What if the next wave of digital transformation isn't about technology at all?

In a world where AI writes our emails, algorithms shape our decisions, and digital transformation drives everything from business strategies to daily life, one crucial question remains unanswered: Why? In his groundbreaking new book, ‘Purpose: Digital Transformation of Individuals, Organizations, and Societies’ (Penguin Business), IIM A Professor Pankaj Setia challenges us to look beyond the dazzle of innovation to something far more fundamental—the human purpose behind our technological choices.

Challenging the very foundations of how we think about technology in our lives, in an era where artificial intelligence writes our emails and algorithms shape our decisions, Setia dares to ask the one question nobody seems to be asking: Why?

Born from two decades of research and real-world experience at the intersection of technology and human behaviour, this book emerges from the halls of the prestigious Indian Institute of Management Ahmedabad, where Setia has witnessed firsthand the blind rush toward digital transformation without purpose. Through vivid storytelling and deep insight, he reveals how this mindless chase of technology has led organizations astray, creating digital wastelands where human potential lies dormant beneath layers of automation.

‘Purpose’ introduces a fundamental reimagining of how technology can serve humanity. Through compelling case studies that span continents, Setia takes us on a journey from rural healthcare initiatives that slashed infant mortality rates to smart cities that transformed urban living while cutting energy consumption by 40%. Each story reveals a profound truth: when technology aligns with human purpose, magic happens.

The book's groundbreaking framework of Instrumental, Operational, and Existential purposes serves as a compass for leaders navigating the digital storm. As artificial intelligence and automation reshape our world, Setia's insights arrive at a crucial moment, offering a blueprint for ensuring our technological future serves our highest human values. His exploration of Artificially Intelligent Ecosystems (AIEs) reveals how organizations worldwide are already creating unprecedented value by combining human wisdom with machine intelligence.

‘Purpose’ is more than a book about digital transformation - it's a manifesto for meaningful change in an age of endless innovation. From the executive boardrooms of Fortune 500 companies to the policy corridors of governments, Setia's message resonates with uncommon clarity: the next frontier isn't about smarter machines, but smarter choices about how we use them.

As organizations worldwide grapple with AI, automation, and an increasingly digital future, Purpose arrives as a beacon of clarity in a fog of technological confusion. Each chapter unfolds like a revelation, challenging readers to look beyond the dazzle of innovation to something far more fundamental—the human purpose behind our technological choices.

The book will be released this month and will be available in all major bookstores, online platforms, and independent retailers. We would love for you to help us champion this vital message. Your support would mean everything.

Here is an excerpt from the book:

Transforming Governance

Governance transformation is the third element of the DaWoGoMo© model for digital transformation. Governance transformation is an integral part of all digital transformations. Consider the example of Indian software services leader Tata Consultancy Software’s (TCS) Secure Borderless Workspaces™ (SBWS™) model. During the Covid-19 pandemic, when many organizations needed to use digital technologies to enable WFH, TCS introduced a transformative operating model framework that enabled employees to work remotely. This framework ensured the continuation of project management practices and systems and enabled the allocation of work, monitoring and reporting, just as seamlessly as in traditional office settings. TCS used the framework to lead a governance transformation across several of its clients. For example, Dutch insurer Achmea sought TCS’s assistance in ensuring business continuity while prioritizing employee safety.

Working together, Achmea and TCS evaluated different business continuity options and implemented the SBWS™ model for enhancing remote IT equipment’s reliability and functionality. Generally, the transformation of governance is the transformation of decision rights. Leading the DBS Bank digital transformation, CEO Piyush Gupta transformed governance by merging the technology and operations (T&O) divisions. This prioritized decisions by the T&O executives, as they had higher authority in the
organizational hierarchy.

Why is it important to transform governance, as carried out by DBS Bank and TCS? To answer, think about decision rights in an organization or at home. Do you allow very young children unconstrained access to social media tools or mobiles? While these tools may help them communicate, parents limit their use. Why?

Unlimited use may not be good for children or the family (the organization). That is, parents have the decision right to constrain use. Governance manifests similarly for larger, more complex organizations. In summary, governance transformation requires viewing an organization differently: as a bundle of decision rights.

Organization: A View on What’s ‘Right’
An organization is a set of decision rights. This is a well-researched and prevalent view in organizational theory. In 1976, M.C. Jenson and W.H. Meckling underlined that an organization may not be treated as a black box and outlined how its governance matters. They combined the logic from the agency perspective—including property rights and finance—to argue how a firm’s ownership structure influences its performance. This governance view of an organization outlines the allocation of decision rights as a means to success. Therefore, in addition to changing the work constitution and rhythms, the organization has to reallocate decision rights. While work is innate to humans, so are perceptions about the ‘right’ way to work. And, organization is a judgement of the ‘right’ way to work. That is, it is not ad hoc to conceptualize the organization as a judgement and enforcement of ‘what is right’.

Human prosperity stems from our innate ability to judge what is right. Such judgements are hardwired, as they have been crucial for survival and preserving the human physical state. For example, individuals evaluate whether a particular food is right (healthy) to eat or not. Being hungry is judged to be negative and so is eating poisonous food. Further, judgements may differ across individuals. One’s understanding of the world shapes these judgements.

Therefore, people may have different understandings of the same outcomes. Individuals judge differently as they make sense of information in their world view, often evaluating its emotional effects. Researchers are currently investigating the underlying brain dynamics. Using a tachistoscope, Rolf Gunnar Sandell (1968) conducted a study that exposed participants to two different cigarette brands. These two were associated with varying attributes, such as dullness and stress. The respondents tended to select the brand associated with the attribute that matched their current state. Individuals chose the ‘stress’ brand when they were experiencing stress. Generally, each individual has different references and judgements. And each one judges the ‘right’ way to work. In other words, the governance view of the organization underlines that individuals feel differently about the right way to work.

Conflict arises because of the difference in individual judgements (of what is right). At large, it’s common for individuals to hold different perspectives and preferences, leading to conflicts at work. Environmental factors and individual tastes, preferences, attitudes and intentions influence choices and lead to conflict. Organizational governance appropriately ascertains what is right. So, governance transformation is a way to resolve the conflict arising during the transformation to a digital organization.

For instance, when an organization is launching a new product, it faces decisions about whether to pursue a social media strategy, an offline strategy or a combination of both. Individual managers may have a preference for the right combination to choose. A person with authority then has to make the final decision or accept one manager’s decision over the other’s. Therefore, governance is required to manage conflict. That is, the organization allocates decision-making rights to some people over others throughout the organization.

Allocating decision rights implies that the organization decides whose judgement will prevail. At a practical level, governance may entail determining who decides what and who reports to whom. Organizations do so by determining who has the authority to spend money, to what extent and on what items. To understand this concept better, revisit governance inside a home. In a family setting, various family members each have their own unique roles and responsibilities and a set of rules govern what is deemed right (or wrong). In instances of conflict, someone must decide the right action. Parents often assume this role, particularly when children are very young. Because young children lack the knowledge to judge appropriately, parents’ experience and understanding are considered the best judgement of what is ‘right’. That is, within a household, the parent’s authority resolves conflicts, determining the eventual course of action.

Governance transformation involves the reallocation of decision rights. To transform governance, managers may consider changing the decisions being made, who is responsible for making them or the timing of these decisions. Traditionally, various events call for governance transformation. Some examples include mergers and acquisitions, the launch of a new product line, expansions into a new country, a new strategy and similar others. Over the last few years, digital transformation has emerged as a major event requiring governance transformation. Organizations must transform governance when digitizing.

[The excerpt reproduced with the permission of the publishers.]