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Digital Disruption or Digital Transformations

October 20th, 2015 by Graham Attwell

I have spent a good deal of time in the last few weeks thinking and reviewing the progress we have made in the European Research Programme funded Learning Layers project

. The project aims to research, develop, implement and promote technologies for learning in Small and Medium Enterprisse (SMEs). As with all projects funded under the Research Programme, we are subject to an annual review and have to submit reports on the work undertaken for the review.  This in itself is an interesting exercise, involving at least four or five authors from different countries and often different disciplines working together.

I have written the introduction to the report, focusing on the impact of what I describe as digital transformations on SMEs and on learning. Although our work focuses on the construction and health sectors, I think the development processes and the research findings are relevant to far wider sectors. Over the next week I will blog sections of the report. I see this as opening up our internal review procedure to a wider audience and welcome any feedback, critical or otherwise. The first section is on digital transformations, as opposed to digital disruptions.

There has been a great deal of focus, especially in the popular press, on the impact of Information and Communication Technologies on society through the term ‘digital disruption’. Digital disruption posits the inability of existing organisations and companies to respond to emerging new technologies and thus leaving them open to disruptive entrants who are more innovative and flexible in organisational approaches and technology adoption.

We see little evidence of such digital disruption in either the healthcare or construction sectors. However there is no doubt of the fast growing impact of digital technologies in both sectors, for example 3D printing and Building Information Modelling in construction and self diagnosis applications, big data, health apps and telemedicine / telehealth in healthcare (see the following sections below for more details of these changes). But rather than seeing these as disrupting existing organisations, there is more evidence that these organisations themselves are being transformed in order to adapt to and exploit new technologies. This we would see as digital transformations.

Digital transformation refers to the changes associated with the application of digital technology in all aspects of human society (Stolterman and Croon Fors, 2004). It is seen as involving the application of digital competence and digital literacies to enable new types of innovation and creativity in a particular domain, rather than simply enhance and support the traditional methods (Lankshear, 2008), In November 2011, a three-year study conducted by the MIT Center for Digital Business and Capgemini Consulting concluded that only one-third of companies globally have an effective digital transformation program in place (Capgemini Consulting. 2011).

The study defined an “effective digital transformation program” as one that addressed

  • “The What”: the intensity of digital initiatives within a corporation
  • “The How”: the ability of a company to master transformational change to deliver business results. (ibid)

Our research in health and construction paints a rather more complicated picture, although we would generally concur with the MIT study outcomes. In this it is notable that we are working primarily with SMEs rather than with corporations and that SMEs rarely have the resources to develop complex programmes of transformation. Our research suggest a very uneven pattern, with enterprises and especially training organisations increasingly aware of the challenges digital technologies play, but with differentiated drivers for change in different trades in construction and different organisational impulses in health care, along with continuing barriers to transformations that also impact on the adoption of new forms of learning. It should also be noted that our own project research and development processes have led to a greater awareness of the impact of digital technologies and the capacity building activities that the project has undertaken are designed precisely to develop the ability of SMEs to master transformational change.

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