Digital Transformation Toward Data-Driven Decision-Making: Theorizing Action Strategies in Response to Transformation Challenges
Sune D. Müller, Michael Zaggl, Rose Svangaard, Anja M. Jakobsen
This study investigates and theorizes how business leaders can overcome the challenges of digital transformation toward data-driven decision-making. Using an in-depth, qualitative case study of Smukfest, a large Danish festival, the research develops a framework of action strategies for leadership.
Problem
Many organizations fail to achieve their digital transformation objectives because business leaders are often overwhelmed by the associated technical, organizational, and societal challenges. There is significant uncertainty and a lack of actionable guidance on how leaders should strategize and manage the transition to a data-driven culture.
Outcome
- Business leaders face significant organizational challenges (e.g., resistant culture, fear of surveillance) and strategic challenges (e.g., balancing intuition with objectivity, unifying the leadership team). - Leaders can manage these challenges through mitigating actions such as creating a sense of digital urgency, developing digital competencies, using storytelling to communicate potential, and acting as role models. - The paper proposes the 'Executive Action Strategies of Engagement (EASE)' framework, which outlines four strategies (Unite, Organize, Manage, Participate) to guide leaders. - The EASE framework provides a new, empirically grounded perspective on managing digital transformation by clarifying the roles and actions required of business leaders.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers.
Host: Today, we’re diving into a study that provides a much-needed roadmap for a journey many businesses find difficult: digital transformation. The study is titled, "Digital Transformation Toward Data-Driven Decision-Making: Theorizing Action Strategies in Response to Transformation Challenges".
Host: It investigates how business leaders can actually overcome the hurdles of shifting their organizations to make decisions based on data, not just gut feelings. And to help us break it all down, we have our expert analyst, Alex Ian Sutherland. Welcome, Alex.
Expert: Thanks for having me, Anna.
Host: Alex, we hear about digital transformation constantly, but the summary of this study points out that many organizations fail to achieve their goals. What’s the big problem they're facing?
Expert: The big problem is that leaders get overwhelmed. They see digital transformation as a purely technical challenge, but the study makes it clear that the biggest obstacles are human and organizational. We're talking about a culture that’s resistant to change, employees who fear that new data tools are just a form of surveillance, or even a leadership team that isn't on the same page.
Host: So it's less about the software and more about the people.
Expert: Exactly. Leaders are often uncertain about how to manage that transition. They lack a clear, actionable game plan.
Host: So how did the researchers get behind the scenes to understand these challenges? What was their approach?
Expert: They did something really interesting. They conducted an in-depth case study of a large Danish festival called Smukfest. By embedding with the leadership team, they could observe these transformation challenges and the responses to them in a real-world, dynamic environment.
Host: A music festival. That’s not the typical corporate setting.
Expert: Right, but it's an ideal setting. A festival is like a small city that gets built and torn down every year. This cyclical nature allowed the researchers to see leaders try new things, make iterative improvements, and deal with the same cultural issues any company would face, just in a more concentrated timeframe.
Host: So, observing this festival's leadership team, what were the key findings? What did they uncover?
Expert: They identified two main categories of challenges. First were the organizational challenges we’ve mentioned: a deeply ingrained culture, fears of 'Big Brother' watching through data, and even the remnants of past failed digital projects creating a fear of failure.
Host: And the second category?
Expert: Strategic challenges. This was fascinating. Leaders struggled with how to balance their own intuition and experience with objective data. They also found it incredibly difficult to unify the entire leadership team around a single vision for the transformation. As one manager put it, becoming "too data-driven" could hurt the creative, daring essence of their brand.
Host: That makes sense. You don't want to lose the magic. So, how did the successful leaders manage these very human challenges?
Expert: They used what the study calls mitigating actions. Instead of just issuing mandates, they created a sense of digital urgency, explaining *why* the change was essential for survival. They used storytelling to communicate the potential—for instance, explaining how an automated bar ordering system meant volunteers got more sleep, not that they were being replaced.
Host: That’s a powerful way to frame it. What else?
Expert: And critically, they acted as role models. Leaders started using the new data tools themselves, they actively supported the initiatives in their own departments, and they demonstrated a willingness to be overruled by data, which builds a huge amount of trust.
Host: This is the crucial part for our listeners, Alex. It's a great story about a festival, but why does this matter for a CEO in manufacturing, or a manager in finance? What is the key business takeaway?
Expert: The key takeaway is the practical framework the study developed from its findings. It’s called the 'Executive Action Strategies of Engagement' framework, or EASE for short.
Host: EASE. I like the sound of that.
Expert: It’s designed to make this process easier. It gives leaders four clear strategies. The first is **Unite**. This is about getting the leadership team on the same page, displaying integrity, and taking collective ownership. It can't be just the "CIO's project."
Host: Okay, Unite. What’s next?
Expert: Second is **Organize**. This means weaving digitalization into the core corporate strategy, not having it as a separate thing. It involves redesigning structures to encourage collaboration and challenging the old, inefficient ways of doing things because "that's how we've always done it."
Host: That’s a big one. What are the last two?
Expert: The third strategy is **Manage**. This is focused on the organizational culture. It means communicating goals clearly, creating that sense of urgency, developing your employees' digital skills, and using success stories to build momentum. And the fourth is **Participate**. This is about leaders actively taking part, motivating others, showing support, and acting as role models for the change they want to see.
Host: Unite, Organize, Manage, and Participate. It sounds like a comprehensive playbook.
Expert: It is. It transforms the vague idea of 'digital transformation' into a set of concrete leadership actions that can be applied in any industry.
Host: So, to sum it up: digital transformation is not a technology problem to be solved, but a human and strategic journey to be led. And with a clear framework like EASE, leaders have a guide to navigate the path.
Host: Alex Ian Sutherland, thank you so much for breaking down this study and giving us such clear, actionable insights.
Expert: My pleasure, Anna.
Host: And thank you to our audience for tuning into A.I.S. Insights. Join us next time as we continue to connect you with living knowledge.
Digital Transformation, Leadership, Data-Driven Decision-Making, Case Study, EASE Framework, Organizational Culture, Action Strategies
