Friday, August 27, 2021

What Causes Difficulty for Digital Transformation?

In a study of banking “digital transformation, two researchers illustrate why the way humans are involved in actual business processes shapes the effort. Even when using a single new tool--the SAP loan management system--the adaptation was easier for some parts of the organization than others. 


Complexity is a key issue. Also, it matters how much people need to understand the business logic of their firms. For example, one group of clerks used the new SAP-based loan management system to enter new contracts. For them, learning how to do their work with the new system was easy, the researchers say. 


In stark contrast, clerks who needed to make edits to loans in stock had a much harder time learning how to work with it, they note. 


Clerks in the former group achieved effective use within six to eight weeks, but those in the latter group needed over six months to do their work effectively again. The complexity of the task shapes the ease or difficulty of adapting. 


source: Harvard Business Review 


The researchers note the role of “system dependency,” which is a measure of how much of a user’s task is represented in the system. When more of the output or outcomes hinge on the innovation, adoption takes longer. 


That makes intuitive sense. An innovation that reshapes or affects 80 percent of a worker’s output or outcomes is going to be more complicated than when an innovation is actually peripheral to a worker’s job. 


Semantic dependency--the degree to which users need to understand how the business logic of their task is implemented in the system--seems just as important. 


Digitalized tasks that have a high degree of both dimensions are the most complex, they say. Of course.


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