Digital transformation requires companies to change their strategies to remain competitive in a digitally changing world. However, companies struggle with recognizing digitalization's impact and prioritizing change activities. The initial phase of formulating an organizational change strategy, known as the "fuzzy front-end", is ill-defined and important to improve. The document analyzes research from information systems, management/strategy, and organization science perspectives on the fuzzy front-end phase of digital transformation strategy formulation. Key findings include the need for stronger IT understanding, monitoring customer and tech changes, involving employees, and viewing strategy formulation as a collaborative process. The document contributes that the fuzzy front-end is a fruitful area for further interdisciplinary research.

1. Sabine Berghaus
Bled eConference, 20.06.2016
The Fuzzy Front-End of Digital Transformation
Three Perspectives on the Formulation of
Organizational Change Strategies

2. 2
Definition
Digital transformation…
…is a radical change induced by digital technology
that impacts on multiple organizational units and
requires a re-definition of corporate strategy,
products, or processes in order to remain
competitive.

3. 3
Problem Statement
Digital transformation requires a change strategy
• Companies struggle with recognizing and
understanding the impact and chances of
digitalization. (Matt et al. 2015; Carlo, Lyytinen & Rose 2012)
• Often it is not clear, who is responsible and
what activities need to be prioritized. (Matt et al.,
2016)
• Initiating a transformation strategy is a key
step.
?

4. 4
Guiding Concept
The Fuzzy Front-End
• The initial phase before the actual start of the project is
ill-defined, random and mysterious (Smith & Reinertsen, 1991; Rhea, 2003).
• Improving the initial phase may have an impact on the
entire project. (Reid & De Brentani, 2004)
• Corresponds to the “phase of unfreezing“ (Lewin, 1963)

5. Analyze the
«visioning /
initiation» Phase
Search for papers
on org. change &
strategy
formulation
5
Research Goals
1. To what extent has the «fuzzy front-end» phase been
researched in the IS, OS, MS disciplines?
2. What are important characteristics and challenges within
the FFE identified in these fields?
3 Journal
Baskets (A / A+
Journals)

6. 6
To what extent has the FFE been covered?
Research had less interest in the upfront stage and are focusing more on
strategic planning and strategy implementation.

7. 7
What characteristics have been identified?
Research focuses on intended rather than emergent strategy and on
evolutionary rather than radical change.

8. Learnings for
the Fuzzy
Front End
8
Findings I
Information Systems Perspective
• IT-enabled organizational change: Change
process induced by (disruptive) technology.
• Digital strategy: Evolution of IS-strategy from a
functional to a more strategic role.
• Technology Adoption: IT impact on user
behavior.
• Stronger understanding of IT / digital technologies is
required in the strategy initiation process.
• Not just alignment of strategies but true collaboration.

9. Learnings for
the Fuzzy
Front End
9
Findings II
Management & Strategy Perspective
• Carefully monitor customer needs and
technological development.
• Change strategy formulation needs to be guided
by (but not restricted to) the top management.
• Role of the top management: Strategic change is
guided by top executives.
• Role of the environment: Radical change as a reaction
to turbulent environment.
• Organizational inertia: Understanding the urgency but
failing to build capabilties to react swiftly.

10. Learnings for
the Fuzzy
Front End
10
Findings III
Organization Science Perspective
• Involve the entire workforce.
• Strategy formulation as a collaborative process.
• Role of Workforce: Dedicated teams for strategy
development and implementation.
• Evolutionary change: Employees shape organizational
routines and behaviors.

11. 11
Discussion & Contribution
• Digital transformation is an interdisciplinary
research topic.
• The initial phase of strategy formulation seems to
be a fruitful field for research.
• The concept of the „Fuzzy Front-End“ provides
an interesting perspective on the initial phases of
the change process

12. 12
Thank you!
Feedback?
Sabine Berghaus
Research Associate
sabine.berghaus@unisg.ch
Chair Prof. Dr. Andrea Back www.aback.iwi.unisg.ch
LinkedIn: https://ch.linkedin.com/in/sabineberghaus
@stadtnomadin