Business models in digital ecosystem (Chapter 3) Flashcards
disruptive technology
when technology is used to fundamentally change and disrupt the existing business model
which two sectors have the largest growth with disruptive tech
-health sector
-financial services
what are the 5 emerging trends that are shaping the scope of the digital landscape
-internet of me
-outcome economy
-the platform (r)evolution
-intelligent enterprise
-workforce reimagined
what must you focus on regarding the emerging trends
focus on developing in digital strategy
internet of me
center of digital experiences through apps and services are being centralized
outcome economy
have a higher ability to measure the outcomes of services they deliver
what should orgs focus on regarding outcome economy
focus on outcome and what attracts customers
the platform (r)evolution
global platforms are easier to establish and cheaper to run because technology is rapidly changing
the intelligent enterprise
using data in a smart way lets orgs be more innovative and achieve higher degrees of operating efficiency
workforce reimagined
roles of humans are changing
how to survive digital disruption
-inspirational leadership
-competitive leadership
-establishing a strategic direction
-influence external parties
-collaboration
-business judgement
-execution
-building talent
inspirational leadership
need to energize the workforce and inspire confidence about digitization
competitive edge
need to change people’s mindsets and be innovative
establishing a strategic direction
might need to be done in a new way
collaboration
be part of the wider ecosystem and decide who to collaborate with and how
business judgement
like which business model to use
execution
how to effectively implement new tech
building talent
determine skills staff need and manage training/ recruitment
challenges firms face to become digital enterprises
-business model is disrupted
-company needs to disrupt themselves if they want the new business mode to succeed
what do firms need to do to build a disruptive business model
-cope with change
-need to change the way they identify, develop and launch new business ventures
-need to adopt one of five approaches
what are the five approaches you need to adopt to build a disruptive business model
-build
-buy
-partner
-invest
-incubate/ accelerate
build
-build a new business
benefits of building
-maximizes control
-minimizes costs in market the company owns
when should you buy
buy when you need to own the market or if there’s a significant change market is immenent
partner
partner with another company
benefits of partnering
-helps you learn more about the market and its partners models
-learn about emergent opportunities
invest
invest in start ups
incubate/ accelerate
-close relationship to funding a company deploying corporate internal capabilities, infrastructure and resources to start ups
-need to outline both internal benefits and suitable incentives for start ups
-need a clear strategy and vision
operating model
a clear description of the key relationship between functions, processes and structures that are needed for an organization to fulfil its mission
flexibility
what must you replace rigid approaches to technology data and processes with
five successful digital operating models
-customer centric
-extra-frugal
-data-powered
-skynet
-open and liquid
customer centric
-makes customers lives easier
-emphasize front-office processes
extra frugal
-less is more
-standardized organization structure
-optimize manufacturing to give high quality service at a low cost
data powered
prowess in analytics and software intelligence
skynet
makes intensive use of machines to increase productivity and flexibility in production
open and liquid
creating an ecosystem that can enrich customer proposition
what two features have become apparent when employing staff
- greater transparency about employment opportunities for people looking for a challenge
- higher competition for digital talent
why should companies have greater transparency about employment opportunities for people looking for a challenge
because people are more informed because of inside information
because of agencies and peer reviewed
why have the two features for employing staff become more apparent
because of increased level of digitization
how to retain talent
-notice what staff are saying about the organization
-introduce a referral program
how to become an employer of choice
-formulate a long-term working strategy -work with staff to develop company values together
-empower the workforce
-build workspaces that attract digital talent
-create policies that support collaboration and knowledge sharing tools
formulate a long-term working strategy
create opportunity
work with staff to develop company values together
look at staff’s aspirations
empower the workforce
give incentives
build workspaces that attract digital talent
physical layout and appearance of the environment
how to create a workforce with digital skills
collaborate with educational establishments for skills needed
need in-house training
develop required competencies within the workforce
consider skills needed and creating training for this
bring new skills into the organization
hiring new people or having exchange programmers
bringing leadership to the digital age
-must be forward thinking
-cannot have an autocratic and hierarchical structure
-have a flat organizational structure
-must be more risk tolerant
6 roles CEOs should fulfil in the digital age
- creator of vision and mission
- strategic planner
- driver of information-based business models
- enabler of the shift to on-demand operating models
- innovation promotor
- operational excellence driver
creator of vision and mission
expand mission statement to include a transformation purpose
strategic planner
1 year planning cycles driven by data and analytics
operational excellence driver
automation introduced in all departments
areas to focus on to move to a digital culture
-communication
-journey management
-make changes visible
-continuing change monitoring
journey management
forefront of culture change
create environment where human and robots can work successfully together
reskill workers
Buy
when you buy a new organisation
need in-house training like
-develop required competencies within the workforce
-mine your organization for hidden talent
-bring new skills into the organization
