faculty focus
enhanced meaning, motivation, autonomy and ability to make an impact. However, when decisions are generated through artificial intelligence (AI) and machine learning, employees’ sense of selfworth and perceived locus of control may diminish, leading to lower task motivation and engagement. Against the above backdrop, the natural question that begs to be answered is: what can be done to minimize and/ or prevent the challenges associated with digital transformation? Although there are a number options that organizations may choose, I suggest that the single most critical factor has to do with leadership. Despite the many different types of leadership styles, such as transformational, transactional, empowering, facilitative, and laissez-faire, just to name a few, the ideal leadership type for digital transformation has yet to be adequately addressed. There is no clear-cut answer to this, as it is still a work in thunderbird magazine
progress, but there are some critical elements that “digital leadership” should possess. I propose four key attributes that are distinctive to such leadership. The first is integration and collaboration between data and non-data personnel. This encompasses the necessary ability to facilitate the coordination between data geeks and front-line personnel in non-data specialized positions. The more communication and intelligence sharing between these two types of positions, the more power that digitization can unleash while minimizing side effects. The second is a holistic view of business performance that underscores the ability to see beyond the horizon and heed the macro - not just the micro – digital ecosphere by not succumbing to the perilous trap that data immersion can lead to. The third is crossfertilization between private and public sectors. Digital transformation has
widespread implications that are not confined to just the private sector but that can, and should, expand to the public sector. As local agents are increasingly pursuing smart cities and infrastructures, the need for digital leadership to collaborate with stakeholders beyond the immediate boundaries of the firm and to embrace a digital ecosystem is becoming more important. The last characteristic is respect for empowerment and exploratory learning. Digital leadership must be cognizant that AI and machine learning that accompany the digital economy need not replace HI (human intelligence) and EI (emotional intelligence) but should play a complementary role such that the whole is greater than the sum of its parts. Digital transformation opens up many opportunities that were unimaginable just a few short years ago, yet, at the same time, poses potent challenges that, absent keen thinking, can
derail and lead companies in unintended directions. Exercising digital leadership is one of many key steps that organizations can take to ensure that the ROI on digital transformation is maximized. References: Horst, Peter and Robert Duboff (2015), “Don’t Let Big Data Bury Your Brand,” Harvard Business Review, November, 79-86. Tanner Jr., Jeff (2014), “Big Data and Dynamic Customer Strategy,” Harvard Business Publishing. Seigyoung Auh, PhD, is director of research and professor of global marketing at Thunderbird School of Global Management at Arizona State University and a research faculty member with the Center for Services Leadership. His research examines two broad areas: the impact of digital transformation on customer decision-making and sales force and what organizations can do to improve the interface between frontline employees and customers.
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