Workshop 4

Digital revolution and the future of

work
 By 2030…

80% of the

x
World
Population
AI
The Economist
2015
35 ZB Distributed
OF Ledgers.

x DATA x Quantum
Computing
&
= Digital
50B devices
Intel
2015
More to
come… transformation?
Trillions of
sensors Cloud x
The Economist
2015

Source: Professor Lanzolla G, Bayes Business School,

London
 Management, Governance and New
Technologies
 Digital technologies and enhanced monitoring capabilities:
- Nasdaq in 2017 bought Sybenetix, a London-based company that develops artificial intelligence to identify
rogue traders.
- Its software learns the behavior patterns of individual traders and can raise the alarm for their employers
when they do something out of character.

 Companies in highly regulated sectors (as telecoms, banking and

insurance) adopt AI for monitoring regulatory compliance:
- AI system at JPMorgan interprets 12000 new commercial loan agreements a year

- Firms in Europe are using AI to comply with regulations like the new General Data Protection
Regulation (GDPR)

 Using “Big Data” in corporate governance:

- Auditing firms rely on “big data” management when conducting audit of large and complex
organizations
 (Digital) Strategic “Ecosystems”

“Orchestrator” with critical assets and infrastructure

Core partners with complementary capabilities

Enabling technology

Complementors, resellers

Broadening customer base

 Company background:
- founded in 1891 as a light bulb manufacturer;
JOURNAL OF MANAGEMENT STUDIES

Case study: - started making electric shavers in 1939;

Philips - the world largest manufacturer of lighting in
2012;
HealthSuite - refocused from consumer electronics to
healthcare technology since 2013
Strategic actions:
➢ Strategic acquisitions of complementary assets
and products:
- Optiva Corporation (electric toothbrushes);
- Healthcare Solutions Group (remote healthcare)
- VISICU (developer of eICU)

➢ Divestment of traditional SBU (semiconductors,

electronics)
➢ Extended reliance on digital technologies
➢ Development of a new business model: a
healthcare platform integrator
Philips HealthSuite
“ecosystem”
An integrated, modular set of
Orchestrator
standards-based capabilities
Technology
Philips Amazon Web that support the development
Services of digital health propositions:
✓ secure storage of critical
Complementors Partners healthcare data;
App developers; Cognizant;
Wearables; Salesforce; ✓ advanced data analytics and AI
Insurers; UCSF Health; capabilities;
Hospitals Radbaud U.
✓ industry-leading interoperability,
connectivity and regulatory
To date, more than 100 types of compliance;
medical devices have been integrated
✓ extensions for the post-COVID
into HealthSuite, with over 145 billion
“new normal”.
clinical images securely archived on
the cloud platform.
 Challenges to “Legacy Governance”
Functions of Corporate Challenges presented by digitalization
Governance
Monitoring function • Risks embedded in the (opacity) of the digital monitoring
infrastructure itself (e.g., biases, filtering, etc.)
• The blurring of the organizational boundaries and functions
and, with it, of the focal points of the monitoring functions
– e.g., what should be monitored?

Strategy function • Need to build new resources/assets at the intersection of

digital and physical and disposal of legacy assets
• Knowledge recombination/integration vs. knowledge
specialization

Legitimacy vis-a-vis stakeholders • The firm’s exposure to poly-centric regulatory

environments
• That regulatory “grey areas” become a target of regulatory
action
• Challenges presented by “S” in the context of ESG
 The “Gig Economy”: Regulatory
Challenges
• Shares in some of the world's largest "gig" economy companies have
fallen after the US government outlined in October 2022 a plan to
change the way workers are treated.
• Under the US Department of Labor proposal, workers would be more
likely to be classified as employees instead of independent contractors.
• Shares in firms including Uber and Lyft fell by more than 10% on the
news.
• Tens of millions of people work in the global gig economy across
services like food delivery and transport.
• US Labor Secretary Marty Walsh said “the rule would aim to stop
companies from misclassifying workers as independent contractors”.

https://www.bbc.co.uk/news/business-63224297
 Future of Work Practices
• An employee in the Netherlands has won an unfair dismissal court case against
his former employer, US software company Chetu, after he was fired for
refusing to spend his work day surveilled by his computer camera.
• In August of 2022, the employee was required to log on during an entire
workday while sharing his screen and being monitored by camera and
attending an online training program.
• The Employee: "I don't feel comfortable being monitored for nine hours a day
by a camera. This is an invasion of my privacy and makes me feel really
uncomfortable… You can already monitor all activities on my laptop and I am
sharing my screen.“
• The employer’s e-mail:

Hi [name of applicant], Your employment is hereby terminated.

Reason: Refusal to work; Insubordination.

• The Court’s ruling "Camera surveillance for nine hours a day is

disproportionate and not allowed in the Netherlands"
www.theregister.com/2022/10/10/chetu_employee_video_surveillance_case/
 Discussion

• What new opportunities does Digital Revolution

present for your future employment/work?

• What are the main challenges you may face in

relation to the digital technologies?

11
 Next Week’s Workshop
Developing your individual project
 Next Week’s Tutorials
• Liability of Foreignness in Capital Market

Bell, R.G., Filatotchev, I., and Rasheed, A.A. (2012) ‘The liability of
foreignness in capital markets: Sources and remedies’, Journal of
International Business Studies, 43(2): 107-122.
Thank you!

Questions?