Business models in a digital ecosystem Flashcards
Five emerging trends that are shaping the digital landscape for organisations
The internet of me - Users being placed at the centre of digital experiences. (personalisation of services)
Outcome economy - Customer are more attracted to outcomes than just simply to products. this is what organisations should focus on.
The platform (r)eveolution - global platforms are becoming easier to establish and cheaper to run (Cloud computing and mobile tech) these offer great potential for innovation and quicker delivery of services.
The intelligent enterprise - using data to become more innovative and greater operating efficiency.
Workforce reimagined - The need to identify ways in which humans and smart machines can work effectively together to create better outcomes.
What is disruptive technology
This relates to instances where technology is used to fundamentally change an existing business model in an industry.
The World Economic Forum suggests five methodologies to develop new business models, what are they?
Scenario-based design - Create future business models in response to disruptive indutsry trends
Epicenter-driven design - Uses strengths and weaknesses of the existing business model to generate ideas
Unorthodox design - Forms business models by challenging existing industry logic and company clichés
Customer-centric design - Builds business models through customers eyes based on the question: Does this solve their problems?
Mirrored design - creatively imitates business model patterns from other industries.
What are the five approaches suggested by the World Economic Forum on Digital Transformation of Industries?
Build - Might be the best route when an opportunity is related to the company’s core business. (benefits: maximises control and minimises costs)
Buy - Usually the most appropriate when there is a strategic imperative to ‘own’ a market. May be the only viable option if a significant market change is imminent, hiring the right talent is not possible and the opportunity bears little relation to the firms current business model.
Partner - A sensible approach when the company needs to learn about emergent opportunities with an eye towards deeper partnerships or acquisitions in the future.
Invest - Investing in interesting startups is often a valid option allowing an established company to connect with the right skills and capabilities.
Incubate/Accelerate - Incubate and Accelerate are similar however Accelerate represents a closer relationship to the funding company, deploying internal capabilities, infrastructure and resources to the start-ups.
What are the five digital operating models identified by the World Economic Forum?
Customer-centric - focuses on making customers lives easier and emphasizes front-office processes.
Extra-frugal - thrives on a culture of ‘less is more’ and a standardized organizational structure. optimize manufacturing, supply and support processes.
Data-powered - built around prowess in analytics and software intelligence.
Skynet - makes intensive use of machines to increase productivity and flexibility in production
Open and liquid - looks outward with a view to creating an ecosystem that can enrich the customer proposition. build around a sharing customer, all processes are characterized y a constant flow of dialog with the outside world.
The Digital Transformation of Industries proposed a 7-step process to build a digital workforce, what is the sequence of steps?
1 - Attract and retain talent
2 - Become and employer of choice for millennials
3 - Create a workforce with digital skills
4 - Bring leadership into the digital age
5 - Foster a digital culture in the enterprise
6 - Create environments where humans and robots can work successfully together
7 - Integrate your on-demand workforce
