L2+3 - The Business of the Connected World

Question 1

Why do we need models and concepts?

Answer 1

Specific problems - but always seen in context and as a system of interacting people, technologies and businesses.

Question 2

Technological discontinuity

Answer 2

the new emergent technology offers highly superior benefits over the existing technology. Which “discontinues” the dominance of the previous technology

Technological discontinuities disrupt industry. An industry is disrupted when a new hierarchy of prominence of firms is dramatically different from before the effects of discontinuity.

Garrett & Ritchie

Question 3

The basic components of the Connected World

Answer 3

1. Ubiquitous Networks
2. Embedded Technology
3. The Cloud & XAAS
4. Mobile
5. Usergenerated/Social
   User evolution
   = Discontinuity

Question 4

Progression of Integration in the connected World

- Mention the various levels

Answer 4

As more firms move through these phases of connected integration and products take on more and more of a platform feel, distinct product categories will disappear, making disruption more easily recognizable.

1. Intra-product integration
2. inter-Brand product integration
3. Intra-Brand touchpoint integration
4. Intra-Industry integration
5. Intra-industry integration

Garrett & Ritchie

Question 5

The emergence of connected economies

Answer 5

The connected world will bring the convergence of economics principles from both industrial and information economics plus the potential accelerator of networks effect. (The three circles)

the three components

1. Industrial Economics (Predict)
2. Information economics (Prepare)
3. Networks effect (Prepare)

In the middel: new business models.

Garrett & Ritchie

Question 6

Describe industrial economics

Answer 6

• Physical products
• Independent users
• Product value decreases with usage

Question 7

We can break down the First Mile into three distinct steps

Answer 7

1. Step: Envision the Disruptive Potential
   Calls on leaders to gain perspective and accurately consider the implications of the technological change on the current state of competition within their current industry and within emerging industries.
2. Step: Assess Magnitude of Capability Gaps
   assess the degree to which the organization has access to the capabilities necessary to “connect” their company. –> need an objective and clear understanding of both the firm’s current capabilities and those needed to compete in the connecting world.
3. Step: Invest to Implement the Response
   Determine if the company has the necessary internal resources - skilled people and money - redeploying existing resources away from some other use.

Question 8

Inertia in Organizations

Answer 8

Organizational inertia has been defined as the “delay or failure” of an organization to effectively adapt to events that occur in the external environment.

→ The easiest way to measure the effects of inertia is to consider the delay between the first firm to introduce meaningful connected products or services and the other companies in the industry.

Two different sources of inertia within organizations impact the completion of the First Mile.

1) dominant logic intertia
2) Structural inertia

Question 9

Dominant logic inertia

Answer 9

Dominant logic inertia is the leader’s bias. It’s the sum of all the leader’s mental models about his or her company and the industry in which it competes. This bias is accumulated through years of experience where the leader observes, feels, and determines the “way things work”.
–> Mental models

Question 10

Structural Inertia.

Answer 10

This is the relative slowness caused by the firm’s systems, people, and culture, which are aligned to todays strategy and aren’t able to support the new, or in this case, the “connected strategy”.
–> What slow down the transformation

Question 11

Describe information economics

Answer 11

• Digital products
• Independent users
• service value increases with usage