What clearly distinguishes Digital Transformation (DT) from ordinary change management work is the unique nature of the digital technologies that drive true organizational transformation and the interconnected, turbulent environments they foster. And yet, many change practitioners consider traditional change management to be synonymous with transformation. It is patently obvious, however, that business as usual does not apply, necessitating a re-evaluation of existing organizational change theories and approaches.

While these theories and approaches may provide a sound foundation supporting incremental, episodic change, they need to be adapted, extended, or even supplemented with new theoretical models to fully leverage the complexities of true digital transformation. The technologies involved in DT, such as big data analytics, social media, mobile technology, and cloud computing, are fundamentally different from earlier information technologies. Because these new technologies are generative, malleable, and combinatorial, they can be used in unforeseen ways, are easily adaptable, and can be combined to create new functionalities, all of which challenges assumptions based on the more static nature of past IT. As such, how can we approach these implementations as change agents in the same manner we addressed the more episodic disruptions of yesterday?

Research conducted by Hanelt, Bohnsack et. al. delved into this question in an analysis of 279 peer-reviewed articles, seeking to synthesize current knowledge and offer a multi-dimensional framework for understanding DT and its unique requirements for change managers. Their analysis identifies two key thematic patterns: the move towards adaptable organizational structures and the increasing importance of digital business ecosystems. Ultimately, the authors connect DT to established organizational change theories, particularly continuous change models.

The authors explicitly discuss and suggest the use of several continuous change models to connect DT to established change theories. Here are some of the key continuous change models they mention:

In highlighting these and other models, the authors argue that understanding DT requires a strong consideration of continuous change processes, although they also acknowledge the role of episodic triggers with ongoing transformation. They suggest that DT has a complex relationship with episodic organizational change concepts. While DT exhibits some characteristics that align with episodic change, it also challenges several of its fundamental assumptions, among them:

In short, DT can be initiated by events that resemble the triggers of episodic change, and it can involve periods of significant organizational upheaval. However, the inherent characteristics of digital technologies and digital business ecosystems mean that DT leads towards a state of continuous adaptation and change, challenging the episodic view of reaching a new stable equilibrium and highlighting the need for ongoing responsiveness rather than infrequent, punctuated changes. DT might be best understood as continuous change that can be triggered and shaped by episodic bursts, with these bursts then inducing further continuous change.

Theories and practices previously relied upon will not serve change agents effectively when engaged in true digital transformations. Change agents should recognize that DT leads to a fundamental shift towards malleable organizational designs that enable continuous adaptation. This means moving away from the idea of infrequent, punctuated change towards an ongoing process of evolution and adjustment.

Change agents also need a deep understanding of the contextual conditions driving DT. This means remaining current and aware of the rapid evolution of digital technologies, the interconnectedness of these elements within market, consumer, and country characteristics, and the turbulent nature of digital business ecosystems in which organizations operate.

To succeed in the digital transformation space, change agents must adopt a mindset of continuous evolution and prioritize rapid and iterative execution.

Sources:

Hanelt, A., Bohnsack, R., Marz, D. and Antunes Marante, C. (2021), “A Systematic Review of the Literature on Digital Transformation: Insights and Implications for Strategy and Organizational Change”. Journal of Management Studies, 59(2), 583-628.