W6: Weill & Woerner (2015): Thriving in an increasingly digital ecosystem

Question 1

Digital disruption

Answer 1

The business landscape is undergoing rapid digitisation, ushering in an era of digital disruption that presents both threats and opportunities. It is a transformative process, although often slower than anticipated, historically leads to significant impacts

Question 2

Study’s aim

Answer 2

Emphasises the need for companies to assess the challenges and possibilities posed by digital potential threat, with 32% of company revenue at risk in the next 5 years. It introduces a framework highlighting the shift from narrow value chain focus to a broader consideration of business ecosystems. The authors urge companies to think beyond linear value chains and embrace a more comprehensive approach to digital ecosystems

Question 3

Supplier model

Answer 3

Suppliers operate within another company’s value chain, often with partial knowledge of end consumers. As digitisation progresses, suppliers face pressure to reduce prices and may lose power in the industry. Skills are low-cost production and incremental innovation. E.g. insurance via agent, mutual fund via broker

Question 4

Omnichannel model

Answer 4

Omnichannel businesses offer products across multiple channels, aiming to control integrated value chains and enhance understanding of end consumers. They use multichannel customer experience to meet life events. They “own” the customer relationships. E.g. banks, retailers

Question 5

Ecosystem driver model

Answer 5

Companies like Amazon establish ecosystems by partnering with complementary service providers, offering a platform for conducting business. They leverage brand strength to attract participants, aiming to “own” the customer relationship in specific domains, e.g. finance. They provide a branded platform and ensure a great customer experience. They plug-and-play third-party products and have customer knowledge from all data. They match customer needs with providers and extract “rents”

Question 6

Modular producer model

Answer 6

Modular producers like PayPal provide adaptable products or services that can fit into various ecosystems. They thrive by continually rolling out new offerings and excelling in their category (constant innovation). Unlike ecosystem drivers, they often have limited access to customer data, relying mainly on transaction information. They plug-and-play product/service

Question 7

“Moment of truth”

Answer 7

The moment the customer remembers and talks about. It can occur on the customer’s mobile device, during a phone call, or at a physical outlet

Question 8

Amplifying the customer’s voice

Answer 8

Typically involves compelling the widespread use of some kind of customer satisfaction metric, accessing customers’ unvarnished sentiments via social media and using big-data techniques to test and learn