Chapter 1 - The five domains

Question 1

Digital transformation

Answer 1

A change in how a firm employs digital technologies, to develop a new digital business model that helps to create and appropriate more value for the firm

Question 2

What are the 5 domains that are the most impacted by the development of digital technologies

Answer 2

Customers

Competition

Data

Innovation

Value creation

Question 3

What are the 4 categories for tools?

Answer 3

Strategic ideation tools

Strategy maps

Strategic decision tools

Strategic planning tools

Question 4

Strategic ideation tools

Answer 4

Tools for generating a new solution to a defined challenge by exploring different facets of a strategic phenomenon

Question 5

Strategy maps

Answer 5

Visual tools that can be used to analyse an existing business model or strategy or to assess and explore a new one

Question 6

Strategic decision tools

Answer 6

Tools with criteria for evaluating and deciding among a set of generic options available for a key strategic decision

Question 7

Strategic planning tools

Answer 7

Step by Step planning processes or methods that can be used to develop a strategic plan tailored to a specific business context or challenge

Question 8

Network effects

Answer 8

Product or service becomes more valuable when more people use it

Question 9

Direct network effects

Answer 9

Value of additional users

Question 10

Indirect network effects

Answer 10

As more join the platform, more useful and valuable for platform users

Question 11

Businesses must learn to continuously adapt their value proposition. What are the 3 ways?

Answer 11

Learn to focus beyond current business models

Identify how the best value can be delivered as new technologies reshape opportunities and needs

Continuous configuration may involve discovering new customers and applications for current products, or new business models all together

Question 12

What are the external drivers of digital transformation?

Answer 12

Digital technology

Digital competition

Digital customer behaviour

Question 13

What are the phases of digital transformation?

Answer 13

Digitisation

Digitalisation

Digital transformation

Question 14

Strategic imperatives of digital transformation

Answer 14

Digital resources

Organisational structure

Growth strategy

Metrics and goals

Question 15

Digitisation

Answer 15

Conversion of analog information into digital information

Question 16

What is typical digitisation?

Answer 16

Mainly digitalises internal and external documentation processes, but does not change value creation activities

Question 17

What is digitalisation?

Answer 17

How IT or digital technologies can be used to alter existing business processes

Question 18

Why is IT important for businesses

Answer 18

IT serves as a key enabler to seize new business possibilities by changing existing business processes, such as communication, distribution, or business relationship management

Question 19

What is digital transformation?

Answer 19

A company wide phenomenon with broad organisational implications in which, most notably, the core business model of the ‘rm is subject to change through the use of digital technology

Question 20

What are digital assets?

Answer 20

Firms require digital assets, like the storage of data, information and communication infrastructure, and accompanying technologies to effectively compete in the digital era

Question 21

What is digital agility?

Answer 21

Digital agility concerns the ability to sense and seize market opportunities provided by digital technologies

Question 22

What is digital networking capability?

Answer 22

The digital networking capability, which refers to the firm’s ability to bring together and match distinct users (stakeholders) to address their mutual needs via digital means, become more important in digital settings

Question 23

What is big data analytics capability?

Answer 23

I the phase of digital transformation, the capability to acquire and analyse big data for decision making is crucial

Question 24

What are important organisational structures?

Answer 24

Separate business units

Agile organisational forms

Digital functional areas

Question 25

Separate business units

Answer 25

Develop such new and often disruptive business models in autonomous business units that are separated form the headquarters, allowing for experimentation and quick learning, as well as avoiding cannibalisation perils and conflicts

Question 26

Agile organisational forms

Answer 26

The use of standard, more hierarchical organisation schemes, with multiple management layers and a strong top down approach, may no longer be effective in fast changing digital environments, as the bureaucracy involved reduces response speed and innovativeness

Question 27

Digital funcitonal areas

Answer 27

An important feature of digital transformation is the increased reliance on IT and analytical functions Most notably, the IT function itself needs to transform from a line function focused on enabling communication or data flows into a more proactive and orchestrating role supportive to digital value creation via fast and explorative responses The employees' digital skills in marketing and service operations also need to be upgraded to enhance value creation

Question 28

What are the 6 growth strategies form Ansoff's matrix?

Answer 28

Market penetration Market development Platform based market penetration Product development Co-creation platform Platform diversification

Question 29

Platform based market penetration

Answer 29

Introduction a platform consisting of various existing products into a new market that are offered by external parties

Question 30

Product development

Answer 30

Launch new products in a platform environment

Question 31

Co-creation platform

Answer 31

Allows external users to actively co-create value by giving them the authority to perform certain activities themselves on the platform