SIG PHIL - Philosophy, Psychology, and Sociology of Digital Innovations and Entrepreneurship
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Paper Type
Complete
Paper Number
1513
Description
Digital transformation often results in failure. The purpose of this research is to analyze the problem of implementation of digital transformation. The theory is Socio-Economic Approach to Management (SEAM), including "dysfunctions" and "hidden costs". The research method is a case study at Midea Group (Midea) in China. The findings include dysfunctions such as: problems of coordination and cooperation within and between organizations; little communication between PICs of different departments; more tension across departments fighting for the resource of budget and cost. The consequence of dysfunctions on performance includes: loss of production line stops, high staff turnover, project delays, and departments tend to push responsibility outside the organization. The recommendations to practice include that Midea should pursue the improvement on process rather than outcomes and KPIs, and transform focus on human resource development and technology accumulation rather than only efficiency.
Recommended Citation
Hayashi, Joyan, "Digital Transformation and Factors of Dysfunctions" (2022). AMCIS 2022 Proceedings. 5.
https://aisel.aisnet.org/amcis2022/sig_phil/sig_phil/5
Digital Transformation and Factors of Dysfunctions
Digital transformation often results in failure. The purpose of this research is to analyze the problem of implementation of digital transformation. The theory is Socio-Economic Approach to Management (SEAM), including "dysfunctions" and "hidden costs". The research method is a case study at Midea Group (Midea) in China. The findings include dysfunctions such as: problems of coordination and cooperation within and between organizations; little communication between PICs of different departments; more tension across departments fighting for the resource of budget and cost. The consequence of dysfunctions on performance includes: loss of production line stops, high staff turnover, project delays, and departments tend to push responsibility outside the organization. The recommendations to practice include that Midea should pursue the improvement on process rather than outcomes and KPIs, and transform focus on human resource development and technology accumulation rather than only efficiency.
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SIG Phil