01 Digital Transformation Flashcards
What did Digitalisation mean then?
- transforming analogue formats to digital ones
- mostly used technical
What does Digitalisation mean now?
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- synonym for digital transformation
- describes the continuous change (triggered by IT) of single individuals, of companies and the complete society
- strong focus on business
What are the three dimensions of Digital transformation?
- Value Proposition (development of new products and services)
- Value Creation (improvement of internal processes)
- Customer Interaction (imporved interface to the customer)
What is Value Proposition?
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- products and services that are developed
- products becoming enhanced by IT, e.g. self-driving cars
What is Value Creation?
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- improvement of internal processes
- digitalisation of business processes
- e.g. automatic creation of invoices
What is Customer Interaction?
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- improved interface to the customer
- digital communication
- analystics -> development of customer profiles
- e.g. internet banking
What are the challenges of digital transformation?
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- information technology
- compliance
- organisation
- value added
Challenge Information Technology
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- to know the latest enabler (current trend? future profness?)
- status quo of own IT (legacy systems, interfaces)
- handling of data (IT creates lots of data - how can this be collected and analysed?)
- running IT projects (project management, get the resources to the relevant IT projects)
- enabler
- legacy systems
What are the phases of the Hype Cycle from Gartner?
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- technology trigger
- peak of inflated expectations
- through of disillusionment
- slope of enlightment
- plateau of productivity
What are the phases of the Hype Cycle from Gartner?
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- technology trigger
- peak of inflated expectations
- through of disillusionment
- slope of enlightment
- plateau of productivity
Challenge Technology: Legacy systems
What about the IT architecture in companies?
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- most companies based on IT architecture, that consists of different systems, that are often not well integrated/ partly independent from each other
- challenge is to handle these systems
- bigger enterprises have IT functions called IT-architect wo ensures that nothing unexpected happens during changes
What aspects are in the Challenge of organisation?
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- trying to align IT and organisation via strategic alignment model
- many companies lack support by top-level-management, who have no understanding for the opportunities caused by IT, which makes digital transformation really hard
- lack of digital culutre (openess for change, plan for failure, agile management… needs to be established!)
- companies are resistant against challenges (silo-thinking, requires change management)
How is Innovation Friday an example for digital culutre?
e.g. google is one of the most innovative companies - wokring on own ideas there is well promoted, employees are allowed to spend up to 20% of their time for developing own ideas
Challenge: Value added
What are the key questions?
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- is it possible to earn money with digital transformation? is it worth to digitally transform the company?
- business model: how does the company earn money? how can digital transformation support the business model in the best possible way?
Challenge: Compliance
What are the key (legal) problems here that arise due to the fast development of IT?
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- co-determination (digital transformation changes companies - for which type of transformations is the involvement of worker councils necessary?)
- compliance rules within branches
- data privacy (what are companies allowed and what not? e.g. cookies, personalization of data)
- ethical issues (biases in machine learning)
