6. Digitalization Flashcards
What is Digitalization?
Digitalization is the process of employing digital technologies and information to transform business operations and social life interactions.
What are the main technological foundations of digitalization?
The main technological foundations of digitalization include architectural advancements; and algorithmic advancements (e.g.; machine learning).
What are network effects?
Network effects occur when the value of a product or service increases as more people use it.
What is a platform business model?
A platform business model facilitates the exchange of value between two or more user groups; typically a consumer and a producer. Platforms focus on creating a means of connection; rather than production.
What are the characteristics of disruptive digital business models?
Disruptive digital business models are characterized by network effects ; nearly zero marginal cost to serve additional customers; and the monetarization of products/services through different parties involved.
What is the significance of big data in digitalization?
Big data is crucial for digitalization as it enables deeper market understanding; superior customer experiences; and the creation of new business models.
What is the role of artificial intelligence in managing big data?
Artificial intelligence (AI) helps in processing extremely large amounts of data; finding patterns; and making predictions; thereby enhancing decision-making and operational efficiency.
What is the main strategy of the Thermomix?
The main strategy of the Thermomix involves a differentiation strategy; focusing on high perceived value through features; design; and a loyal user community.
How has Thermomix employed digitalization?
Thermomix has employed digitalization by introducing features like touchscreen with guided cooking; WiFi add-ons for accessing a cloud-based recipe catalog; and continuous software upgrades to enhance user experience and loyalty.
What is the impact of social media in digital business models?
Social media satisfies universal human needs such as communication; entertainment; and recognition. It has an enormous impact on politics; society; commerce; work; education; and culture.
3 V’s of “Big Data
volume/ variety/ velocity
Name three essential elements in a business model
- Value creation - addresses a customers needs.
- Value configuration – the way resources and activities are organized to produce this value.
- Value capture – the way the cost structures and revenue streams create added value for stakeholders.
3 factors for disruptive power
social wheel: network effects
business model wheel:: nearly zero marginal cost
technological wheel: architecture/algorithm advancements
