Chapter 3 - Business models in digital ecosystems Flashcards
What is disruptive technology?
Disruptive technology relates to instances where technology is used to fundamentally change and ‘disrupt’ the existing business model in an industry.
What are some examples of technology-driven disruption?
AI: Car industry – semi-autonomous vehicles
3D Printing: Healthcare – personalised hearing aids, personal prosthetics, dental crowns and surgical implants
Mobile Tech: UBER
Data Analytics: Energy – General Electric has increased output from wind farms by 20%
Internet of Things: Lifestyle and home products – Google Nest and partners can deliver connected houses (e.g. central heating switches on when you are 30 minutes from home)
Robots: Oil – drilling and exploration costs expected to fall by 20% due to automation
Drones: Logistics – Amazon plans to deliver using drones
To survive digital disruption, what five emerging trends shaping the digital landscape should management focus on?
Internet of Me
Outcome Economy
Platform (R)evolution
The intelligent enterprise
Workforce reimagined
What are 3 myths we need to overcome if disruption is to be seen as an opportunity not a threat?
- those organisations that are not digital already have missed their chance
- becoming a digital business is an administrative exercise that focusses on achieving operational efficiencies
- digital transformation can be successfully achieved just by creating a digital business unit headed up by a Chief Digital Officer
What are the roles and responsibilities of the board and senior leadership?
Inspirational Leadership
Competitive Edge - they will have to persuade people to change their mind-set
Establishing a strategic decision
Influence external parties
Collaboration
Business Judgement - deciding what sort of business model to adopt
Execution - people and tech need to work in harmony
Building talent
When is it best to build in a digital business model?
When an opportunity is related to the company’s core business
If the company can hire the necessary talent
When is it best to buy in a digital business model?
When it is strategically important to ‘own’ a market
Hiring the right talent is not possible
The new opportunity bears little relation the the firm’s current business model
When is it best to partner in a digital business model?
When there is no strategic need to own
Learn from ‘digital natives’
Useful when deeper partnerships are required
When is it best to invest in a digital business model?
Investing in interesting start-ups is often a valid option
Allowing an established company to connect with the right skills and capabilities.
It will also avoid hindering entrepreneurial forces with a setup focused on internal governance and reporting
When is is best to incubate/accelerate in a digital business model?
A closer relationship to the funding company,
Enables internal capabilities, infrastructure and resources to be deployed to help the start-up
Incubators and accelerators need to precisely outline both internal benefits and incentives for start-ups and entrepreneurs, and a clear strategy and vision.
What is customer-centric?
Focuses on making customers’ lives easier
Emphasizes front-office processes
e.g Argos
What is Extrafrugal?
Aim to provide high quality service at low cost
Emphasizes ‘less is more’ culture and a standardized organizational structure
What is Extrafrugal?
Aim to provide high quality service at low cost
Emphasizes ‘less is more’ culture and a standardized organizational structure
What is data-powered?
Focus on prowess in analytics and software intelligence
Emphasizes an ‘agile’ culture focused on innovation through empirical experimentation
e.g. netflix and google
What is skynet?
Focus on making intensive use of machines to increase productivity and flexibility in production
Emphasizes an ‘engineer-led’ culture dedicated to automation
e.g. Amazon
What is open and liquid?
Outward focus on creating an ecosystem that can enrich the customer proposition
Emphasizes a sharing culture with a constant flow of dialog with the outside world.
e.g. facebook, paypal
What are two key trends in attracting and retaining talent in the digital age?
Greater transparency about opportunities and more ‘inside-information’
Greater competition for digital talent
What are the responses from attracting and retaining talent in the digital age?
Foster a culture of transparency rather than resisting it
Take note of what their staff are saying about their organisation via social platforms such as Glassdoor, LinkedIn, and Twitter
Introduce a referral programme
How do you become an employer of choice (world economic forum)?
Formulate a long-term working strategy for millennials
Work with staff to formulate company values together
Empower the workforce – and give them incentives to perform
Build workspaces that attract digital talent
Create policies that support collaboration and knowledge-sharing tools /platforms such as Facebook@work, Yammer or Sprinklr
What are some typical commercial roles when creating a workforce with digital skills?
E-business manager
Digital account manager
Digital product manager
Fraud manager
What are some typical technological roles when creating a workforce with digital skills?
Scrum Master
Data Scientist
Chief Data Officer (CDO)
Data Protection Officer
What are some typical web roles when creating a workforce with digital skills?
Web project manager
Web designer
Webmaster
Developer
What are some typical marketing roles when creating a workforce with digital skills?
Digital marketing professional
Digital copywriters
Media acquisition manager
User experience designer
What are some typical facilitation roles when creating a workforce with digital skills?
Service design thinker
Content curator
Editorial manager
Chief listening officer
What are some typical HR roles when creating a workforce with digital skills?
Design learning manager
Digital work experience officer
Employer brand director
What actions can you take to create a workforce with digital skills?
Collaborate with educational establishments
Develop required competencies within the workforce via training
Mine your own organisation for hidden talent
Bring new skills into the organisation
What are some general recommendations when bringing leadership to the digital age?
Leaders need to adapt
Flatter organisational structures may work better than traditional hierarchies
Develop a culture that is more risk-tolerant and accepts failure
Use more long-term goals
What are the key roles of CEOs (World Economic Forum Recommendations)?
Creater of vision and mission
Strategic Planner
Driver of information-based business models
Enabler of shift to on-demand operating models
Innovation promoter
Operational excellence driver
What is the definition of culture?
The shared set of beliefs, values and mind-sets that guide a group’s behaviour
What factors distinguish a digital culture from others?
Having a strong mission statement and a clear sense of purpose
Lean business structures, with small, cross-functional teams as opposed to individual divisions working as separate siloes
A diverse workforce with good digital skills
What are the key areas for leaders to focus on when fostering a digital culture?
Communication
Journey management - leaders need to be at forefront of the change
Make changes visible - visual aids highlight the ‘journey’
Continuous change monitoring - e.g. feedback surveys
