S05E03 The Backside of Digital Transformation: Challenges, Ethics, and Responsibilities

In this lecture, we explore the ideas of Peter Drucker, often called the father of modern management. Drucker argued that the true purpose of business is to create a customer, and that innovation and responsibility are at the heart of management practice. We discuss his influence on concepts such as management by objectives, the rise of knowledge workers, and the ethical role of corporations in society. With examples from Intel, Apple, and Johnson & Johnson, the episode highlights how Drucker's broad and pragmatic vision continues to shape how organizations think about strategy, purpose, and responsibility in a turbulent world.

In this lecture, we explore C. K. Prahalad and Gary Hamel's influential concept of core competencies and their argument that firms succeed not by managing portfolios of products, but by cultivating the deep, collective capabilities that underpin innovation and growth. Using examples from Honda, Canon, Apple, and Google, we see how core competencies enable firms to enter new markets, create new products, and sustain advantage over time. The episode also considers the risks of neglecting or misidentifying competencies, the need for renewal in a fast-changing world, and the ethical implications of valuing people and knowledge as the foundations of strategy. Prahalad and Hamel remind us that while products come and go, competencies endure — and they are the true source of long-term competitive strength.

In this lecture, we explore Jay Barney's influential Resource-Based View of the firm and his argument that sustainable competitive advantage comes from unique internal resources and capabilities. We examine the VRIN framework — resources that are valuable, rare, inimitable, and non-substitutable — and see how companies from Apple to Toyota and Zara have leveraged such resources to maintain their edge. The episode also considers critiques of RBV, its extension into dynamic capabilities, and the ethical questions raised when resources such as data, culture, or natural assets are used for competitive advantage. Barney's work reminds us that strategy is not only about markets and positioning, but about what firms uniquely bring to the competition.

In this lecture, we explore Edith Penrose's groundbreaking work The Theory of the Growth of the Firm and her lasting impact on strategy. Penrose reframed the firm as a bundle of resources whose growth is shaped by managerial limits, learning, and the redeployment of capabilities. We look at how her insights anticipated the resource-based view of strategy and remain relevant for understanding both opportunities and constraints in corporate growth. Through examples from 3M to Amazon, the episode shows how Penrose's ideas help us see growth not just as expansion, but as a dynamic process rooted in resources, capacity, and responsibility.

In this lecture, we explore Igor Ansoff's enduring contribution to strategy and his famous growth framework, the Ansoff Matrix. Ansoff showed that firms have four basic paths to growth: market penetration, market development, product development, and diversification. We examine how each path carries different risks and rewards, illustrated by cases from Coca-Cola and Disney to Apple and Amazon. The episode also considers critiques of the framework, its relevance in the digital age, and the ethical questions growth strategies raise. Ansoff's work remains a cornerstone of strategic management because it reminds us that growth is not random but a matter of deliberate choices about direction and risk.

In this lecture, we turn to Alfred Chandler, the historian of business who transformed our understanding of how organizations grow and adapt. Through his detailed studies of companies like DuPont and General Motors, Chandler introduced the principle that "structure follows strategy." We explore how firms developed the multidivisional form to support diversification, why alignment between strategic direction and organizational design is essential, and how failures like Kodak illustrate the dangers of misalignment. This episode shows how Chandler's insights remain deeply relevant in the digital age, reminding us that ambitious strategies must be supported by structures capable of carrying them out, and that the choices organizations make about structure also reflect their values and responsibilities.

In this lecture, we turn to Henry Mintzberg, one of the most influential and critical voices in the field of strategy. Mintzberg challenges the view of strategy as a purely deliberate, top-down process, arguing instead that strategies often emerge from patterns of action, adaptation, and learning. We explore his distinction between intended and realized strategy, the role of emergent opportunities, and his schools of strategy framework, which highlights the diversity of approaches organizations take. Through real-world examples such as Honda and Netflix, we see how Mintzberg's ideas reveal the messy, human, and dynamic reality of strategy. This episode shows why balancing deliberate planning with openness to emergence is essential for organizations navigating today's uncertain and fast-changing world.

In this lecture, we explore Michael Porter's influential theory of corporate strategy and his warning about the dangers of being "stuck in the middle," or in no man's land. We examine his three generic strategies—cost leadership, differentiation, and focus—and why clarity of choice is essential for competitive advantage. With real-world examples of both success and failure, we show how Porter's ideas remain deeply relevant in the age of digital transformation, where half-hearted strategies and unfocused digital initiatives risk leaving firms without direction. The episode also highlights the ethical dimension of strategy today, reminding us that clarity, responsibility, and courage are essential in shaping sustainable business success.

Our final lecture addresses the darker side of digital transformation. We explore issues of exclusion, privacy, misinformation, democratic integrity, and environmental sustainability. Ethics is placed at the heart of the discussion, highlighting the responsibilities of governments, companies, and individuals in shaping a fair and sustainable digital future. This episode reminds us that transformation is not only technological but also ethical, and that the future we create depends on the choices we make today.

This lecture turns theory into practice. We examine how digital transformation is unfolding across industries such as energy, healthcare, and automotive, and how it is reshaping government services, jobs, and everyday life. From streaming platforms to artificial intelligence, we discuss how a data-driven world creates both opportunities and disruptions. The focus is on real-world consequences—how the digital revolution is changing the way we live, work, and organize society.