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GENERAL MANAGEMENT

Mod. II - Digital transformation management

Syllabus

EN IT

Learning Objectives

LEARNING OBJECTIVES

The course is structured in two modules and aims to bring to first-year master students direct field experience about the competitive relationship between companies and their external environment and how their business process are managed, as well as how the digital technologies are transforming their key business processes.

The ENTERPRISE EVOLUTION module focuses on competition. In particular, how does it work? How do firms survive, adapt and evolve? And how do the mechanisms of co-evolution between firms, markets and country systems work? It is a matter of fact that Charles Darwin’s The Origin of Species (1859) has been representing a catalyst publication also for the development of the management literature. Although the contribution of Darwinism to understanding how firms and country-systems evolve remains controversial to date, a number of heterogeneous research perspectives have been developed within the enterprise evolution research and teaching fields. On this basis, this module aims at explaining how the enterprises’ governance and management evolve under uncertainty in dynamic and complex environments. In this regard, key attention will be devoted to strategic decision making in both the stages of natural and competitive selection,

The DIGITAL TRANSFORMATION MANAGEMENT module focuses on the business processes, looking at their characteristics as well as the impact of the digital transformation. It will be strengthened with applied classes on SAP S/4 Hana (SByD software) as ERP plays a key role as enabler of the digital transformation of business processes.
The Digital Transformation Management module will deal with:
- Business Process Management, where students will be introduced to business process management (BPM), as a reference to redesign workflow but also as a key element in an ERP implementation. BPM will be analysed with respect to BPR and process optimizing techniques. APQC will be used to look into the importance of BPM.
- IT and ERP, where students will look at the IT potential and in particular on the ERP characteristics. This section will be strengthened by a direct hands-on experience of an ERP system (SAP S/4 Hana) in different simulation games as well as in the mapping of four different business processes.
- Digital Transformation Management, where students will be engaged with digital transformation and its impact on the competitiveness, looking at the digital transformation of business processes can support the generation of new business models (business models innovation).

KNOWLEDGE AND UNDERSTANDING

1. Developing a theoretical and practical understanding about how competition works, how firms survive, adapt and evolve and how the mechanisms of co-evolution between firms, markets and country systems work.

2. Develop an understanding about about how a company is managed and how the digital technologies are transforming its key business processes, through the acquisition of specific BPM concepts, process optimizing techniques, IT and ERP tools characteristics and digital transformation toolbox.

APPLYING KNOWLEDGE AND UNDERSTANDING

1. Applying knowledge related to on how enterprise adaptation works, how enterprises and their competitive environments mutually co-evolve, and how the fundamentals of enterprises’ strategy can be implemented through their life cycle.

2. Applying knowledge related to the BPM approach such as using ERP system to support the redesign of key business processes. Students applying knowledge and understanding will be strengthened by a direct hands-on experience of an ERP system (SAP S/4 Hana) in different simulation games as well as in the mapping of four different business processes.


MAKING JUDGEMENTS

1. Evaluating the sustainability of firms as competitive forces at different stages of their life cycle.

2. Identifying key firms business processes respect to BPR, process optimizing techniques and APQC framework, also through the application of ERP tools application and its impact on business model innovation and the on-going digital transformation process.


COMMUNICATION SKILLS

Exposing business cases in group and in public, also summarizing them, in terms of data visualization, through a brief report/presentation.


LEARNING SKILLS

1. Analyzing critically competition through a "theory and practice" mixed approach.

2. Analyzing critically business processes and the implications of their digital transformation.

Prerequisites

no pre-requisites

Program

The key topics taught in module II – DIGITAL TRANSFORMATION MANAGEMENT – are the following:

PART VI – BUSINESS PROCESS MANAGEMENT
• Introduction to business process management (BPM)
• Workflow redesign (also as a key element in an ERP implementation)
• BPM, BPR and process optimizing techniques
• APQC framework

PART VII – IT and ERP
• Enterprise IT strature and potential
• ERP characteristics
• The new generation of Enterprise Apps
In the recitations, there will be a hands-on simulation of an ERP system (SAP S/4 Hana)

PART VIII – DIGITAL TRANSFORMATION MANAGEMENT
• Digital transformation and its impact on the competitiveness
• Digital transformation and business models innovation
• Digital transformation toolbox

Books

For Module II – Digital Transformation Management – the reference textbook/readings are:

For PART VI: Business Process Management
Course slides plus:
• Dumas, M., La Rosa, M., Mendling, J., Reijers, H.A. (20182), Fundamentals of Business Process Management, Springer: New York
- Chapter 3 (Essential Process Modelling): from page 63 to page 88;
- Chapter 4 (Advanced Process Modelling): from page 97 to page 128;
- Chapter 5 (Process Discovery): from page 161 to page 171

For PART VII: IT and ERP
Couse slides plus the following articles can be complementary readings in order to better look into the slides:
- McAfee, A. (2006) Mastering the Three Worlds of Information Technology. Harvard Business Review. November. Pp. 141-149.
- Porter M. (2001). Strategy and the Internet, Harvard Business Review. March. Pp. 62-78.
- Davenport T.H., (1998). Putting the enterprise into the Enterprise System. Harvard Business Review, July-August.
- IBM Institute for Business Value (2018), Plotting the Platform Payoff.
- IBM Institute for Business Value (2018), The Cognitive Enterprise.
For Part VIII: Digital Transformation
Course slides plus the following reports:
- IBM Institute for Business Value (2011), Digital transformation. Creating new business models where digital meets physical
- Capgemini Research Institute & MIT (2011), Digital Transformation: A road map for billion-dollar organizations
- Capgemini Research Institute (2017), The Digital Culture Journey [not specific reference to the many cases mentioned is required]
- McKinsey (2018), Analytics comes of age
- Global Center for Digital Business Transformation - IMD & Cisco (2016), Digital Vortex

Bibliography

Expert Insights by:
- IBM Institute for Business Value (2017), Business is being digitally reinvented
- IBM Institute for Business Value (2018), Transcending Digital Dominance
- IBM Institute for Business Value (2017), Cost transformation for the digital era
As optional reading (as the key contents have already been included in the slides):
- Rogers D.L., The digital transformation playbook, Columbia Business School Publishing, 2016

Teaching methods

The General Management course will include not only a theoretical approach, but also a strong practitioner input, through:

- live case discussions and videos
- combined talks with business experts
- simulations of business process on ERP systems
- group presentations by students.

The teaching approach will be also cross-disciplinary for more than one aspect, with elements drawn from biology and psychology constituting one of the distinctive features.

Exam Rules

The exam is based on an open-ended written test, taken in two steps (in the morning the written test on Module I and in the afternoon the written test on Module II respectively). The overall grade is the average of the performance in the two modules:

- in module I the maximum achievable grade with the written test is 28 plus students will have the possibility to improve their final evaluation through performing group works (up to 3 additional points);

- in module II the maximum achievable grade with the written test is 30 plus students will have the possibility to improve their final evaluation through participation in SAP Simulations, a test and a report on their strategy in each of the attended games (up to 1 additional point)

On this premise:

1) Excellent answers are those that represent an appropriate mix between theory and practice (i.e. business examples). Theoretical connections among the different topics are also very welcome.

2) Only students booked through the Delphi system can perform the exam.

3) Students can receive insights about their written evaluation during the first office hours immediately available after the test’s date.

4) Students can decide to reject a grade when not satisfied. Being present in any given call automatically means rejecting a grade taken previously.


The final mark of the exam is expressed out of thirty and will be obtained through the following grading system:

Fail: important deficiencies in the knowledge and understanding of the topics; limited analytical and synthesis skills; frequent generalisations and limited critical and judgemental abilities; the topics are set out inconsistently and with inappropriate language.

18-21: the student has acquired the basic concepts of the discipline and has an analytical capacity that emerges only with the help of the teacher; the way of speaking and the language used are on the whole correct.

22-25: the student has acquired the basic concepts of the discipline in a discreet way; knows how to orient him/herself among the various topics covered; and has an autonomous analysis capacity knowing how to express using the correct language.

26-29: the student has a well-structured knowledge base; he/she is able to independently rework the knowledge acquired in the context of the choice of conventional and unconventional materials according to the application; the way of speaking and the technical language are correct.

30 and 30 cum laude: the student has a comprehensive and thorough knowledge base. The cultural references are rich and up-to-date, which are expressed with brilliance and properties of technical language.