Pub Date : 2025-10-23DOI: 10.1177/00081256251376318
Joe Peppard, Blaize Horner Reich
Information technology (IT) is central to most organizations’ success. As IT systems age, organizations replace them, yet many of those replacement projects fail to achieve expected outcomes. This article explores what boards of directors can do to prevent such failures, increasing the chances that these replatforming programs succeed. Boards are typically affected by seven blind spots, including misplaced optimism, an abundance of data but too little information, and too much focus on technology. This article describes all seven blind spots and provides four recommendations to overcome them: developing a shared mental model, ensuring organizational readiness, agreeing on a reporting scorecard, and focusing on benefits and pivoting when necessary. The article also includes a framework for developing a shared mental model as well as a set of key questions for board members to ask about replatforming programs.
{"title":"Boards of Directors and the Governance of Large IT Investments: They Don’t Know What They Don’t Know","authors":"Joe Peppard, Blaize Horner Reich","doi":"10.1177/00081256251376318","DOIUrl":"https://doi.org/10.1177/00081256251376318","url":null,"abstract":"Information technology (IT) is central to most organizations’ success. As IT systems age, organizations replace them, yet many of those replacement projects fail to achieve expected outcomes. This article explores what boards of directors can do to prevent such failures, increasing the chances that these replatforming programs succeed. Boards are typically affected by seven blind spots, including misplaced optimism, an abundance of data but too little information, and too much focus on technology. This article describes all seven blind spots and provides four recommendations to overcome them: developing a shared mental model, ensuring organizational readiness, agreeing on a reporting scorecard, and focusing on benefits and pivoting when necessary. The article also includes a framework for developing a shared mental model as well as a set of key questions for board members to ask about replatforming programs.","PeriodicalId":9605,"journal":{"name":"California Management Review","volume":"53 1","pages":""},"PeriodicalIF":10.0,"publicationDate":"2025-10-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145397903","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-19DOI: 10.1177/00081256251377346
Mohammad Rajib Uddin, Shahriar Akter, Wai Jin (Thomas) Lee, Shlomo Y. Tarba
Artificial intelligence (AI)-driven data breaches have emerged as one of the biggest challenges for corporations. New threats emerge daily in the form of personalized spear phishing messages, deceptive emails, deepfake voice or video, and disinformation. Research in this domain has so far focused primarily on what measures should be taken after a data breach; however, it remains unclear what capabilities are required to defend a company. To address the unknown and unknowable threats, this study presents how firms can develop AI-powered dynamic capabilities to tackle the next level of AI-generated threats.
{"title":"Data Breaches: Fight AI with AI","authors":"Mohammad Rajib Uddin, Shahriar Akter, Wai Jin (Thomas) Lee, Shlomo Y. Tarba","doi":"10.1177/00081256251377346","DOIUrl":"https://doi.org/10.1177/00081256251377346","url":null,"abstract":"Artificial intelligence (AI)-driven data breaches have emerged as one of the biggest challenges for corporations. New threats emerge daily in the form of personalized spear phishing messages, deceptive emails, deepfake voice or video, and disinformation. Research in this domain has so far focused primarily on what measures should be taken after a data breach; however, it remains unclear what capabilities are required to defend a company. To address the unknown and unknowable threats, this study presents how firms can develop AI-powered dynamic capabilities to tackle the next level of AI-generated threats.","PeriodicalId":9605,"journal":{"name":"California Management Review","volume":"48 1","pages":""},"PeriodicalIF":10.0,"publicationDate":"2025-10-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145314521","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-01DOI: 10.1177/00081256251370795
Aleksandre Asatiani, Jacob Torell, Tapani Rinta-Kahila, Johan Magnusson
Digital transformation is important for organizations to stay competitive. Yet, incumbents face challenges from technical debt accrued from legacy information systems. The big bang approach—aiming for a rapid replacement of legacy systems—often falls short. This failure largely results from treating technical debt as a purely technical issue, while overlooking its managerial implications. What is needed is a gradual approach that redefines IT’s role from debt custodian to strategic enabler, focusing on generating business value rather than solely eliminating technical debt. This article offers four recommendations for managers to handle technical debt amid digital transformation.
{"title":"Technical Debt Is Killing Digital Transformation, But There Is a Way Out","authors":"Aleksandre Asatiani, Jacob Torell, Tapani Rinta-Kahila, Johan Magnusson","doi":"10.1177/00081256251370795","DOIUrl":"https://doi.org/10.1177/00081256251370795","url":null,"abstract":"Digital transformation is important for organizations to stay competitive. Yet, incumbents face challenges from technical debt accrued from legacy information systems. The big bang approach—aiming for a rapid replacement of legacy systems—often falls short. This failure largely results from treating technical debt as a purely technical issue, while overlooking its managerial implications. What is needed is a gradual approach that redefines IT’s role from debt custodian to strategic enabler, focusing on generating business value rather than solely eliminating technical debt. This article offers four recommendations for managers to handle technical debt amid digital transformation.","PeriodicalId":9605,"journal":{"name":"California Management Review","volume":"35 1","pages":""},"PeriodicalIF":10.0,"publicationDate":"2025-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145247680","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-09-08DOI: 10.1177/00081256251358910
Sayan Chatterjee
This article demonstrates how Netflix has dominated the streaming market by staying focused on the same profit logic from inception. One tactic that is unique to Netflix is being able to exploit factor market inefficiencies to source their inputs much more inexpensively than others. The principles described can be used by myriad businesses across many industries.
{"title":"Lessons from Netflix’s Success","authors":"Sayan Chatterjee","doi":"10.1177/00081256251358910","DOIUrl":"https://doi.org/10.1177/00081256251358910","url":null,"abstract":"This article demonstrates how Netflix has dominated the streaming market by staying focused on the same profit logic from inception. One tactic that is unique to Netflix is being able to exploit factor market inefficiencies to source their inputs much more inexpensively than others. The principles described can be used by myriad businesses across many industries.","PeriodicalId":9605,"journal":{"name":"California Management Review","volume":"31 1","pages":""},"PeriodicalIF":10.0,"publicationDate":"2025-09-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145017474","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-08-04DOI: 10.1177/00081256251349145
Tua A. Björklund, Pia Hannukainen, Tuomas Manninen, Sampsa Hyysalo
Organizations increasingly seek benefits from design and design thinking beyond product and service creation. Building on a case study of OP Financial Group, this article showcases interconnected organizational actions to extend the utilization of design from offerings to operations and strategy. Organizing, aligning, and displaying actions work together to consolidate and embed design in organizations, offering a combinatory approach to navigating the integration-differentiation paradox. The results highlight the importance of multipronged efforts to extend the impact of design. Synergy among the three types of actions builds momentum and resilience in change efforts at different levels of design utilization.
{"title":"Extending Design in Organizations: A Meshwork of Organizing, Aligning, and Displaying Actions","authors":"Tua A. Björklund, Pia Hannukainen, Tuomas Manninen, Sampsa Hyysalo","doi":"10.1177/00081256251349145","DOIUrl":"https://doi.org/10.1177/00081256251349145","url":null,"abstract":"Organizations increasingly seek benefits from design and design thinking beyond product and service creation. Building on a case study of OP Financial Group, this article showcases interconnected organizational actions to extend the utilization of design from offerings to operations and strategy. Organizing, aligning, and displaying actions work together to consolidate and embed design in organizations, offering a combinatory approach to navigating the integration-differentiation paradox. The results highlight the importance of multipronged efforts to extend the impact of design. Synergy among the three types of actions builds momentum and resilience in change efforts at different levels of design utilization.","PeriodicalId":9605,"journal":{"name":"California Management Review","volume":"16 1","pages":""},"PeriodicalIF":10.0,"publicationDate":"2025-08-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144778452","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-08-04DOI: 10.1177/00081256251349140
Mats O. Pettersson, Joakim Björkdahl, Marcus Holgersson
This article explores the challenges faced by companies in profiting from artificial intelligence (AI). The case of Swedish multinational networking and telecommunications company Ericsson highlights that while AI holds great promise, realizing returns on investment in AI is difficult. This article identifies two main strategies: bottom-line improvements, which focus on internal efficiency gains, and top-line growth, which involves creating new businesses enabled by AI. The latter strategy is particularly challenging given the need for co-specialized complementary assets that amplify challenges related to data, capabilities, and value. This study of Ericsson’s experience emphasizes the importance of having clear strategic objectives and a deep understanding of complementarities in efforts to implement AI successfully.
{"title":"Profiting from AI: Evidence from Ericsson’s Pursuit to Capture Value","authors":"Mats O. Pettersson, Joakim Björkdahl, Marcus Holgersson","doi":"10.1177/00081256251349140","DOIUrl":"https://doi.org/10.1177/00081256251349140","url":null,"abstract":"This article explores the challenges faced by companies in profiting from artificial intelligence (AI). The case of Swedish multinational networking and telecommunications company Ericsson highlights that while AI holds great promise, realizing returns on investment in AI is difficult. This article identifies two main strategies: bottom-line improvements, which focus on internal efficiency gains, and top-line growth, which involves creating new businesses enabled by AI. The latter strategy is particularly challenging given the need for co-specialized complementary assets that amplify challenges related to data, capabilities, and value. This study of Ericsson’s experience emphasizes the importance of having clear strategic objectives and a deep understanding of complementarities in efforts to implement AI successfully.","PeriodicalId":9605,"journal":{"name":"California Management Review","volume":"153 1","pages":""},"PeriodicalIF":10.0,"publicationDate":"2025-08-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144778507","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-07-28DOI: 10.1177/00081256251343234
Leena Lankoski, N. Craig Smith
Digital transformation has been changing and will continue to change nearly every aspect of business. As a result, the foundations of entire fields are now being revisited and updated to align with new developments. Corporate responsibility (CR) is one such field, and this article examines how important digital economy developments affect CR. The article uses three core questions—responsible for what? responsible toward whom? who is responsible?—to assess the impacts of digitalization on CR. Then, the article describes the implications of these impacts for managers, CR advocates, management scholars, and policymakers.
{"title":"Corporate Responsibility Meets the Digital Economy","authors":"Leena Lankoski, N. Craig Smith","doi":"10.1177/00081256251343234","DOIUrl":"https://doi.org/10.1177/00081256251343234","url":null,"abstract":"Digital transformation has been changing and will continue to change nearly every aspect of business. As a result, the foundations of entire fields are now being revisited and updated to align with new developments. Corporate responsibility (CR) is one such field, and this article examines how important digital economy developments affect CR. The article uses three core questions—responsible for what? responsible toward whom? who is responsible?—to assess the impacts of digitalization on CR. Then, the article describes the implications of these impacts for managers, CR advocates, management scholars, and policymakers.","PeriodicalId":9605,"journal":{"name":"California Management Review","volume":"36 1","pages":""},"PeriodicalIF":10.0,"publicationDate":"2025-07-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144719715","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-07-10DOI: 10.1177/00081256251338251
Maximilian Schreieck, Jan Ondrus, Manuel Wiesche, Helmut Krcmar
Summary This article explores platform governance in established companies that face unique challenges when adopting platform strategies because of their complex organizational structures, diverse product ranges, legacy systems, and existing networks of partners. It analyzes four established companies’ governance strategies and proposes a multi-layered governance model that addresses the varying needs of internal business units, core partners, and third-party developers. This model highlights the importance of custom governance strategies tailored to specific ecosystem actors and their relationships. The findings contribute to a deeper understanding of platform governance in established companies and present practical recommendations for managers embarking on digital transformation.
{"title":"Platform Governance for Established Companies","authors":"Maximilian Schreieck, Jan Ondrus, Manuel Wiesche, Helmut Krcmar","doi":"10.1177/00081256251338251","DOIUrl":"https://doi.org/10.1177/00081256251338251","url":null,"abstract":"Summary This article explores platform governance in established companies that face unique challenges when adopting platform strategies because of their complex organizational structures, diverse product ranges, legacy systems, and existing networks of partners. It analyzes four established companies’ governance strategies and proposes a multi-layered governance model that addresses the varying needs of internal business units, core partners, and third-party developers. This model highlights the importance of custom governance strategies tailored to specific ecosystem actors and their relationships. The findings contribute to a deeper understanding of platform governance in established companies and present practical recommendations for managers embarking on digital transformation.","PeriodicalId":9605,"journal":{"name":"California Management Review","volume":"24 5 1","pages":""},"PeriodicalIF":10.0,"publicationDate":"2025-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144594503","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-06-08DOI: 10.1177/00081256251332311
Marco Balzano
Summary Errors pose critical tests for firms, challenging their ability to recover or else face decline. This article frames strategic agility as a response mechanism to overcome errors. Conversely, when firms are repeatedly unable to enact strategic agility, they can enter a hindering state where they struggle to take corrective actions. In this state, it is likely that firms will inadvertently activate error-amplifying feedback loops, becoming the primary architects of their own misfortune. This state is conceptualized as “organizational zemblanity,” which has three root causes: deteriorative culture, leadership deficiencies, and structural inefficiencies.
{"title":"Post-Error Adjustments: Strategic Agility and Organizational Zemblanity","authors":"Marco Balzano","doi":"10.1177/00081256251332311","DOIUrl":"https://doi.org/10.1177/00081256251332311","url":null,"abstract":"Summary Errors pose critical tests for firms, challenging their ability to recover or else face decline. This article frames strategic agility as a response mechanism to overcome errors. Conversely, when firms are repeatedly unable to enact strategic agility, they can enter a hindering state where they struggle to take corrective actions. In this state, it is likely that firms will inadvertently activate error-amplifying feedback loops, becoming the primary architects of their own misfortune. This state is conceptualized as “organizational zemblanity,” which has three root causes: deteriorative culture, leadership deficiencies, and structural inefficiencies.","PeriodicalId":9605,"journal":{"name":"California Management Review","volume":"5 1","pages":""},"PeriodicalIF":10.0,"publicationDate":"2025-06-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144238091","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-05-15DOI: 10.1177/00081256251331264
Han Smit
Summary Decision-making on sustainability investment faces two challenges. First, appraisal methods are based on a narrow view of shareholder value and require extensions to support decisions that involve valuable outcomes for society. Second, the consequences of climate change are uncertain. However, firms have real options to adapt, which helps them realize the energy transition. An extended net present value that includes societal real options can assess the value of phasing in renewables (e.g., timing, expansion, and growth options) and phasing out fossil fuels (contraction, abandonment, and switching options). Increased corporate awareness of societal real options value should encourage corporations to act more responsibly.
{"title":"Sustainability Real Options","authors":"Han Smit","doi":"10.1177/00081256251331264","DOIUrl":"https://doi.org/10.1177/00081256251331264","url":null,"abstract":"Summary Decision-making on sustainability investment faces two challenges. First, appraisal methods are based on a narrow view of shareholder value and require extensions to support decisions that involve valuable outcomes for society. Second, the consequences of climate change are uncertain. However, firms have real options to adapt, which helps them realize the energy transition. An extended net present value that includes societal real options can assess the value of phasing in renewables (e.g., timing, expansion, and growth options) and phasing out fossil fuels (contraction, abandonment, and switching options). Increased corporate awareness of societal real options value should encourage corporations to act more responsibly.","PeriodicalId":9605,"journal":{"name":"California Management Review","volume":"5 1","pages":""},"PeriodicalIF":10.0,"publicationDate":"2025-05-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144066104","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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