. The research aims to define the role, identify different types of engagements, and uncover key success factors.
Problem
Small and medium-sized enterprises (SMEs) increasingly require sophisticated IT management to remain competitive, yet often lack the resources or need to hire a full-time Chief Information Officer (CIO). This gap leaves them vulnerable, as IT responsibilities are often handled by non-experts, leading to potential productivity losses and security risks. The study addresses this challenge by exploring a flexible and cost-effective solution.
Outcome
- The study defines the 'Fractional CIO' role as a flexible, part-time IT leadership solution for SMEs, combining the benefits of an internal executive with the flexibility of an external consultant. - Four distinct engagement types are identified for Fractional CIOs: Strategic IT Management, Restructuring, Rapid Scaling, and Hands-on Support, each tailored to different business needs. - The most critical success factors for a successful engagement are trust between the company and the Fractional CIO, strong support from the top management team, and the CIO's personal integrity. - While the Fractional CIO model is not yet widespread in Germany, the study concludes it offers significant potential value for German SMEs seeking expert IT leadership without the cost of a full-time hire. - Three profiles of Fractional CIOs were identified based on their engagement styles: Strategic IT-Coaches, Full-Ownership-CIOs, and Change Agents.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: Today, we're looking at a fascinating new leadership model for the modern economy. We're diving into a study titled "Mehr als Vollzeit: Fractional CIOs in KMUs," which translates to "More than Full-time: Fractional CIOs in SMEs." Host: It investigates the emerging role of 'Fractional CIOs' – experts who provide part-time IT leadership to small and medium-sized businesses. Here to break it down for us is our analyst, Alex Ian Sutherland. Alex, welcome. Expert: Great to be here, Anna. Host: So, let's start with the big picture. Why is this role of a 'Fractional CIO' even necessary? What problem does it solve for businesses? Expert: It solves a critical and growing problem for small and medium-sized enterprises, or SMEs. These companies need sophisticated, strategic IT management to compete today. But they often don't have the budget, or frankly, the full-time need, for a six-figure Chief Information Officer. Host: So what happens instead? Expert: Usually, IT responsibility gets handed to someone who isn't an expert, like the CFO or Head of Operations. The study refers to these as 'involuntary IT managers'. They do their best, but they're often overworked, and this can lead to major productivity losses and, even worse, serious security risks. It's a dangerous gap in leadership. Host: A gap that these Fractional CIOs are meant to fill. How did the researchers in this study go about understanding this new role? Expert: They took a comprehensive, multi-stage approach. First, they conducted in-depth interviews with 62 Fractional CIOs across 10 different countries to get a global perspective. Then, to make it relevant for a specific market, they interviewed three experienced Fractional CIOs in Germany to see how the model applies there. Host: So they gathered a lot of real-world experience. What were the key findings? What exactly is a Fractional CIO? Expert: The study defines the role as a hybrid. A Fractional CIO combines the benefits of a deeply integrated internal executive with the flexibility and broad experience of an external consultant. They're not just advisors; they often take on real responsibility, but on a part-time basis, maybe for one to three days a week. Host: And I assume they don't just do one thing. Are there different ways they can help a business? Expert: Exactly. The study identified four distinct types of engagement, each tailored to a specific business need. Host: Can you walk us through them quickly? Expert: Of course. First is 'Strategic IT Management' for companies whose tech isn't aligned with their business goals. Second is 'Restructuring' for when an IT department is in crisis and needs a turnaround. Third is 'Rapid Scaling,' which is perfect for startups that need to build their IT infrastructure from the ground up. And finally, there's 'Hands-on Support' for businesses that have no internal IT and need someone to manage their external tech suppliers. Host: That’s a very clear breakdown. So, if a business hires one, what makes the relationship successful? Expert: The study was incredibly clear on this. The number one success factor, by far, is trust between the company’s leadership and the Fractional CIO. That trust is built on two other key factors: strong support from the top management team and the personal integrity of the Fractional CIO themselves. Host: Alex, this is the most important part for our listeners. If I'm leading a small or medium-sized business, why does this study matter to me? What are the practical takeaways? Expert: The biggest takeaway is that you no longer have to choose between having no IT leadership and hiring an expensive full-time executive. There is a flexible, expert alternative. This study gives you a language and a framework to find the right kind of help. Host: How so? Expert: You can now identify your specific need. Are you trying to fix a broken department? You need a 'Restructuring' specialist. Are you a high-growth startup? You need a 'Rapid Scaling' expert. The study also identified three profiles of these CIOs: 'Strategic IT-Coaches', 'Full-Ownership-CIOs', and 'Change Agents'. This helps you think about the type of person you need – a guide, a hands-on owner, or a transformation leader. Host: So it provides a roadmap for finding the right expert for your specific situation. Expert: Precisely. It turns a vague problem—"we need help with IT"—into a targeted search for a specific type of fractional executive who can deliver strategic value from day one, at a fraction of the cost. Host: Fantastic. Let's summarize. Small and medium-sized businesses face a critical IT leadership gap. The role of the Fractional CIO fills this gap by providing expert, part-time leadership. Host: We learned there are four key engagement types, from strategic planning to crisis restructuring, and that success hinges on trust, management support, and integrity. For business leaders, this offers a new, flexible model to secure top-tier IT talent. Host: Alex, thank you for making that so clear and actionable. Expert: My pleasure, Anna. Host: And thank you for listening to A.I.S. Insights — powered by Living Knowledge. Join us next time for more.
Fractional CIO, Fractional CTO, Part-Time Interim Management, SMEs, IT Management, Chief Information Officer
MIS Quarterly Executive (2022)
How Dr. Oetker's Digital Platform Strategy Evolved to Include Cross-Platform Orchestration
Patrick Rövekamp, Philipp Ollig, Hans Ulrich Buhl, Robert Keller, Albert Christmann, Pascal Remmert, and Tobias Thamm
This study analyzes the evolution of the digital platform strategy at Dr. Oetker, a traditional consumer goods company. It examines how the firm developed its approach from competing for platform ownership to collaborating and orchestrating a complex 'baking ecosystem' across multiple platforms. The paper provides actionable recommendations for other traditional firms navigating digital transformation.
Problem
Traditional incumbent firms, built on linear supply chains and supply-side economies of scale, are increasingly challenged by the rise of digital platforms that leverage network effects. These firms often lack the necessary capabilities and strategies to effectively compete or participate in digital ecosystems. This study addresses the need for a strategic framework that helps such companies develop and manage their digital platform activities.
Outcome
- A successful digital platform strategy for a traditional firm requires two key elements: specific tactics for individual platforms (e.g., building, partnering, complementing) and a broader cross-platform orchestration to manage the interplay between platforms and the core business. - Firms should evolve their strategy in phases, often moving from a competitive mindset of platform ownership to a more cooperative approach of complementing other platforms and building an ecosystem. - It is crucial to establish a dedicated organizational unit (like Dr. Oetker's 'AllAboutCake GmbH') to coordinate digital initiatives, reduce complexity, and align platform activities with the company's overall business goals. - Traditional firms must strategically decide whether to build their own digital resources or partner with others, recognizing that partnering can be more effective for entering niche markets or acquiring necessary technology without high upfront investment.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: Today, we're looking at a challenge facing countless established companies: how to navigate the world of digital platforms. We'll be diving into a study titled "How Dr. Oetker's Digital Platform Strategy Evolved to Include Cross-Platform Orchestration". Host: With us is our expert analyst, Alex Ian Sutherland. Alex, this study looks at a company many of us know, Dr. Oetker, but in a very new light. What's it all about? Expert: Hi Anna. Exactly. This study analyzes how a very traditional company, known for baking ingredients, transformed its digital strategy. It’s a fascinating story about moving from trying to build and own their own platforms to instead collaborating and orchestrating a whole ‘baking ecosystem’ across many different platforms. Host: So what’s the big problem this research is trying to solve for businesses? Expert: The core problem is that traditional companies, like Dr. Oetker, were built on linear supply chains and making lots of products efficiently. They controlled everything from production to the store shelf. But the digital world doesn't work that way. Host: You mean because of companies like Amazon or Facebook? Expert: Precisely. Digital platforms win through network effects—the more users they have, the more valuable they become. Traditional firms often don't have the DNA to compete with that. They face a huge strategic question: how do we even participate in this new digital world without getting left behind? Host: So how did the researchers approach this question? Expert: They conducted an in-depth case study. They tracked Dr. Oetker's digital journey over several years, from about 2017 to the present, breaking it down into three distinct phases. This allowed them to see the evolution in real-time—what worked, what failed, and most importantly, what the company learned along the way. Host: Let’s get into those learnings. What were the key findings from the study? Expert: The first major finding is that a successful digital strategy has two parts. You need specific tactics for each individual platform you’re on, but you also need a higher-level strategy, what the study calls "cross-platform orchestration." Host: Orchestration? What does that mean in a business context? Expert: It means making sure all your digital efforts play together like instruments in an orchestra. Your social media, your e-commerce partnerships, your own website—they can't operate in isolation. Orchestration ensures they all work together to support the core business and create a seamless customer experience. Host: That makes sense. What was the second key finding? Expert: It’s about a shift in mindset. The study shows that Dr. Oetker started with a competitive mindset, trying to build and own its own platforms. For instance, they launched a marketplace to connect artisan bakers with customers, but it didn't get traction. Host: So, that initial approach failed? Expert: It did, but they learned from it. In the next phase, they shifted to a more cooperative approach. Instead of trying to own everything, they started complementing other platforms, like creating content for Pinterest and TikTok, and partnering with a tech startup to create "BakeNight," a platform for baking workshops. Host: And that leads to another finding, doesn't it? The need for a specific team to manage all this. Expert: Absolutely. This was crucial. As their digital activities grew, they were scattered across different departments, causing confusion. The solution was creating a dedicated organizational unit, a separate company called 'AllAboutCake GmbH'. This central team coordinates all digital initiatives, reduces complexity, and makes sure everything aligns with the overall company goals. Host: So, Alex, this is a great story about one company. But why does this matter for our listeners? What are the key business takeaways? Expert: I think there are three big ones. First, stop trying to own the entire digital world. For most traditional firms, building a dominant platform from scratch is a losing battle. The smarter move is to become a valuable partner or complementor on existing platforms where your customers already are. Host: So it's about playing in someone else's sandbox, but playing really well. Expert: Exactly. The second takeaway is to create a central command for your digital strategy. Transformation can be chaotic. A dedicated team or unit, like Dr. Oetker’s AllAboutCake, is vital to orchestrate your efforts and prevent internal conflicts and wasted resources. Host: And the final takeaway? Expert: Re-evaluate the "build versus partner" decision. The study shows Dr. Oetker learned that partnering was often more effective for acquiring technology and entering new markets quickly without massive upfront investment. They decided to focus their own resources on what they do best—baking expertise and understanding their customers—and collaborate for the rest. Host: A powerful lesson in focus. Let's recap. It's about shifting from owning platforms to orchestrating an ecosystem, creating a central unit to manage the complexity, and being strategic about when to build and when to partner. Host: Alex, this has been incredibly insightful. Thank you for breaking down this research for us. Expert: My pleasure, Anna. Host: And a big thank you to our audience for tuning into A.I.S. Insights. Join us next time as we translate academic knowledge into business intelligence.
Digital Platform Strategy, Cross-Platform Orchestration, Incumbent Firms, Digital Transformation, Business Ecosystems, Case Study, Dr. Oetker
Journal of the Association for Information Systems (2026)
Work-Family Frustration When You and Your Partner Both Work From Home: The Role of ICT Permeability, Planning, and Gender
Manju Ahuja, Rui Sundrup, Massimo Magni
This study investigates the psychological and relational challenges for couples who both work from home. Using a 10-day diary-based approach, researchers examined how the use of work-related information and communication technology (ICT) during personal time blurs the boundaries between work and family, leading to after-work frustration.
Problem
The widespread adoption of remote work, particularly for dual-income couples, has created new challenges in managing work-life balance. The constant connectivity enabled by technology allows work to intrude into family life, depleting mental resources and increasing frustration and relationship conflict, yet the dynamics of this issue, especially when both partners work from home, are not well understood.
Outcome
- Using work technology during personal time (ICT permeability) is directly linked to higher levels of after-work frustration. - This negative effect is significantly stronger for women, likely due to greater societal expectations regarding family roles. - Proactively engaging in daily planning, such as setting priorities and scheduling tasks, effectively reduces the frustration caused by blurred work-family boundaries. - Increased after-work frustration leads to a higher likelihood of conflict with one's partner. - Counterintuitively, after-work frustration was also associated with a small increase in job productivity, suggesting individuals may immerse themselves in work as a coping mechanism.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. I’m your host, Anna Ivy Summers. In the era of remote work, the line between our professional and personal lives has never been blurrier, especially for couples who both work from home. Today, we’re diving into a fascinating study titled “Work-Family Frustration When You and Your Partner Both Work From Home: The Role of ICT Permeability, Planning, and Gender.”
Host: To help us unpack this, we have our expert analyst, Alex Ian Sutherland. Alex, welcome.
Expert: Thanks for having me, Anna. This study essentially investigates the psychological and relational challenges couples face when their home is also their office. It looks at how work technology creeping into personal time leads to frustration after the workday ends.
Host: Let's start with the big problem here. So many of us are living this reality. What’s the core issue the study identified?
Expert: The core issue is that while remote work offers flexibility, it has also trapped us in a state of constant connectivity. Our work laptops and phones are always on, always within reach. This allows work to constantly intrude into family time, depleting our mental energy and, as the study notes, increasing frustration and even relationship conflict.
Host: It feels like the workday never truly ends.
Expert: Exactly. The study calls this “ICT permeability”—that’s Information and Communication Technology. It’s the idea that technology, like email and messaging apps, pokes holes in the boundary between our work and family lives. And when both partners are working from home, they’re not just managing their own intrusions, but navigating their partner’s as well.
Host: So, how did the researchers get inside this dynamic? It seems tricky to measure.
Expert: It is. Instead of a one-time survey, they used a 10-day diary approach. They had participants—all of whom were in relationships where both partners work from home—respond to surveys multiple times a day. This allowed them to capture feelings of frustration, conflict, and productivity in real-time, as they happened, giving a much more accurate picture of daily life.
Host: A digital diary, that's clever. So, Alex, what were the most striking findings from this 10-day look into people's lives?
Expert: There were a few key takeaways. First, and perhaps least surprising, the more that work technology bled into personal time, the higher the person’s after-work frustration. That feeling of being unable to switch off directly leads to feeling irritable and stressed.
Host: That makes sense. What else stood out?
Expert: The gender difference was significant. This negative effect—the link between tech intrusion and frustration—was much stronger for women. The study suggests this is likely due to persistent societal expectations for women to shoulder more of the domestic and family responsibilities, what’s often called the "invisible labor."
Host: So even when both partners work from home, women feel the pressure more acutely. Is there any good news here? A way to fight back against this frustration?
Expert: Yes, and it’s a simple but powerful tool: planning. The study found that individuals who engaged in daily planning—things like setting clear priorities, scheduling tasks, and making a to-do list—were much less affected by this frustration. Planning helps create structure and reclaim control over your time.
Host: That’s a very actionable insight. Now, the study also found a link between this frustration and two other outcomes: partner conflict and, surprisingly, productivity.
Expert: That's right. As you might expect, more after-work frustration led to a higher likelihood of conflict with a partner. When your mental battery is drained, your self-control is lower, and you're more likely to be impatient or get into an argument.
Host: Okay, but the productivity part is counterintuitive. You’re telling me that being more frustrated made people *more* productive?
Expert: It did, but with a major caveat. The study suggests this is a short-term coping mechanism. When individuals feel frustrated and out of control in their family life, they may retreat into their work, where tasks are clearer and accomplishments are more easily measured. It's a way to regain a sense of control and self-efficacy.
Host: A retreat into work. That sounds like a fast track to burnout.
Expert: It absolutely is. And that brings us to why this matters so much for business.
Host: Exactly. So Alex, what are the key takeaways for managers and business leaders listening right now?
Expert: First, recognize that ICT permeability is a real driver of stress and burnout. Leaders can’t just offer remote work and walk away. They need to help employees manage it. This starts with culture.
Host: What does a healthy culture look like in this context?
Expert: It’s a culture where boundaries are respected. Managers should establish clear norms around after-hours communication—defining what is truly urgent and what can wait until tomorrow. They should encourage employees to block out personal time on shared calendars and, crucially, respect those blocks.
Host: So it's about setting clear expectations from the top down.
Expert: Precisely. And organizations should provide practical support. This could include training on effective planning and time management techniques. And given the gender disparity, leaders need to be particularly mindful of the disproportionate burden on female employees, ensuring they have the support and flexibility they need. Don’t mistake that short-term productivity boost from a frustrated employee as a win. It's a warning sign.
Host: A warning sign, not a performance metric. That's a powerful point to end on. To summarize: the technology that enables remote work can blur boundaries and cause significant frustration, an effect felt more strongly by women. This frustration fuels conflict at home and can create an unsustainable pattern of using work as an escape. The solution lies in proactive planning and, for businesses, in building a culture that actively protects employees' personal time.
Host: Alex, thank you so much for breaking this down for us. Your insights were incredibly valuable.
Expert: My pleasure, Anna.
Host: And thank you to our audience for tuning in to A.I.S. Insights. Join us next time as we continue to connect research to reality.
Journal of the Association for Information Systems (2026)
Affordance-Based Pathway Model of Social Inclusion: A Case Study of Virtual Worlds and People With Lifelong Disability
Karen Stendal, Maung K. Sein, Devinder Thapa
This study explores how individuals with lifelong disabilities (PWLD) use virtual worlds, specifically Second Life, to achieve social inclusion. Using a qualitative approach with in-depth interviews and participant observation, the researchers analyzed how PWLD experience the platform's features. The goal was to develop a model explaining the process through which technology facilitates greater community participation and interpersonal connection for this marginalized group.
Problem
People with lifelong disabilities often face significant social isolation and exclusion due to physical, mental, or sensory impairments that hinder their full participation in society. This lack of social connection can negatively impact their psychological and emotional well-being. This research addresses the gap in understanding the specific mechanisms by which technology, like virtual worlds, can help this population move from isolation to inclusion.
Outcome
- Virtual worlds offer five key 'affordances' (action possibilities) that empower people with lifelong disabilities (PWLD). - Three 'functional' affordances were identified: Communicability (interacting without barriers like hearing loss), Mobility (moving freely without physical limitations), and Personalizability (controlling one's digital appearance and whether to disclose a disability). - These functional capabilities enable two 'social' affordances: Engageability (the ability to join in social activities) and Self-Actualizability (the ability to realize one's potential and help others). - The study proposes an 'Affordance-Based Pathway Model' which shows how using these features helps PWLD build interpersonal relationships and participate in communities, leading to social inclusion.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers, and with me today is our expert analyst, Alex Ian Sutherland. Host: Alex, today we're diving into a fascinating study from the Journal of the Association for Information Systems titled, "Affordance-Based Pathway Model of Social Inclusion: A Case Study of Virtual Worlds and People With Lifelong Disability". Host: In short, it explores how people with lifelong disabilities use virtual worlds, like the platform Second Life, to achieve social inclusion and build community. Host: So, Alex, before we get into the virtual world, let's talk about the real world. What is the core problem this study is trying to address? Expert: Anna, it addresses a significant challenge. People with lifelong disabilities often face profound social isolation. Physical, mental, or sensory barriers can prevent them from fully participating in society, which in turn impacts their psychological and emotional well-being. Expert: While we know technology can help, there’s been a gap in understanding the specific mechanisms—the 'how'—technology can create a pathway from isolation to inclusion for this group. Host: It sounds like a complex challenge to study. So how did the researchers approach this? Expert: They took a very human-centered approach. They went directly into the virtual world of Second Life and conducted in-depth interviews and participant observations with 18 people with lifelong disabilities. This allowed them to understand the lived experiences of both new and experienced users. Host: And what did they find? What is it about these virtual worlds that makes such a difference? Expert: They discovered that the platform offers five key 'affordances'—which is simply a term for the action possibilities or opportunities that the technology makes possible for these users. They grouped them into two categories: functional and social. Host: Okay, five key opportunities. Can you break down the first category, the functional ones, for us? Expert: Absolutely. The first three are foundational. There’s 'Communicability'—the ability to interact without barriers. One participant with hearing loss noted that text chat made it easier to interact because they didn't need sign language. Expert: Second is 'Mobility'. This is about moving freely without physical limitations. A participant who uses a wheelchair in real life shared this powerful thought: "In real life I can't dance; here I can dance with the stars." Expert: The third is 'Personalizability'. This is the user's ability to control their digital appearance through an avatar, and importantly, to choose whether or not to disclose their disability. It puts them in control of their identity. Host: So those three—Communicability, Mobility, and Personalizability—are the functional building blocks. How do they lead to actual social connection? Expert: They directly enable the two 'social' affordances. The first is 'Engageability'—the ability to actually join in social activities and be part of a group. Expert: This then leads to the final and perhaps most profound affordance: 'Self-Actualizability'. This is the ability to realize one's potential and contribute to the well-being of others. For example, a retired teacher in the study found new purpose in helping new users get started on the platform. Host: This is incredibly powerful on a human level. But Alex, this is a business and technology podcast. What are the practical takeaways here for business leaders? Expert: This is where it gets very relevant. First, for any company building in the metaverse or developing collaborative digital platforms, this study is a roadmap for truly inclusive design. It shows that you need to intentionally design for features that enhance communication, freedom of movement, and user personalization. Host: So it's a model for product development in these new digital spaces. Expert: Exactly. And it also highlights an often-overlooked user base. Designing for inclusivity isn't just a social good; it opens up your product to a massive global market. Businesses can also apply these principles internally to create more inclusive remote work environments, ensuring employees with disabilities can fully participate in digital collaboration and company culture. Host: That’s a fantastic point about corporate applications. Is there anything else? Expert: Yes, and this is a critical takeaway. The study emphasizes that technology alone is not a magic bullet. The users succeeded because of what the researchers call 'facilitating conditions'—things like peer support, user training, and community helpers. Expert: For businesses, the lesson is clear: you can't just launch a product. You need to build and foster the support ecosystem and the community around it to ensure users can truly unlock its value. Host: Let’s recap then. Virtual worlds can be a powerful tool for social inclusion by providing five key opportunities: three functional ones that enable two social ones. Host: And for businesses, the key takeaways are to design intentionally for inclusivity, recognize this valuable user base, and remember to build the support system, not just the technology itself. Host: Alex Ian Sutherland, thank you for breaking this down for us. It’s a powerful reminder that technology is ultimately about people. Host: And thank you to our audience for tuning into A.I.S. Insights — powered by Living Knowledge.
Social Inclusion, Virtual Worlds (VW), People With Lifelong Disability (PWLD), Affordances, Second Life, Assistive Technology, Qualitative Study
Journal of the Association for Information Systems (2026)
Algorithmic Management Resource Model and Crowdworking Outcomes: A Mixed Methods Approach to Computational and Configurational Analysis
Mohammad Soltani Delgosha, Nastaran Hajiheydari
This study investigates how management by algorithms on platforms like Uber and Lyft affects gig workers' well-being. Using a mixed-methods approach, the researchers first analyzed millions of online forum posts from crowdworkers to identify positive and negative aspects of algorithmic management. They then used survey data to examine how different combinations of these factors lead to worker engagement or burnout.
Problem
As the gig economy grows, millions of workers are managed by automated algorithms instead of human bosses, leading to varied outcomes. While this is efficient for companies, its impact on workers is unclear, with some reporting high satisfaction and others experiencing significant stress and burnout. This study addresses the lack of understanding about why these experiences differ and which specific algorithmic practices support or harm worker well-being.
Outcome
- Algorithmic management creates both resource gains for workers (e.g., work flexibility, performance feedback, rewards) and resource losses (e.g., unclear rules, unfair pay, constant monitoring). - Perceived unfairness in compensation, punishment, or workload is the most significant driver of crowdworker burnout. - The negative impacts of resource losses, like unfairness and poor communication, generally outweigh the positive impacts of resource gains, such as flexibility. - Strong algorithmic support (providing clear information and fair rewards) is critical for fostering worker engagement and can help mitigate the stress of constant monitoring. - Work flexibility alone is not enough to prevent burnout; workers also need to feel they are treated fairly and are adequately supported by the platform.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge, the podcast where we bridge the gap between academic research and business reality. I’m your host, Anna Ivy Summers. Host: Today, we’re diving into a topic that affects millions of people in the gig economy: being managed by an algorithm. We’re looking at a fascinating study titled "Algorithmic Management Resource Model and Crowdworking Outcomes: A Mixed Methods Approach to Computational and Configurational Analysis." Host: In short, this study investigates how management by algorithms on platforms like Uber and Lyft affects gig workers' well-being, and why some workers feel engaged while others burn out. To help us understand this is our expert analyst, Alex Ian Sutherland. Alex, welcome. Expert: Great to be here, Anna. Host: Alex, let's start with the big picture. We all use these services, but what is the core business problem this study is trying to solve? Expert: The problem is a massive and growing one. As the gig economy expands, millions of workers are now managed by automated algorithms, not human bosses. For companies, this is incredibly efficient. But for the workers, the experience is all over the map. Host: You mean some people love it and some people hate it? Expert: Exactly. Some report high satisfaction, but others experience intense stress and burnout. This leads to very high turnover rates for the platforms, which is a huge business cost. The study mentions attrition rates as high as 12.5% per month. The central question for these companies is: why the drastic difference? What specific algorithmic practices are helping workers, and which ones are harming them? Host: That’s a critical question. So how did the researchers get to the bottom of it? It sounds incredibly complex to measure. Expert: It is, and they used a really smart two-phase approach. First, they went straight to the source: online forums where thousands of gig workers share their real, unfiltered experiences. They used A.I. to analyze millions of these posts to identify the common themes—the good, the bad, and the ugly of being managed by an app. Host: So they started with what workers were actually talking about. What was the second step? Expert: Based on those real-world themes, they developed a survey and analyzed the responses from hundreds of workers. This allowed them to see not just what factors mattered, but how different *combinations* of these factors led to a worker feeling either engaged and motivated, or completely burned out. Host: A perfect example of mixed methods. Let's get to the findings. What did they discover? Expert: They found that algorithmic management creates both "resource gains" and "resource losses" for workers. Host: Gains and losses... can you give us some examples? Expert: Certainly. The gains are what you'd expect: things like work flexibility, getting useful performance feedback, and financial rewards. The losses, however, were more potent. These included unclear or constantly changing rules, a feeling of unfair pay, and the stress of constant, invasive monitoring by the app. Host: So what was the single biggest factor that pushed workers toward burnout? Expert: Unquestionably, it was the perception of unfairness. Whether it was about compensation, punishment like being deactivated for a reason they didn't understand, or the workload they were assigned, a sense of injustice was the most powerful driver of burnout. Host: That’s interesting. Because the big selling point of gig work is always flexibility. Didn't that help offset the negatives? Expert: This is one of the study's most important conclusions. Flexibility alone is not enough to prevent burnout. The researchers found that the negative impact of resource losses, like feeling treated unfairly, generally outweighs the positive impact of resource gains, like having a flexible schedule. Host: So the bad is stronger than the good. Expert: Precisely. The study confirms a principle known as the "primacy of resource loss." The negative feelings from unfairness or poor communication are far more powerful in driving workers away than the positive feeling of flexibility is in keeping them. Host: This is all fascinating, Alex. Let's pivot to the most important question for our listeners: why does this matter for business? What are the key takeaways for companies building or using these platforms? Expert: There are three clear takeaways. First, prioritize fairness and transparency. The algorithm can't be a "black box." Businesses need to clearly communicate how tasks are allocated, how performance is measured, and how pay is calculated. Perceived unfairness is the fastest route to a demoralized and shrinking workforce. Host: Okay, fairness first. What’s number two? Expert: Support is not optional; it's essential. The study showed that strong algorithmic support—providing clear information, fair rewards, and useful feedback—was critical for keeping workers engaged. It can even help them cope with the stress of being monitored. It builds trust. Host: So, a supportive algorithm is key. And the third takeaway? Expert: Don't rely on flexibility as a silver bullet. You can't offer freedom with one hand while the other hand operates a system that feels arbitrary, uncommunicative, and unfair. To reduce burnout and build a stable, engaged workforce, you need to combine that flexibility with a system that workers genuinely feel is on their side. Host: So to recap: algorithmic management is a powerful tool, but it's a double-edged sword. The perception of unfairness is the biggest driver of burnout, and it outweighs the benefits of flexibility. For businesses, the path to an engaged gig workforce isn't just about technology, but about building systems that are transparent, supportive, and fundamentally fair. Host: Alex Ian Sutherland, thank you for making this complex study so clear and actionable for us. Expert: It was my pleasure, Anna. Host: And thank you for tuning in to A.I.S. Insights — powered by Living Knowledge. Join us next time as we uncover more insights from the world of research.
This study investigates how organizations should prioritize their digital investments during a crisis. Based on an in-depth analysis of 18 Australian organizations' responses to the COVID-19 pandemic, the paper provides a framework for IT leaders to decide whether to exploit existing digital capabilities or explore new ones.
Problem
In times of crisis, organizations rely heavily on their digital capabilities for survival and adaptation. However, IT leaders face the critical dilemma of whether to focus limited resources on making the most of current technologies (exploitation) or investing in new, innovative solutions (exploration), with little guidance on how to make this choice effectively.
Outcome
- Organizations should assess their 'starting position' at the onset of a crisis across five key factors: people, cultural, technical, managerial, and financial. - Based on this assessment, one of three crisis responses should be pursued: 'Survive', 'Survive and Thrive', or 'Thrive and Drive'. - For a 'Survive' response, organizations should focus exclusively on exploiting existing digital capabilities to maintain operations. - A 'Survive and Thrive' response requires initially exploiting current capabilities, followed by a later shift toward exploring new ones. - Organizations in a strong position can pursue a 'Thrive and Drive' response, concurrently exploiting and exploring capabilities, with an increasing focus on exploration as the crisis progresses.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers. In a crisis, business leaders have to make tough calls, especially when it comes to technology. Today, we're diving into a fascinating study titled, "Setting Priorities for Exploiting and Exploring Digital Capabilities in a Crisis". It provides a framework for IT leaders to decide whether to get the most out of their existing digital tools or to invest in brand new ones. Here to unpack it all is our analyst, Alex Ian Sutherland. Welcome, Alex.
Expert: Great to be here, Anna.
Host: Alex, we’ve all seen how the recent pandemic forced businesses to pivot almost overnight. What was the core technological dilemma that leaders were wrestling with?
Expert: The big question was where to put scarce resources. Do you double down on the technology you already have, just to keep the lights on and serve existing customers? The study calls this 'exploitation'—making the best of what you have.
Host: Or... the alternative?
Expert: The alternative is 'exploration'—investing in new, innovative solutions, or doing new things in better ways. The dilemma is that if you only focus on exploitation, you risk getting trapped with outdated tech when the crisis is over. But if you over-invest in exploration, you could run out of money before seeing any real benefit. It’s a very high-stakes balancing act.
Host: So how did the researchers figure out the right way to balance these two priorities?
Expert: They took a very practical approach. They conducted an in-depth study of 18 different Australian organizations across various industries—from healthcare to construction. They interviewed 27 IT leaders right in the middle of the pandemic to see what decisions they were making in real-time and what the outcomes were.
Host: It sounds like a view from the corporate trenches. So what did they find? Is there a one-size-fits-all answer for businesses?
Expert: No, and that’s the most important finding. The right strategy depends entirely on what the study calls an organization's 'starting position' at the moment the crisis hits.
Host: 'Starting position'? What does that mean exactly?
Expert: It's an assessment of the company's health across five key factors. First is People: what are your team's digital skills? Second, Cultural: is your company risk-averse or innovative? Third, Technical: how modern is your IT infrastructure? Fourth is Managerial: how strong is your leadership and your processes? And finally, Financial: what do your cash reserves look like?
Host: Okay, so you assess your company against those five factors. What happens next?
Expert: Based on that assessment, the study identifies three clear response paths a company can take: 'Survive', 'Survive and Thrive', or 'Thrive and Drive'.
Host: Let's break those down. What does a 'Survive' response look like?
Expert: If your starting position is weak—say, you have limited cash and legacy IT systems—the only goal is to survive. This means you focus exclusively on exploitation. You use your existing tech to automate and stabilize core operations. Forget new, risky projects; just keep the business running.
Host: That makes sense. What about the next level, 'Survive and Thrive'?
Expert: This is for companies in a stronger, middle-ground position. The strategy here is sequential. First, you exploit your existing tech to stabilize the business. But once you have some breathing room, you begin to explore new digital capabilities. The study highlights an aged care provider that first used existing tools for remote consultations, then later hired a new IT leader to explore innovative partnerships.
Host: And finally, for the companies that were in a great spot when the crisis began?
Expert: They can pursue a 'Thrive and Drive' response. These organizations have strong finances, modern tech, and an innovative culture. They can do both exploitation and exploration at the same time. One construction company in the study was able to streamline its current operations while also doubling its fleet of drones for new types of automated assessments. They didn't just survive; they used the crisis to accelerate past their competitors.
Host: This is incredibly practical. For a business leader listening right now, what is the single most important takeaway? How can they apply this framework?
Expert: The first step is to perform an honest self-assessment. The study even suggests a simple 'traffic light' system. For each of the five factors—People, Culture, Technical, Managerial, and Financial—rate yourself as red, yellow, or green. Red means the factor is hindering you, while green means it's accelerating you.
Host: So you get a clear, visual snapshot of your company's readiness.
Expert: Exactly. That snapshot tells you which of the three strategies you should adopt. It replaces gut feelings with a structured roadmap for making critical decisions under immense pressure. It tells you exactly where to focus your limited time, money, and energy.
Host: And I imagine this isn't just for navigating a crisis that's already here.
Expert: That's the most powerful part. The framework is really about preparing for the *next* crisis. By understanding these factors, leaders can start working today to improve their starting position. They can ask, 'What do we need to do to move our company from a 'Survive' position to a 'Thrive and Drive' one?' It’s a blueprint for building long-term organizational resilience.
Host: A fantastic summary. So, when a crisis hits, the key is to first assess your starting position across people, culture, tech, management, and finances.
Host: Then, based on that assessment, you choose your strategy: 'Survive' by focusing only on existing tech, 'Survive and Thrive' by stabilizing first and then innovating, or 'Thrive and Drive' by doing both at once.
Host: And crucially, you can use this framework right now to build a stronger, more resilient organization for whatever comes next. Alex, thank you for breaking that down for us.
Expert: My pleasure, Anna.
Host: That's all the time we have for A.I.S. Insights. Join us next time as we continue to explore the ideas shaping our world. I'm Anna Ivy Summers.
crisis management, digital capabilities, exploitation, exploration, organizational ambidexterity, IT leadership, COVID-19
MIS Quarterly Executive (2022)
Assessing Incumbents' Risk of Digital Platform Disruption
Carmelo Cennamo, Lorenzo Diaferia, Aasha Gaur, Gianluca Salviotti
This study identifies three key market characteristics that make established businesses (incumbents) vulnerable to disruption by digital platforms. Using a qualitative research design examining multiple industries, the authors developed a practical tool for managers to assess their company's specific risk of being disrupted by these new market entrants.
Problem
Traditional companies often struggle to understand the unique threat posed by digital platforms, which disrupt entire market structures rather than just introducing new products. This research addresses the need for a systematic way for incumbent firms to identify their specific vulnerabilities and understand how digital platform disruption unfolds in their industry.
Outcome
- Digital platforms successfully disrupt markets by exploiting three key characteristics: information inefficiencies (asymmetry, fragmentation, complexity), the modular nature of product/service offerings, and unaddressed diverse customer preferences. - Disruption occurs in two primary ways: by creating new, more efficient marketplace infrastructures that replace incumbents' marketing channels, and by introducing alternative marketplaces with entirely new offerings that substitute incumbents' core services. - The paper provides a risk-assessment tool for managers to systematically evaluate their market's exposure to platform disruption based on a detailed set of factors related to information, product modularity, and customer preferences.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. In a world where companies like Airbnb and Uber can reshape entire industries seemingly overnight, established businesses are constantly looking over their shoulders. Today, we're asking: how can you know if your company is next? We’re diving into a fascinating study from the MIS Quarterly Executive titled, "Assessing Incumbents' Risk of Digital Platform Disruption."
Host: It identifies three key market characteristics that make established businesses vulnerable and, most importantly, provides a tool for managers to assess their company's risk. Here to unpack it all is our analyst, Alex Ian Sutherland. Alex, welcome.
Expert: Glad to be here, Anna.
Host: So, let's start with the big problem. We all know disruption is a threat, but the study suggests that the threat from digital platforms is different, and that traditional companies often misunderstand it. Why is that?
Expert: That's the core issue. Businesses are used to competing on products. Someone builds a better mousetrap, you build an even better one. But digital platforms don't just sell a new product; they fundamentally re-architect the entire market. They change the rules of the game.
Expert: Think about Craigslist's impact on newspapers. Craigslist didn't create a better classifieds section; it created a whole new, more efficient marketplace that made the newspaper's classifieds channel almost irrelevant. It disrupted the *relationships* between buyers, sellers, and the newspaper itself.
Host: So it's about changing the structure, not just the product. How did the researchers identify the warning signs for this kind of structural shift? What was their approach?
Expert: They conducted a deep, qualitative study. They didn't just look at numbers; they examined real-world platform cases across multiple industries—from energy and IT services to banking and insurance. They also conducted in-depth interviews with the key people actually designing, launching, and managing these platforms to understand the common patterns behind their success.
Host: And what were those key patterns? What are the big findings that business leaders need to know?
Expert: The study found that platforms successfully exploit three specific market characteristics. First, they thrive on what the researchers call 'information inefficiencies'. This is when information is lopsided, scattered, or just too complex for customers to easily understand. Platforms fix this by centralizing everything and making it transparent.
Host: Can you give me an example?
Expert: Absolutely. Think of booking a hotel before and after a platform like Booking.com. Information was fragmented across different hotel websites and travel agents. Platforms brought it all into one place, with user reviews to solve the problem of lopsided information—where the hotel knows more about its quality than you do.
Host: Okay, so inefficient information is the first vulnerability. What's the second?
Expert: The second is the modular nature of products or services. If what you sell is really a 'bundle' of smaller parts, a platform can come in, unbundle it, and let customers pick and choose only the pieces they want.
Expert: The study points to the insurance industry. A traditional policy is a bundle. A platform like 'Yolo' allows users to buy "micro-insurance" on-demand—just for a ski trip, for example—by breaking apart the traditional, monolithic insurance package.
Host: That makes perfect sense. Unbundling. And the third characteristic?
Expert: The third is the existence of unaddressed, diverse customer preferences. Large incumbents often focus on the biggest part of the market with a standardized offering. Platforms excel at serving the niches. They aggregate all that diverse demand, making it profitable to cater to very specific tastes, like Apple Podcasts does for every hobby imaginable.
Host: This is incredibly insightful. So, Alex, we come to the most important question. I’m a business leader listening to this. How do I apply these findings? What does this mean for my business today?
Expert: This is the most practical part of the study. It provides a risk-assessment tool, which boils down to asking yourself a few tough questions. First, how severe is the information asymmetry in your market? Do your customers struggle with uncertainty?
Expert: Second, how fragmented is the knowledge? Do customers have to hunt for information across many different sources to make a decision? If so, you're vulnerable.
Host: Okay, what else should I be asking?
Expert: You need to ask, how modular could my product be? Could a competitor break it apart and sell the pieces? And finally, are there groups of customers whose specific needs are not being fully met by your standard offering?
Host: So by going through that checklist, you can essentially diagnose your own company’s risk of disruption.
Expert: Exactly. It’s a proactive health check for your market. Answering "yes" to those questions doesn't mean you're doomed, but it does mean there are cracks in your market's foundation. And those cracks are precisely where a digital platform will try to gain a foothold.
Host: So, to summarize for our listeners: digital platforms don't just introduce new products, they rewire entire markets. They do this by exploiting three main vulnerabilities: information that is inefficient, products that can be unbundled, and diverse customer needs that are being ignored.
Host: The key takeaway is to use these insights as a lens to critically examine your own industry and identify your specific risks before someone else does. Alex, this has been an incredibly clear and actionable breakdown. Thank you so much for joining us.
Expert: My pleasure, Anna.
Host: And thanks to all of you for tuning in to A.I.S. Insights, powered by Living Knowledge. We'll see you next time.
digital platforms, disruption, incumbent firms, market architecture, risk assessment, information asymmetry, modularity
MIS Quarterly Executive (2022)
Lessons for and from Digital Workplace Transformation in Times of Crisis
Janina Sundermeier
This study analyzes how three companies successfully transformed their workplaces from physical to predominantly digital in response to the Covid-19 pandemic. Through a qualitative case study approach, it identifies four distinct transformation phases and the management practices that enabled the alignment of digital tools, cultural assets, and physical spaces. The research culminates in a practical roadmap for managers to prepare for future crises and design effective post-pandemic workplaces.
Problem
The COVID-19 pandemic forced a sudden, massive shift to remote work, a situation for which most companies were unprepared. While some technical infrastructure existed, businesses struggled to efficiently connect distributed teams and accommodate employees' new needs for flexibility. This created an urgent need to understand how to manage a holistic digital workplace transformation that aligns technology, culture, and physical space under crisis conditions.
Outcome
- Successful digital workplace transformation occurs in four phases: Inertia, Experimental Repatterning, Leveraging Causation Planning, and Calibration. - A holistic approach is critical, requiring the strategic alignment of three components: digital tools (technology), cultural assets (organizational culture), and physical office spaces. - A key challenge is preventing the formation of a 'two-tier' workforce, where in-office employees are perceived as more valued or informed than remote employees. - The paper offers a roadmap with actionable recommendations, such as encouraging experimentation with technology, ensuring transparent documentation of all work, and redesigning physical offices to serve as hubs for collaboration and events.
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 challenge that every single one of us has lived through: the massive, overnight shift to remote work. We’re looking at a study titled "Lessons for and from Digital Workplace Transformation in Times of Crisis." Host: It analyzes how three companies successfully navigated the transition from a physical to a digital-first workplace during the pandemic. The study offers a practical roadmap for managers to prepare for future disruptions. To help us unpack this, we have our analyst, Alex Ian Sutherland. Alex, welcome. Expert: Thanks for having me, Anna. Host: Alex, let's start with the big problem. We all remember March 2020. But from a business perspective, what was the core challenge this study looked at? Expert: The core challenge was that most companies were completely unprepared. The study calls the pandemic "the largest global experiment in telecommuting in human history." While many had some technology like video conferencing, they fundamentally struggled to connect their distributed teams efficiently. Host: It wasn't just about having the right software, then? Expert: Exactly. Before the pandemic, the companies in the study operated on what the researchers call a "physical workplace logic." Everything was built around being in the same building at the same time: assigned desks, fixed hours, face-to-face meetings. The real problem was how to manage a holistic transformation that aligned not just the technology, but also the company culture and even the physical office space, all under immense pressure. Host: So how did the researchers get inside these companies to understand that transformation? Expert: They took a deep-dive, qualitative approach. Over a two-year period, they closely followed three companies—given the pseudonyms Akon, Vestro, and Dalamaza—as they went through this journey. They conducted over 120 interviews and sat in on nearly 70 meetings, from the executive level right down to the team level, to get a truly comprehensive picture of the process. Host: That's incredibly detailed. So, after all that observation, what were the main findings? What does a successful transformation look like? Expert: The study found that companies don't just flip a switch. They go through four distinct phases. It starts with ‘Inertia’, where they basically try to copy-paste the physical office online—think mandatory 9-to-5 hours, but on Zoom. Host: That sounds familiar, and exhausting. What comes next? Expert: Next is ‘Experimental Repatterning’. This is a trial-and-error phase. The initial inertia breaks down, and employees start experimenting with new tools and workflows to find what actually works for remote collaboration. This is often a messy but crucial stage. Host: And after the experiments? Expert: The company moves into ‘Leveraging Causation Planning’. That's a bit of a mouthful, but it just means they get strategic. Instead of just reacting, leadership starts to intentionally design a long-term digital workplace, setting clear goals. Finally, they enter ‘Calibration’, which is an ongoing phase of fine-tuning that new system, balancing the long-term plan with new ideas and tools. Host: So it's a journey from reacting, to experimenting, to strategic planning. The study also mentioned a challenge around a ‘two-tier’ workforce. What is that? Expert: This was one of the biggest risks they identified. It’s the creation of an unintentional class system, where employees who come into the office are perceived as more valued or have access to more information than their remote colleagues. Informal chats at the coffee machine or quick updates in the hallway suddenly become career-critical, and remote workers get left out. One employee in the study said they felt like a "second-class employee." Host: That’s a powerful insight. This brings us to the most important question for our listeners: How can business leaders apply these lessons? What does the roadmap from this study suggest? Expert: The first key takeaway is to be holistic. You can't just focus on digital tools. You have to consciously align them with your culture and physical space. This means redesigning your office to be a hub for collaboration and events, not just rows of desks. And it means building a culture of trust and transparency that supports remote work. Host: And how do you combat that 'two-tier' system you mentioned? Expert: The study offers very clear actions here. First, democratize information. This means documenting everything—from formal meeting decisions to informal project updates—in a central, accessible place, like a company wiki. Second, leaders must lead by example. If executives are always in the office and don't use the remote collaboration tools, they send a clear message that physical presence is what truly matters. In fact, two of the companies actually banned executives from the office for a few weeks to force them to live the remote experience. Host: That’s a bold move. Any final takeaway for our audience? Expert: Yes. Encourage experimentation, but with guardrails. Employees will often find better ways of working and discover new tools—what’s often called 'shadow IT'. Instead of just shutting it down, create a process to evaluate these innovations. It can be a powerful engine for improvement if you manage it correctly. The goal is to build a resilient organization that can adapt to the next crisis, whatever it may be. Host: Fantastic. So, to summarize: the shift to a digital workplace is a four-phase journey. Success requires a holistic approach, aligning technology, culture, and physical space. And critically, leaders must actively work to prevent a two-tier workforce by championing transparency and leading by example. Host: Alex, this has been incredibly insightful. Thank you for breaking it down for us. Expert: My pleasure, Anna. Host: And thanks to all of you for tuning into A.I.S. Insights. Join us next time as we continue to explore the ideas shaping our world.
digital workplace, digital transformation, crisis management, remote work, hybrid work, organizational culture, case study
MIS Quarterly Executive (2022)
How SME Watkins Steel Transformed from Traditional Steel Fabrication to Digital Service Provision
Friedrich Chasin, Marek Kowalkiewicz, Torsten Gollhardt
This study presents a case study of Watkins Steel, an Australian small and medium-sized enterprise (SME), detailing its successful digital transformation from a traditional steel fabricator to a digital services provider. It introduces and analyzes two key strategic concepts, 'augmentation' and 'adjacency', as a framework for how SMEs can innovate and add new revenue streams without abandoning their core business.
Problem
While digital transformation success stories for large corporations are common, there is a significant lack of practical guidance and documented examples for small and medium-sized enterprises (SMEs). This gap leaves many SMEs unaware of the potential of digital technologies and constrained by organizational inertia, hindering their ability to innovate and remain competitive.
Outcome
- Watkins Steel successfully transitioned by augmenting its core steel fabrication business with new, high-value digital services like 3D scanning, modeling, and data reporting. - The study proposes a transformation framework for SMEs based on two concepts: 'digital augmentation' (adding new services) and 'digital adjacency' (leveraging existing assets like customers, data, and skills for these new services). - Key success factors included contagious leadership from the CEO, embracing business constraints as innovation opportunities, and a customer-centric approach to solving their clients' problems. - Instead of hiring new talent, Watkins Steel successfully cultivated its own digital experts by empowering existing employees with domain knowledge to learn new skills, fostering a culture of experimentation. - The transformation allowed the company to move up the value chain, from being a materials provider to coordinating and managing construction processes, creating a more defensible market position.
Host: Welcome to A.I.S. Insights, the podcast where we connect business strategy with cutting-edge research. I’m your host, Anna Ivy Summers. Host: Today, we're diving into a study that offers a practical roadmap for one of the biggest challenges facing smaller companies: digital transformation. Host: It’s titled "How SME Watkins Steel Transformed from Traditional Steel Fabrication to Digital Service Provision.” Host: The study presents a fascinating case study of an Australian steel company that successfully added new, high-value digital revenue streams without abandoning its core business. Host: Here to break it all down for us is our analyst, Alex Ian Sutherland. Alex, welcome. Expert: Great to be here, Anna. Host: Alex, we hear about digital transformation all the time, usually in the context of giant corporations. What’s the specific problem this study tackles for smaller businesses? Expert: The biggest problem is a lack of guidance. Small and medium-sized enterprises, or SMEs, see the big success stories but have no clear, practical blueprint to follow. Expert: They're often constrained by limited budgets, a lack of digital skills, and what the study calls 'organizational inertia'. It's tough to innovate when you're just trying to keep the daily operations running. Expert: The CEO of Watkins Steel summed up the initial mindset perfectly. He said, "I thought innovation was just another buzzword... Our business is steel fabrication. You cut steel, and you weld steel. You cannot innovate it." That's the barrier this study helps businesses overcome. Host: So how did the researchers get inside this transformation to create a blueprint? Expert: They took a very hands-on approach. It was a comprehensive, in-depth case study of Watkins Steel, which involved spending significant time on-site. Expert: They interviewed nine different people within the company—from the CEO to business development managers to the draftsmen on the factory floor—to get a complete 360-degree view of what worked and why. Host: And what were the key findings? What did Watkins Steel do that was so different? Expert: The researchers boiled it down to two core strategic concepts: 'digital augmentation' and 'digital adjacency'. Host: Can you break those down for us? What is 'digital augmentation'? Expert: Augmentation is about adding new digital services to your existing business. Watkins Steel didn't stop fabricating steel. They used technologies like 3D laser scanners and drones to offer new services on top of their core product, like detailed site modeling and data reporting. Host: And 'digital adjacency'? Expert: Adjacency means leveraging the assets you already have to build those new services. Watkins Steel offered these new digital services to their existing construction customers. They used the data from their projects and, most importantly, they leveraged their existing employees. Host: That’s a key point. Did they have to go out and hire a team of new tech experts? Expert: Not at all, and this is a huge finding for SMEs. They cultivated their own digital experts. They took employees who had deep domain knowledge—like draftsmen who were previously boilermakers—and empowered them to learn the new scanning and modeling technologies. Host: So the strategy and the people were key. What was the ultimate result for the business? Expert: It completely changed their position in the market. They moved up the value chain. Instead of just being a supplier delivering steel beams, they became a crucial partner coordinating the construction process. As their CEO put it, they went from being at "the bottom of the food chain" to "running the site." Host: That's a powerful shift. So, for a business leader listening right now, what are the most important, actionable takeaways from the Watkins Steel story? Expert: I think there are three big ones. First, you don't have to bet the farm on a risky pivot. The augmentation and adjacency framework shows you can innovate by building on your existing strengths—your customers, your data, and your people. It’s evolution, not revolution. Host: That seems much more manageable for a smaller company. What's the second takeaway? Expert: It’s that leadership has to be contagious. The study highlights how the CEO's passion and encouragement spread throughout the company. He created a culture of experimentation, saying the best resource he could give his team was a credit card to go buy new technology and start playing around with it. Host: And the third takeaway? Expert: Turn your problems into products. Watkins Steel initially invested in 3D scanners to reduce their own costly fabrication errors. But they quickly realized that the data they were capturing was incredibly valuable to their clients. They turned an internal quality-control tool into a brand-new, high-margin digital service. Host: A fantastic story. So to recap: innovate by augmenting your core business, let the leader's passion for experimentation be contagious, and look for ways to turn your internal solutions into external services. Host: Alex, thank you so much for bringing this study to life for us. So many valuable insights. 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.
digital transformation, SME, business model innovation, case study, digital service provision, digital augmentation, digital adjacency
MIS Quarterly Executive (2022)
How Everything-as-a-Service Enabled Judo to Become a Billion-Dollar Bank Without Owning IT
Christoph F. Breidbach, Amol M. Joshi, Paul P. Maglio, Frederik von Briel, Alex Twigg, Graham Dickens, and Nancy V. Wünderlich
This paper presents a case study on Australian Judo Bank, which successfully implemented an "Everything-as-a-Service" (EaaS) technology strategy. The study analyzes how Judo Bank orchestrated an ecosystem of external IT service providers to build a secure, scalable, and flexible banking platform without owning any IT infrastructure. It describes the benefits, risks, and provides actionable recommendations for other organizations considering an EaaS model.
Problem
The Australian banking sector has been traditionally dominated by a few large incumbent banks, creating high barriers to entry and an underserved market for small- and medium-sized enterprises (SMEs). New entrants face significant challenges, including the immense capital expenditure required to build and maintain proprietary IT systems, which stifles competition and innovation in financial services.
Outcome
- Judo Bank achieved a billion-dollar valuation and profitability by adopting an EaaS strategy, demonstrating that a bank can operate successfully without owning or managing its own IT infrastructure. - The EaaS model provided significant benefits, including rapid scalability, operational flexibility, and lower capital expenditure, allowing the bank to focus resources on its core value proposition of relationship banking. - By becoming a 'service orchestrator' of best-of-breed external solutions, Judo Bank automated back-office processes, enabling its staff to focus on high-value customer interactions. - The strategy is not without risks, including reliance on third-party viability, market disruptions, and data security, which the bank managed through careful partner selection, robust contracts, and a strong focus on security protocols. - The case provides a framework for other companies on how to design, manage, and secure an EaaS ecosystem, emphasizing user-centered design and open standards.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. Today we're diving into a fascinating study from MIS Quarterly Executive titled, "How Everything-as-a-Service Enabled Judo to Become a Billion-Dollar Bank Without Owning IT". Host: It's a case study on Australia's Judo Bank and its radical choice to build a highly secure and scalable bank without owning any of its own IT infrastructure. Here to break it down for us is our analyst, Alex Ian Sutherland. Expert: Great to be here, Anna.
Host: Alex, let's start with the big picture. What was the problem that Judo Bank set out to solve? Expert: The study explains that the Australian banking sector was dominated by four massive incumbent banks. This created huge barriers for any new company trying to enter the market. Host: And a big part of that barrier is the cost of technology, right? Expert: Exactly. The capital required to build and maintain proprietary IT systems is immense. The study also points out that these big banks were focused on residential mortgages, which left a huge market of small- and medium-sized enterprises, or SMEs, completely underserved. Judo’s founders saw a gap and an opportunity.
Host: So how did the researchers get the inside story on this? Expert: Their approach was a deep and collaborative case study. They worked directly with Judo Bank’s CIO and CTO over several years, conducting weekly interviews and gaining access to internal documents and regulatory filings. This gave them a unique, ground-up view of how the strategy was designed and executed.
Host: Which brings us to the findings. The title gives away the ending—they became a billion-dollar bank. How did this "Everything-as-a-Service" model make that possible? Expert: The first major finding is that this EaaS model was the core enabler. Instead of spending millions on servers and software, Judo Bank treated IT as a flexible operating expense, only paying for services as they used them. Host: That sounds like it would give them incredible agility. Expert: It did, and that's the second key outcome. The model provided massive scalability and operational flexibility. For instance, when the COVID-19 pandemic hit, they could instantly equip remote workers across the country because employee laptops were already managed as a service—preconfigured and shipped directly to their homes. No big upfront cost, just a subscription. Host: The study also mentions they automated their back-office. How did that help? Expert: That's the third key finding. By becoming a "service orchestrator" of best-in-class external solutions, they automated tedious back-office work like loan settlement. This freed up their bankers to focus on Judo’s core value: building personal relationships with customers. The study notes their goal was to make the technology "invisible." Host: But relying entirely on third parties must be risky. What did the study say about that? Expert: It’s a huge risk, and the study covers it in detail. They faced challenges like a key service provider being acquired or the constant threat of data breaches. Their success depended on mitigating these risks through very careful partner selection, strong contracts, and a relentless focus on security.
Host: This is the crucial part for our listeners. What are the practical takeaways for other businesses? Expert: The biggest takeaway is a fundamental mindset shift. The study argues that for many businesses today, owning IT is no longer a competitive advantage. The advantage now comes from orchestrating IT services effectively to serve your core business mission. Host: So, focus on your unique value, not on managing servers. Expert: Precisely. The second lesson is about how you manage this new model. You can't just outsource and forget. A business needs a team skilled in architecture, service integration, and vendor management. You become the conductor of an orchestra, ensuring all the different parts play together harmoniously. Host: Is this only for startups? What about established companies with decades of legacy IT? Expert: It's definitely a bigger challenge for them, but the principles still apply. An established company can start by moving non-core functions to a service model first. The study recommends creating a strategic blueprint of your organization's functions and then mapping services onto that, rather than just doing piecemeal tech projects.
Host: So, to summarize, Judo Bank successfully challenged the traditional banking industry by refusing to own its IT. Host: By adopting an "Everything-as-a-Service" strategy, it acted as a service orchestrator, gaining flexibility, lowering costs, and freeing its people to focus on customers. Host: The key lesson for any business is to shift from a mindset of owning technology to orchestrating it, all while proactively managing the inherent risks. Host: Alex, this has been incredibly insightful. Thank you for breaking it all down. 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 explore another big idea shaping the future of business.
Everything-as-a-Service (EaaS), Fintech, Digital Transformation, Cloud Banking, IT Strategy, Service Orchestration, Judo Bank
MIS Quarterly Executive (2022)
How Verizon Media Built a Cybersecurity Culture
Keri Pearlson, Josh Schwartz, Sean Sposito, Masha Arbisman
This case study examines how Verizon Media's security organization, known as “The Paranoids,” successfully built a strong cybersecurity culture across its 20,000 employees. The study details the formation and strategy of the Proactive Engagement (PE) Group, which used a data-driven, three-step process involving behavioral goals, metrics, and targeted actions to change employee behavior. This approach moved beyond traditional training to create lasting cultural change.
Problem
Human error is a primary cause of cybersecurity breaches, with reports indicating it's involved in up to 85% of incidents. Standard cybersecurity awareness training is often insufficient because employees fail to prioritize security or find security protocols cumbersome. This creates a significant gap where organizations remain vulnerable despite technical defenses, highlighting the need for a deeper cultural shift to make security an ingrained value.
Outcome
- The rate of employees having their credentials captured in phishing simulations was cut in half. - The number of accurately reported phishing attempts by employees doubled. - The usage of the corporate password manager tripled across the company. - The initiative successfully shifted the organizational mindset by using transparent dashboards, positive reinforcement, and practical tools rather than relying solely on awareness campaigns. - The study provides a replicable framework for other organizations to build a security culture by focusing on changing values and beliefs, not just actions.
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 that tackles one of the biggest challenges in the digital age: cybersecurity. Host: The study is titled "How Verizon Media Built a Cybersecurity Culture," and it details how their security team, known as “The Paranoids,” successfully embedded security into the DNA of its 20,000 employees. With me is our expert analyst, Alex Ian Sutherland. Welcome, Alex. Expert: Great to be here, Anna. Host: Alex, let's start with the big picture. Why is a study like this so important? What's the fundamental problem that companies are facing? Expert: The problem is the human element. We can build the best digital firewalls, but people are often the weakest link. The study cites data showing human error is involved in up to 85% of cybersecurity breaches. Host: Eighty-five percent is a staggering number. But don't most companies have mandatory security training? Expert: They do, but standard training often isn't enough. The study points out that employees are busy trying to do their jobs efficiently. Security protocols can feel cumbersome, so unless security is a deeply ingrained value, it gets forgotten or bypassed. This creates a huge vulnerability gap. Host: So it's less about a lack of knowledge and more about a lack of cultural priority. How did Verizon Media's team, "The Paranoids," approach this differently? Expert: Instead of just another awareness campaign, they created a special team called the Proactive Engagement Group. Their approach was methodical and data-driven, almost like a science experiment in behavior change. Expert: It was a three-step process. First, they defined very specific, desired behaviors—not vague advice like "don't click on suspicious links." Second, they established clear metrics to measure those behaviors and create a baseline. And third, they took targeted actions to change the behavior, measured the results, and then adjusted their approach continuously. Host: It sounds much more active than just a yearly training video. Did this data-driven approach actually work? What were the results? Expert: The results were impressive. Over a two-year period, they cut the rate of employees having their credentials captured in phishing simulations in half. Host: That alone is a huge win. What else? Expert: They also doubled the number of accurately reported phishing attempts by employees, which means people were getting much better at spotting threats. And perhaps most telling, the usage of their corporate password manager tripled across the company. Host: Tripling the use of a key security tool is a massive behavioral shift. How did they achieve that? Was it just mandatory? Expert: That’s the most interesting part—it wasn't just about mandates. They used what the study calls "choice architecture." For example, they pre-installed the password manager browser extension on every corporate device, making it the easiest default option. Expert: They also used positive reinforcement and incentivization. They created a "Password Manager Knight" award, complete with branded merchandise like hoodies and stickers. It made security cool and created a sense of positive competition, rather than just being a chore. Host: I love that. Turning security into something aspirational. So, Alex, this is the crucial part for our listeners. What is the key takeaway for other business leaders? Why does this matter for them? Expert: The biggest takeaway is that cybersecurity is as much a people-management issue as it is a technology issue. You can't just set a policy and expect change. You have to actively shape the culture. Host: And how do you do that? Expert: First, measure what matters and be transparent. The Paranoids used dashboards that allowed managers and even individual employees to see their security performance. This transparency drove accountability and friendly competition without public shaming. Expert: Second, focus on positive reinforcement over punishment. The study emphasizes they didn't want to embarrass employees. They celebrated successes, which motivated people far more effectively than calling out failures. Expert: And finally, a really smart move was extending security into employees' personal lives. They offered employees a free license for the password manager for their personal use. This showed the company genuinely cared about their well-being, which in turn built trust and drove adoption of secure practices at work. Host: That’s a powerful insight—caring for the whole person, not just the employee. Host: So to summarize, the old model of simple security awareness training is broken. The Verizon Media case study shows that a successful strategy treats cybersecurity as a cultural mission. Host: It requires defining clear behaviors, using data and transparency to track progress, and leveraging positive reinforcement to change attitudes and beliefs, not just actions. Host: Alex, this has been incredibly insightful. Thank you for breaking it down for us. 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 decode another key study from the world of business and technology.
Best Practices for Leveraging Data Analytics in Procurement
Benjamin B. M. Shao, Robert D. St. Louis, Karen Corral, Ziru Li
This study examines the procurement practices of 15 Fortune 500 companies to understand why most are not fully utilizing data analytics. Through surveys and in-depth interviews, the researchers investigated the primary challenges organizations face in advancing their analytics capabilities. Based on the findings, the paper proposes five best practices executives can follow to derive more value from data analytics in procurement.
Problem
Many large organizations are investing in data analytics to improve their procurement functions, but struggle to move beyond basic descriptive reports. This prevents them from achieving significant cost reductions, operational efficiencies, and strategic advantages. The study addresses the gap between the potential of advanced analytics and its current limited application in corporate procurement.
Outcome
- Most companies studied had not progressed beyond descriptive analytics (dashboards and visualizations). - Key challenges include inappropriate data granularity, data cleansing difficulties, reluctance to adopt advanced analytics, and difficulty demonstrating ROI. - Best Practice 1: Define clear taxonomies and processes for capturing high-quality procurement data. - Best Practice 2: Hire people with the right mix of technical and business skills and provide them with proper analytics tools. - Best Practice 3: Establish a clear vision for how data analytics will add value and create a competitive advantage. - Best Practice 4: Frame requests to analytics teams as business problems to be solved, not just data to be pulled. - Best Practice 5: Foster close collaboration between the procurement analytics team, the IT department, and the enterprise analytics team.
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 study called "Best Practices for Leveraging Data Analytics in Procurement." Host: It examines the practices of 15 Fortune 500 companies to understand why most are not fully utilizing data analytics, and it proposes five best practices executives can follow to derive more value. Host: With me is our expert analyst, Alex Ian Sutherland. Alex, welcome. Expert: Great to be here, Anna. Host: So, let's start with the big picture. Companies are investing heavily in data analytics. What's the problem this study is trying to solve? Expert: The problem is a significant gap between potential and reality. Many large organizations are stuck in first gear. They're investing in these powerful analytics engines but are only using them to generate basic descriptive reports, like dashboards showing past spending. Host: Like looking in the rearview mirror instead of at the road ahead? Expert: Precisely. The study found that nine of the fifteen companies hadn't progressed beyond this descriptive stage. They're missing out on the real strategic advantages—like predicting supply chain disruptions or optimizing costs in real-time. This prevents them from achieving significant savings and efficiencies. Host: So how did the researchers get this inside look at what's happening in these massive companies? Expert: It was a very direct approach. They conducted surveys with Chief Procurement Officers, or CPOs, from 15 different Fortune 500 companies—we’re talking major players in industries from auto manufacturing to financial services. They then followed up with in-depth interviews to really understand the day-to-day challenges. Host: And what did they find? What are these key challenges that are keeping companies stuck in that rearview-mirror mode? Expert: The challenges were surprisingly universal. The first big one was poor data quality—what the study calls inappropriate data granularity. Basically, the data being collected wasn't detailed enough to answer complex questions. Another was the sheer difficulty of cleaning and integrating data from different systems. Host: I can imagine that's a huge task. Any other roadblocks? Expert: Yes, two more that are less about technology and more about people. First, a reluctance from managers to adopt advanced analytics. They weren't comfortable with the complexity. And second, it was difficult to demonstrate a clear return on investment, or ROI, for moving to more advanced predictive or prescriptive analytics. Host: So if those are the problems, what does the study say about the solution? What are the key findings for best practices? Expert: The research laid out five clear best practices. The first two are foundational: Define clear rules, or taxonomies, for how data is captured to ensure it’s high quality from the start. And second, hire people with a blend of technical and business skills and give them the right tools. Host: That makes sense. Get your house in order first. What comes next? Expert: Next is about strategy and communication. The third practice is to establish a clear vision for how analytics will create a competitive advantage. The fourth is a game-changer: Frame requests to your analytics team as business problems to solve, not just data to pull. Host: Can you give me an example of that? That sounds crucial. Expert: Absolutely. Instead of asking your team to "pull a report on our top 20 suppliers," you ask, "how can we reduce supply chain risk from our top 20 suppliers by 15%?" It changes the entire dynamic. It turns your data analysts from report-generators into strategic problem-solvers. Host: That’s a powerful shift in perspective. And the final best practice? Expert: The fifth one is fostering close collaboration between the procurement analytics team, the central IT department, and any enterprise-wide analytics groups. You can't operate in a silo. Success requires shared knowledge, tools, and infrastructure. Host: So, Alex, this is the most important question for our listeners. Why does this matter for a business leader who might not even be in procurement? Expert: Because these principles are universal. That mindset shift from asking for data to asking for solutions applies to marketing, to sales, to HR, to any part of the business. It’s about leveraging your expert teams to solve core business challenges, not just track metrics. Expert: The study also highlights that without a clear vision and buy-in from the top, even the best data strategy will fail. It shows that driving value from data is as much about culture and communication as it is about technology. Host: So to summarize: get your data foundations right, build a team with both business and tech skills, create a clear vision, and—most importantly—empower your teams to solve business problems, not just pull reports. Host: It’s a clear roadmap for moving from simply looking at the past to actively shaping the future. 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 listeners for tuning into A.I.S. Insights. We'll see you next time.
data analytics, procurement, best practices, supply chain management, analytics hierarchy, business intelligence, strategic sourcing
MIS Quarterly Executive (2022)
Self-Sovereign Identity and Verifiable Credentials in Your Digital Wallet
Mary Lacity, Erran Carmel
This paper provides an overview of Self-Sovereign Identity (SSI), a decentralized approach for issuing, holding, and verifying digital credentials. Through an analysis of the technology's architecture and a case study of the UK's National Health Service (NHS), the authors explain SSI's business value, implementation, and potential risks for IT leaders.
Problem
Current digital identity systems are centralized, meaning individuals lack control over their own credentials like licenses, diplomas, or work histories. This creates inefficiencies for businesses (e.g., slow employee onboarding), high costs associated with password management, and significant cybersecurity risks as centralized databases are prime targets for data breaches and identity theft.
Outcome
- Self-Sovereign Identity (SSI) empowers individuals to possess and control their own digital proofs of credentials in a secure digital wallet on their smartphone. - SSI can dramatically improve business efficiency by streamlining processes like employee onboarding, reducing a multi-day manual verification process to a few minutes, as seen in the NHS case study. - The technology enhances privacy by enabling data minimization, allowing users to prove a specific attribute (e.g., being over 21) without revealing unnecessary personal information like their full date of birth or address. - For organizations, SSI reduces cybersecurity risks and costs by eliminating centralized credential databases and the need for password resets. - While promising, SSI is an emerging technology with risks including the need for widespread ecosystem adoption, the development of sustainable economic models, and ensuring robust cybersecurity for individual wallets.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge, the podcast where we translate complex research into actionable business strategy. I’m your host, Anna Ivy Summers. Host: Today, we’re diving into a study from MIS Quarterly Executive titled "Self-Sovereign Identity and Verifiable Credentials in Your Digital Wallet." Host: It explores a decentralized approach for managing digital credentials, analyzing its business value, how it's implemented, and the potential risks for today’s IT leaders. Here to help us unpack it is our analyst, Alex Ian Sutherland. Welcome, Alex. Expert: Great to be here, Anna. Host: Alex, before we get into the solution, let's talk about the problem. Most of us don't really think about how our digital identity is managed today, but this study suggests it's a huge issue. What’s wrong with the current system? Expert: The problem is that our digital identities are completely fragmented and controlled by others. Think about your physical wallet. You have a driver's license, maybe a university ID, a credit card. You control that wallet. Online, it’s the opposite. Your "credentials" are spread across countless organizations, each with its own username and password. Expert: The study points out that the average internet user has around 150 online accounts. For businesses, managing all these separate identities is inefficient and incredibly risky. These centralized databases of user data are what the study calls "honey pots," making them prime targets for data breaches. Host: So it's a headache for us as individuals, and a massive security liability for companies. Expert: Exactly. And it’s expensive. The research mentions that a single corporate password reset costs a company, on average, seventy dollars. When you scale that up, the costs become astronomical, not to mention the slow, manual processes for things like employee onboarding. Host: So, the study explores a new approach called Self-Sovereign Identity, or SSI. How did the researchers go about studying this emerging technology? Expert: This wasn't a lab experiment. The authors spent two years deeply engaged with the communities developing SSI. They interviewed leaders and conducted detailed case studies of early adopters, most notably the U.K.’s National Health Service, or NHS. This gives us a real-world view of how the technology works in a massive, complex organization. Host: That NHS case sounds fascinating. Let's get to the key findings. What is the big idea behind Self-Sovereign Identity? Expert: The core idea is to give control back to the individual. With SSI, you hold your own official, verifiable credentials—like your university degree or professional licenses—in a secure digital wallet on your smartphone. You decide exactly what information to share, and with whom. Host: So instead of a potential employer having to call my university to verify my degree, I could just prove it to them directly from my phone in an instant? Expert: Precisely. And that leads to the second key finding: a dramatic boost in business efficiency. The NHS, for example, processes over a million staff transfers between its hospitals each year. The old, paper-based onboarding process took days. The study found that with an SSI-based "digital staff passport," that process was cut down to just a few minutes. Host: From days to minutes is a huge leap. But what about privacy? Does this mean we're sharing even more personal data from our phones? Expert: It’s actually the opposite, which is the third major finding: enhanced privacy through what's called 'data minimization'. The study gives a classic example: proving you're old enough to buy a drink. Right now, you show your driver's license, which reveals your name, address, and full date of birth. The bartender only needs to know if you’re over 21. Expert: With an SSI wallet, you could provide a verifiable, cryptographic proof that simply says "Yes, this person is over 21," without revealing any of that other sensitive data. You only share what is absolutely necessary for the transaction. Host: That's a powerful concept. So for businesses, the value is efficiency, but also security, right? Expert: Right. That's the final key finding. By moving away from centralized databases, companies reduce their cybersecurity risk profile. They are no longer the 'honey pot' for hackers. It removes the liability of storing millions of user credentials and cuts the operational costs of things like password management. Host: This all sounds truly transformative. Let's focus on the bottom line. What are the key takeaways for business leaders listening today? Why should they care about SSI right now? Expert: The most immediate application is for streamlining any business process that relies on verifying credentials. We saw it with employee onboarding at the NHS, but this could apply to customer verification in banking, compliance checks in supply chains, or membership verification. Host: And it seems like a great way to build trust with customers. Expert: Absolutely. In an era of constant data breaches, offering your customers a more private and secure way to interact is a significant competitive advantage. But the study is also clear that this isn't a silver bullet. It's an emerging technology. Host: What are the main risks businesses need to consider? Expert: The biggest challenge is ecosystem adoption. For SSI to be truly useful, you need a critical mass of organizations issuing credentials, and organizations accepting them. There are also still questions to be solved around sustainable economic models and ensuring the security of the individual's digital wallet is foolproof. Host: So it's a long-term strategic play, not something you can just switch on tomorrow. Expert: Exactly. The study’s key advice for leaders is to start learning and exploring this space now. An interesting tip from the NHS project was this: when you talk about it, focus on the business problem you're solving—efficiency, security, and trust. That's what gets buy-in. Host: Alright, Alex, let’s wrap it up. To summarize, the current way we manage digital identity is inefficient and insecure. Self-Sovereign Identity puts control back into the hands of the individual through a secure digital wallet. Host: For businesses, this means faster processes, lower cyber risks, and a powerful new way to build customer trust. While it's still early days, now is the time for leaders to get educated and start planning for this shift. Host: Alex, thank you so much for breaking down this complex topic for us. Expert: My pleasure, Anna. Host: And thank you to our listeners for tuning into A.I.S. Insights, powered by Living Knowledge. Join us next time as we explore another big idea shaping the future of business.
Self-Sovereign Identity (SSI), Verifiable Credentials, Digital Wallet, Decentralized Identity, Identity Management, Digital Trust, Blockchain
MIS Quarterly Executive (2022)
Using Lessons from the COVID-19 Crisis to Move from Traditional to Adaptive IT Governance
Heiko Gewald, Heinz-Theo Wagner
This study analyzes how IT governance structures in nine international companies, particularly in regulated industries, were adapted during the COVID-19 crisis. It investigates the shift from rigid, formal governance to more flexible, relational models that enabled rapid decision-making. The paper provides recommendations on how to integrate these crisis-mode efficiencies to create a more adaptive IT governance system for post-crisis operations.
Problem
Traditional IT governance systems are often slow, bureaucratic, and focused on control and risk avoidance, which makes them ineffective during a crisis requiring speed and flexibility. The COVID-19 pandemic exposed this weakness, as companies found their existing processes were too rigid to handle the sudden need for digital transformation and remote work. The study addresses how organizations can evolve their governance to be more agile without sacrificing regulatory compliance.
Outcome
- Companies successfully adapted during the crisis by adopting leaner decision-making structures with fewer participants. - The influence of IT experts in decision-making increased significantly, shifting the focus from risk-avoidance to finding the best functional solutions. - Formal controls were complemented or replaced by relational governance based on social interaction, trust, and collaboration, which proved to be more efficient. - The paper recommends permanently adopting these changes to create an 'adaptive IT governance' system that balances flexibility with compliance, ultimately delivering more business value.
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 looking at a fascinating question that emerged from the chaos of the recent global crisis: How did companies manage to pivot so fast, and what can we learn from it? Host: We’re diving into a study from MIS Quarterly Executive titled, "Using Lessons from the COVID-19 Crisis to Move from Traditional to Adaptive IT Governance." With me is our expert analyst, Alex Ian Sutherland. Alex, welcome. Expert: Great to be here, Anna. Host: To start, this study analyzed how major international companies, especially in regulated fields, adapted their IT governance during the pandemic. It’s about moving from rigid rules to more flexible, relationship-based models that allowed them to act fast. Host: So Alex, let's set the stage. What was the big problem with IT governance that the pandemic put under a microscope? Expert: The core problem was that traditional IT governance had become slow, bureaucratic, and obsessed with avoiding risk. Think of huge committees, endless meetings, and layers of approvals for even minor IT decisions. Host: A process designed for stability, not speed. Expert: Exactly. One CIO from a global bank in the study said, “We are way too slow in making decisions, specifically when it comes to IT decisions.” These systems were built to satisfy regulators and protect managers from liability, not to create business value or respond to a crisis. Host: And then a crisis hit that demanded exactly that: speed and flexibility. Expert: Right. Suddenly, the entire workforce needed to go remote, which was a massive IT challenge. The old, slow governance models were a roadblock. The study found that another CIO sarcastically described his pre-crisis committees as having "ten lawyers for every IT member." That kind of structure just couldn't work. Host: So how did the researchers get inside these companies to understand what changed? Expert: They conducted in-depth interviews with CIOs and business managers from nine large international companies in sectors like banking, auditing, and insurance. They did this at two key moments: once in mid-2020, in the thick of the crisis, and again at the end of 2021 as things were returning to a new normal. Host: That gives a great before-and-after picture. So, what were the key findings? What actually happened inside these organizations? Expert: Three big things stood out. First, companies created leaner decision-making structures. The slow, multi-layered committees were replaced by small, empowered crisis teams, often called Disaster Response Groups or DRGs. Host: Fewer cooks in the kitchen. Expert: Precisely. One bank restricted its DRG to a core team of just five managers. They adopted what the CIO called a "'one meeting per decision' routine." This allowed them to make critical choices about things like video conferencing and VPN technology in hours, not months. Host: A radical change. What was the second key finding? Expert: The influence of IT experts shot up. In the old model, their voices were often diluted. During the crisis, IT leaders were central to the decision-making groups. The focus shifted from "what is the least risky option?" to "what is the best functional solution to keep the business running?" Host: So the people who actually understood the technology were empowered to solve the problem. Expert: Yes. As one CIO from an auditing firm put it, "It was classic business/IT alignment. The business described the problem and we, the IT department, provided the best solution." Host: And the third major finding? Expert: This is perhaps the most interesting. Formal controls were replaced by what the study calls 'relational governance'. Instead of relying on thick binders of rules, teams started relying on social interaction, trust, and collaboration. Host: It became more about people and relationships. Expert: Exactly. A CIO from a financial services firm said, “We do not exchange lengthy documents anymore; instead, we actually talk to each other.” This trust-based approach proved to be far more efficient and flexible than the rigid, control-focused systems they had before. Host: This is the crucial part for our listeners, Alex. How can businesses apply these crisis-mode lessons now, without a crisis forcing their hand? What’s the big takeaway? Expert: The main takeaway is that companies shouldn't just go back to the old way of doing things. They have a golden opportunity to build what the study calls an 'adaptive IT governance' system. Host: And what does that look like in practice? Expert: First, make those lean decision-making structures permanent. Keep committees small, focused, and empowered. Strive for that "one meeting per decision" mindset. Second, permanently increase the influence of your IT experts. Ensure they are at the table and have real decision-making power, not just an advisory role. Host: So it’s about institutionalizing the speed and expertise you discovered during the crisis. Expert: Right. And finally, it's about striking a new balance between formal rules and relational trust. You still need rules, especially in regulated industries, but you can reduce them to a necessary minimum and complement them with governance based on collaboration and mutual trust. It’s less about top-down control and more about shared goals. Host: So it’s not about throwing out the rulebook, but about creating a smarter, more flexible one that allows you to be agile while still being compliant. Expert: That's the core message. The crisis proved that this approach delivers better results, faster. Now is the time to make it the new standard. Host: A powerful lesson indeed. To summarize for our audience: the pandemic forced companies to abandon slow, risk-averse IT governance. The keys to their success were leaner decision-making, empowering IT experts, and shifting from rigid rules to trust-based collaboration. The challenge now is to make those changes permanent to create a more adaptive and value-driven organization. Host: Alex Ian Sutherland, thank you so much for breaking this down for us. Expert: My pleasure, Anna. Host: And thank you for listening to A.I.S. Insights, powered by Living Knowledge. Join us next time as we continue to explore the ideas shaping the future of business.
Building an Artificial Intelligence Explanation Capability
Ida Someh, Barbara H. Wixom, Cynthia M. Beath, Angela Zutavern
This study introduces the concept of an "AI Explanation Capability" (AIX) that companies must develop to successfully implement artificial intelligence. Using case studies from the Australian Taxation Office and General Electric, the paper outlines a framework with four key dimensions (decision tracing, bias remediation, boundary setting, and value formulation) to help organizations address the inherent challenges of AI.
Problem
Businesses are increasingly adopting AI but struggle with its distinctive challenges, particularly the "black-box" nature of complex models. This opacity makes it difficult to trust AI, manage risks like algorithmic bias, prevent unintended negative consequences, and prove the technology's business value, ultimately hindering widespread and successful deployment.
Outcome
- AI projects present four unique challenges: Model Opacity (the inability to understand a model's inner workings), Model Drift (degrading performance over time), Mindless Actions (acting without context), and the Unproven Nature of AI (difficulty in demonstrating value). - To overcome these challenges, organizations must build a new organizational competency called an AI Explanation Capability (AIX). - The AIX capability is comprised of four dimensions: Decision Tracing (making models understandable), Bias Remediation (identifying and fixing unfairness), Boundary Setting (defining safe operating limits for AI), and Value Formulation (articulating and measuring the business value of AI). - Building this capability requires a company-wide effort, involving domain experts and business leaders alongside data scientists to ensure AI is deployed safely, ethically, and effectively.
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 diving into a critical question for any company implementing artificial intelligence. Our guide is a fascinating study from MIS Quarterly Executive titled “Building an Artificial Intelligence Explanation Capability.” Host: It introduces the idea that to succeed with AI, companies need a new core competency: the ability to explain how and why their AI makes the decisions it does. Here to break it down for us is our analyst, Alex Ian Sutherland. Welcome, Alex. Expert: Great to be here, Anna. Host: Alex, let's start with the big picture. Businesses are pouring billions into AI, but many projects never see the light of day. What’s the core problem this study identifies? Expert: The core problem is trust. Business leaders are struggling with the "black box" nature of modern AI. When you have an algorithm making crucial decisions—about loans, hiring, or tax compliance—and you can't explain its logic, you have a massive risk management problem. Expert: The study points to real-world examples, like systems showing bias in parole decisions or incorrectly calculating government benefits. This opacity makes it incredibly difficult to manage risks, prevent negative consequences, and frankly, prove to executives that the AI is even creating business value. Host: So the black box is holding back real-world adoption. How did the researchers approach this problem? Expert: Instead of just staying in the lab, they went into the field. The study is built on deep case studies of two major organizations: the Australian Taxation Office, or ATO, and General Electric. They examined how these companies were actually deploying AI and overcoming these exact challenges. Host: And what did they find? What were the key takeaways from seeing AI in action at that scale? Expert: They found that AI presents four distinct challenges. First is 'Model Opacity,' which is that black box problem we just discussed. Second is 'Model Drift,' the tendency for an AI's performance to get worse over time as the real world changes. Expert: Third is 'Mindless Actions'—an AI will follow its programming, even if the context changes and its actions no longer make sense. And finally, the 'Unproven Nature of AI,' which is the difficulty in clearly connecting an AI project to bottom-line results. Host: That’s a powerful list of hurdles. So how do successful organizations get over them? Expert: By deliberately building what the study calls an "AI Explanation Capability," or AIX. It's not a piece of software; it's an organizational skill. And it has four key dimensions. Host: Okay, let's walk through them. What’s the first one? Expert: The first is 'Decision Tracing.' This is the ability to connect the dots from the data an AI receives to the output it produces. It's about making the model understandable, not just to data scientists, but to business managers and regulators. Host: The second? Expert: 'Bias Remediation.' This is about actively hunting for and fixing unfairness in your models. It involves careful data selection, systematic auditing, and ensuring the AI is representative of the populations it serves. Host: That sounds critical for any customer-facing AI. What about the third dimension? Expert: 'Boundary Setting.' This means defining the safe operating limits for the AI. It’s about knowing when a human needs to step in. The AI isn't the final judge; it’s a tool to support human experts, and you have to build the workflow around that principle. Host: And the final dimension of this capability? Expert: 'Value Formulation.' This is arguably the most important for business leaders. It’s the ability to articulate, measure, and prove the business value of the AI. It's not enough for it to be clever; it has to be valuable. Host: This is the core of the episode, Alex. Why does building this 'AIX' capability matter so much for businesses listening right now? Expert: Because it reframes the challenge. Success with AI isn't just a technical problem; it's an organizational one. The study shows that technology is only half the battle. Expert: Look at the Australian Taxation Office. They had to explain their AI to regulators. So, they used a simple, easy-to-understand model to validate the decisions of a more complex, "black box" neural network. This built trust because they could prove the advanced AI was behaving rationally. Host: So they built a bridge from the old way to the new way. What about General Electric? Expert: At GE, they were using AI to check contractor safety documents—a very high-stakes task. They built a system where their human safety experts could easily see the evidence the AI used for its assessment and could override it. They created a true human-in-the-loop system, effectively setting those boundaries we talked about. Host: So the key takeaway for our listeners is that deploying AI requires building a support structure around it? Expert: Exactly. It's about building a cross-functional team. You need your data scientists, but you also need your domain experts, your business leaders, and your legal team all working together to trace decisions, remediate bias, set boundaries, and prove value. AI cannot succeed in a silo. Host: A powerful conclusion. Let’s summarize. To unlock the value of AI and overcome its inherent risks, businesses can’t just buy technology. They must build a new organizational muscle—an AI Explanation Capability. Host: This means focusing on Decision Tracing, Bias Remediation, Boundary Setting, and Value Formulation. It’s a holistic approach that puts people and processes at the center of AI deployment. Host: Alex, thank you for making this complex topic so clear and actionable. Expert: My pleasure, Anna. Host: And thanks to all of you for tuning in to A.I.S. Insights, powered by Living Knowledge. Join us next time as we continue to bridge the gap between academia and business.
AI explanation, explainable AI, AIX capability, model opacity, model drift, AI governance, bias remediation
MIS Quarterly Executive (2022)
Key Lessons from Bosch for Incumbent Firms Entering the Platform Economy
Daniel Hodapp, Florian Hawlitschek, Felix Wortmann, Marco Lang, Oliver Gassmann
This study analyzes eight platform projects within the Bosch Group, a major German engineering and technology company, to understand the challenges established firms face when entering the platform economy. The research identifies common barriers related to business logic, value proposition, and organizational structure. Based on the lessons learned at Bosch, the paper provides actionable recommendations for managers at other incumbent firms.
Problem
Established, non-digital native companies (incumbents) often struggle to transition from traditional, linear business models to platform-based models. Their existing structures, processes, and business logic are optimized for internal efficiency and product sales, creating significant barriers when trying to build and scale platforms that rely on external ecosystems and network effects.
Outcome
- Incumbent firms face three primary barriers when entering the platform economy: 1) learning the new business logic of platforms, 2) proving the platform's value to internal stakeholders, and 3) building an organization that supports external collaboration. - To overcome the learning barrier, firms should use personal communication and illustrative analogies of successful platforms to create a common understanding across the organization. - To prove value, teams should build a minimal viable platform (MVP) early on to demonstrate potential and use key metrics that reflect user engagement, not just registration numbers. - To build a suitable organization, firms can structure platform initiatives as separate innovation projects or even independent companies to provide the autonomy and external focus needed to build an ecosystem.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. Today, we're diving into a challenge that many established companies face: making the leap into the platform economy. We're looking at a study titled "Key Lessons from Bosch for Incumbent Firms Entering the Platform Economy."
Host: It analyzes eight different platform projects within the technology giant Bosch to understand the common barriers that traditional companies face and, more importantly, provides actionable recommendations for managers. With me is our analyst, Alex Ian Sutherland. Alex, welcome.
Expert: Great to be here, Anna.
Host: So, Alex, let's start with the big picture. We see these massive, successful companies, experts in manufacturing and engineering for decades. Why do they struggle so much when trying to build a platform, like a marketplace or an app ecosystem?
Expert: That’s the core of the problem. These firms, often called incumbents, are brilliant at running linear businesses. They design a product, make it, and sell it. Their entire organization—from supply chains to sales—is optimized for that internal efficiency.
Expert: A platform business is the opposite. It doesn't create value internally; it facilitates value creation between external users. Think of drivers and riders on Uber, or developers and users in an app store. This requires a completely different mindset focused on ecosystems and network effects, which often clashes with the company's traditional DNA.
Host: So how did the researchers get inside this problem to understand it better?
Expert: They conducted an in-depth case study of the Bosch Group. They didn't just theorize; they examined eight real-world platform projects inside the company—projects in areas like IoT, connected mobility, and smart devices. They interviewed the executives and project leaders to find out what hurdles they actually faced on the ground.
Host: And after looking at all eight projects, what were the common hurdles? What were the key findings?
Expert: The study boiled it down to three primary barriers. The first was simply learning the new business logic of platforms.
Host: What does that mean in practice, 'new business logic'?
Expert: It's the shift from thinking about product margins to thinking about network effects, where the platform becomes more valuable as more people use it. A manager in the study noted that for many colleagues, it just wasn't clear why a platform was even needed. Their instinct was to build a product, not an ecosystem.
Host: So how did the successful projects at Bosch overcome that learning curve?
Expert: Through communication and analogy. One project team held company-wide town halls to openly discuss their new business model. Another team, building a platform for smart cameras, constantly used the analogy of the early smartphone ecosystem. That simple comparison helped stakeholders understand the goal was to create a common standard that everyone could build on.
Host: Okay, so first you have to learn the new rules. What was the second major barrier?
Expert: Proving the platform's value, especially to internal stakeholders who hold the purse strings. A traditional business can forecast sales and calculate a clear return on investment for a new factory. But how do you calculate the ROI of an ecosystem that doesn't exist yet?
Host: That sounds like a tough sell. What worked at Bosch?
Expert: Two things stood out. First, building a Minimal Viable Platform, or MVP, as early as possible. One project that aimed to detect traffic hazards built a simple mobile app to demonstrate how it could work. Seeing a demo, no matter how basic, makes the value tangible.
Expert: Second, using the right metrics. One transportation platform was excited about its high number of user registrations, but the study found that very few people were actually booking recurring trips. They learned that engagement is a far more important metric than sign-ups for proving a platform's health.
Host: That makes sense. Learn the logic, prove the value. What was the final barrier?
Expert: Building an organization that can actually support a platform. Corporate structures are designed for internal control and optimization. But platforms thrive on external collaboration with partners, developers, and users. There's often a fundamental mismatch.
Host: So you're fighting the company's own structure. How do you solve that?
Expert: The study found that successful platform teams were given autonomy. Some were set up as distinct "innovation projects," which gave them freedom from standard corporate rules and let them focus on building external partnerships. In one case, for an automotive data platform, they went a step further and created an entirely separate company with Bosch and other automakers as shareholders, ensuring an external focus from day one.
Host: Alex, this is fascinating. For the business leaders and managers listening, what are the most important takeaways? What should they be doing if they want to venture into the platform world?
Expert: The study provides a clear roadmap. First, don't assume everyone gets it. Establish what the researchers call "Platform Learning Facilitators." This could be a dedicated team or a community of practice that coaches projects and spreads knowledge across the organization. Bosch did this by creating a business model innovation department.
Host: So, institutionalize the learning process. What's next?
Expert: Clearly and consistently communicate the strategy. Use simple frameworks and a common language to explain how the platform will work and create value. This builds confidence among decision-makers who have to approve these complex, and often expensive, initiatives.
Host: And the final piece of advice?
Expert: It's about structure. You have to strike a balance between autonomy and integration. Give your platform teams the freedom to operate like a startup, to be fast and externally focused. But also build mechanisms, like an advisory board, to keep them connected to the core business so they can leverage its strengths, like its customer base or brand recognition.
Host: Fantastic. So, for established firms, building a platform is far more than a technology project. It's a fundamental challenge to your business logic, your measurement of value, and your organizational structure.
Host: The lessons from Bosch show that overcoming these hurdles requires deliberate action: fostering a new mindset through clear communication, proving value with early prototypes and the right metrics, and creating autonomous teams that can build the external ecosystems needed to succeed.
Host: Alex Ian Sutherland, thank you for breaking that down for us.
Expert: My pleasure, Anna.
Host: And thanks to all our listeners for tuning into A.I.S. Insights. Join us next time as we explore the intersection of business, technology, and Living Knowledge.
platform economy, incumbent firms, digital transformation, business model innovation, case study, Bosch, ecosystem strategy
MIS Quarterly Executive (2022)
How Instacart Leveraged Digital Resources for Strategic Advantage
Ting Li, Yolande E. Chan, Nadège Levallet
This study analyzes the grocery delivery service Instacart to demonstrate how companies can strategically manage digital resources to gain a competitive edge in a turbulent market. It uses the Instacart case to develop a framework that explains how to navigate the evolving business landscape, create value, and overcome challenges to capturing that value. The paper concludes with five practical recommendations for managers aiming to thrive in the digital world.
Problem
In today's digital economy, businesses have access to powerful and versatile digital resources, but many executives struggle to leverage them effectively. Companies often face difficulties in balancing the creation of value for their entire ecosystem (partners, customers) with capturing sufficient value for their own firm. This study addresses the challenge of how to orchestrate digital resources to achieve sustained strategic advantage amidst fast-emerging competitors and complex partnership dynamics.
Outcome
- Instacart's success is attributed to four key achievements: simultaneously evolving its digital infrastructure and business model, maintaining 'technology ambidexterity' by both exploiting existing tech and exploring new innovations, dynamically managing knowledge flows from its vast data, and building a flexible relationship portfolio with customers, shoppers, and retail partners. - Based on the case, the study offers five key actions for managers: 1) Take bold risks, as there are no predefined limits in the digital world; 2) Build resilience by viewing failures as learning experiments; 3) Leverage third-party services to fill internal knowledge and infrastructure gaps; 4) View rivals and partners as a continuum, as these relationships can change quickly; 5) Create future opportunities by making strategic investments in new ventures.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: In today’s rapidly changing digital world, how can a business not just survive, but thrive? We’re looking at that question through the lens of a fascinating study from MIS Quarterly Executive, titled "How Instacart Leveraged Digital Resources for Strategic Advantage". Host: The study analyzes the grocery delivery giant to create a framework for how any company can gain a competitive edge in a turbulent market. And to help us unpack it, 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. What’s the core problem this study tackles? It seems like every company has access to digital tools, but not everyone is a winner. Expert: That’s exactly it. The problem isn’t a lack of technology; it’s the struggle to use it effectively. Many executives find themselves in a tough spot. They need to create value for their entire ecosystem—customers, partners, suppliers—but they also need to capture enough of that value to make their own business profitable and sustainable. Expert: It’s a delicate balancing act. The study points out that in the digital economy, you face fast-emerging competitors and complex partnerships, so getting that balance right is critical for survival. Host: So it's not just about having a great app, it's about the whole strategy behind it. How did the researchers approach this? How did they get inside a company like Instacart to understand its strategy? Expert: They essentially became business detectives. The research was a deep-dive case study of Instacart. The authors analyzed press releases, public interviews with executives, and existing case materials. They mapped out the company's journey and strategic decisions, and to ensure accuracy, they even consulted with an academic researcher who was actively working with Instacart on analytics projects. Host: That’s quite thorough. So after all that digging, what did they find? What are the key ingredients to Instacart's success? Expert: The study boils it down to four key achievements. First, they didn't just build a business model and then add technology to it. Their digital infrastructure and their business model grew up together, co-evolving. Host: What does that look like in practice? Expert: Well, by outsourcing the physical assets—the warehouses and inventory—to local grocers, Instacart could focus all its energy on building a superior digital platform. The tech and the business model were perfectly in sync from day one. Host: Okay, that makes sense. What was the second achievement? Expert: They call it 'technology ambidexterity'. It's a fantastic term. It means they were skilled at doing two things at once: exploiting their existing tech to make it better and more efficient, while also exploring brand new, innovative technologies. Expert: So, they were constantly tweaking the app for a smoother user experience, but they also made big moves like acquiring other platform companies to offer new services to their retail partners. It’s about perfecting the present while building the future. Host: And the last two? I imagine data plays a big role. Expert: Absolutely. The third achievement was managing dynamic knowledge flows. Instacart uses its vast stream of data on orders, deliveries, and customer habits to optimize its logistics engine and predict shopping trends. This knowledge is a core competitive asset. Expert: And finally, they built a dynamic relationship portfolio. They understand that in the digital world, a partner today might be a rival tomorrow. When Amazon, an early partner, bought Whole Foods, Instacart didn't panic. They quickly established a new partnership with Walmart to counter the threat. It's about being strategically agile. Host: This is all a brilliant analysis of Instacart, but let's get to the bottom line for our listeners. Why does this matter for a business leader in, say, manufacturing or finance? What are the practical takeaways? Expert: This is the most important part. The study offers five clear, actionable recommendations for any manager. First, take bold risks. The digital world doesn't have the same physical constraints, so don't box in your thinking. Expert: Second, build resilience by viewing failures as experiments. Not every initiative will succeed, but every failure provides data and a lesson. Instacart constantly experimented to find what worked. Host: So it’s a culture of learning, not a fear of failure. What else? Expert: Third, leverage third-party services to fill gaps. Instacart didn’t build its own massive server farms; it used Amazon Web Services to scale quickly. You don’t have to do everything in-house. Expert: Fourth, view rivals and partners as a continuum. The lines are blurry and can change overnight. And finally, create future opportunities by making small, strategic investments in new ventures, whether that's acquiring a small startup or even just its talented team. Host: So, if I were to summarize, it’s not just about having the right digital tools. It's about orchestrating them—making your technology, your business model, your data, and your partnerships work together as a single, agile system. Expert: That's the perfect summary, Anna. It’s about orchestration, not just implementation. Host: Alex, thank you for making this complex study so clear and actionable for us. Expert: My pleasure. Host: And thanks to all of you for tuning in to A.I.S. Insights. We’ll see you next time.
Instacart, digital resources, strategic advantage, platform strategy, value creation, value capture, digital transformation