Realizing strategic value through center-edge digital transformation in consumer-centric industries

Authors

  • Paul Gray
  • Omar A. El Sawy University of Southern California
  • Guillermo Asper Universidade de Brasília
  • Magnus Thordarson

Keywords:

Communications technology management, Digital business strategy

Abstract

This article was originally published in the journal MISQE and was authorized for publication by the editor-in-chief, Dr. Alan R. Dennis.

Downloads

Download data is not yet available.

Author Biographies

Paul Gray

He was Professor Emeritus and Founding Chair of the School of Information Science at Claremont Graduate University. His recent interests in information systems included business intelligence, knowledge management, data warehousing and e-commerce. This is his third article in MIS Quarterly Executive. His Ph.D. is in Operations Research from Stanford University. Before joining Claremont in 1983, he was a professor at Stanford University, Georgia Institute of Technology, University of Southern California and Southern Methodist University. Prior to his academic career, he worked for 18 years in research and development organizations, including nine years at SRI International. He most recently was a Visiting Professor at the University of California at Irvine and an Executive Director of the Teradata Institute. Professor Gray retired in May 2001 but continued to teach, do research, consult and curate the Paul Gray PC Museum at Claremont. He was awarded the LEO Award of the Association for Information Systems for lifetime achievement. He was inducted as a Fellow of the Association of Information Systems and as a Fellow of the Institute for Operations Research and the Management Sciences ”“ and, in both cases, was in the first group of Fellows named. He was a winner of the Kimball Medal of the Institute for Operations Research and the Management Sciences, named Educator of the Year by EDSIG and awarded the NATO Systems Science Prize. Professor Gray also served as President of The Institute of Management Sciences. He is the author of over 130 journal articles and the author/editor of 13 academic books. He was Founding Editor of the electronic journal Communications of the Association for Information Systems from 1998 to 2005 and was a long-time member of the Southern California Chapter of the Society for Information Management. The co- authors of this article all regard Paul Gray as their most wonderful and caring mentor.

Omar A. El Sawy, University of Southern California

Professor of Information Systems at the Marshall School of Business, University of Southern California,
where he has taught since 1983. Between 2001 and 2007, he was Director of Research for Marshall’s Institute turbulent environments and business models for digital platforms. He is the author of over 100 papers and is a six-time winner of SIM’s Annual Paper Awards competition. He is an AIS Fellow. He has carried out research on four continents, was an information systems advisor to the United Nations Development Program in Egypt and a Fulbright scholar in Finland. He is the co-author of the book Business Modeling in the Dynamic Digital Space (Springer, 2012). Most preciously, this is his sixth and last article co-authored with Paul Gray.

Guillermo Asper, Universidade de Brasília

Has been Professor at the University of Brasilia, Administration Department, FACE, since 1994, teaching
business process management design and business logistics enabled with information and communication technology. He coordinates Organizational Strategy Nucleus, CEAM. He focuses on information systems process design and innovation implementation, especially in healthcare. Professor Asper has several publications on healthcare issues in Brazilian hospitals. He has led IT departments at the Brazilian Government National Council for Science and Technology Development (1979- 1994) and at Lojas Americanas in Rio de Janeiro (1968-1979), one of the largest retail chains in Brazil.

Magnus Thordarson

Is currently an IT healthcare consultant and researcher in California. He previously spent 15 years with Kaiser Permanente where he held a variety of IT executive and senior director positions. Thordarson is a graduate of Claremont Graduate University in executive management, where he was taught and guided by Paul Gray in the management of information systems and technology. He also has extensive industry experience in food and beverages, advertising and graphic design, and financial services. His research interests and expertise include the value of information and information systems, electronic health records, healthcare costing and privacy in digital media.

References

(1) Este artigo foi publicado originalmente na revista MISQE, sendo sua publicação autorizada pelo editor chefe, Dr. Alan R. Dennis.

(2) Carol Brown is the accepting senior editor for this article.

(3) Paul Gray sadly passed away from injuries sustained in a car accident as we were crafting and writing this article. It is dedicated to him and the wonderful mentorship and warm friendship he has provided to all of us.

(4) Hagel, J. III, Seely Brown, J. and Davison, L. “How to Bring the Core to the Edge,” HBR Blog Network, 2009, available at http://blogs.hbr.org/bigshift/2009/02/how-to-bring-the-edge-to-the-c.html.

(5) Meyer, C. “Center-Edge Organization: An Alternative to Tra- ditional Hierarchy,” Working Wider, 2009, available at http://www.workingwider.com/strategic_innovation/54/.

(6) Alberts, D. S. and Hayes, R. E. Power to the Edge: Command … Control … in the Information Age, Command and Control Research Program, U.S. Department of Defense, 2003, available at http://www.dodccrp.org/files/Alberts_Power.pdf.

(7) Stabell, C. B. and Fjelstad, O. D. “Configuring Value for Com petitive Advantage: On Chains, Shops, and Networks,” Strategic Management Journal (19), p. 413-437, 1998.

(8) Porter, M. Competitive Strategy, Free Press, 1980.

(9) Stabell, C. B. and Fjelstad, O. D., op. cit., 1998.

(10) Norman, R. and Ramirez, R. “From Value Chain to Value Con- stellation: Designing Interactive Strategy,” Harvard Business Review (71:4), July/August, 1993.

(11) Meaningful use is potentially a key catalyst for transformation. Defined as a set of specific objectives to qualify for the federal HITECH incentive programs, meaningful use is an umbrella concept for the usage of electronic health record applications to: improve quality of care, safety, efficiency and treatment variations; engage patients and their families; improve care coordination and population/ public health; and maintain privacy and security of patient health information.

(12) The HITECH Act specifically uses the term EHR; other similar terms are EPR (Electronic Patient Record) and EMR (Electronic Medical Record).

(13) Murray, C., Monroe, W. and Stalder, S. “Cultivating a Disease Management Partnership: A Value-Chain Model,” Disease Manage- ment (6:2), 2003, p. 73-82.

(14) All factual data reported in this article is from public sources

(15) For a comprehensive discussion of the KP Health Connect project, see Connected for Health: Using Electronic Health Records to Transform Care Delivery, Liang, L. (ed.), Jossey-Bass, 2010.

(16) For more information, see http://xnet.kp.org/newscenter/about-kp/healthconnect/timeline.html.

(17) Chen, C., Garrido, T., Chock, D., Okawa, G. and Liang, L. “The Kaiser Permanente Electronic Health Record: Transforming and Streamlining Modalities of Care,” Health Affairs (28:2), 2009, p. 323-333.

(18) Retrieved from http://xnet.kp.org/newscenter/pressreleases/hi/2005/090105kphconline.html.

(19) Retrieved from http://www.kaiserpermanentecarestories.org/easytomanagehealth/.

(20) Zhou, Y. Y. et al. “Patient access to an electronic health record with secure messaging: Impact on primary care utilization,” The American Journal of Managed Care (13), 2007, p. 418-424.

(21) Normann, R. and Arvidsson, N. People as Care Catalysts: From Being Patient to Becoming Healthy, John Wiley & Sons, 2006.

(22) Liang, L., Unitan, R. and Weissberg, J. Managing the Health of Populations, in Liang, L. (ed.), op. cit., 2010.

(23) Weng, X., Odouli, R. and Li, D.-K. “Maternal caffeine con- sumption during pregnancy and the risk of miscarriage: a prospec- tive cohort study,” American Journal of Obstetrics and Gynecology (198:3), March 2008, p. 279e1-e8.

(24) See http://xnet.kp.org/newscenter/pressreleases/nat/2010/100110ehrpopulationcare.html.

(25) Fox, S. Peer-to-peer healthcare, Pew Research Center, 2011, available at http://pewinternet.org/~/media/Files/Reports/2011/Pew_P2PHealthcare_2011.pdf.

(26) Chase, D. Is there a business case for engaging patients? Available at http://www.forbes.com/sites/davechase/2012/10/21/is-there-a-business-case-for-engaging-patients/?goback=.gmr_93115.gfl_93115.gde_93115_member_201350038.

(27) Hawn, C. “Take Two Aspirin And Tweet Me In The Morning: How Twitter, Facebook, And Other Social Media Are Reshaping Health Care,” Health Affairs (28:2), 2009, p. 361-368.

(28) Gallagher, J. and Ransbotham, S. “Social Media and Customer Dialog Management at Starbucks,” MIS Quarterly Executive (9:4), 2010, p.197-212.

(29) Pereira, D. “Social media in healthcare: a view from Kaiser Permanente,” IBM Social Business School, 2012, available at https://www.ibm.com/developerworks/mydeveloperworks/blogs/socialbusiness/entry/social_media_in_healthcare_a_view_from_kaiser_permanente7?lang=en.

(30) Eytan, T., Benabio, J., Golla, V., Parikh, R. and Stein, S. “Social Media and the Health System,” The Permanente Journal, (15:1), 2011.

(31) Kiron, D. “Social Business at Kaiser Permanente: Using Social Tools to Improve Customer Service, Research and Internal Collaboration,” Sloan Management Review, March 6, 2012, available at http://tinyurl.com/b89ndwb.

(32) Christensen, K. and Silvestre, A. Making Health Personal, in Liang, L. (ed.), op. cit., 2010.

(33) See: Wallace, P. Testimony to Quality Measures Workgroup, October 28, 2010, available at http://goo.gl/E4wQh; Reed, M., Huang, J., Graetz, I., Brand, R., Hsu, J., Fireman, B., and Jaffe, M. “Outpatient Electronic Health Records and the Clinical Care and Outcomes of Patients With Diabetes Mellitus,” Annals of Internal Medicine (157:7), October 2012, p. 482-489.

(34) See http://www.lmpartnership.org/home.

(35) McCreary, L. “Kaiser Permanente’s Innovation on the Front Lines,” Harvard Business Review, September 2010.

(36) For more information about these initiatives, see: Kaiser Permanente and Microsoft Empower Consumers to Take Charge of their Health, June 9, 2008, available at http://xnet.kp.org/news-center/pressreleases/nat/2008/060908kpmsftpilot.html; Veterans Affairs and Kaiser Permanente Share Electronic Health Information to Improve Care for Veterans, January 2, 2010, available at http://www1.va.gov/opa/pressrel/pressrelease.cfm?id=1836; Five Leading Health Systems Create New Care Connectivity Consortium, April 6, 2011, available at http://www.prnewswire.com/news-releases/five-leading-health-systems-create-newcare-connectivity-consortium-119301529.html.

(37) Gustin, S. “Young CEO Seeks to Reset Ticketmaster With Tech and Transparency,” Wired, March, 2011, available at http://www.wired.com/business/2011/03/ticketmaster/2/.

(38) Phablet, a combination of the words phone and tablet, describes an informal class of smartphones with screen sizes ranging between 5 and 7 inches.

(39) Tung, W. and Yuan, S. “A service design framework for value co-production: insight from mutualism perspective,” Kybernetes, (37:2), 2008.

(40) Manning, H. and Bodine, K. Outside in: The Power of Putting Customer at the Center of your Business, Amazon Publishing, 2012.

(41) Medrano, R. Welcome to the API Economy, Forbes, Au- gust, 2012, available at http://www.forbes.com/sites/ciocentral/2012/08/29/welcome-to-the-api-economy/.

(42) Werbach, A. Strategy for Sustainability: A Business Manifesto, Harvard Business Press, 2009.

Published

2015-04-14

How to Cite

Gray, P., Sawy, O. A. E., Asper, G., & Thordarson, M. (2015). Realizing strategic value through center-edge digital transformation in consumer-centric industries. Revista Do CEAM, 3(1), 37–62. Retrieved from https://periodicos.unb.br/index.php/revistadoceam/article/view/10045

Issue

Section

Original research