Lecture 3 Flashcards
What is an inherent consequence of digital transformation?
It changes the organizational structure.
- Towards a more networked structure
- Also going from linear business model to a platform business model
What is a linear business model?
Selling products and services to consumers.
Value comes from owning one side of transaction
What is meant by platform business model
- Facilitation of transaction between partners
- value is co-created on the spot
- Owning infrastructures that facilitate transactions
- Focus on attracting both producers and consumers
What are 3 elements of digital economy business models?
- Modularity
- Open innovation
- Platforms
Why is digital strategy not IT strategy?
IT strategy focuses on the management of the infrastructure
Digital strategy focusses on the management practices to govern complex digital transformation.
Should be aligned with corporate strategy and IT strategy.
No combined digital business strategy as that neglect to includes how to include the process of how to get to the end stage
What are the four dimensions of digital transformation strategy?
- Use of Technologies
- Changes in value creation
- Structural changes
- Financial aspects
What are the key questions for the ‘use of technology’ category?
- What is the strategic role of IT?
2. How ambitious is your approach to new technology (innovator/early adopter/follwer)
What are the key questions for the ‘changes in value creation’ category?
- What is the degree of digital diversification (the different ways of using digital technologies)
- How do you create revenue from future business creation
- What is the desired future main business scope?
What are the key questions for the ‘structural changes’ category?
- Who is responsible for the digital transformation strategy?
- Do you want to integrate the new digital operations in the current organization structure, or in seperate entities?
- What types of operational change do you expect?
- Do you need new competencies? How to acquire those?
What are the key questions for the ‘financial aspects’ category?
- How strong is the financial pressure on current core business?
- How will you finance the new activities.
Why is digital transformation and strategic alignment an ongoing process?
-> You can use the building blocks of the digital transformation process for this.
The current use of digital technologies fuel disruptions. (not always, but can).
These disruptions trigger strategic responses from a company.
The strategic responses rely on the use of (new) digital technologies (which, again, can cause disruptions).
The digital technologies enable changes in value creation paths, which can have negative (security,privacy) impacts and positive impacts (good for business).
Structural changes and organizational barriers affect the changes in value creation paths.
How can value paths change due to digital transformation?
- New value propositions
(products, services) - New value networks
(collaboration) - Digital channels
Sell more, sell differently, different revenue models - Agility and ambidexterity.
