Human Digital Transformation Readiness: Integrate Data Into the Mindset and Decision-Making Processes

Human Digital Transformation Readiness: Integrate Data Into the Mindset and Decision-Making Processes

Ota Novotný, Martin Potančok, Vladimír Krajčík
DOI: 10.4018/978-1-7998-8339-5.ch002
OnDemand:
(Individual Chapters)
Available
$37.50
No Current Special Offers
TOTAL SAVINGS: $37.50

Abstract

Digital transformation can effectively support innovative strategic planning. However, it is necessary to realise that the digital ecosystem produces enormous volumes of data and creates unique requirements for working with it. Due to this, data needs to be integrated into the mindset and decision-making processes properly. The proposed solution is based on an analysis of digital transformation readiness models, analyses of the status of data and data literacy in the models and their extensions, a definition of the levels of readiness that need to be achieved, and preparation of educational programs for the enhancement of human digital transformation readiness from the mindset and skillset perspective. The main outputs of the chapter correspond to the problem and the suggested solution. They include the human digital transformation readiness index based on the capability maturity model (CMM), required mindset, and skillset, taking into account the digital and data literacy of the participants of innovation activities.
Chapter Preview
Top

Introduction

Innovative strategic planning promotes economic stability and global sustainability in companies (Carlock & Ward, 2001; Baumgartner, 2014; Kozhevina et al., 2020). Rachinger et al. (2019) stated that innovative strategic planning may be enhanced by digital transformation. Digital transformation (DT) represents a “process where digital technologies play a central role in the creation and reinforcement of disruptions taking place at the society and industry levels. These disruptions trigger strategic responses from the parts of organisations, which occupy a central place in DT literature. Organisations use digital technologies to alter the value creation paths they have previously relied upon to remain competitive” (Vial, 2019). In the digital form, technologies generate vast volumes of data, which can double every two years (Weber, 2020).

Gartner recognises data as the new core capability of business, people, processes, and technology (Logan, 2018). Grillenberger & Romeike (2018) argue that “knowing about the possibilities offered by data and data analysis plays an increasing role for developing an understanding of the world.” We manipulate data in everyday processes regardless of the sector or domain. That supports Ridsdale et al.'s (2015) statement that “it is an essential ability required in the knowledge-based economy.” Data is becoming a significant (sometimes even essential) part of the decision-making process; on the other hand, intuition is still necessary, and it is not possible to say we are approaching a state where data takes the lead, rendering human intuition obsolete (Potancok, 2019).

Data analytics and digitisation will undoubtedly reshape the labour market and lead to the creation of new work opportunities (Loebbecke & Picot, 2015). This will cause a shift in the competencies required from the workforce, creating a “digital workforce” – and to a certain extent, it has already caused this. These competencies can be regarded as skillsets needed to utilise digital technologies to manipulate data, solve problems, or create products (Colbert et al., 2016).

There are currently many frameworks and models of readiness for digital transformation; the following examples include both academic and commercial ones. Lezina et al. (2019) have analysed them from a usability point of view.

  • § Five Digital Business Aptitude Domains (KPMG, 2015)

  • § Digital Maturity Model 4.0 (Gill & VanBoskirk, 2016)

  • § Digital Maturity to Drive Superior Performance (BCG, 2021)

  • § Industry 4.0 Maturity Model (Schumacher et al., 2016)

  • § Digital Readiness Assessment Maturity Model (De Carolis et al., 2017)

  • § Digital Services Capability Model (Wulf et al., 2017)

  • § Organisations Digital Readiness Framework (Sanchez & Zuntini, 2018)

  • § Interrelationship between the Digital Transformation, Strategy

  • § and Organizational Capability (Schumann & Tittmann, 2015)

  • § Digital Transformation Framework (Matt et al., 2015)

Our initial analysis of the existing readiness frameworks/models shows that people's data, mindset, and knowledge are covered only implicitly or neglected altogether. This fact is in line with the results from digitalisation and its influence on business model innovation, “Moreover, the organisational capacities and employee competences were identified as future challenges that will be faced.” (Rachinger et al., 2019)

Key Terms in this Chapter

Data Literacy: "The ability to understand and use data effectively to inform decisions." (Mandinach & Gummer, 2013)

Data: "Data are defined as symbols that represent properties of objects, events and their environment. They are the products of observation. But are of no use until they are in a useable (i.e., relevant) form. The difference between data and information is functional, not structural." (Ackoff, 1989)

Analysis: A procedure whose output is a logical model of the created system.

Digital transformation (DT): "Process where digital technologies play a central role in the creation as well as the reinforcement of disruptions taking place at the society and industry levels. These disruptions trigger strategic responses from the part of organisations, which occupy a central place in DT literature. Organisations use digital technologies to alter the value creation paths they have previously relied upon to remain competitive." (Vial, 2019)

Metadata: Data information (table names, attribute names, data types, primary keys, relationships, comments).

Key performance indicator (KPI): Performance metrics of individual components of the process (activity duration, volume of processed documents, % use of service desk operator time).

Digital Literacy: "The ability to understand, evaluate, and integrate information that exists in a variety of formats and from a wide range of sources, having the information is presented through a computer." (Gilster, 1997; cited in Pool, 1997).

Complete Chapter List

Search this Book:
Reset