The innovator's imperative : rapid technology adoption for digital transformation

181 Pages·2018·4.32 MB·English

by  Thomas Cox, Kaung M. Khin

Te Innovator’s Imperative
Te Innovator’s Imperative
Rapid Technology Adoption for Digital
Transformation

Stephen J. Andriole
Tomas Cox
Kaung M. Khin
CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742
© 2018 by Taylor & Francis Group, LLC
CRC Press is an imprint of Taylor & Francis Group, an Informa business
No claim to original U.S. Government works
Printed on acid-free paper
International Standard Book Number-13: 978-1-1387-1355-0 (Hardback)
This book contains information obtained from authentic and highly regarded sources. Reasonable efforts
have been made to publish reliable data and information, but the author and publisher cannot assume
responsibility for the validity of all materials or the consequences of their use. The authors and publishers
have attempted to trace the copyright holders of all material reproduced in this publication and apologize to
copyright holders if permission to publish in this form has not been obtained. If any copyright material has
not been acknowledged please write and let us know so we may rectify in any future reprint.
Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmit-
ted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented,
including photocopying, microfilming, and recording, or in any information storage or retrieval system,
without written permission from the publishers.
For permission to photocopy or use material electronically from this work, please access www.copyright.
com (http://www.copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood
Drive, Danvers, MA 01923, 978-750-8400. CCC is a not-for-profit organization that provides licenses and
registration for a variety of users. For organizations that have been granted a photocopy license by the CCC,
a separate system of payment has been arranged.
Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used
only for identification and explanation without intent to infringe.
Visit the Taylor & Francis Web site at
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and the CRC Press Web site at
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Contents
CRC Press
Taylor & Francis Group ExEcutivE Summary ix
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742 about thE authorS x xv
© 2018 by Taylor & Francis Group, LLC
CRC Press is an imprint of Taylor & Francis Group, an Informa business chaptEr 1 tEchnology adoption and digital
tranSformation 1
No claim to original U.S. Government works
Emerging Technology and Digital Transformation 6
Printed on acid-free paper Step 1: Model and Simulate 8
Step 2: Identify High-Leverage Opportunities 8
International Standard Book Number-13: 978-1-1387-1355-0 (Hardback)
Step 3: Prioritize Transformation Targets 9
This book contains information obtained from authentic and highly regarded sources. Reasonable efforts Careful Modeling 10
have been made to publish reliable data and information, but the author and publisher cannot assume
Leveraging → Prioritization 11
responsibility for the validity of all materials or the consequences of their use. The authors and publishers
have attempted to trace the copyright holders of all material reproduced in this publication and apologize to Keep IT Real 12
copyright holders if permission to publish in this form has not been obtained. If any copyright material has Step 4: Identify Digital Opportunities 13
not been acknowledged please write and let us know so we may rectify in any future reprint.
Step 5: Find Courageous Leaders 14
Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmit- Profle the Audience 16
ted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, Stick to the Business 16
including photocopying, microfilming, and recording, or in any information storage or retrieval system,
Clarity—at 500 Feet 17
without written permission from the publishers.
Consistent, Relevant, Templated Agenda 18
For permission to photocopy or use material electronically from this work, please access www.copyright. Partners, Never Students 18
com (http://www.copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood A Growing Treat 18
Drive, Danvers, MA 01923, 978-750-8400. CCC is a not-for-profit organization that provides licenses and
registration for a variety of users. For organizations that have been granted a photocopy license by the CCC,
chaptEr 2 phaSEd tEchnology adoption in thE
a separate system of payment has been arranged.
twEntiEth cEntury 23
Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used Traditional Technology Adoption Models 24
only for identification and explanation without intent to infringe.
Te Bass Difusion Model 24
Visit the Taylor & Francis Web site at Difusion of Innovations 26
http://www.taylorandfrancis.com
Te Gartner Hype Cycle 31
and the CRC Press Web site at
http://www.crcpress.com
v
vi Contents
Te Obsolescence of Traditional Technology
Adoption Models 34
Replacement Argument 1—A Decrease in Change
Agent Headaches 35
Replacement Argument 2—Requirements Testing Is
Over (and for Good Reason) 36
Historic Strategy Formation 38
Crossing the Chasm 39
Te Innovator’s Dilemma – Plus Solution 40
chaptEr 3 rapid tEchnology adoption in thE
twEnty-firSt cEntury 45
Findings 48
Statistical Analysis 65
Te New Normal 65
chaptEr 4 thE tEchnology-drivEn EntErpriSE 67
Accelerating Consumerization 68
Technologies Available for Immediate Adoption 69
Competitive Fear 70
Digital Transformation 70
Participatory, Shared Federated Governance 70
Postfederated/Decentralized Technology Adoption
and Delivery 72
Agile Technology-Enabled Business Models and Processes 73
Continuous, Permanent Digital Transformation 74
Governance! 75
Technology-Driven Opportunities 78
Operational and Strategic Opportunities 78
Rent as Much as Possible—and Eventually Almost
Everything 79
Bring-Your-Own-Device, Tin, Mobile and Wearable 81
Big (Structured and Unstructured) Data Analytics 82
Mine Social Media 83
Keep Technology Open 83
Know Where Everyone Is 85
Track, Pilot and Deploy Emerging Technology 86
Crowdsource 87
Federate 87
Assess, Refresh and Relocate Technology Talent 88
Reality Checks 89
Sources of (Temporary) Worry 89
Most Important Management Concerns 90
What Keeps Technology Leaders up at Night 90
Where the Money Goes 91
Spending Trends 91
More People (But Less Security) 92
Contents vii
Chief Information Ofcers Lifestyle 92
From Terapy to Adoption to Transformation 93
Te Technology-Driven Enterprise 93
chaptEr 5 forward guidancE 95
What’s Happening? 96
Enterprise IT Is Dying 98
Birth of Digital 99
Digital Transformation Skills and Competencies 100
Digital Transformation Readiness 102
Skills and Competencies for Digital Transformation 102
Filling the Gaps 106
Good Technology Clusters 107
Intelligent Systems Technology 108
Interaction Technology 108
Small Software Technology 108
Sensor Analytics Technology 109
Cyber Security Technology 109
Bad Technology Clusters 111
Very Big Software 111
Cloud Commodities 112
Hardware Fulfllers 112
Infrastructure Consultancies 113
Enterprise Data Bases 114
Transformation-Ready Industries 115
Insurance 15
Realtors 16
Banks 17
Profesionals 18
Politics 19
So What? 120
Te Innovation Challenge 120
Wake up, Smell the Technology and Transform 124
appEndix a: tEchnology adoption SurvEy 125
appEndix b: intErviEw QuEStionS and SElEctEd
rESponSES 131
appEndix c: StatiStical tEStS 135
bibliography 143
indEx 149
Executive Summary
Tree names often come to mind when corporate executives and
managers think about technology adoption: (1) Clayton Christensen,
(2) Geofrey Moore and (3) Everett Rogers. If they cannot remember
the names, they almost always remember Te Innovator’s Dilemma,
Crossing the Chasm and the technology adoption life cycle described
in Rogers’ Difusion of Innovations. When these perspectives on tech-
nology adoption were presented in the twentieth century, they were
insightful and provocative. But today, the insights are not nearly as
relevant as they were in the twentieth century.
In the 1990s and even into the twenty-frst century, everyone was
appropriately intrigued with Clayton Christensen’s Te Innovator’s
Dilemma and how good companies can lose competitive advantage by
failing to adopt emerging or disruptive technologies fast enough to
maintain or expand their market position (Christensen, 1997).
But even before Christensen’s manifesto, Geofrey Moore argued
in Crossing the Chasm (Moore, 1991) that technology adoption was
often trapped between two phases of the technology adoption life
cycle, between early adopters and the early majority, resulting in a gap
(the chasm) between how companies see the advantages of technology
adoption to fuel their product development, sales and proftability.
Moore’s work was anchored in the well-known technology life cycle
developed by Everett Rogers in 1962, which recognized fve phases of
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