Project Risk Management in Large-Scale Digital Transformation Projects: A Qualitative Study of Major Finnish Telecom Operators

Abstract

This study discusses the project-level risk management of large-scale digital transformation initiatives in the Finnish telecom providers. The study will examine the process of risk identi-fication, assessment and management, and examine the performance of the project man-agement practices and governance mechanisms in the complex transformation environ-ments. The qualitative research design was employed, which entailed a systematic review of literature and semi-structured interviews with six professionals in the industry. Thematic analysis was used to analyse the data. The results indicate that the risks at the project level are multi-dimensional and structural to the complexity of the digital transformation, especial-ly because of the integration of multi-systems, the presence of the old infrastructure, and the socio-technical interdependencies. Human and organisational risk factors turned out to be the most important, and there were technical and resource-related risks. It was found that risk management practices were iterative and adaptive, involving formal structures and in-formal experience-based approaches and continuous monitoring. Governance mechanisms are very important in the control of risks but their effectiveness depends on the structure of the organisation and the level of efficiency in decision-making. The research paper has its contribution to the theory and practice since it brings to attention the requirement of adap-tive, integrated and humanistic risk management strategies in complex digital transformation initiatives.