Artificial Intelligence as a Call for Retail Banking : Applying Digital Options Thinking to Artificial Intelligence Adoption

in Proceedings of the Thirtieth European Conference on Information Systems (ECIS 2022), Timisoara, Romania: Artificial Intelligence as a Call for Retail Banking : Applying Digital Options Thinking to Artificial Intelligence Adoption (2022)

Technology-driven challenges, both existing and emerging, require banks to invest in IT capabilities, especially in artificial intelligence (AI). Digital options theory presents a valuable guide rail for ... [more ▼]

Technology-driven challenges, both existing and emerging, require banks to invest in IT capabilities, especially in artificial intelligence (AI). Digital options theory presents a valuable guide rail for these investments. However, the nature of AI as a moving frontier of computing requires certain extensions to established digital option thinking. Based on interviews with 23 experts in the retail banking industry, we highlight the importance of thinking broadly when laying the foundation for AI options and being mindful of the dynamic effects of contextual factors. Drawing from digital options theory and the Technology-Organization-Environment framework as dual lens, our study adds a structured approach to consciously balance resources and AI-related capability investments with a broader consideration of the banking industry’s complex environment. In this way, our study complements recent research on the interplay between incumbents’ resources and digital opportunities. [less ▲]

Smart Retail Banking: Potentiale und Herausforderungen Künstlicher Intelligenz

Report (2021)

Using Blockchain to Coordinate Federal Processes: The Case of Germany's Federal Office for Migration and Refugees

in Urbach, Nils; Röglinger, Maximilian; Kautz, Karlheinz (Eds.) et al Digitalization Cases Vol. 2: Mastering Digital Transformation for Global Business (2021)

(a)Situation faced: The German asylum procedure requires close cooperation and information exchange between various authorities at the municipal, state, and federal levels. Federal separation of ... [more ▼]

(a)Situation faced: The German asylum procedure requires close cooperation and information exchange between various authorities at the municipal, state, and federal levels. Federal separation of competencies inhibits the delegation of process governance to a central authority such as the Federal Office for Migration and Refugees (BAMF). This separation also leads to regional differences as federal laws govern the procedure's general steps, whereas state laws govern implementation. Moreover, existing solutions for cross-organizational collaboration are limited in terms of flexibility, security, and data quality. As a result, the exchange of certain data on asylum procedures still occurs using Excel spreadsheets and e-mails.(b)Action taken: Against this backdrop, the BAMF explored technological options that would support the decentralized governance of the asylum procedure. After a preliminary evaluation, the BAMF decided to explore a solution based on blockchain technology. Building upon a successful proof of concept, the BAMF initiated a pilot project with Saxony's central immigration authority. This project aims to develop a blockchain solution that supports the coordination of asylum procedures and can be easily adapted to local differences and functional requirements.(c)Results achieved: The use of the blockchain solution allows for efficient, secure, and timely distribution of status information. It supports communication and improves coordination between authorities. Despite an apparent conflict between blockchain principles and data privacy requirements, the BAMF's design complies with relevant regulation (notably the GDPR). As a first-of-its-kind project, it outlines best practices and provides valuable insights into opportunities and challenges arising from the use of blockchain in the public sector.(d)Lessons learned: The BAMF's case demonstrates that blockchain solutions can be promising alternatives when the delegation of process governance to a central party is not desirable and when federal principles of organization are to be reflected technologically. However, blockchain projects require special attention to managing know-how and capabilities, software development activities, stakeholders, the regulatory context, and cross-organizational governance. [less ▲]

Affordance-Experimentation-Actualization Theory in Artificial Intelligence Research : a Predictive Maintenance Story

in 40th International Conference on Information Systems (2019)

Artificial intelligence currently counts among the most prominent digital technologies and promises to generate significant business value in the future. Despite a growing body of knowledge, research ... [more ▼]

Artificial intelligence currently counts among the most prominent digital technologies and promises to generate significant business value in the future. Despite a growing body of knowledge, research could further benefit from incorporating technological features, human actors, and organizational goals into the examination of artificial intelligence-enabled systems. This integrative perspective is crucial for effective implementation. Our study intends to fill this gap by introducing affordance-experimentation-actualization theory to artificial intelligence research. In doing so, we conduct a case study on the implementation of predictive maintenance using affordance-experimentation-actualization theory as our theoretical lens. From our study, we find further evidence for the existence of the experimentation phase during which organizations make new technologies ready for effective use. We propose extending the experimentation phase with the activity of ‘conceptual exploration’ in order to make affordance-experimentation-actualization theory applicable to a broader range of technologies and the domain of AI-enabled systems in particular. [less ▲]