University of Reading

Section name

Digital Leadership: Creating Value

Through Technology

Digital technology
leadership
Video transcript
Hello, my name is Vaughan Michell. I'm the Programme Director for the MSc in Business Technology
Consulting here at Henley Business School. I want to tell you a little about digital technology
leadership.
Technology is everywhere in the world today. To many young people, technology has always been
present in the swiping of a screen or the voice from an electronic toy. Web technology dominates our
lives by enabling transfer of information, ideas and decisions at light speed. In many cases, almost to
every one of us.
Although technology started with man's first attempts at controlling and surviving in the world, it
took an information automation revolution that was driven by electronics and the integrated circuit
to arrive at the internet age.
Today, we are poised on the cusp of an even greater revolution with the introduction of disruptive
electronic technologies. But how do we harness such riches? The answer lies in the human condition.
Since the age of the Greeks and ancient civilisations, we needed the leadership of visionaries. Those
that saw further than others. Those that took risks and bore failures and successes. We need, in short,
leadership of technology. The exciting but difficult visionary path that marries an understanding and
insight about new technology to the dreams of man.
This module will explore how business leaders can harness technology to make a new future for their
businesses. We start with what principles link technology to business strategy and leadership.
To implement strategy, any successful business must first identify its goals and guiding principles.
And through these, define the services that the business must provide.
But services delivered through capabilities and work processes. These are executed by a combination
of people and technology.
In the past, most processes were human-driven, supported by standalone machines that had to be
constantly adjusted by people. The advent of a mechanical computer enabled increased provision of
military information for decisions in the first part of the 20th century.

Henley Business School, University of Reading 2016

University of Reading

Section name

The mechanical computer itself underwent disruptive change into an electronic form with the Turing
machine and the integrated circuit and microelectronics. But it was not until the start of the
electronic digital age in the '50s and '60s that speed of machine information processing was fast
enough for data, information, and knowledge to be stored, processed, and transmitted within a
business.
In terms of key digital principles, these encompass the digital encoding of data with the electrical
transfer that has enabled the rapid collection of data, processing of it, and the information. And
presentation and dissemination of this information has contextual facts for business decision-making
in the computer processor and its interface.
Technology capability has advanced through devices, tools, and machines, and the knowledge to use
them to aid our work. The addition of digital information and control systems and of cheap, fast
electronic computing power has made the information more pervasive and instantly available.
Digital disruptive technologies take advantage of these digital principles to create new value and new
markets and act as enablers to increase efficiency and reduce costs of work processes whilst
delivering the business strategy. Examples of these neighbours of work include social media, the
ability to record and synthesise human views and feelings via digital technology, mobile technology,
platforms and applications to enable computing any time anywhere. And also, analytics. The analysis
of massively increased and available sensor data and human information to identify useful patterns.
For example, drug effects in a hospital or new social trends.
This is supported by cloud computing. The use of globally networked computers to provide, process,
store and disseminate data at low cost. Also, the Internet of Things. The applications of sensors and
actuators connected wirelessly to objects and people to enable remote or automated control and
decision-making globally.
But how has technology changed business? This is best illustrated by Tidd and Bessant's 4 P's of
innovation space model. As we can see, there are four key areas. Changes to the mental model of
what is done, the paradigm; changes to the product and service, changes to the marketing position,
and changes to the way things are done, the process.
In terms of process changes and the way things are done, analytics can be used to uncover hidden
effects in drug responses in intensive care. Therefore, completely changing the process of capturing
new methods and models.
Internet of Things can be used to sense moisture in the soil, and automatically alert farmers to
drought. And therefore, change the process of managing crops.
Products and service changes can also occur. Mobile technology can be used to monitor home
security now from anywhere in the world. And 3D printing is itself both a new product and a new
service to create a new device or new structure. And also, it changes the design process.
In terms of the paradigm changes to the model of what an organisation does, we can think of social
media, capturing data on sentiments from social media can be used now to predict stock market
performance.
And finally, the position, the marketing position of the product, in terms of the products and services.
For example, cloud computing can now be used to store backup data as a backup service. And

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University of Reading

Section name

Internet of Things to monitor and ensure drivers can adjust their behaviour and reduce their
insurance premiums. But the process and technology used will ultimately depend on the human.
Ultimately, it's the human as leader that determines the success of technology. We will examine four
key types of technology leadership-- enterprise technology leadership, the visionary leadership of a
chief executive officer in terms of enterprise. Technology implementation leadership, the leadership
of a chief information officer delivering the right capability at the right point in the operating model.
Technology innovation leadership, the leadership of the chief technology officer in developing
innovative technology, delivering the right capability and products and services. And finally,
technology thought leadership, technology solutions through thought leadership to deliver the right
problem-solving and solution capability.
In summary, in this course we will go on a journey of exploration of how tomorrow's leaders can
identify and lead tomorrow's disruptive and innovative digital technology to produce the right future
for the right business of tomorrow.

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