Chapter 3

Question 1

What are Disruptive Technologies?

Answer 1

Disruptive technologies change the way businesses function, creating new, normal methods of operation.

Question 2

What is competitive advantage?

Answer 2

Competitive advantage means that a business is in a position that is superior to its competitors. Being the first in the industry to use new technologies gives a great competitive advantage.

Question 3

Examples of disruptive technologies

Answer 3

Big data
Business process automation
Data visualisation
Artificial intelligence
Blockchain
The internet of things
Cloud technology
3D printing

Question 4

Roles of the board and senior leadership in digital strategy

Answer 4

Change management
Strategy
Business models
Mutuality
Technology

Question 5

6 ways that the role of the CEO is changing from disruptive technologies

Answer 5

1. Creator of vision and mission
2. Strategic planner
3. Driver of information-based business models
4. Shift towards on-demand operating models
5. Innovation promoter
6. Operational excellence driver

Question 6

What does a CEO being a creator of vision and mission mean?

Answer 6

Expanding the traditional mission statement so it includes changes that the organisation will undertake with regard to the digital era.

Question 7

What does a CEO being a strategic planner mean?

Answer 7

Using more flexible models. Looking at shorter planning cycles to allow for more flexibility. Making it easier to take advantage of new opportunities.

Question 8

What does a CEO being a driver of information-based business models mean?

Answer 8

Encouraging the use of big data.

Question 9

What does a CEO shifting towards on-demand operating models mean?

Answer 9

Moving away from traditional hierarchical structures to models that allow more flexibility. E.g. hiring staff on demand for specific purposes.

Question 10

What does a CEO being an innovation promoter mean?

Answer 10

That the CEO doesn’t just look for innovation within the organisation. They also look externally to expand the possibilities.

Question 11

What does a CEO being an operational excellence driver mean?

Answer 11

That they champion the use of automation in all areas to improve performance and reduce costs.

Question 12

5 key trends that organisations should consider and utilise when forming their strategies

Answer 12

The internet of me
The outcome economy
The platform revolution
The intelligent enterprise
Re-imagining the workforce

Question 13

What is “the internet of me”

Answer 13

Technology connects users with the online world. Users are at the centre.

Question 14

What is “the outcome economy”

Answer 14

Traditionally competitors compete over the product or service. The outcome economy is where competitors compete by delivering measurable, post-purchase results of a product or service.

Question 15

What is “the platform revolution”

Answer 15

Platforms are best described as computer systems that can host services that allow everyone from businesses to consumers to connect and sell resources.

Question 16

What is “the intelligent enterprise”

Answer 16

By taking advantage of advances in data science and cognitive technology (where artificial intelligence carries out tasks previously completed by humans) organisations can turn big data into smart data.
Smart data can be defined as big data that has been processed and turned into actionable information that can be used by the organisation. Smart data can be used to drive automation processes with the aim of improving levels of operational efficiency and innovation.

Question 17

What is “re-imagining the workforce”

Answer 17

The need for people to work together with technology

Question 18

When considering digital business models, what are the two issues that need to be considered?

Answer 18

The innovator’s dilemma
The Incumbent’s conundrum

Question 19

What are the two main issues in The innovator’s dilemma?

Answer 19

1. Digital innovation has disrupted traditional business models, which mean that those organisations which have not adopted new technology can no longer function as they traditionally have.
2. To succeed an organisation must be willing to disrupt itself, even though the reason for it’s success was a result of its traditional business model.

Question 20

What are the 5 options a business leader can take in order to adapt a business model in The incumbent’s conundrum?

Answer 20

1. Buy - Acquiring another organisation
2. Partner - Partnering with a digital disruptor
3. Build - Building a new business model
4. Invest - Investing in a start-up company
5. Incubate - Similar to invest but involves a closer relationship with a start-up company.

Question 21

The Incumbent’s Conundrum
When is the buying option the most fitting?

Answer 21

• When an organisation’s strategy relies on having the majority of the market share
• When economies of scale are needed
• When it’s not possible to hire the correct type of employees
• If the acquired company provides a new opportunity
• The turning point for the market is close

Question 22

The Incumbent’s Conundrum
When is the partner option the most fitting?

Answer 22

The partner option allows the company to learn about the market and the business model.
Its a more suitable option than buy when there’s less urgency.

Question 23

The Incumbent’s Conundrum
When is the build option the most fitting?

Answer 23

Building a new business model may be fitting option if the opportunity is linked to the existing core business, especially if there’s enough time before the market change.

Question 24

The Incumbent’s Conundrum
When is the invest option the most fitting?

Answer 24

Investing in a start up allows the company to connect with the capabilities and skills that the start-up has. Investment allows the start-up to grow without the burden of an acquiring company.

Question 25

The Incumbent’s Conundrum
When is the incubate/accelerate option the most fitting?

Answer 25

This is a fitting option when there needs to be a closer relationship with a start-up company. helping with the early infrastructure and resources.

Question 26

What are digital operating models?

Answer 26

If disruption changes business models (the plan), it will also change operating models.
Operating models are the way that businesses need to carry out the plan.

Question 27

5 Digital Operating Models

Answer 27

• Customer-centric
• Extra-frugal
  -Data-powered
• Skynet
• Open and liquid

Question 28

What is a Customer-centric operating model?

Answer 28

Customer-centric uses digital technology to make customers’ lives easier.

Question 29

What is an Extra-frugal operating model?

Answer 29

This model looks at how a good product or service can be produced at low cost by optimising manufacturing and supply process

Question 30

What is a Data-powered operating model?

Answer 30

This model is based around using analytics and software intelligence.

Question 31

What is a Skynet operating model?

Answer 31

Skynet uses machines to increase the productivity and flexibility in production.
Amazon is a good example

Question 32

What is an Open and liquid operating model?

Answer 32

This operating model is characterised by an interaction and dialogue with its environment and its customers.

Boohoo uses a test and repeat tactic. Ordering small quantities of a large range, seeing what’s successful and then committing to larger orders of the most successful items.