Emotional Equation: How Digital Tech Fuels Human Goals

Three purposes of Digital Transformation:

1. Instrumental Purpose: Development of Digital Capabilities. What should the manager do to transform digitally.

   
   

2. Operational Purpose: How should an organization transform itself? The DaWoGoMo Model + Organization Culture

   
   

3. Existential Purpose: Why should the organization transform digitally? Digital technologies often have a tendency to test whether an organization should continue to exist or not. (read Disruption)

In Humans, the existential purpose, is driven by the pursuit of neuroscientific reward. Every cognitive schema is determined or driven by the pursuit of emotional goals. Digital Technologies enable us to achieve these emotional goals.

Read More on | Rational Agent | Prospect Theory | Five Factor Model

Digital Capabilities (Instrumental Purpose of Digital Transformation) have the ability to meet the emotional goals of various stakeholders including management, customers. For e.g. Recommendation system on e-commerce address the need of reviews / what others are saying / whether the product fulfills the need of purchase.

The power of the operational purpose lies in the relationship between the organization, individuals, and digital technologies. The evolution of cognitive schema, which is the embodiment of an individual's view of life, is linked to the operational purpose. The cognitive schema is achieved through exploration and exploitation. Exploration refers to the search for new possibilities and the development of new knowledge, while exploitation refers to the execution and enactment of known certainties. Too much focus on one can lead to inefficiencies and missed opportunities.

Exploration in an organizational context is investment into R&D, new processes, innovation, Learning and Development while exploitation includes efficiency and optimization, scaling and growth and continuous improvement.