by Carolin Thrän, Leuphana University of Lüneburg, Germany.
Managers today are increasingly leading businesses that no longer resemble the organisational structures they were originally trained for. This shift requires managers to develop a new set of skills. Leuphana University addresses this by integrating the module Management and Entrepreneurship in the Digital Age into its curriculum, equipping students with the core concepts and competencies needed to navigate digital ecosystems. The example of Olio demonstrates how digital transformation reshapes the logic of managing a business.
Olio is a platform created to enable the exchange of food and non-food items within local neighbourhoods. Olio’s mission is to reduce overconsumption by encouraging people to share their unwanted items. To support this mission, the app offers three key features: users can sell unused items for little to no money, search for specific goods, and arrange loans within their community (Olio, n.d.-a).
Four Fundamental Shifts in Digital Business
Digital businesses differ from traditional firms in four fundamental ways. Firstly, the structure has changed from pipeline models, which produce a product and sell it to the market, to platform businesses. Rather than owning the resources involved, platform structures enable user-to-user contact. Olio illustrates this shift by encouraging people within a neighbourhood to exchange their household items (Olio, n.d.-a). Such structures require managers to communicate clearly and actively engage with users so that they understand their role within the ecosystem.
Secondly, data now plays a fundamentally different role. Data used to be a mere source of information for optimising processes. Today, many digital business models treat data as a core asset, building revenue streams by analysing and predicting user behaviour. Olio uses data shared by users to generate revenue by placing advertisements and offering in-app purchases for additional features (Olio, n.d.-b). To operate in these environments, managers must develop a high level of data literacy, including the ability to structure, interpret and critically assess large amounts of data.
Thirdly, managerial control has shifted to algorithmic control, with algorithms assigning tasks as well as evaluating productivity and outcomes. Algorithms perform managerial tasks by monitoring, rating and rewarding worker performance. The Olio app includes personalised search and filtering features that, in effect, function similarly to algorithmic matching, guiding users to relevant local listings (Olio, n.d.-a). Managers must understand algorithmic processes in depth to maintain user and employee trust in automated decisions.
Finally, the broader economy is shifting towards circularity. The traditional linear model of produce, use and dispose generates unsustainable levels of waste. New frameworks challenge this logic and call for companies to design products that can be reused, repaired, refurbished, remanufactured and repurposed before finally being disposed. Olio actively promotes this shift by encouraging users to reuse items including their own as well as those of their neighbours (Olio, n.d.-a). Managers operating in a circular economy must think long term and anticipate resource use and waste production over the entire lifespan of their product.
Adapting Management Education
These shifts fundamentally redefine what it means to manage a business. Managers must adapt to new technologies, new decision-making structures and larger volumes of data. By integrating these topics into its curriculum, Leuphana University prepares future managers for the realities of digitally mediated and sustainability-oriented business environments.
References
Olio. (n.d.-a). Discover Olio. https://olioapp.com/en/getting-started-on-olio/discover-olio/
Olio. (n.d.-b). How does Olio make money?
