E2 Flashcards
The ‘digital revolution’ (sometimes known as Web 3.0) is a response to
the changing expectations of customers, very often driven by advances
in technology.
Required: Identify which THREE of the following are technological advances driving change in this way. • Increased demand for fast service provision • Data analytics and the cloud • Reduction in hardware cost • Global Internet access • Increased numbers of connected devices
Option 1 Increased demand for fast service provision
Option 2 Data analytics and the cloud - X
Option 3 Reduction in hardware cost
Option 4 Global Internet access - X
Option 5 Increased numbers of connected devices - X
Which TWO of the following are key factors involved when establishing ‘cost architecture’ within the ‘cost model’ of residual value?
- Process efficiency
- Pricing policy
- Collection policy
- Activity levels
- Process efficiency - X
- Pricing policy
- Collection policy
- Activity levels - X
Which of the following is not a stakeholder that will share a business’s residual value?
(Note: residual value here is the surplus between revenue and costs).
- The government
- Shareholders
- The firm itself
- The employees
- The government
- Shareholders
- The firm itself
- The employees - X
Define the below and describe what situation they refer to:
- Hornets Nest
- Lions Pride
- Shark Tank
- Wolf Pack
These describe the different combinations of Orchestration and Complexity within the spectrum of ecosystem archetypes.
- Hornets Nest = Where high complexity and loose orchestration promotes fragmented competition
- Lions Pride = Where high complexity and tight orchestration motivate a winner-take-all mentality
- Shark Tank = Where low complexity and loose orchestration creates a turbulent environment
- Wolf Pack = Low complexity and tight orchestration promotes collaboration
Stakeholder Analysis - Mendelow’s Matrix
- Explain the traditional approach to managing stakeholders
- Low Interest and Low Power - Minimal Effort
- Low Interest and High Power - Keep Satisfied
- High Interest and Low Power - Keep Informed
- High Interest and High Power - Key Players
What does Contextualised Interaction mean?
Contextualised interaction means that customers expect a product or
service that is tailored to their own specific needs. The video streaming
service Netflix helps meets this demand by making recommendations on
programmes that are likely to be of interest to the viewer based on
historic patterns.
Anji is considering buying a new laptop. She is doing some Internet
research, and has found a site called ‘techchoice.com’, which contains
descriptions of various laptops together with their technical specifications
and expert reviews. Anji has been asked to enter details about where
she lives, and why she wishes to buy a laptop. As a result, Anji has
identified the make and model of laptop she thinks she wishes to
purchase, because it precisely meets her needs and is available in her
area. The webpage has a link to another site, which provides
independent user reviews of that model. There are also links to the
relevant pages on the websites of the three retailers in Anji’s country
currently offering the lowest prices for that model.
According to the World Economic Forum/Accenture analysis, there are a
number of factors that drive customer demands in the digital era.
Required:
Examine the above statement and select which TWO of the following
‘drivers of customer demands in the digital era’ are being described.
• Contextualised interaction
• Self-service
• Peer review
• Seamless experience
• Transparency.
Option 1 Contextualised interaction - X Option 2 Self-service Option 3 Peer review Option 4 Seamless experience - X Option 5 Transparency
An insurance company is regulated by the Financial Conduct Authority, it
has many rules that must be obeyed if penalties are to follow.
How should this stakeholder be dealt with within Mendelow’s matrix?
A Keep informed
B Obeyed as a key player
C Keep satisfied
D With minimal effort
C
Although the rules must be obeyed Mendelow defined a regulator as
having low levels of interest (unless provoked) and high levels of power
and should therefore be kept satisfied
Alternative approaches to business models chapter
Under normal circumstances, should a business focus its value effort on Power, Urgency, Legitimacy or a combination of all 3?
A split between Power, Urgency and Legitimacy - in the middle of a Venn Diagram. However, there are circumstances where an urgent situation arises and may take precedent.
In relation to value propositions, which of the following statements are
true?
(1) Value propositions for principal stakeholders should remain
unchanged for long periods to ensure trust is gained.
(2) A good value proposition doesn’t have to meet the needs of a
stakeholder as long as it is measurable.
A (1) only
B (2) only
C Both are true
D Neither are true
D
We live in a VUCA environment with change part of our almost daily
lives and whilst consistency is important the focus might have to change
regularly. Meeting the needs of a stakeholder is paramount, making
something measurable is a “nice to have”.
Define ‘The Internet of Me’
Users are being placed at the centre of digital
experiences through apps and services being
personalised
Define ‘Outcome Economy’
Customers want outcomes rather than just products
Define ‘Platform (r)evolution’
Global platforms are becoming easier to establish and
cheaper to run, e.g. via the cloud
Define ‘The Intelligent Enterprise’
Using data in a smart way enables organisations to
become more innovative and achieve higher degrees
of operating efficiency
Define ‘Workforce Reimagined’
Whilst greater use is made of smart machines, the role
of human beings is not being removed altogether; they
are simply being used in a different way
Explain the Digital Business Model - ‘Build’
Might be the best route
- When an opportunity is related to the company’s core business
- If the company can hire the necessary talent
E.g. General Electric launched GE Digital in 2015 to bring together all
its digital capabilities into one organization
Explain the Digital Business Model - ‘Buy’
Usually the most appropriate
- When it is strategically important to ‘own’ a market
- Hiring the right talent is not possible
- The new opportunity bears little relation to the firm’s current
business model
E.g. UPS recently acquired Coyote Logistics, a highly innovative,
technology driven, non-asset based truckload freight brokerage
Explain the Digital Business Model - ‘Partner’
When there is no strategic need to own.
E.g. Novartis and Google have partnered to develop a smart contact
lens for diabetics that monitors blood sugar levels
Explain the Digital Business Model - ‘Invest’
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
E.g. Intel Capital was set up as a dedicated investment arm to make
investment decisions on the IoT
Explain the Digital Business Model - ‘Incubate/accelerate’
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.
E.g. Metro Accelerator helps start-ups through dedicated
programmes, mentoring, assistance with funding, etc
Explain the Digital Operating Model - ‘Customer-Centric’
- Focuses on making customers’ lives easier
- Emphasizes front-office processes
E.g. Argos
Explain the Digital Operating Model - ‘Extra-Frugal’
-Focus on providing high quality service at low cost
- Emphasizes ‘less is more’ culture and a standardized
organizational structure
E.g. Tyre manufacturer Michelin
Explain the Digital Operating Model - ‘Data-Powered’
- Focus on prowess in analytics and software intelligence.
- Emphasizes an ‘agile’ culture focused on innovation through
empirical experimentation
E.g. Google and Netflix
Explain the Digital Operating Model - ‘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, Rio Tinto
Explain the Digital Operating Model - ‘Open and Liquid’
- Focus on creating an ecosystem that can enrich the
customer proposition - Emphasizes a sharing culture with a constant flow of dialog to
the outside world.
E.g. Facebook, PayPal
What does ‘Journey Management’ mean?
The leadership team needs to be at the forefront of the cultural change
Define ‘Disruptive Technology’
Instances where technology is used to fundamentally change and ‘disrupt’ the existing business model in an industry.
Outline, in the correct order, the 7-step process to build a ‘digital workforce’ as laid out in the Digital Transformation of Industries (DTI) project by the World Economic Forum.`
- Attracting and retaining talent in the digital age
- Becoming an employer of choice
- Creating a workforce with digital skills
- Bringing leadership into the digital age
- Fostering a digital culture in the enterprise
- Create environments where humans and robots can work successfully together
- Integrate your on-demand workforce
When building a Digital Workforce, how would you - Attract and retain 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
When building a Digital Workforce, how would you - Become and employer of choice?
- Formulate a long term working strategy for staff that maps out their possible career route i.e. Analyst, Senior Analyst, Manager
- 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
When building a Digital Workforce, how would you - Create a workforce with digital skills?
- Collaborate with educational establishments
- Training
- Mine your own organisation for hidden talent
- Bring new skills into the organisation
When building a Digital Workforce, how would you - Bring leadership into the digital age?
General recommendations
- Leaders need to adapt
- Flatter organisational structures
- Develop a culture that is more risk-tolerant and accepts failure
- Use more long-term goals
When building a Digital Workforce, how would you - Foster a digital culture in the enterprise?
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
- A diverse workforce with good digital skills.
Define the culture of a business.
Definitions of culture
- The shared set of beliefs, values and mind-sets that guide a
group’s behaviours.
- “The way we do things around here”
Outline the 5 common functions of management as identified by Fayol:
- Control
- Forecasting and planning
- Organising
- Co-ordinating
- Commanding
Outline Porters 5 Forces that may be used when analysing a company:
- Competitive Rivalry
- Threat of New Entrants
- Threat from Substitutes
- Power of Buyers
- Power of Suppliers
What are the generic strategies that Porter proposed to deal with the 5 Forces?
- Cost Leadership - Low Cost and Broad Target
- Cost + Focus - Low Cost and Narrow Target
- Differentiation - High Cost and Broad Target
- Differentiation + Focus - High Cost and Narrow Target
To be able to analyse the nature of management relationships, outline and explain the management concept - Power
The capacity to exert influence to make someone act according to their own preferences.
Individuals within the workplace have different relationships with each other. To be able to analyse the nature of management relationships, outline and explain the management concept - Authority
The right to exercise power.
Individuals within the workplace have different relationships with each other. To be able to analyse the nature of management relationships, outline and explain the management concept - Responsibility
The obligation of an individual to perform certain duties, tasks or make certain decisions.
Explain the management concept - Accountability
The need for individuals to explain and justify any failures to fulfil their responsibilities to their superiors in the hierarchy.
Individuals within the workplace have different relationships with each other. To be able to analyse the nature of management relationships, outline and explain the management concept - Empowerment
Employees are given autonomy and responsibility to undertake tasks without being directed at each step.
Individuals within the workplace have different relationships with each other. To be able to analyse the nature of management relationships, outline and explain the management concept - Delegation
A manager assigns part of their authority to a subordinate to fulfil their duties.
Individuals within the workplace have different relationships with each other. To be able to analyse the nature of management relationships, outline the 6 management concepts (do not explain):
- Power
- Authority
- Responsibility
- Accountability
- Empowerment
- Delegation
Outline the classical theory of management - Scientific Management (Taylorism - John F Taylor) is and explain the 4 principles
There is one best approach and employees are only focused on money
- Break down assignments into subtasks
- Delegate responsibilities and train workers
- Monitor performance
- Allocate work between managers and employees
Outline the classical theory of management - Bureaucratic management (Webber)
- Control should be strict and based on a hierarchy
- Formal and standardised
- Specialisation in duties
In classical theory, what are the positive and negative connotations of bureaucracy?
Positive
- Consistent level of work
- Equal treatment of all employees
- Very good control of output
Negatives
- Slow response to change
- Lack of speedy communication
- Little involvement of staff in decision making
- Rules stifle initiative and innovation
What are the criticisms of classical theory?
Classical theory makes it all too straightforward ignoring things like Human Relations, assuming money alone motivates, disregard for employee views on best practice etc
In the Human Relations theory on management, what is Maslows Hierarchy of Needs?
- Self-Actualisation
- ——— Ego/Esteem
- ——Social/Belonging
- ———- Safety/Security
- —— Basic/Physiological
In the Human Relations theory on management, what is and are Herzbergs Hygeine and Motivation Factors?
Hygiene factors must be met before Motivators have any effect.
- Hygeine: Elements that avoid dissatisfaction i.e. Company policy, Rate of Pay, Job Security, Teamwork
- Motivation: Elements that provide satisfaction i.e. Achievement, Personal Growth, Responsibility
In the Systems Theory on management - what is the Trist and Bamforth theory?
Technology when implemented must not inhibit the social interaction in the workplace.
Organisations must understand that people are still vital for their roles and cannot be overtaken by technology.
In the Contigency Theory on management - what is the Burns and Stalker theory?
There is no, one, right way to manage employees - is solely situational.
They distinguished between two different types of organisations (these are the ends of the spectrum):
- Mechanistic: focuses on productivity.
- Organic: focuses on people.
What is the difference between management and leadership?
Management is getting things done through the efforts of other, leadership is the process of influencing others to work willingly towards goals, to the best of their capabilities.
According to French and Raven, what are the 5 types of leader and how do they influence others?
- Charismatic – influence from personality
- Traditional – influence from social prejudice
- Situational – being in the right place and the right time
- Appointed – influence from the position held
- Functional – influence by doing things well
What are the 3 main styles of leadership and what do they mean?
According to Lewin, what are the outcomes of each?
- Autocratic (Authoritarian) - Do this now
- Democratic - Lets work together to solve this
- Free Rein (Lewin - Laissez faire) - You go and sort this out
- Autocratic (Authoritarian) - least productive and very frustrating.
- Democratic - most productive and satisfying.
- Free Rein (Lewin - Laissez faire) - medium productivity but not very satisfying.
What is McGregors theory?
What are the X and Y Theory’s and which of the 3 main leadership styles compliment them?
That a leader will chose their style based on the great they are leading
- X Theory - people dislike work and need to be coerced. Autocratic is the best approach.
- Y Theory - managers assume that employees like work and are self motivated to achieve. Democratic is the best approach.
What is the Blake and Mouton Managerial Grid?
Looks at people-focused vs task-focused styles of leadership.
9
| 1.9 9.9 P | E | O | P | 5.5 L | E |
|
1.1 9.1
1 – – – – – – – – – – – – – – – – – – – 9
TASK
- 9 - Team Style
- 1 - Task Orientated
- 9 - Country Club
- 5 - Middle Road
- 1 - Impoverished
What is the Contingency Theory for leadership styles? And what was Adairs contribution?
There is no one best approach to leadership - a good leader will change their style to suit the situation.
Adair suggested an ‘Action-centered leadership’ which added Individual needs to the original Blake and Mouton grid of Task and Group needs.
Describe the 2 distinct leadership styles identified by Fielder and discuss the 3 factors on influence.
2 styles of leadership:
- Psychologically distant managers (PDMs)
- Psychologically close managers (PCMs)
3 factors of influence:
- Leader/member relations
- Task structure
- Leader position power (the degree of formal authority given to the position)
Describe the 2 distinct leadership styles identified by Fielder and discuss the 3 factors on influence.
2 styles of leadership:
- Psychologically distant managers (PDMs)
- Psychologically close managers (PCMs)
3 factors of influence:
- Leader/member relations
- Task structure
- Leader position power (the degree of formal authority given to the position)
What is Benis’s theory on Leadership?
Two types of leader:
- Transactional Leader - work is simply a term of trade. They fulfil their JD, they get paid. They tend to be more passive.
- Transformational Leader - goes above and beyond. Inspires, motivate and innovate. They tend to be more proactive.
With the impact that new technology has on traditional markets, what are the 4 traditional areas of change?
1 - Customer expectations
2 - New business models
3 - Market disruption
4 - New products
With the impact that new technology has on traditional markets, what are the 3 new environments?
1 - Connected and Open
2 - Simple and Intelligent
3 - Fast and Scalable
Define ‘Business Ecosystem’
An ecosystem is a complex web of interdependent enterprises and relationships aimed to create and allocate business value.
What are the key characteristics of ecosystems that are shared with traditional markets? Break them down into 2 categories.
Participants:
- Role
- Reach
- Capability
Interactions:
- Rules
- Connections
- Course
What are the 2 key characteristics of a business ecosystem that distinguishes it from traditional markets and what do they mean?
Mutuality
- Ecosystems only exist because participants can deliver more value acting together for the mutual benefit. This results in higher levels of coordination, shared ideals, shared standards and shared goals, than in traditional markets.
Orchestration
- The coordination, management and arrangement of complex environments, their participants and interactions. May be formal or informal. There may or may not be an actual orchestrator.
Define Value Creation and Value Capture.
Value creation
- Bringing something of value into existence.
Value Capture
- The act or process of appropriating or allocating value.
