| Phenomena | The role of digital innovations in managing organizational change processes

The role of digital innovations in managing organizational change processes

Reading time: 4 min.

Digital innovations (DI) play a decisive role in the design and implementation of change processes in organizations, especially in the context of Industry 4.0. The term Industry 4.0 describes the plan to achieve a fourth industrial revolution through the digitalization of production. Digital innovations integrate technologies such as big data, artificial intelligence and mobile applications [5] to optimize processes, improve decision-making and strengthen communication between managers and employees [7], [3], [8], [4]. In the context of change management, DI can promote a dynamic exchange and enable individual adaptation to the needs of employees, overcoming the one-size-fits-all approach and promoting a participatory culture [6].

The implementation of DI in change processes requires an adaptation of leadership styles and management practices in order to ensure flexible and dynamic interactions and change processes. The research project “Transforming Digitally: Digital Innovations for Successfully Shaping Organizational Change (DIOW)” investigates how digital innovations can be integrated into change processes in a targeted manner in order to better overcome challenges and increase the success rates of change projects. An interdisciplinary team from business informatics, sociology and management is researching the opportunities and risks of these digital tools, i.e. specific digital tools and software solutions, such as digital nudges, digital collaboration platforms or digital survey and feedback tools.

The aim of the project is to develop evidence-based recommendations for the successful implementation of DIOW, which include digital nudges, digitally supported forms of participation and data-driven real-time monitoring. These innovations are designed to improve employee communication, empowerment and participation and promote a more flexible change process. Despite their high practical relevance, there is as yet little scientific knowledge about the role of these digital tools as catalysts for change. The research consortium therefore aims to analyse the function of DIOW as a decisive factor for the ability of organizations to change in order to ensure their future viability in the long term.

Comparability with analogue phenomena

Compared to traditional approaches to change management, which are often static and not very flexible, digital innovations (DI) enable dynamic individualization and adaptation of change processes. While previous methods often relied on standardized communication strategies and uniform roll-outs, DI allows for a tailored response to the specific needs and feedback of employees. This differentiation is crucial, as the heterogeneity of employees is often insufficiently taken into account, which can lead to resistance and failure in change projects.

Analog phenomena such as traditional training programs or information events are limited in their flexibility and adaptability and often cannot meet the requirements of today’s digital world. In contrast, the integration of DI helps to improve the support and integration of employees. This increased flexibility and responsiveness ultimately promotes the willingness and acceptance of change by enabling employees to be actively involved in the process and contribute their individual perspectives.

Social relevance

The importance of DI in the context of change management goes beyond the boundaries of individual organizations. In an increasingly digitalized economy, companies are required to continuously improve their processes and adapt to dynamic market conditions. The success of change projects not only has an impact on the competitiveness of companies, but also on the employment situation and the well-being of employees [1], [2].

In addition, the use of DI promotes a culture of technology acceptance and continuous learning, which is of central importance for the future development of organizations and societies. At a time when technological progress is advancing rapidly, the ability to proactively shape and manage change is crucial for the long-term stability and success of organizations.

Further links and literature

Recommended reading:

  • Bailey, D. E. et al. (2022). We are all theorists of technology now: A relational perspective on emerging technology and organizing. In: Organization Science 33 (1), 1–18.
  • Kanitz, R./Gonzalez, K. (2021). Are we stuck in the predigital age? Embracing technology-mediated change management in organizational change research. In: The Journal of Applied Behavioral Science 57 (4), 447–458. 
  • Kanitz, R. et a. (2023). Augmenting organizational change and strategy activities: Leveraging generative artificial intelligence. In: Journal of Applied Behavioral Science 59 (3), 345–363.

Sources

  1. Amiot, C. et al. (2006). A longitudinal investigation of coping processes during a merger: Implications for job satisfaction and organizational identification. In: Journal of Management 32, 552–574.
  2. Axtell, C. et al. (2002). Familiarity breeds content: The impact of exposure to change on employee openness and well-being. In: Journal of Occupational and Organizational Psychology 75, 217–231.
  3. Barley, S./Bechky, B. A./Milliken, F. J. (2017). The changing nature of work: Careers, identities, and work lives in the 21st century. In: Academy of Management Discoveries 3 (2), 111–115.
  4. Chen, Z. et al. (2017). The transition from traditional banking to mobile internet finance: an organizational innovation perspective – a comparative study of Citibank and ICBC. In: Financial Innovation 3, 12.
  5. Fichman, R. G./Dos Santos, B. L./Zheng, Z. E. (2014). Digital innovation as a fundamental and powerful concept in the information systems curriculum. In: MIS Quarterly 38(2), 329–354.
  6. Kanitz, R./Gonzalez, K. (2021). Are we stuck in the predigital age? Embracing technology-mediated change management in organizational change research. In: The Journal of Applied Behavioral Science 57 (4), 447–458.
  7. Landers, R. N./Marin, S. (2021). Theory and technology in organizational psychology: A re-view of technology integration paradigms and their effects on the validity of theory. Annual Review of Organizational Psychology and Organizational Behavior 8 (7), 1–24.
  8. Ward, M. J./Marsolo, K. A./Froehle, C. M. 2014. Applications of business analytics in healthcare. In: Business Horizons 57 (5), 571–582.