Public Defence in Information Systems Science, M.Sc. (Tech.) Jukka Salonen

The title of the doctoral thesis: REALIZING STRATEGIC VALUE FROM DIGITAL INNOVATION INITIATIVES - Digital Innovation Theory-Driven Portfolio and Transformation Management

Doctoral student: Jukka Salonen
Opponent: Professor Aleksandre Asatiani, University of Gothenburg 
Custos: Professor Matti Rossi, Aalto University School of Business
 

More value from investing in digital innovation initiatives 

It is the responsibility of executive management teams to ensure that investments in digital innovation initiatives support the company's strategy and realize the value they seek. Research shows that this is not always easy. 

The key question for this study is how top management can ensure that strategic value is realized from investments in digital development projects. The thesis shows that current research falls short of addressing the realization of value from these investments and thus provides only partial help to top management. This is partly because the specific characteristics of digital projects are not sufficiently captured in models of innovation portfolio management and partly because, from a management perspective, the picture of digital innovation and digital transformation management provided by the research is complex. 

The dissertation has studied a large Spanish bank, Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), and a Finnish forest machinery manufacturer, Ponsse, and their approaches to managing digital innovation initiatives. Based on these studies, a new model for portfolio and transformation management of digital innovation initiatives was developed.
A key element of the model is the concept of strategic value. According to this model, strategic value is company-specific and depends on the situation of the company. It is not a general indicator, such as return on equity. The model also distinguishes between value creation and value realization. According to this approach, value is only realized when it can be measured in terms of the strategic objective of the company. At the heart of the model is a single - that is, only one - coherent corporate strategy that guides investment. The key to value realization is to link the company's coherent strategy at the initiative level of digital innovations to the use of the company's resources - especially its people. While digital innovation is about the use of technology, the value realization of projects is more about people and the culture and practices that surround them than about technology. Continuous learning throughout the organization about the value realized through initiatives is also key. 

The dissertation provides practical guidance for managers in managing digital innovation initiatives and complements current knowledge by combining digital innovation theory with theories of innovation portfolio and change management.

Keywords: digital innovation, strategic value, portfolio management, digital transformation, executive management

Doctoral thesis available for public display 10 days prior to the defence at: Väitöskirja elektroninen riiputus

Contact information: [email protected]