Lecture1

Question 1

What are the competitive advantages through digitalization?

Answer 1

Internal: Reduce costs, increase efficiency/effectiveness External: Customer analytics, enhanced products and services

Question 2

What are the key areas of digitalization?

Answer 2

Enhanced operations, enhanced customer interaction, enriched products and services, new business models

Question 3

Effects of enhanced operations

Answer 3

Increase degree of automation, support real-time optimization, streamline semi-structured/unstructured processes, enable global collaboration and networking of employees (virtual team collaboration, 4.0 Manufacturing)

Question 4

Effects of enhanced customer interaction

Answer 4

multi-channel experiences, personalized marketing and offerings

Question 5

Effects of enriched products and services

Answer 5

Extend product offerings with digital elements, extend service offerings (predictive maintenance, banking services, connected car)

Question 6

Examples of new business models

Answer 6

Freemium models in service industries, low-cost business models, pay-as-you-go model, sharing platform (Skype as freemium)

Question 7

How is the information revolution affecting competition?

Answer 7

1. Change industry structure and way of competition 2. create competitive advantage 3. spawns new businesses

Question 8

Does IT matter?

Answer 8

Of course it does, and it needs to be managed. It is essential to the success of a business. The management staff should understand IT and its associated economics.

Question 9

Transforming the WHAT in businesses

Answer 9

Enhance products and services, extend offerings for new revenue, redefine value proposition

Question 10

Transforming the HOW in businesses

Answer 10

Create new digital capabilities, leverage information, integrate and optimize

Question 11

What are the two views of IT, and who is normally responsible for each?

Answer 11

Customer facing role (CEO), and enabling role (CIO)

Question 12

What are the new managieral roles?

Answer 12

Chief Digital Officer (focuses on worker engagement) CIO (Business-oriented, employee and innovation focus) CTO (customer support and vender engagement) CDO (focuses on making value from data)

Question 13

Digitization v. Digitalization

Answer 13

Digitization is narrow view of converting analog information into a digital storage source. Digitalization describes the resulting changes on the individual, organizational, and society level driven by introducing digital technologies.

Question 14

What can you digitalize?

Answer 14

Products, services, or processes

Question 15

What two elements does the social subsytem include?

Answer 15

Formal and informal

Question 16

What layers does the technological subsystem use?

Answer 16

Hardware and software

Question 17

What is an electronic service?

Answer 17

a service system for which the implementation of many of its elements and behaviors is done using automation and programming techniques.

Question 18

What is a service system?

Answer 18

It consists of many elements (people, facilities, tools, and computer programs) that have a structure, a behavior, and a purpose

Question 19

What are the three business processes?

Answer 19

Management (strategic management, corporate governance) Core (purchasing, producing, advertising, marketing, sales) Supporting (accounting, recruitment, call center, technical support)

Question 20

What role do individuals play in a business?

Answer 20

They carry out the actual executions for the company. What is planned and actually done are two different things. Important to remember.

Question 21

Product Software v. Tailor-Made

Answer 21

Product software is generally purchased from a vendor, and it is usually an established product. Tailor-made is custom, offers competitive advantages at a higher buy-in.

Question 22

What stages make up a Digital Transformation Process?

Answer 22

pre-implementation, implementation, and post-implementation