AI, Digital Transformation and Socio-economic Management

The AOM 2022 session on AI, Digital Transformation and Socio-economic Management

This AOM session had been eagerly expected by the UCMT students because the theory discussed here. In fact, many UCMT students are currently using the Socio- Economic Approach to Management” (SEAM) theory in their DBA, DEM or DHM theses.

In this AOM session, professors from American Universities and a German University provided their views on hidden costs and dysfunctions related to AI and digital transformation.

A Professor from the University of Illinois at Chicago, the former AOM division chair, argued that AI was creating “hidden work”.

A Professor from Saint Louis University, the chief editor of Communication of the Association for Information Systems, argued that digital transformation was not different from generic IT implementation.

A Professor from Pepperdine University of California shared his opinions about the business value realization of information technologies.

The presentations were followed by discussions and many questions asked by UCMT students.

Show time for UCMT students: they started to present their case studies of hidden costs calculations in China.

Many good comments from academics and practitioner.

Due to the hybrid mode, professors in Seattle, U.S., raised a few questions to the UCMT students who were online in China.

UCMT student Edward ZHAO from NEOMA analyzed the dysfunctions in a foreign bank based in China. He also explained the mechanisms between dysfunctions, hidden costs and financial consequences.

UCMT student Naja (ZHANG Yue) from ENPC found a total of more than one million US dollars of hidden costs in her state-owned enterprise, mainly related to productivity gap, absenteeism and staff turnover.

UCMT student Joyan Hayashi from DHM University of Montpellier also found a total of more than 1,4 million US dollars of hidden costs in Midea, mainly related to non-quality and staff turnover.

The amount of hidden costs calculated by Joyan Hayashi raised lots of questions from the audience in Seattle. However, professor Zardet from ISEOR University of Lyon 3 argued that the amount per head was only one thousand US dollars, which was lower than in Europe.

May need further research to find more Hidden cost.

UCMT student, Tony HUANG found a higher amount of hidden cost per head in his factory: 1,8 thousand dollars, mainly related to non-quality and staff turnover.

UCMT student, Fymmi (ZHANG Yanfei) from ENCP found the highest amount of hidden costs in her high-tech company HIK VISION with a total of more than 44 million US dollars mainly related to non-quality and productivity gap.

The huge hidden costs astonished the management. They are ready to have some actions.@ AOM by Fymmi/UCMT/ENPC/DBA

UCMT student Joyan Hayashi from DHM University of Montpellier also found a total of more than 1,4 million US dollars of hidden costs in Midea, mainly related to non-quality and staff turnover.

But the highest amount of hidden costs per person was found by UCMT student Gary (SHE Bihai) from ENCP: 4 thousand per person at TCL China Star Optoelectronics which were mainly related to non-quality and absenteeism.

These hidden costs calculations made by UCMT students in their Chinese companies raised many questions by the professors from American Universities.

Here, the professor from Chicago asked questions about the differences between hidden work and hidden costs.

In observance of the Chinese tradition, all ended with a picture of the participants… Including in the meeting room in Seattle.