Responsible digital transformation

Why this theme — the scope

We live in a digital era, with rapid technological change led by digital technologies. Digital transformation involves the universal introduction of (big) data and digital technologies, fundamentally changing the landscape of business and markets, the functioning of society, and people's lives. The digital economy created by this transformation entails new ways of value creation in sectors as diverse as manufacturing, transportation, financial services and healthcare.

Access to data and digital technologies is an indispensable requirement for almost any enterprise and its employees, as well as in civil and societal life. The Dutch economy is highly interconnected with other countries — our country strongly depends on advanced digital infrastructure and digital competencies.

Digital transformation drives the 4th Industrial Revolution. It underlines the importance of artificial intelligence, advanced robotics, smart automation and production, interconnectedness, and decentralised decision-making. Business models are changing rapidly due to platform-based business models and new services. They redefine market rules and shape behaviours of multiple players in distributed networks instead of linear supply chains.

ELSI — Ethical, Legal and Societal Issues

The use of data and digital technologies comes with enormous challenges (often referred to as ELSI). Ethical concerns arise about how digital technology and data alter employee autonomy — at its core connected with workforce performance and well-being. EU laws and regulations, such as the Digital Markets Act and the Green Deal (including digital product passports), substantially affect the future digital economy and can be a counterweight to the US-dominated digital landscape.

Digital transformation brings major challenges:

• Financial sector disintermediation affects sustainable finance and financial / economic sustainability.
• Future-proof institutions in a digital society — will Dutch incumbents compete with global big tech (Tesla, Meta, Amazon)?
• Future of work — will AI make jobs (service-focused and knowledge work) redundant?
• Distribution of wealth and income consequences of digital transformation.
• Privacy and security for consumers, plus data-science skills demand.
• Ecological footprint — ever-increasing energy consumption for data storage and computing power, demand for scarce resources.

The world and our societies need responsible digital transformation to ensure costs do not exceed benefits in the long run. Dutch faculties of Economics and Business provide the environment in which research-based awareness of ethical implications — and the corresponding responsibility — is installed upon everyone concerned.

How we engage — our work

A hallmark of the Economics and Business sector in the Netherlands is its central position at the intersection of multiple stakeholders in digital transformation: outstanding academic and research base, corporate and non-corporate industry partners, current and future students, entrepreneurs and entrepreneurial ventures, government and third-sector organisations.

The sector can provide multiple research perspectives. Business researchers use extensive knowledge of strategic management and information systems to provide insights on digital-transformation phases. HRM expertise combined with labour economics and economic productivity enables contributions to future-of-work policies. Strong expertise in data science (built on a long tradition in econometrics) makes Economics and Business important in delivering data-science knowledge — combined with the most novel data-science methods in specific education programmes.

What to expect — our contribution and impact

The Economics and Business sector contributes across five levels of analysis:

The level of digital systems

Contribution to responsible technology development: AI/AU, data analytics, management information systems, digital technologies in process automation, transportation/logistics, and digital finance (blockchain, cryptocurrencies). Research anticipates side-effects of classification and categorisation in data analytics and algorithms, and addresses where 'seamless' and 'seamful' technology design is needed to enhance public-value-driven design (security, privacy).

The individual level

Education, training and lifelong learning in digital technologies — programming, data science, business analytics, AI — and talent-development strategies. Increasingly, we need insights into how humans work alongside digital technology and how this relates to the value of work.

The level of organisations

Understanding how incumbents transform digitally and which capabilities, skills and processes are needed to compete with global players. Pivotal role in creating new ventures applying digital value-creation models — through industry-academia cooperation, academic spin-offs, and student/alumni start-ups. Trade-offs between standardisation and local flexibility often need discussion and elaboration.

The level of employees

AI is changing future jobs at all levels. On one hand, AI and robots can help solve labour shortages from population ageing — e.g., understanding how robots can be used in healthcare. On the other, Economics and Business helps understand how AI changes jobs at different organisational levels and the labour market. Insights into which skills are required in a digitalising world, and how employees can interact with AI to increase productivity and well-being.

The level of markets and societies

Design, governance and regulation of new market mechanisms — particularly potential adverse long-term effects of 'platform' or 'gig' economies (impaired employee rights). Responsible handling of data and the use of data-science techniques and algorithms to safeguard privacy, equality and prevent polarisation.

The digital panorama of life

For some, digital transformation is a vastness of opportunities; for others a genie-out-of-the-bottle scenario. The non-digitally-savvy person may already find themselves in trouble in contemporary society. Real progress can only be made if no one is left behind. Together with all parties involved, we aim to align technology, possibility, opportunity, and responsibility.