Session 1 Flashcards
What are Digital Ecosystems ?
A digital business model that uses one or more technology intermediaries to connect multiple independent actors to interact and make business or social transactions
Synonym of Digital Ecosystem
Digital Platform / Multi-sided Platform
What is a platoform ?
Business model that creates balue by facilitating transactions between buyers and seliers in an ecosystem, with the aim of capturing part of that value
What is supply ?
Products / Services / Data / Skills / Money / Proprety / News / Content / Apps
What is demand ?
Individuals / Big Orgs / Small Orgs / Governments / Machines
What is a digital platform ?
Core technology intermediary in a digital ecosystem often provided by the parent company or companies at the center of the ecosystem
What is a Business Model ?
How a business is organized to create, capture and deliver value
What is a Digital Business Model ?
How a business leverages digital technology to create, capture and gain value
What are the Determinants of Digital Ecosystems ?
- Devices
- Barriers
- Population
What is the effect of Digital Ecosystems on the world ?
Leverage the profileration of digital technology use (in terms of total population, unique mobile users, internet users, active social media users, and mobile social media users)
What is the CPU ?
Brain of the computer that processes and executes digital instructions from various programs; its clock speed determines the computer’s performance and efficiency in processing data
What does CPU stands for ?
Computer Power
Functioning of a CPU
System of transistors that convert electronic waves into bitstreams back and forth between the computer’s hardware and software elements
Moore’s Law
Approximately every two years, technology doubles the total number of transistors that manufactures can squeeze into an integreated circuit. In general terms, iit implies that computing power increases exponentially over time. At their very core, computers are built out of a number chips or integrated circuits.
Inventor of Moore’s Law
American Engineer, George Moore
Dematerliazation
The fact that devices like monitor, scanner, speaker, printer are integrated into one device (smartphone)
IOT
Internet of things (hardware goes beyond the conventional computer = fridge, padlock, speakers)
Digitization
Converting something non-digital into a digital representation or artifact (ex: paper into PDF)
Digitalization
Making business processes more automated using digital, but doesn’t change or transform them
Digital Transformation
A business transformation enabled by digitalization (ex: Nike’s SNKRS App)
Digital information propreties
- Non-rival
- Close to zero marginal cost of reproduction
What are Network Effects?
A phenomenon whereby a digital ecosystem derives value from an increase in the number of actors adopting and using it
Traditional Business Model
Linear value chain model
Platform Business Model
Creation of a platform that facilitates interactions between producers and consumers (ex: Facebook Marketplace)
On which type of content most famous websites all over the world rely on ?
User-generated content
What does UGC is so particular ?
Users spend time to produce content, help, rely, translate, advice without expecting anything in turn
Free Model
No fees for access and use - Enables positive network effects and the gathering of a critical mass after launch
Freemium Model
Both free and premium version, with premium having full features (ex: ChatGPT Plus) - Enables viral growth
How can a Freemium Model platform be sustained by itself ?
The premium users need to achieve a crucial mass to support free users so that the platform is above self sustaining - different number for every platform
Ad-supported Model
Free access but ad-supported - sometimes user is paused during advertisement
Free + Model
Free to use but has paid addons to improve functionality - Games (ex: Fortnite, Need for Speed)
Sponsorship Model
The service or product is sponsored for it to be freely avaible to users (ex: online jounrals sponsered by third parties) - Promotes third party agenda (trust issues)
Transaction charges
Pay a fee to access, acquire, and/or use (ex: Uber Eats)
Extensible Software Ecosystems
Extensible Softwares to accommodate new functions: third-party apps, extensions, addons (ex: Google Chrome, Windows, Android, Safari)
Social Networking Sites (Ecosystems)
A global platform connecting individuals and their social networks, leveraging user-generated content (UGC) to generate revenue through advertisements and data, reaching millions to billions of users.
Crowdsourcing Ecosystems
Many individuals connect through a platform to source resources and services (GoFundMe, InnoCentive, Kickstarter)
Product Platform Ecosystems
Product platform ecosystems emerge from product digitalization, transforming products into digital ecosystems that link physical items to digital technologies, connect previously separate actors, and integrate other products and services, while the owner retains control over physical production (e.g., cars, houses, cities, shoes)
Sharing economy digital Ecosystem
The sharing economy digital ecosystem connects users through platforms that facilitate the efficient sharing of physical products, with minimal ownership by the platform provider (e.g., ride-sharing, e-scooters, and accommodation sharing).
