Barriers and Facilitators of Digitalization in Organizations Markku

Barriers and Facilitators of Digitalization in Organizations Markku Kuusisto 11. 9. 2017

Digitalization • Hype word – used to convey a lot of different meanings • In this study, digitalization refers to the changes in organizations due to any digital technologies 26. 9. 2020 2

Organizational Inertia • Organizational inertia refers to organizations tendency to keep doing what they do – due to: – Sunk costs in legacy systems – Organizations culture is prohibitive to change – Surrounding organizations holding back the change 26. 9. 2020 3

Technology Acceptance Model • Technology Acceptance Model (TAM) depicts perceived usefulness and perceived ease of use as key predictors of acceptance of any given technology 26. 9. 2020 4

The Unified Theory of Acceptance and Use of Technology • UTAUT introduces more variables - it is combined from eight different earlier theories, outperforming them all 26. 9. 2020 5

Technology-Organization. Environment framework • One of the most widespread frameworks for IT adoption • According to TOE, organization has several aspects that affect advancement of digitalization such as information linking, organizational structures, organization size and slack 26. 9. 2020 6

Facilitators of Digitalization • • IT spending Top management support External drivers External information sources 26. 9. 2020 7

Information Systems Strategic Alignment • Intellectual dimension; Alignment between business and IS • Social dimension: Mutual understanding and commitment to business objectives by business and IT departments • CEO-CIO alignment • Lack of strategic alignment is a major barrier for digitalization in any organization 26. 9. 2020 8

Conclusions • Digitalization is lacking definition? • Perceived aspects of software in key role according to current understanding • Current research is not very fine grained in this field – are all ways of showing top management support equal? 26. 9. 2020 9