Gerald C. Kane - The Technology Fallacy: How People Are the Real Key to Digital Transformation

Management on the Cutting Edge Series

Published in cooperation with MIT Sloan Management Review

Edited by Paul Michelman

The AI Advantage: How to Put the Artificial Intelligence Revolution to Work,

Thomas H. Davenport

The Technology Fallacy: How People Are the Real Key to Digital Transformation,

Gerald C. Kane, Anh Nguyen Phillips, Jonathan R. Copulsky, and Garth R. Andrus

The Technology Fallacy

How People Are the Real Key to Digital Transformation

Gerald C. Kane, Anh Nguyen Phillips, Jonathan R. Copulsky, and Garth R. Andrus

The MIT Press

Cambridge, Massachusetts

London, England

2019 Massachusetts Institute of Technology

Some material in this book has appeared previously in MIT Sloan Management Review publications, including the following:

Chapter 1. Digital Disruption Is No Secret

Digital Transformation at John Hancock G. C. Kane, D. Palmer, A. N. Phillips, D. Kiron, and N. Buckley, Coming of Age Digitally: Learning, Leadership, and Legacy, 2018 MIT SMR/Deloitte Report on Digital Business.

Chapter 2. Digital Disruption Is Really about People

Adobe: Combining Employee and Customer Experience G. C. Kane, D. Palmer, A. N. Phillips, D. Kiron, and N. Buckley, Aligning the Organization for Its Digital Future, 2016 MIT SMR Report on Digital Business.

Chapter 3. Moving Beyond the Digital Transformation Hype

Walmart: Digital Maturity and the Long Game G. C. Kane, D. Palmer, A. N. Phillips, D. Kiron, and N. Buckley, Aligning the Organization for Its Digital Future, 2016 MIT SMR Report on Digital Business.

Chapter 4. Digital Strategy for an Uncertain Future

MetLifes Digital Lens on Business Strategy G. C. Kane, D. Palmer, A. N. Phillips, D. Kiron, and N. Buckley, Achieving Digital Maturity, 2017 MIT SMR Report on Digital Business.

Chapter 9. Making Your Organization a Talent Magnet

Developing a Digital Talent Strategy at Cigna G. C. Kane, D. Palmer, A. N. Phillips, D. Kiron, and N. Buckley, Achieving Digital Maturity, 2017 MIT SMR Report on Digital Business.

Volvo Balances Competing Concerns for Digital Innovation Fredrik Svahn, Lars Mathiassen, Rikard Lindgren, and Gerald C. Kane, Mastering the Digital Innovation Challenge, MIT SMR 58, no. 3 (Spring 2017), https://sloanreview.mit.edu/article/mastering-the-digital-innovation-challenge/.

Chapter 11. Cultivating a Digital Environment

Salesforces Intentional Culture G. C. Kane, D. Palmer, A. N. Phillips, D. Kiron, and N. Buckley, Aligning the Organization for its Digital Future, 2016 MIT SMR Report on Digital Business.

SlackBuilding Culture in a Fast-Moving Environment G. C. Kane, D. Palmer, A. N. Phillips, D. Kiron, and N. Buckley, Aligning the Organization for its Digital Future, 2016 MIT SMR Report on Digital Business.

Chapter 12. Organizing for Agility

Cross-Functional Hospitality at Marriott G. C. Kane, D. Palmer, A. N. Phillips, D. Kiron, and N. Buckley, Achieving Digital Maturity, 2017 MIT SMR Report on Digital Business.

Chapter 13. Strength, Balance, Courage, and Common Sense

Transactive Memory at Discover Financial Services Paul Leonardi, interviewed by David Kiron, The Unexpected Payoffs of Employee Eavesdropping, Big Idea: Social Business (blog), November 6, 2014, https://sloanreview.mit.edu/article/the-unexpected-payoffs-of-employee-eavesdropping/

Cardinal Health: Collaboration Fuses Innovation and Culture G. C. Kane, D. Palmer, A. N. Phillips, D. Kiron, and N. Buckley, Achieving Digital Maturity, 2017 MIT SMR Report on Digital Business.

All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage and retrieval) without permission in writing from the publisher.

This book was set in Stone Serif Medium by Westchester Publishing Services. Printed and bound in the United States of America.

Library of Congress Cataloging-in-Publication Data

Names: Kane, Gerald C., author.

Title: The technology fallacy : how people are the real key to digital transformation / Gerald C. Kane, Anh Nguyen Phillips, Jonathan R. Copulsky, and Garth R. Andrus.

Description: Cambridge, MA : MIT Press, [2019] | Series: Management on the cutting edge | Includes bibliographical references and index.

Identifiers: LCCN 2018030557 | ISBN 9780262039680 (hardcover : alk. paper)

Subjects: LCSH: Information technology--Management. | Technological innovations--Management. | Organizational change. | Organizational behavior.

Classification: LCC HD30.2 .K3537 2019 | DDC 658/.05--dc23 LC record available at https://lccn.loc.gov/2018030557

Contents

List of Illustrations

Series Foreword

The world does not lack for management ideas. Thousands of researchers, practitioners, and other experts produce tens of thousands of articles, books, papers, posts, and podcasts each year. But only a scant few promise to truly move the needle on practice, and fewer still dare to reach into the future of what management will become. It is this rare breed of ideameaningful to practice, grounded in evidence, and built for the futurethat we seek to present in this series.

Paul Michelman

Editor in chief

MIT Sloan Management Review

Acknowledgments

As with any such endeavor, there are many people who made this book possiblefar beyond the four of us. And while its impossible to list all of the people who have inspired us and helped us get here, we want to recognize several specific individuals.

Wed like to start by thanking Doug Palmer, David Kiron, and Natasha Buckley, who have been our research partners for the past seven years, exploring the world of digital and social business. Natasha, special thanks to you for your intimate knowledge of the data and for all of your help in making the book a reality. Wed also like to thank the rest of the research team that worked with us over the years, digging through data, interview transcripts, and program schedules, and taking on tasks big and small: Al Dea, Swati Garg, Nina Kruschwitz, Saurabh Rijhwani, Dan Rimm, Negina Rood, and Allison Ryder. And thanks to our data coders: Lauren DAlessandro, Gabrielle Hanlon, Danni Bianco, Katie Gold, Julia MacDonald, and Anna Copman.

Thank you to Paul Michelman for his support and belief in the project, and to the leaders at Deloitte who have sponsored or supported this effort: Mark Cotteleer, Rob Frazzini, Nidal Haddad, John Hagel, Alicia Hatch, Suzanne Kounkel, Andy Main, Jeff Schwartz, and Erica Volini.

A number of others contributed to the development of the book, including: Carrie Brown, Virginia Crossman, Heather Graubard, Lisa Iliff, Kelly Monahan, Stacey Philpot, Brenna Sniderman, Debbra Stolarik, and Emily Taber. And a heartfelt thanks to the dozens of executives who took time out of their schedules to talk with us over the years.

Finally, wed like to thank all of our family and friends who have supported us through this effort. Thank you for your encouragement and for sacrificing the late nights and weekends that we would otherwise have spent with you.