Background

One megatrend that impacts leadership, as identified in the CSIRO Megatrends report, is diving
into digital. Digital Megatrends refer to the significant and long-term drivers of change in our
world that are being propelled or significantly impacted by digital technology. Some examples of
digital megatrends include artificial intelligence, the internet of things, robotics, big data
analytics, and virtual reality. These megatrends are affecting many aspects of our lives, including
how we work, communicate, access information, and interact with machines. It presents a
dizzying array of challenges. Strategy demands clear, compelling direction and setting priorities
to filter out the "nice to do" from "strategically important to do." Yet too many digital strategies
pile up trendy projects to build and use exciting new tools, platforms and technologies but lack
clear focus and hard thinking about the outcomes and longer-term goals to be achieved.

Justifying diving into digital as a wicked problem

Digital transformation is a wicked problem because of the high levels of uncertainty,

complexity, interdependence and adaptation it demands. Traditional public management
strategies are inadequate to such a challenge. Public executives and managers should view digital
transformation as a wicked problem. Digitalization poses challenges that cannot be met by
gathering more data and information and using traditional problem solving and strategic planning
methods. The disruptive nature of digital transformation has as much to do with people and their
uses for technologies as the technologies themselves. The unanticipated nature of technological
change is one reason it poses both opportunities and threats. Countries, businesses and
governments do not simply "transform" because of advances in digital technologies. The ways
that people and organizations react to, use and "enact" new technologies shapes transformation6.
Evidence is clear that increasing social and economic inequalities result from digital
transformation if such inequalities are not proactively addressed by policy makers. New
occupations, jobs and industries require new forms of education and training. Communication
with multiple stakeholders each holding different perspectives is needed to chart a path forward.
Technologists alone cannot solve the business, governance and social challenges of
digitalization. Consider the breadth of digital transformation. The digital age encompasses the
past 25 to 50 years of diffusion of digital information and communication technologies into
nearly every area of the economy, society and governance. Digital products, tools, services and
platforms including personal computers, smartphones, broadband, the internet, the cloud, social
media, artificial intelligence, robotics and the Internet of Things are advancing and being
adopted at varying rates across industries, governments and society. Countries have barely begun
to measure adoption and near-term impacts across the range of digital developments, but will
need to do so to develop coherent strategies and plans. Some experts refer to digitization as
moving information and data from paper to digital form whereas digitalization typically refers to
changing social interactions and business models to adjust to or exploit the value of digital
technologies. Digital transformation refers to broader, deeper changes to industry and
governance structures and ecosystems. Digitalization is highly uneven across industries, firms
and other organizations, and occupations. Analysis of digitalization trends confirms that
occupations at the high and low ends of the economic spectrum are growing, but that the middle
continues to be hollowed out7. Training and education strategies can help ensure that the
pipeline produces a labor force with the skills and expertise needed for digitalized organizations.
Moreover, attention is focused increasingly on what it is that humans do that computer cannot
do. Wicked problems by definition produce unanticipated consequences some of which lie
outside the authorities and jurisdictions tasked with digital transformation. Thus, problems may
fall through the cracks if multiple stakeholders are not part of transformation process planning.
Digitalization as a wicked problem calls for experimentation, pilot projects, rapid monitoring of
interim results and feedback to refine problem definition. Yet even experimentation can become
a trap: executive experience with digital transformation at the enterprise level suggests that
experimentation is far less difficult than gathering results from such pilots to scale new practices
and enable transformation8. Thus, to craft strategy and enterprise goals and paths forward,
strategic use of digital technologies requires active executive judgment, not simply technologist
driven initiatives. While digitalization clearly achieves faster, better, cheaper results in the short
run, managing transformation to create greater public value entails deeper rethinking and
adjustment of governance, business models, partnerships, and institutional arrangements. Large
organizations often adopt hundreds of new technologies and applications at the same time.
Disentangling these investments and their results can be daunting but often reveals a
proliferation of interesting experiments with too little thought given to strategic change and
dissemination of the most promising initiatives. This last step requires the hard work of
managing change in and across organizations requiring what are sometimes painful disruptions
to power, authority, resources and traditions. Because enterprise-level change is costly,
enterprises must start with a broad strategy encoding values and ideals toward which they can
progress flexibly as the gains from short-term initiatives are combined with longer-term, deeper
transformation that itself evolves through learning and evolution.

Applying characteristics of wicked problem on digital transformation.

Applying the characteristics of wicked problems to digital transformation, we can evaluate

whether it is a wicked problem or not. The ten principles of wicked problems, as proposed by
Rittel and Webber, include:

1. There is no definitive formulation of the problem: diving inti digital does not have a
single, clear problem definition, but rather involves a multitude of interconnected issues,
making it difficult to define precisely.

2. Wicked problems have no stopping rule: digital transformation is an ongoing process, and
its challenges persist and evolve over time. There is no clear endpoint or resolution.

3. Solutions to wicked problems are not true or false, only better or worse: Given the
complexity and interdependencies of digital transformation, there are no one-size-fits-all
solutions. Instead, leaders must aim for better approaches that align with specific contexts
and stakeholder needs.

4. There is no immediate or ultimate test of a solution: The effectiveness of interventions in

addressing digital transformation challenges may not be immediately evident. Outcomes
often require long-term evaluation and adjustment.

5. Every wicked problem is essentially unique: Urbanization challenges vary across regions
and cities due to diverse cultural, geographical, and socio-economic factors. Context-
specific solutions are necessary.

6. Wicked problems have no well-described set of potential solutions: There is no fixed set
of solutions that can be universally applied to rapid urbanization. Leaders must explore
innovative and adaptive strategies.
 7. Wicked problems are not true or false, but good or bad: Solutions should be evaluated
based on their impact and ability to address specific urbanization challenges. Trade-offs
and compromises are inevitable.

8. There is no immediate or ultimate solution to a wicked problem: Urbanization challenges

are complex and multifaceted, requiring continuous efforts to address them. Solutions are
iterative and ongoing.

9. Wicked problems demand a unique approach: Leaders must embrace interdisciplinary

collaboration, engage diverse stakeholders, and adopt flexible decision-making processes
to tackle the complexity of rapid urbanization.

10. The planner has no right to be wrong: The consequences of decisions made by leaders in
digital transformation are far-reaching and can have lasting impacts on society. Leaders
bear a significant responsibility to make informed and ethical choices

Considering the above principles, rapid urbanization aligns with the characteristics of a wicked
problem. It lacks a definitive formulation, has no stopping rule, and has no universally applicable
solutions. It requires unique approaches, continuous efforts, and interdisciplinary collaboration.

Competing Values:

When diving into the digital megatrend, there are competing values that individuals and
organizations may encounter. These values can sometimes create conflicts that need to be
managed. Here are some competing values specific to diving into digital:

1. Innovation vs. Stability: The digital landscape is characterized by rapid innovation and
disruptive technologies. On one hand, there is a need to embrace innovation and push
boundaries to stay competitive. On the other hand, there is a need for stability and
maintaining reliable systems and processes. Striking the right balance between embracing
innovation and ensuring stability can be a challenge.

2. Privacy vs. Personalization: The digital world offers vast amounts of data that can be
used to personalize experiences and deliver targeted content. However, this often comes
 at the expense of privacy concerns. Balancing the need for personalized experiences with
respecting user privacy rights can be a delicate balancing act.

3. Openness vs. Security: The digital landscape thrives on openness, collaboration, and
sharing of information. However, there is also a need for robust security measures to
protect sensitive data and systems from cyber threats. Striking the right balance between
openness and security is crucial to maintain trust and mitigate risks.

4. Global Reach vs. Local Context: The digital world allows for global connectivity and
access to a vast audience. However, catering to local contexts and cultural nuances is also
essential for success. Balancing the need for global reach with localized strategies and
customization can be a challenge in the digital space.

5. Automation vs. Human Touch: Automation and artificial intelligence have the potential
to streamline processes and improve efficiency. However, there is also a need for human
touch, empathy, and personalized interactions to create meaningful connections with
customers. Finding the right balance between automation and human touch is important
to deliver exceptional digital experiences.

6. Speed vs. Accuracy: The digital realm operates at a fast pace, and there is often pressure
to deliver quickly. However, maintaining accuracy and ensuring the quality of digital
products and services is equally important. Balancing the need for speed with
maintaining accuracy can be a challenge when diving into the digital world.

7. Short-Term Results vs. Long-Term Vision: In the digital space, there can be a focus on
achieving immediate results and meeting short-term goals. However, it is also important
to have a long-term vision and invest in sustainable strategies for future success.
Balancing short-term results with long-term vision requires strategic planning and
decision-making.

Navigating these competing values requires careful consideration and finding the right trade-offs
based on specific contexts, goals, and stakeholder expectations. It often involves making
informed decisions and finding creative solutions that align with the overall digital strategy and
organizational values.
Leadership Opportunities
Diving into the digital megatrend presents a wide range of leadership opportunities for
organizations and individuals. Here are some key areas where leaders can make a significant
impact:

1. Digital Strategy Development: Leaders who possess a deep understanding of digital

technologies and their potential can play a crucial role in shaping the organization's
digital strategy. They can identify emerging trends, assess market opportunities, and
define a clear roadmap for leveraging digital tools and platforms to achieve business
objectives.

2. Technology Adoption and Integration: With the rapid advancement of digital

technologies, leaders who can effectively assess and adopt new tools and systems have a
distinct advantage. They can lead the implementation and integration of digital solutions
across various departments, ensuring seamless workflows, improved efficiency, and
enhanced collaboration.

3. Data Analytics and Insights: The digital era generates vast amounts of data, and leaders
who can harness this data for valuable insights can drive informed decision-making and
gain a competitive edge. They can develop strategies for data collection, analysis, and
interpretation, enabling the organization to make data-driven decisions and optimize
processes.

4. Customer Experience Enhancement: Digital platforms provide ample opportunities to

enhance the customer experience. Leaders who understand the importance of delivering
personalized, seamless, and engaging experiences across digital touchpoints can create
strategies to build strong customer relationships, increase satisfaction, and drive customer
loyalty.

5. Innovation and Disruption: Digital technologies often disrupt traditional business models
and open new avenues for innovation. Leaders who foster a culture of innovation and
encourage creative thinking can drive digital transformation within their organizations.
They can identify new business models, explore emerging technologies, and drive
disruptive initiatives to stay ahead in the digital landscape.
 6. Cybersecurity and Risk Management: With increased reliance on digital systems, leaders
who prioritize cybersecurity and risk management play a critical role in protecting the
organization's digital assets and maintaining trust. They can develop robust security
strategies, implement safeguards, and ensure compliance with data protection regulations.

7. Digital Talent Development: Building a skilled and adaptable workforce is essential for
digital success. Leaders who can attract, develop, and retain digital talent are well-
positioned to drive innovation and growth. They can create a culture of continuous
learning, provide opportunities for upskilling, and foster an environment that attracts top
digital talent.

8. Digital Marketing and Branding: Leaders who understand the nuances of digital
marketing can leverage digital channels to enhance brand visibility, engage with target
audiences, and drive customer acquisition. They can develop strategies for content
marketing, social media engagement, search engine optimization, and digital advertising
to maximize the organization's online presence.

In summary, diving into digital presents numerous leadership opportunities across various
domains, including strategy, technology, data, customer experience, innovation, cybersecurity,
talent development, and marketing. Effective leaders who can navigate these opportunities with a
forward-thinking mindset and a strong understanding of digital trends can drive organizational
success in the digital age.

Interplay of the embedded competing values.

Diving into digital megatrend involves encountering opportunities and challenges presented by
the digital era. However, this process involves navigating the interplay of embedded competing
values, which requires critical reflection, some of this are;

1. Flexibility vs. Stability: One of the key competing values in diving into digital is the need
to balance flexibility and stability. Flexibility is crucial in the digital landscape as it
demands adaptability, agility, and openness to change. Organizations must be able to
experiment with new technologies, respond quickly to market shifts, and iterate their
digital strategies. However, stability is equally important, particularly when it comes to
 data security, system reliability, and compliance. Leaders must strike a balance by
fostering a culture of innovation and flexibility while ensuring stability in the
organization's digital infrastructure.

2. Internal Focus vs. External Focus: Another competing value in diving into digital is the
tension between internal focus and external focus. Internally, leaders need to focus on
building digital capabilities within the organization, fostering digital literacy, and
aligning teams toward digital goals. This requires investments in training, infrastructure,
and cultural transformation. On the other hand, external focus is essential to understand
customer needs, market trends, and industry disruptions. Leaders must strike a balance
between internal capability building and staying externally oriented to drive customer-
centric digital strategies.

3. Innovation vs. Risk Management: Diving into digital involves embracing innovation
while managing associated risks. Innovation is crucial for organizations to stay
competitive and seize new opportunities in the digital landscape. Leaders need to
encourage experimentation, support a culture of creativity, and empower employees to
think outside the box. However, this must be balanced with effective risk management.
Digital initiatives carry inherent risks such as cybersecurity threats, privacy concerns, and
operational vulnerabilities. Leaders must ensure robust risk management frameworks are
in place to mitigate potential risks while fostering an innovative environment.

4. Short-term vs. Long-term Orientation: Diving into digital requires leaders to strike a
balance between short-term gains and long-term sustainability. Digital transformation
often involves making strategic investments in technology, infrastructure, and talent,
which may yield long-term benefits but require patience. At the same time, organizations
need to demonstrate quick wins and show tangible results to maintain momentum and
secure stakeholder buy-in. Leaders must carefully manage the trade-off between
immediate returns and the long-term vision to ensure sustainable digital success.

5. Centralization vs. Decentralization: The digital era brings opportunities for centralization
of data, decision-making, and resources. Centralization can lead to economies of scale,
better data governance, and standardized processes. However, it can also stifle innovation
and hinder agility. On the other hand, decentralization allows for localized decision-
 making, nimble experimentation, and customization. Leaders must find the right balance
by centralizing core digital capabilities while empowering decentralized teams to foster
innovation and adapt to local needs.

In critical reflection, leaders must recognize and navigate these competing values effectively. It
requires thoughtful decision-making, strategic prioritization, and a deep understanding of the
organization's context. By embracing the tensions and interplay of these values, leaders can
develop a nuanced approach to diving into digital that enables them to harness the opportunities
while mitigating risks and achieving sustainable digital transformation.

Conclusion
In conclusion, diving into the digital megatrend presents both immense opportunities and
complex challenges for organizations and leaders. The interplay of embedded competing values
adds layers of complexity to this transformative journey. However, by critically reflecting on
these values and striking a delicate balance, leaders can position their organizations for success
in the digital era.

Leadership opportunities in diving into digital abound, from shaping digital strategies and
driving innovation to leveraging data analytics, enhancing customer experiences, and ensuring
cybersecurity. Effective leaders understand the need to navigate the competing values of
flexibility and stability, internal and external focus, innovation and risk management, short-term
gains and long-term sustainability, as well as centralization and decentralization.

By embracing flexibility while maintaining stability, leaders can foster an environment that
adapts to rapid digital changes while ensuring the reliability of digital systems. Balancing
internal capability building with an external focus allows leaders to align the organization's
digital efforts with customer needs and market dynamics. Encouraging innovation while
managing risks enables organizations to harness the full potential of digital technologies while
safeguarding against potential pitfalls. Striking the right balance between short-term gains and
long-term sustainability ensures that digital initiatives are both impactful and aligned with the
organization's strategic vision. Lastly, finding the optimal level of centralization and
decentralization empowers teams to innovate while leveraging centralized resources and
governance structures.
Through critical reflection and a deep understanding of the competing values at play, leaders can
navigate the complexities of diving into the digital megatrend. By doing so, they can drive digital
transformation, unlock new business opportunities, and create sustainable competitive
advantages in the dynamic digital landscape. The organizations and leaders that embrace this
transformative journey with agility, strategic foresight, and an unwavering commitment to
customer value are poised to thrive in the digital era.

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