A function-based relevance model for making sense of technological change in the context of a firm

Thesis (PhD)--Stellenbosch University, 2022.ENGLISH SUMMARY: The complexity of technological change in a hyper-connected world presents strategic business risks to businesses, manifested as opportunities as well as threats. Business leaders are confronted with the challenges posed by phenomena such as the Fourth Industrial Revolution (4IR) often without adequate decision-support tools. This is not helpful in a fast-changing technology landscape. There is a need for well-grounded management tools and methodologies that link technology changes to the strategy of a firm. The dissertation proposes a model and supportive methodology—an interpretive lens—that could facilitate sensemaking of technology by the leadership of a firm that can enable them to keep up with the ever-increasing rate of new emerging technologies within the context of their strategy. It describes the development of that model—referred to as the Function-based Relevance Mode (FRM) — from concept to working demonstrator. The research is positioned within the domains of technology, sensemaking, complex systems, “the job to be done”, and leadership challenges related to rapid technological change phenomena. It is underpinned by the notion that the value proposition of a firm captures “the job it does for customers” and argues that the business model (BM) of a firm may be viewed as its extended value proposition. It proposes a systems dynamics-based business model to articulate responsiveness to technological changes and support related decision-making. The FRM incorporates a specific grammatical structure of a function statement, namely, a “verb + adjective + noun” construct, which enables the extraction of function statements from appropriate text describing the functionalities of the technology and the firm. It applies corpus linguistics and analytics as supportive tools and demonstrates their use by the extraction of function statements of Artificial Intelligence, the Internet of Things, Virtual Reality, 3/3/4D-Printing, Edge Analytics, and Biotechnology as illustrative examples. A text network approach is applied to visualise and interpret the function statements. Network analytics are applied to compare sets of function statements to determine relevance between them. Group degree centrality and common group betweenness centrality are proposed as two components of a technology relevance index, which demonstrates how the dynamics of common node betweenness centrality scores may be interpreted to reveal various technology innovation opportunities to a firm, inclusive of marketpull and market-push opportunities. The FRM is applied to cases studies sourced from reputable business schools, inclusive of the introduction of robo-advisors in investment markets, the introduction of FinTech into the traditional banking market, mobile payment services opportunities, and online real estate marketing. The ability of the FRM to provide a consistent indication of technology relevance in support of strategic sense making in a firm is confirmed. Comparable approaches in the domain of technology opportunity analysis, technology forecasting, social media analysis, and patent analysis, point towards the validity of the FRM and illuminates its unique research contribution.AFRIKAANS OPSOMMING: Die kompleksiteit van tegnologiese verandering in 'n hiper-gekoppelde wêreld bevat strategiese risiko’s vir besighede, wat as geleenthede sowel as bedreigings manifesteer. Sakeleiers word gekonfronteer met die uitdagings van konstrukte soos die Vierde Industriële Revolusie (4IR), dikwels sonder voldoende besluitnemingshulpmiddels. Dit bemoeilik die navigering van die vinnigveranderende tegnologiese landskap. Daar is 'n behoefte aan goed gefundeerde bestuurshulpmiddels en metodologieë wat tegnologiese veranderings aan die strategie van 'n onderneming koppel. Die proefskrif stel 'n model en ondersteunende metodologie voor — ‘n interpretatiewe lens — wat die sinmaak van tegnologie deur die leierskap van 'n onderneming kan vergemaklik, en hulle in staat stel om tred te hou met die toenemende tempo van nuwe ontluikende tegnologieë binne die konteks van hul strategie. Dit beskryf die ontwikkeling van ‘n model — die Funksie-gebaseerde Relevansie Model (FRM) — van konsep tot werkende demonstrator. Die navorsing is geposisioneer binne die gebiede van tegnologie, sinmaking, komplekse stelsels, “die taak wat gedoen moet word” en leierskapsuitdagings wat verband hou met vinnige tegnologiese veranderings. Dit word ondersteun deur die beskouing dat die waardevoorstel van 'n onderneming, die “taak wat dit vir kliënte verrig” vasvang, asook dat die besigheidsmodel van 'n onderneming as 'n uitgebreide waardevoorstel beskou kan word. Dit stel 'n stelseldinamika-gebaseerde besigheidsmodel voor om die reaksie op tegnologiese veranderinge beter te vertolk en die verwante besluitneming te ondersteun. Die FRM inkorporeer 'n spesifieke grammatikale struktuur van 'n funksie-stelling, naamlik "werkwoord + byvoeglike naamwoord + naamwoord". Dit stel die FRM in staat om funksie-stellings wat die funksionaliteite van ‘n tegnologie en ‘n onderneming beskryf uit gepaste teks te onttrek. Dit pas korpuslinguistiek en -analise toe as ondersteunende hulpmiddels, en demonstreer die gebruik daarvan deur die onttrekking van funksie-stellings vir Kunsmatige Intelligensie (KI), die Internet van Dinge, Virtuele Realiteit, 3/4D-Drukwerk, Randnetwerk Analise en Biotegnologie. 'n Teksnetwerkbenadering word toegepas om die funksie-stellings te visualiseer en te interpreteer. Netwerkanalise word ook toegepas om stelle funksie-stellings te vergelyk met die doel om die onderlinge relevansie tussen sulke stelle te bepaal. Groepsgraadsentraliteit, en gemeenskaplike groep onderlinge-sentraliteit, word voorgestel as komponente van 'n tegnologie-relevansie-indeks. Daar word demonstreer hoe die dinamika van die sentraliteitstellings van gemeenskaplike nodusse geïnterpreteer kan word om verskillende tegnologie-innovasie-geleenthede aan 'n firma sigbaar te maak, insluitende mark-trek en mark-stoot geleenthede. Die FRM word toegepas op gevallestudies wat van gerespekteerde sakeskole afkomstig is, insluitend die geleenthede vir robo-adviseurs in beleggingsmarkte, die impak van FinTek in die tradisionele bankmark, geleenthede vir mobiele betaaldienste, en KI toepassings in aanlyn eiendomsbemarking. Die vermoë van die FRM om 'n konsekwente aanduiding te gee van tegnologiese relevansie ter ondersteuning van strategiese sinmaking in 'n onderneming, word bevestig. Vergelykbare benaderings op die gebied van tegnologiese geleentheidsanalise, tegnologievoorspelling, analise op sosiale media en patent-analise, dui op die geldigheid van die FRM en identifiseer die unieke navorsingsbydrae daarvan.Doctora