Chapter 5 Flashcards
What creates balance in digital business strategy?
- Mind and Machine
- Product and Platform
- Core and Crowd
What is the rebalance of the mind and machine?
The rebalance of the mind and machine is the idea that as artificial intelligence (AI) and machine learning become more advanced, humans will need to find new ways to work alongside machines in a productive and sustainable way. This includes developing new skills and approaches to work that complement machine capabilities.
What are some challenges to achieving a successful rebalance of the mind and machine?
Some challenges to achieving a successful rebalance of the mind and machine include:
The potential for job displacement as machines become more capable of performing routine tasks.
The need for investment in education and training to develop the skills necessary for the future of work.
The need for ethical guidelines and oversight to ensure that AI and machine learning are used in ways that are transparent, accountable, and aligned with human values.
The need to address issues of bias and discrimination that can be perpetuated by AI and machine learning algorithms.
The need for collaboration and coordination between government, industry, and academia to ensure that the benefits of the digital age are shared equitably.
What is the rebalance of the product and the platform?
The rebalance of the product and the platform is the idea that in the digital age, companies must shift their focus from simply selling products to creating ecosystems that support ongoing customer engagement and participation. This requires a shift in strategy from product-centric to platform-centric, with a greater emphasis on creating value through network effects and user participation.
What are the laws of information?
Information Decay: Information loses its value over time, especially in the digital age where information can become outdated quickly.
Information share: Information is infinitely sharable.
Information combination: The value of information increases when combined.
Information Network: The value of information increases with the number of people connected to
the network (Metcalf).
Law of the Search: The ease of finding information is inversely proportional to the amount of information available.
Law of the Referral: People trust information more if it comes from someone they know or trust.
Law of the Long Tail: The value of information is not limited to a small number of popular sources, but is distributed across many niche sources
What are some examples of the rebalance of the product and the platform in practice?
Some examples of the rebalance of the product and the platform in practice include:
Digital marketplaces such as Amazon, Alibaba, or Etsy that enable third-party sellers to reach a wider audience and benefit from network effects.
Social media platforms such as Facebook or Instagram that enable users to share content and engage with others in a participatory way.
Software-as-a-service (SaaS) platforms such as Salesforce or Hubspot that enable companies to build and manage ongoing customer relationships through subscription-based services.
Internet of Things (IoT) platforms that enable devices to connect and interact with each other in a seamless and integrated way, creating new opportunities for innovation and value creation.
