Unit 3 - Digital & Cyber Risks Flashcards
What are the two kinds of digital risk?
Digitisation - risk associated with digitising a business.
a) launching and running business from scratch through an app
b) turning all or some of offline business into online business
Cybersecurity - primarily a matter of protecting data held by a business from theft, loss, or criminal exploitation
What are Evans’s five digital business models?
1) Digitising products and services
2) Running or participating within industry platforms
3) Tapping into the sharing economy
4) Reshaping value networks
5) New models of monetisation
What is 1) Digitising products and services?
Digitising Films and TV (e.g. Netflix), books (Kindle), music (iTunes) and selling this content or access to it
What is 2) Running or participating within industry platforms?
Adopting heavily-used online selling platforms (e.g. Amazon) to supplement or replace existing physical retail locations
What is 3) Tapping into the sharing economy?
Including offering rides through Uber or holiday rental through AirBnB.
Crowd-sourcing can be used for product innovation, product testing and customer service.
Will have involve paying fees to the platform plus employment or see high charges for developers and Cybersecurity.
Also build customer-base from scratch, unless app launched by big provider.
What is 4) Reshaping value networks?
Moving from pipeline to platform (Uber, AirBnB).
Reshape who pays for or buys a service (healthcare).
Move closer to the customer.
What is 5) New models of monetisation?
Using free network-building platforms (e.g. Facebook) by exposing online visitors to advertising and collecting data for analytics relevant to market further products and services.
What are six risks of Digitising a commercial operation?
- Customer satisfaction / dissatisfaction ratings often public
- Websites can be badly designed and pose an obstacle to orders. Off-putting to customers.
- Often rely on email comms, which can give bad impression if poor spelling / grammar
- Digital payment systems can be hacked or disabled
- Online anonymity and ease of acquiring email addresses can facilitate fraud
- IT systems require upkeep / renewal.
What are the four classifications of risk according to Hopkin?
1) Compliance risks - associated with national and international regulations. In particular, data protection.
2) Hazard risks - with running the operation. For digitisation particularly comms and reputational when engaging directly with customers. Also Cybersecurity risks.
3) Control risks - associated with uncertainty. Include unexpected bugs in software which interfere with operation of a system.
4) Opportunity risks - org takes in order to gain a return
