CIS8011 Digital Innovation

Module 9 – Risk
Objectives

 This module addresses the following objectives with

regards to digital innovation
 Risk management
 Technology risk
 Course Overview
Digital Innovation
• Module 1 – Managing Innovation •
• Digital Innovation
• Skills
• Strategy
• Management Innovation
• Innovation Portfolio
• Module 2 – Product Lifecycle
• Digital Revolution
• Managerial Decision Making
• Diffusion of Innovation
• Hype Cycle
• Disruptive Innovation vs
Digital Innovation
• Competitive Advantage
• Module 3 – Organisational Growth
• How companies grow
• Five phases of growth
• Typology of Innovation
Tools & Frameworks
Module 4 – Digital Innovation: •
Feasibility & Viability
• Business Model Canvas
• Value Proposition Canvas
• Lean Canvas
• Mission Model Canvas
• Innovation Portfolio
• Module 5 – Design Thinking
• Design Thinking • Module 8 – Digital Innovation:
• Mindsets
• Modes and Methods
• Business and Design
• Module 6 – Digital Innovation:
Assessment • Module 9 – Risk
• Digital Enterprise
Transformation
• Business Readiness
Assessment
• Digital Innovation
Management Framework
Issues & Risk
Module 7 – Digital Innovation:
Organisational, Trust, Sharing &
Ethics
• Organisational
• Digital Trust
• Sharing Economy
• Digital Ethics
• Technology Issues
Technology Issues
• Technology Issues
• Integration
• Management
• Risk
• Technology Risk
Implementation
• Module 10 - Implementation
• Minimal Viable Product
• Cost Benefit Analysis
• Value Chain, Value System
and Value Streams
• Horizontal and Vertical
Integration
• Implementation
Risk

 Risk is a probability or threat of damage, injury,

liability, loss, or any other negative occurrence that is
caused by external or internal vulnerabilities, and that
may be avoided through preemptive action.
Integration or implementation of technology delivers
changes to processes, technology and culture, which
can have a significant impact on the risk profile of an
organisation. This is known as delivered risk.
 Project risk is the probability of an issue arising which
will impact the implementation of the technology.
 risk management, which is based the ISO 31000
standard, is a set of principles, a framework and a
process. Risk management needs to be applied to all
components of the plan namely business, information
and technology
Risk Categories
 The figure outlines risk management, which is based the ISO
31000 standard, is a set of principles, a framework and a
process. Risk management needs to be applied to all
components of the plan namely business, information and
technology. The different components contain different risks for
example:
 People risk – the risk the people will not have the adequate skills to support
the vision.
 Process risk – the risk the processes will not be efficient enough or mature
enough to support the vision.
 Technology risk– the risk the technology will not deliver the necessary
requirements.
 Supplier risk – the risk the vendor cannot deliver on the solution.
 Organisation risk – the risk the organisation does not have the maturity to
enable the change.
 Stakeholder risk – the risk the incorrect stakeholders are involved or the
stakeholders with insufficient accountability and responsibility.
Aim of Risk Management

 The aim of risk management is to understand the risk

inherent in introducing something new into the
environment, risks from the external environment and
risks from doing business (strategy risks). It is
important to identify, assess and if possible mitigate
the risks. These provide organisations with valuable
insight into an issue which may cause damage to the
organisation.
Technology Risk

 By definition digital innovation is online. Therefore, it

stands to reason that there is significant risk which is
present from an online perspective.
 Key risks
 Cyber risk the risk of being online and available
 Security risk focussing on brand and reputation damage

 Data vulnerability
References

Government, Q 2011, A Guide to Risk Management, Queensland Government, Australia.

Kaplan, K & Mikes, A 2012, 'Managing Risks: A New Framework', Harvard Business Review, vol. June 2012.

Unkown 2015, Guide To: Technology Risk, StrategicRisk, USA. https://www.aig.co.uk/content/dam/aig/emea/united-

kingdom/documents/strategicrisk-tech-risk-guide-june-2015-brochure.pdf>.