MIS-Digital Society

Digital Society

VU Current Topics of Information Systems, Especially the Digital Society

Dr. Alexander Novotny

Edition 1

Digital Technology and Innovation

Overview

» Innovation concepts

» Innovation and human progress

» Ethical IT innovation in organisations

» Innovation methods

Innovation and exnovation in organisations

Innovation

� lat. innovatio � “process whereby organizations transform ideas into new/improved products,

service or processes, in order to advance, compete and differentiate themselves successfully in their marketplace” (Baregheh et al. 2009)

Exnovation

� Ending the use of technologies or processes that are not further effective with regard to goals / the strategy.

� Confirmed/tested best-in-class products and processes are standardized and not innovated further (Kimberly 1981)

Kropp (2015)

Innovation or Exnovation?

?

Key innovation (adaptive breakthrough)

» Genetics / evolutionary biology: phenotype (anc. Greek φαινο- (faino-) 'showing', and τύπος (túpos) 'type’): set of observable characteristics or traits of an organism

» Novel phenotypic trait that allows subsequent radiation and success of a taxonomic group

Adaptive radiation

» Innovation process in which technologies diversify rapidly from an ancestral technology into a multitude of new forms exhibiting different traits

Market pull vs. technology push

»Market pull innovation Initiated by the market / the customers. Customers have a demand/need but no solution is available.

»Technology push innovation Organisations search for and realise applications of new technologies and subsequently create a demand that customers did not have before.

In-class exercise: Technology push and market pull innovation

» Select one example I. – IV.

» I. Artificial intelligence » II. Recycling paper » III. Smartphone camera

» IV. Walkman

» Find reasons for a technology push or market pull.

» Is it predominantly a push or pull innovation? » Argue your points and submit them to OLAT (use the OLAT text editor) ?

Ecosystem vs. platform

Ecosystem

• Economic community consisting of different organisations including suppliers, producers, and other stakeholders in a value chain delivering value

• Examples: Fintech, Automotive cluster Austria, ...

Platform

• Basic technological system used to delevop and deliver applications with a value

• Examples: AWS, Microsoft Azure, Apple iTunes, …

Giesswein (2021, p. 47)

From innovation to human progress

Innovation Value Progress

The Gartner Inc. hypecycle

» Descriptive model of future ICT innovation expectations

Expectation

Time

Gartner (2021)

Gartner hypecycle of past years

Gartner (2020)

20202010

Observation: "Left-shift" in IT hypes

Disillusioning technologies

Enlightened technololgies

Productive technologies

Vanished from the hypecycle:

Only valid for the "general" hype cycle for emerging technologies.

Technology specific hypecycles may be different (e.g., blockchain, etc.)

Benjamin (2021)

ICT function-hype has many drawbacks.

Artificial competitive pressure � Unreflected, fast product cycles � “Release too early and too often“

Low quality ICT innovation and unsustainable solutions

Poor system documentation

Remnants of hype remain in mal- designed IT backend architectures

Loss of control over IT architecture in the long-term

Spiekermann (2015, p. 12)

Vincent Déniel (CC BY-NC 4.0)

Technical Debt

“Implied cost of additional rework caused by choosing an easy, limited solution now

instead of using a better approach that would take longer.”

Ward Cunningham Developer of the first wiki

Techopedia (2017)

Altieri M. (2019), Device42, May 20, 2019.

Is technical debt bad?

One may argue tech debt is a strategic leverage for companies:

� Quicker time to market � More tech functionality with

fewer capital investment

€

� All debt has to be paid back in the future (social level)

� Technical default / insolvency / bankruptcy

tech

Down the road, tech debt has to be fixed…

Two approaches: traditional and agile ICT innovation.

Sustainable Value to Business •Long project durations •High complexity •High risk of failure •High data quality •More project governance •Higher system integration

Quick Value to Business •Short iteration cycles •Lower risk of failure •Less governance •Less system integration •High danger to end up with a functioning, but mal-designed system

Traditional ICT innovation / development

Agile ICT innovation / development

Repetition: Ethical values

» Maslow’s hierarchy of human motivation and flourishing

» Combined with Frankena’s and Rokeach’s list of values

Spiekermann (2015, p. 47)

Important ethical values for digitalisation

Spiekermann (2015, p. 156)

Three classes of ethical discourse in computer ethics

» Ethical consequences of technology on people?

» (1) Actor‘s value: � Technology is given/is not influenced � Object of study: People

» (2) Value-sensitive design: � Technology can be designed and actively influenced � Object of study: Technology

» (3) Value-sensitive alternative design: � Alternative technology is radically searched and

designed � Object of study: Alternative technologies

Spiekermann (2015, p. 170)

Value Sensitive Design method

Spiekermann (2015, p. 172)

Ethical agency in technology ethics

Spiekermann (2015, p. 244)

VSD combined with the IT systems development lifecycle (SDLC)

» Integrate ethical values into the software engineering process

» Agnostic to development model (waterfall, agile, spiral, V, etc.)

» Stage-Gate principle

adapted from Spiekermann (2015, p. 175)

ISO/IEC/IEEE 24748-7000 - Standard Model Process for Addressing Ethical Concerns during System Design

» Set of processes by which organizations can include consideration of ethical values throughout the design of digital technology

» Transparent communication with selected stakeholders for ethical values elicitation and prioritization

» Elicitation of ethical requirements, and ethical risk-based design for digital technology systems

» Traceability of ethical values in the concept of operations,

ISO/IEC/IEEE 24748-7000 – Processes leading to ethical IT system design

ISO/IEC/IEEE 24748-7000 – Ethical Requirements Definition Process

Relationship of value concepts according to ISO/IEC/IEEE 24748-7000

Top innovation methods

Hackaton, Ideaton

Design Thinking

Business Model Canvas

Prototyping Minimum

Viable Product (MVP)

Scrum

Giesswein (2021, pp. 110-117)

Hackathons, Ideathons, etc.

Design Thinking

Business Model Canvas

Prototyping

Source: https://www.toptal.com/designers/ux/ux-myths-prototypes

Minimum viable product (MVP)

In class-discussion

» Do ethical system requirements need to go into an MVP?

» Where and When?

Some citations on MVPs

» „This is an MVP. We will deal with security and privacy later.“

» „In the MVP stage we do not have enough budget to assess and deal with the ethical impact.“

» „We need to speed up time-to-market. We do not have time for ethical requirements in the MVP phase.“

» Customers want a viable product. They also expect it to be ethically and sustainably viable for the minimum features!

How (not) to build an MVP

Frugal innovation

» Frugal innovation or frugal engineering is the process of reducing the complexity and cost of a good and its production

» Removing nonessential features

» Design for price-sensitive customers

» No inferior quality!

» Not less safety, security, privacy, well-being, … !

SCRUM

Source: https://karrierebibel.de/scrum-methode/

Two approaches: traditional and agile ICT innovation.

Sustainable Value to Business •Long project durations •High complexity •High risk of failure •High data quality •More project governance •Higher system integration

Quick Value to Business •Short iteration cycles •Lower risk of failure •Less governance •Less system integration •High danger to end up with a functioning, but mal-designed system

Traditional ICT innovation / development

Agile ICT innovation / development

Open Innovation

Source: bock-pm.com

References » Altieri M. (2019). Device42. Infrastructure Technical Debt, May 20, 2019,

https://www.device42.com/blog/2019/05/20/infrastructure-technical-debt/ . » Baregheh, A., Rowley, J., Sambrook, S. (2009). Towards a multidisciplinary definition of innovation.

Management Decision, 47 (8), 1323–1339. » Benjamin, G. (2021). Gartner Blockchain Hype Cycle 2021: Wo stehen wir & wie weiter. Blog, Jun 4,

https://imiblockchain.com/de/der-gartner-blockchain-hype-cycle/ » Giesswein. M. (2021). Digital Game Changer. Maßgeschneiderte Digitalkompetenz für Führungskräfte. WU

Executive Academy. Wroclaw: Amazon, ISBN 9798672289915. » Kimberly, J.R. (1981). Managerial Innovation. In Nystorm, P.C. and Starbuck, W.H. (eds.) Handbook of

Organizational Design. Amsterdam: Elsevier, 84–104. » Kropp, C. (2015). Exnovation–Nachhaltige Innovationen als Prozesse der Abschaffung. Innovation–

Exnovation. In Arnold A., David M., Hanke G., Sonnberger M. (eds.): Über Prozesse des Abschaffens und Erneuerns in der Nachhaltigkeitstransformation, Marburg: Metropolis, 13-34.

» Spiekermann, S. (2015). Chapter 2 in "Ethical IT-Innovation. A Value-Based System Design Approach". New York: Taylor & Francis, 7-19.

» Techopedia (2017). Technical Debt. Mar 20, https://www.techopedia.com/definition/27913/technical-debt

Image sources » https://c4ddownload.com/free-3d-glass-light-bulb/ » https://www.turbosquid.com/de/3d-models/free-smartwatch-watch-3d-model/1051121 » https://www.turbosquid.com/de/3d-models/3d-model-plastic-bag-1373909 » https://info.lead-innovation.com/en/key-innovation-figures » https://www.der-roemer-shop.de/media/image/product/5476/md/schreibfeder-weiss-kalligraphie-feder-echter-schreibfertiger-

federkiel-penna-scriptoria-gaensekiel.jpg » https://altkomsoftware.pl/wp-content/uploads/minimum-vliable-product.png » https://businessmodelanalyst.com/what-is-minimum-viable-product-mvp/ » https://www.it-zoom.de/it-director/e/design-thinking-in-der-it-14342/ » https://businessmodelanalyst.com/wp-content/uploads/2020/08/Facebook-Business-Model-Canvas.pdf » https://ec.europa.eu/growth/content/single-digital-gateway-hackathon-bucharest-edition_en » https://www.toptal.com/designers/ux/ux-myths-prototypes » https://thinkmarketingmagazine.com/nostalgia-marketing-one-powerful-tactics-within-marketing-strategy/ » https://i2.wp.com/bock-pm.com/wp-content/uploads/closed-open.jpg?resize=696%2C308 » https://www.umdaschgroup-ventures.com/en/magazine/frugal-innovations-for-a-sustainable-growth