Finance transformation: leadership on digital transformation and disruptive innovation

Disruptive innovation is regarded as the most influential innovation theory in business theory in the early 21st century. Clayton Christensen, the founder of the theory, has attracted extensive attention both in theory and practice since the theory was founded more than 20 years ago. This concept was elaborated and developed in Christensen’s 1997 book, The Innovator’s Dilemma, and in subsequent articles and monographs. Specifically, although disruptive innovation involves a lot of content, its core content needs to meet four basic criteria: (1) locking customers in a new way; (2) usually lowering gross profit; (3) usually not following the traditional trajectory of improving the performance valued by mainstream consumers; (4) introducing new trajectory of performance and improving performance along parameters different from the traditional ones. In addition, the disruptive innovation theory has been also described as the game between two types of enterprises with asymmetric capacity resources. Usually it describes the game between new entrants and incumbents. The weak side must rely on innovation to subvert their strong competitors. The crux of the problem is what the strategies are taken by the weak side. Christensen argues that new entrants must choose a customer base that differs from incumbents and they need new technologies to produce better qualified and lower priced products. If low-end customers are selected, it is the low-end customer disruptive innovation strategy; if potential consumers are selected, it is the new market disruptive innovation strategy, and a disruptive innovation strategy is an effective way to defeat strong competitors. This paper reviews the theory of disruptive innovation, classifies and analyzes the research and practice of disruptive innovation theory in the past more than two decades by means of literature review, and objectively comments on the misunderstanding, modification and development of disruptive innovation. In addition to The Innovator’s Dilemma, Christensen’s other books and papers are also reviewed. The main contributions of this paper can be divided into three aspects: (1) It systematically reviews and analyzes the literature of disruptive innovation in the past more than 20 years, which is of great significance to the theoretical researchers and practitioners of disruptive innovation, particularly in China. (2) It proposes the MSE innovation model and the future direction of disruptive innovation in the digital economy. As for the MSE innovation model, since 2014, Christensen has continually proposed three different theoretical explanations based on disruptive innovation, which are market creating innovation, sustaining innovation and efficiency innovation. (3) It elaborates the problems and prospects of disruptive innovation theory in the context of digital economy. The authors identify four potential directions for disruptive innovation in the digital economy. First, we propose that as digital transformation becoming more important in both developed and emerging economies, the future development of disruptive innovation will be linked to the integration of digital technologies and promote the development of the digital economy. Second, in the digital economy, entrepreneurs do not have enough time to learn new knowledge. In this unstable environment, the ability to make relevant immediate decisions becomes a competitive force, providing new entrants with the opportunity to compete in the market. Third, since both disruptive and breakthrough innovations can be explained by asymmetric theories/models and are developed based on the discontinuous technologies, as a result, they are all facing competition from mainstream markets. In addition, the theory and practice of disruptive innovation are dynamic processes. Fourth, while we cannot deny the value of disruptive innovation, we cannot ignore that it may not have a positive impact on society when it is implemented. Therefore, researchers should increasingly focus on the “positive side” of technology, including disruptive technology, because it is highly correlated with people’s desire for a better society. The future development of this theory can expand its application scope and strengthen its positive role in social economy. Finally, the authors recognize that gaps between the disruptive innovation theory and practice need to be filled by researchers in the future.

The year 2010 was an important turning point for China’s economy, and the digital economy has become its new feature. In the digital economy wave, digital transformation and innovation are two essential starting points for enterprise development. Few studies have examined the effect of companies’ digital transformation on disruptive innovation, neglecting the role of entrepreneurship. This study aims to address this research gap by developing an analytical framework for digital transformation, entrepreneurship, and disruptive innovation. Based on China’s A-listed firms from 2010 to 2021, we use Python to create indicators for digital transformation and examine its impact on disruptive innovation and the role of entrepreneurship using a double fixed-effects model. The results demonstrate that digital transformation significantly promotes disruptive innovation, and entrepreneurship positively moderates this relationship. Furthermore, heterogeneity analyses show that digital transformation’s positive effects of disruptive innovation and entrepreneurship are more pronounced in non-SOEs, companies in growth and decline stages, and nonmanufacturing companies. However, in SOEs and manufacturing firms, entrepreneurship was unable to moderate this relationship. The conclusions reflect the exploration of the realization mechanism and micro-foundations of the current, in-depth digital transformations, and the findings provide reference guidelines for enabling enterprises to realize digital transformation and disruptive innovation and, relevant experiences.

Intrinsic value of food chain data

Reconsidering laboratory-based anatomy within the backdrop of digital transformation: Bringing an old practice into a new world.

Drawing upon knowledge management theory and dynamic capability theory, this study introduces two mediating variables, namely organisational unlearning and organisational flexibility, to unveil the underlying mechanism of how digital transformation empowers disruptive green innovation in enterprises and to enhance the theoretical comprehension of the implementation path of disruptive green innovation in enterprises. Quantitative data were gathered from 186 enterprises in China. Regression analysis was employed to test hypotheses. The results show that digital transformation exerts a positive impact on disruptive green innovation in enterprises. Organisational unlearning and organisational flexibility partially mediate the impact of digital transformation on disruptive green innovation. Moreover, organisational unlearning and organisational flexibility play a chain mediating role between digital transformation and disruptive green innovation. This study facilitates the deep integration of digital transformation and disruptive green innovation, providing theoretical and practical guidance for enterprises to more effectively implement and manage disruptive green innovation in the digital economy context.

BackgroundDigital innovation, introduced across many industries, is a strong force of transformation. Some industries have seen faster transformation, whereas the health care sector only recently came into focus. A context where digital corporations move into health care, payers strive to keep rising costs at bay, and longer-living patients desire continuously improved quality of care points to a digital and value-based transformation with drastic implications for the health care sector.ObjectiveWe tried to operationalize the discussion within the health care sector around digital and disruptive innovation to identify what type of technological enablers, business models, and value networks seem to be emerging from different groups of innovators with respect to their digital transformational efforts.MethodsFrom the Forbes 2000 and CBinsights databases, we identified 100 leading technology, life science, and start-up companies active in the health care sector. Further analysis identified projects from these companies within a digital context that were subsequently evaluated using the following criteria: delivery of patient value, presence of a comprehensive and distinctive underlying business model, solutions provided, and customer needs addressed.ResultsOur methodological approach recorded more than 400 projects and collaborations. We identified patterns that show established corporations rely more on incremental innovation that supports their current business models, while start-ups engage their flexibility to explore new market segments with notable transformations of established business models. Thereby, start-ups offer higher promises of disruptive innovation. Additionally, start-ups offer more diversified value propositions addressing broader areas of the health care sector.ConclusionsDigital transformation is an opportunity to accelerate health care performance by lowering cost and improving quality of care. At an economic scale, business models can be strengthened and disruptive innovation models enabled. Corporations should look for collaborations with start-up companies to keep investment costs at bay and off the balance sheet. At the same time, the regulatory knowledge of established corporations might help start-ups to kick off digital disruption in the health care sector.

With the rapid advancement of digital technologies, information security enterprises face unprecedented challenges and opportunities. Against this backdrop, this study focuses on information security enterprises, examining how digital innovation and digital transformation influence technological innovation through digital disruption. It aims to reveal the impact mechanisms of digital innovation, digital transformation, and digital disruption on technological innovation within information security enterprises by investigating the interactions and influence pathways among these variables. Drawing upon dynamic capability theory, the technology-organization-environment (TOE) framework, digital disruption theory, and the digital transformation maturity model, a theoretical model was constructed to capture the relationships among digital innovation, digital transformation, digital disruption, and technological innovation. This study collected 446 valid samples from Chinese information security enterprises through questionnaire surveys. Empirical analyses included reliability and validity assessments, correlation tests, difference tests, and structural equation modeling (SEM). The findings reveal that both digital innovation and digital transformation significantly and directly promote technological innovation within information security enterprises. Furthermore, digital disruption plays a crucial mediating role between these two factors and technological innovation. This research not only enriches theoretical studies on digital innovation and transformation pathways in the information security field but also provides practical guidance for enterprises to achieve technological innovation during digital transformation. Additionally, it offers a reference basis for government and industry regulators in formulating relevant policies, demonstrating significant theoretical value and practical significance.

Waste is a complex challenge that requires collaboration between multiple stakeholders to achieve a circular economy. In this context, there is a growing demand for digital solutions that integrate physical and digital infrastructure to create digital waste governance systems. Analog management, without accurate data, is becoming increasingly unfeasible in light of the UN Sustainable Development Goals. Tools such as online geographic information systems (WebGIS) allow the collection and integration of large volumes of physical and human data and the establishment of a digital governance structure that brings together different technologies, tools and methods in the same environment. This article aims to present the State of the Art on the topics of zero-waste cities, WebGIS, and disruptive innovation. The article starts from the hypothesis that only a process of disruptive and systemic innovation in the value chain and urban solid waste management (MSWMS), supported by the principle of zero-waste cities, circular economy and webGIS, can effectively help to solve this problem. The research uses an exploratory literature review on the concepts of zero-waste cities, systemic innovation and webGIS applied to waste management, linking them to the theoretical framework of sustainability as a science and to Brazilian public policies, such as the National Solid Waste Policy (Law 12.305/2010), the National Circular Economy Policy (Law 1.874/2022) and the National Digital Government Strategy of Brazil 2024–2027 (ENGD). As a result, scientific publications on zero-waste cities increased from 2018 to 2023 and several countries have adopted zero-waste guidelines in waste management policies. WebGIS, remote sensing, geoprocessing and different technologies are increasingly being incorporated into waste management, generating significant impacts on the diversion of resources from landfills, mitigating climate change, and generating and/or adding value to the useful life of waste and garbage resources, in addition to the optimization and efficiency of collection operators and citizen engagement in public policies. Disruptive innovation has proven to be a concrete process to enable the transition from obsolete sociotechnical systems (such as the linear economy), where sustainable finance and environmental entities play a fundamental role in orchestrating and coordinating the convergence of private, public and civil society actors towards this new sustainable development paradigm. The case study proved to be fruitful in proposing and encouraging the adoption of such methods and principles in municipal waste management, allowing us to outline a first conception of a digital government structure and digitalization of public services for zero-waste cities, as well as pointing out the difficulties of implementing and transforming these systems. This digital governance structure demonstrates the possibility of being replicable and scalable to other cities around the world, which can materialize an important tool for the implementation, articulation and development of a long-term sustainable development paradigm, based on the vision of the circular economy and zero-waste cities.

Background: Local municipalities are vital in providing residents, businesses and other stakeholders services. Adopting disruptive digital technologies like predictive analytics, social media analytics, intelligent chatbots, the Internet of Everything and self-serving kiosks in local municipalities promises citizens better and more efficient service. These technologies have the potential to eliminate operational silos and bureaucracy, resulting in cost savings and offering 24/7 service accessibility. However, citizen perceptions of the digital transformation agenda influence disruptive technology adoption in South Africa and deserve further scrutiny.Objectives: The study examined the effect of facilitating conditions, effort expectancy, price value, perceived privacy, perceived risk, perceived trust and optimism bias on citizens’ behavioural intention to adopt and use disruptive technologies in accessing local municipality services.Method: Underpinned by a quantitative research design and a deductive approach, data were collected from 288 citizens in local municipalities in South Africa to establish the model fit of the proposed model using structural equation modelling.Results: Effort expectancy, facilitating conditions, price value, perceived privacy, perceived risk and perceived trust positively influenced citizens’ intention to adopt e-government in local municipalities in South Africa. Meanwhile, optimism bias and intention to use positively influenced use behaviour in e-government. The structural equation model results confirmed the model’s fit. All eight hypotheses were confirmed.Conclusion: The results of this research offer guidance to policymakers and implementers involved in digital transformation in local government on factors affecting citizens’ intention to adopt e-government.Contribution: The study significantly contributes to digital transformation discourse in local government.

This report presents the findings of the analysis of the state of the art conducted as part of the JRC research on Exploring Digital Government Transformation in the EU: understanding public sector innovation in a data-driven society (DIGIGOV), within the framework of the European Location Interoperability Solutions for eGovernment (ELISE) Action of the ISA2 Programme on Interoperability solutions for public administrations, businesses and citizens, coordinated by DIGIT. The results of the review of literature, based on almost 500 academic and grey literature sources, as well as the analysis of digital government policies in the EU Member States provide a synthetic overview of the main themes and topics of the digital government discourse. The report depicts the variety of existing conceptualisations and definitions of the digital government phenomenon, measured and expected effects of the application of more disruptive innovations and emerging technologies in government, as well as key drivers and barriers for transforming the public sector. Overall, the literature review shows that many sources appear overly optimistic with regard to the impact of digital government transformation, although the majority of them are based on normative views or expectations, rather than empirically tested insights. The authors therefore caution that digital government transformation should be researched empirically and with a due differentiation between evidence and hope. In this respect, the report paves the way to in-depth analysis of the effects that can be generated by digital innovation in public sector organisations. A digital transformation that implies the redesign of the tools and methods used in the machinery of government will require in fact a significant change in the institutional frameworks that regulate and help coordinate the governance systems in which such changing processes are implemented.

Change Management is a process of adopting appropriate guidelines on how to manage change and meet the set business objective. Change Management could be extended into the realm of providing leadership for a group of persons or organisation alongside the path of change and embed the needed framework in actualising the set business target. Conversely, Digital Transformation could be described as the deployment of technology in a business process to amplify business benefits realisation that include fast decision-making, efficient business processes and significant reduction in risk exposure through managing the operational risk foot print. Failures of many Digital Transformation initiatives around the world is traceable to poor framing or complete lack of change management process embedment in the implemented digital solution, this paper aims at proposing effective framework for embedding orchestrated change process. Several research works show that worldwide there are high rate of project failures in most digital oilfield implementations. The reasons for such high failure rate in the solution of Digital Transformation is poor or lack of experience in change management in such projects resulting in poor framing of the change process that will ultimately assist in orchestrating the disruptions that accompanies the implemented Digital Transformation in different assets. This research based project will be reviewing how effective change management process was implemented in a digital solution by an Oil and gas operator in a field offshore in sub-Saharan Africa. Elements such as proper engagement of the workforce, defined business processes, clear business objectives and experience of the change agents in managing previous projects will be evaluated because these are components that has been identified as key reasons for failure of the change management process implementation in most digital initiatives. What companies need to do is to be strategic with the approach of implementation of digital oilfields transformation to ensure that the disruption brought about by the digital oilfields solutions are orchestrated through effective change management embedment. The effective change management process, when applied, shows that orchestrated technology disruption process is embedded which will ultimately not just lead to benefit realisation of the solutions but will assure continuous business improvement process, overtime. The result of this study, has shown that effective change management processes are beneficial to the effective embedment of Digital Oilfields Transformation solutions. Outcome of this study could form a reference tool for similar robust digital oilfields transformation, elsewhere.

Cloud platforms, real-time monitoring, and gamification of workflows are not new to the oil and gas sector. A growing number of organizations are adopting digital transformation (DT), seeking innovative strategies, safer operations, and business optimization. In line with the exponentially increasing pace of technology advancement, pressures of change are mounting, and experience shows that not all transitions are successful or straightforward. DT for the upstream and downstream processes of oil and gas is available and ready to be implemented with step and disruptive changes dramatically uplifting the traditional way of conducting business, boosting efficiencies, and empowering cost optimization strategies. To analyze the current status of DT strategies and the pace of its implementation in the oil sector with a special emphasis on the Middle East, SPE held an Applied Technology Workshop titled, “Transforming Oil and Gas Toward Digital Intelligence” in late April in Mangaf,•Kuwait. The workshop attracted 138 attendees, and was held under the patron-age of Deputy CEO (Drilling and Technology) of Kuwait Oil Company (KOC), Nayef Al-Anezi, and chaired by Jamal Al-Humoud, manager of research and technology of KOC and cochaired by Maria Angela Capello, executive advisor in the North Kuwait Directorate of KOC. The ATW also included the SPE course “Digital Oil Field Building Blocks.” The state-of-the-art as derived from DT journeys highlighted how decades-long operating companies have a real opportunity to transform their operating workflows to become energy digital leaders. The organizing committee included representatives of Emerson, Accenture, GOFSCO, Schlumberger, Halliburton, Weatherford, Baker Hughes, Microsoft, IBM, Deloitte, WorleyParsons, Huawei, KUFPEC, Kuwait University, and Australian College of Kuwait.• Al-Anezi opened the event highlighting the importance of DT and technology adoption in aging reservoirs. Al-Humoud shared the step changes with which KOC entered the DT era, which included three digital oil fields pilot projects, applying the most advanced technologies to remotely monitor and control oil fields at West Kuwait, North Kuwait, and South and East Kuwait (Burgan fields). “We need to step up to embrace DT, to expedite our success, to optimize our costs and to enable the excellence in our studies and operations workflows,” he said. “Kuwait is pioneering in many fronts of DT, benefitting the oil sector of the state of Kuwait.” The workshop included an executive panel and four technical sessions: Disruptive Technologies, Creating Value Though Integration, Embracing the Digital Future with Right Enablers, and The Next Digital Era. Digital Transformation Discussion Bart Cornelissen, managing partner of Deloitte Middle East Energy, Resources and Industrials, opened the executive panel, stating, “The oil and gas industry needs to re-imagine how work is conducted across the entire value chain for a successful digital revolution to take place.”

The effective use of digital technology and disruptive innovations are increasingly shaping the way companies survive in today’s markets. Consequently, the need for German Small and Medium Enterprises (SMEs) to perform a digital transformation, which implies the creation of a new business model through sophisticated technologies, is gaining significance for succeeding in the digital age. While most German SMEs have already accomplished a digitization of their collaboration and communication,a profound digital transformation is still imminent for the majority. Based on the investigation of existing literature on the subject, this paper demonstrates the suitability of design thinking methods to develop strategic thrust for a digital transformation. The key potential of design thinking is rooted in its ability to creatively solve problems and reinforce skills needed to address dynamic environments. An exemplary result of using design thinking to develop strategic thrust is presented with the fictional business model GreenCube. The concept aims to assist German SMEs in performing a digital transformation by simplifying the incorporation of sophisticated digital technologies and providing opportunities for networking and thus integrating into an ecosystem. Despite their potential, design thinking activities involve several challenges including the incongruence of pre-defined specifications and designed concepts, the gap between a focus on time-reduction and a focus on experimentation, and the lack of measurability of design thinking gains. Nevertheless, the nature of businesses’internal and external environment is becoming ever more fast-paced, making the ability to manage change increasingly critical for German SMEs to establish competitive advantage.

Digitizing success: Leveraging digital human resource practices for transformative productivity in Chinese SMEs

Artificial intelligence (AI) is the most prominent technology driving digital transformation across the world. The digital transformation has made nimiety of data available for big data analytics. The area which effectively uses these data is called artificial intelligence. The world today is witnessing disruptive technology occasioned by AI. Disruptive technology transforms the way we do tasks such as business, health and travel. Disruptive technology changes the systems or habits it substitutes because it has recognizably superior attributes. Several types of AI, such as reactive machines, limited memory, theory of mind and self-awareness, can be employed to create the kind of disruptive technology for business transformation. Modern businesses require interactive artificial intelligence (IAI), functional artificial intelligence (FAI), analytic artificial intelligence, text artificial intelligence (TAI) and visual artificial intelligence (VAI) to succeed in this digital transformation era. Therefore, AI will continue to leverage machine learning algorithms, especially deep learning and reinforcement learning, to continue to create the kind of disruptive technologies required in every aspect of daily living that will significantly alter the way that consumers, industries or businesses operate.