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Lars Lecture Flashcards

Learing models (106 cards)

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1
Q

(Customer Value Pyramid)
What are the four levels of value in the Customer Value Pyramid?

A

Functional, Emotional, Life-Changing, and Social Impact

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2
Q

(Customer Value Pyramid)
How is the Customer Value Pyramid different from Maslow’s hierarchy of needs?

A

Unlike Maslow’s hierarchy, which requires sequential fulfillment, the Customer Value Pyramid allows companies to provide value at any level based on customer priorities.

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3
Q

(Customer Value Pyramid)
Why is ensuring foundational quality important in the Customer Value Pyramid?

A

Foundational quality supports customer loyalty and enhances the effectiveness of delivering value at higher levels.

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4
Q

(Customer Value Pyramid)
How does the Customer Value Pyramid influence pricing strategies in businesses?

A

Addressing higher-level value elements can increase perceived value, enabling businesses to raise Willingness to Pay (WTP) and improve customer delight or margins.

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5
Q

(Customer Value Pyramid)
Describe how a company could strategically combine elements from different levels of the pyramid to create a unique value proposition.

A

A company could combine functional benefits (e.g., cost savings) with emotional value (e.g., reduced anxiety) and life-changing elements (e.g., helping achieve personal goals) to differentiate its offering and appeal to a broad range of customer priorities.

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6
Q

(Customer Value Pyramid)
What challenges might a company face when attempting to deliver value at the “Social Impact” level, and how could these challenges be addressed?

A

Challenges include aligning social impact efforts with brand identity, ensuring authenticity, and measuring outcomes. These can be addressed by embedding social initiatives into the core business model, engaging stakeholders, and transparently communicating impact.

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7
Q

(Business Value Model? (Gregor et al 2006)
What are the four key areas of value creation in the Business Value Model? (Gregor et al 2006)

A

Informational, Transactional, Strategic, and Transformational.

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8
Q

(Business Value Model? (Gregor et al 2006)
What is the primary purpose of the Business Value Model?

A

To help businesses understand how activities and innovations contribute to operational efficiency, competitive advantage, and growth

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9
Q

(Business Value Model? (Gregor et al 2006)
How can businesses transition from achieving transactional value to transformational value?

A

By leveraging technology or innovation to fundamentally alter business models, focusing on new revenue streams, and adopting disruptive practices that redefine traditional processes.

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10
Q

(Business Value Model? (Gregor et al 2006)
What are some limitations of focusing solely on informational or transactional value?

A

It limits long-term growth potential and competitive advantage, as these areas focus on operational efficiency rather than strategic or transformational innovation.

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11
Q

(Value Stick (Oberholtzer-Gee, 2024)
What are the four main components of the Value Stick (Oberholtzer-Gee, 2024)

A

Willingness to Pay (WTP), Customer Price, Compensation/Supplier Price, and Willingness to Sell (WTS)

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12
Q

(Value Stick (Oberholtzer-Gee, 2024)
What is “Customer Delight” in the Value Stick model?

A

It is the difference between the customer’s WTP and the actual price they pay.

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13
Q

(Value Stick (Oberholtzer-Gee, 2024)
How can lowering the WTS contribute to both employee satisfaction and firm profitability

A

By improving working conditions, offering better relationships, or enhancing reputation, companies can lower WTS, reduce costs, and increase employee satisfaction simultaneously.

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14
Q

(Value Stick (Oberholtzer-Gee, 2024)
Explain how the Value Stick can guide a company in balancing stakeholder value.

A

By adjusting components like WTP and WTS strategically, the model ensures equitable value distribution among customers, suppliers, employees, and the firm, thus aligning profitability with stakeholder satisfaction.

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15
Q

(Business Value Model? (Gregor et al 2006)
How does the “Strategic” area differ from the “Transactional” area in value creation? (Value Creation (Gregor et al., 2006) -> )

A

The “Strategic” area focuses on competitive advantage and market differentiation, while the “Transactional” area is about streamlining processes for efficiency and cost reduction.

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16
Q

(Business Value Model? (Gregor et al 2006)
Provide an example of how a company could transition from focusing on informational value to transformational value.

A

A retail company might begin by analyzing purchase trends (informational) and then leverage this data to develop a new subscription model for personalized customer experiences (transformational).

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17
Q

(Business Value Model? (Gregor et al 2006)
Why is the transformational area considered the most challenging to achieve, and what capabilities does it require?

A

It requires fundamental changes in business models, significant resource reallocation, and the ability to innovate and disrupt traditional processes, which demand strong dynamic capabilities and strategic foresight.

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18
Q

Building Blocks of Digital Transformation Process (Vial, 2019)

What are the eight building blocks of the digital transformation process described by Vial (2019)?

A

Use of digital technologies, Disruptions, Strategic responses, Changes in value creation paths, Structural changes, Organizational barriers, Negative impacts, and Positive impacts.

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19
Q

Building Blocks of Digital Transformation Process (Vial, 2019)

What does “Disruptions” refer to in the context of digital transformation?

A

It refers to the challenges that digital technologies pose to traditional business models and market dynamics

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20
Q

Building Blocks of Digital Transformation Process (Vial, 2019)

How can structural changes enable successful digital transformation?

A

By altering hierarchies, roles, and communication channels, organizations can create a more agile and adaptable environment that supports new digital initiatives and strategies.

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21
Q

Building Blocks of Digital Transformation Process (Vial, 2019)

Explain the role of overcoming organizational barriers in achieving successful digital transformation.

A

Overcoming resistance to change, addressing skill gaps, and fostering a culture of innovation are crucial for aligning employees and processes with digital transformation goals, ensuring long-term success.

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22
Q

Classic and Useful Business Cases (Nielsen & Persson, 2017)

What is the primary focus of a “classic” business case?

A

It focuses on financial metrics like ROI and NPV to justify a project.

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23
Q

Classic and Useful Business Cases (Nielsen & Persson, 2017)

How is a “useful” business case different from a “classic” business case?

A

A “useful” business case is dynamic, broader in value assessment (including strategic, operational, and social value), and revisited throughout the project lifecycle.

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24
Q

Classic and Useful Business Cases (Nielsen & Persson, 2017)

Why is it important to revisit a business case during and after a project?

A

Revisiting ensures alignment with evolving priorities, tracks progress, adjusts for unforeseen changes, and measures the realized benefits to inform future initiatives.

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25
Classic and Useful Business Cases (Nielsen & Persson, 2017) How can a shift from classic to useful business cases improve project outcomes in dynamic industries?
By adopting a more comprehensive and adaptive approach, organizations can address multiple dimensions of value, better manage risks, and ensure the project remains aligned with both short- and long-term goals
26
Three Dimensions of IS Value (Nielsen & Persson, 2017) What are the three primary perspectives of IS value creation?
Monetary View, Social Manifestation, and Artefact Manifestation.
27
Three Dimensions of IS Value (Nielsen & Persson, 2017) What is the focus of the Monetary View in IS value?
It focuses on financial outcomes and economic benefits, such as ROI and cost-benefit analysis
28
Three Dimensions of IS Value (Nielsen & Persson, 2017) How does the Artefact Manifestation perspective ensure IS effectiveness?
By assessing technical and operational aspects, such as system performance, adherence to standards, and required updates, it ensures the IS functions effectively and meets organizational needs.
29
Three Dimensions of IS Value (Nielsen & Persson, 2017) Why is the Pluralistic View essential for holistic IS evaluation, and how does it differ from the other dimensions?
The Pluralistic View integrates financial, social, and artefact dimensions to provide a comprehensive assessment. It ensures decisions consider user satisfaction, technical quality, and strategic alignment, beyond isolated metrics like ROI
30
Time Dimension of Developing Business Cases (Nielsen and Persson, 2017) What is the significance of the iterative development of business cases?
It ensures that business cases remain dynamic and relevant, adapting to new information and evolving priorities throughout a project.
31
Time Dimension of Developing Business Cases (Nielsen and Persson, 2017) What happens to the benefits curve during the early stages of a project?
Benefits often decrease initially due to implementation challenges, such as workflow disruptions or resistance to change.
32
Time Dimension of Developing Business Cases (Nielsen and Persson, 2017) Why is the steering committee critical in the iterative business case process?
The steering committee ensures alignment with organizational goals, oversees adjustments based on progress, and facilitates communication across stakeholders to address challenges effectively.
33
Time Dimension of Developing Business Cases (Nielsen and Persson, 2017) How does the time lag in benefits realization impact project planning and benefit management strategies?
It requires organizations to plan for an initial dip in performance, maintain stakeholder support, and implement robust benefit management to gradually realize long-term gains.
34
Business Case Development (Five-Step Process): What is the first step in the five-step process for business case development?
Define motivation and objectives.
35
Business Case Development (Five-Step Process): What is the primary focus of Step 3: Structure the Benefits?
Organizing benefits by linking them to required changes and providing valuations to ensure clarity and measurability.
36
Business Case Development (Five-Step Process): Why is Step 5: Approve, essential in the business case process?
It formalizes the business case, aligning it with organizational strategy and obtaining necessary stakeholder approvals for implementation.
37
Business Case Development (Five-Step Process): How does Step 2: Identify Benefits, Measures, and Owners, ensure accountability in the business case process?
By assigning specific owners to each benefit, it ensures there is a responsible party to influence and track the realization of benefits, promoting accountability and focus.
38
Business Case Development (Five-Step Process): What risks might be identified in Step 4: Identify Costs and Risks, and how should they be mitigated?
Risks could include technological failure, resistance to change, or budget overruns. These can be mitigated by creating contingency plans, maintaining stakeholder engagement, and closely monitoring project progress.
39
Business Case Development (Five-Step Process): How do the iterations of Step 1: Define Motivation and Objectives, influence the overall success of the business case?
By refining the purpose and aligning objectives with evolving organizational challenges and opportunities, this step ensures that the business case remains relevant and impactful throughout the project lifecycle.
40
Business Case Development (Five-Step Process): Describe how all five steps of the business case development process are interconnected to ensure project success.
Each step builds on the previous one: Step 1 defines the objectives, Step 2 identifies measurable benefits and assigns accountability, Step 3 structures these benefits into actionable plans, Step 4 evaluates costs and risks to provide a realistic picture, and Step 5 formalizes the plan through approval and alignment with organizational strategies. This interconnected approach ensures a clear, comprehensive, and adaptable business case.
41
Benefit-Owner Framework (Nielsen and Persson, 2017 & Ward et al., 2008) What are the three types of value identified in the benefit-owner framework?
Financial, Measurable and Observable
42
Benefit-Owner Framework (Nielsen and Persson, 2017 & Ward et al., 2008) What is the role of a benefit owner in the framework?
To be accountable for realizing the asssigned benefit, ensuring actions like process changes, training, or monitoring are executed effectively.
43
Benefit-Owner Framework (Nielsen and Persson, 2017 & Ward et al., 2008) How does categorizing benefits into "Do new things," "Do things better," and "Stop doing things" assist in value creation?
It helps organizations identify specific improvement levers, align them with strategic goals, and prioritize actions that deliver the greatest impact.
44
Benefit-Owner Framework (Nielsen and Persson, 2017 & Ward et al., 2008) Why is focusing on observable benefits important even if they are less tangible?
Observable benefits, like employee motivation or customer satisfaction, enhance long-term organizational value and support broader cultural or strategic objectives.
45
Benefit-Dependency Network (BDN) and Innovation-Driven vs. Problem-Based Frameworks What are the three core components of the Benefit-Dependency Network (BDN) model?
Business Changes (BCs), Enabling Changes (ECs), and Benefits (Bs).
46
Benefit-Dependency Network (BDN) and Innovation-Driven vs. Problem-Based Frameworks How does the Problem-Based approach differ from the Innovation-Driven approach?
The Problem-Based approach focuses on solving existing, recognized issues, while the Innovation-Driven approach aims to create new opportunities without necessarily addressing a specific problem.
47
Benefit-Dependency Network (BDN) and Innovation-Driven vs. Problem-Based Frameworks Explain how the BDN model connects investments to business outcomes.
The BDN model maps enabling changes (technical/process adaptations) to business changes (organizational/operational transformations), leading to tangible benefits that align with strategic objectives.
48
Benefit-Dependency Network (BDN) and Innovation-Driven vs. Problem-Based Frameworks When should an organization choose an innovation-driven approach over a problem-based approach, and what are the risks?
The innovation-driven approach is ideal when seeking transformative value or exploring emerging technologies. However, it involves higher risks due to uncertainty about market demand and potential adoption challenges
49
Benefit-Dependency Network (BDN) and Innovation-Driven vs. Problem-Based Frameworks What is the primary focus of the Problem-Based approach?
It focuses on solving specific, recognized problems and addressing unmet needs.
50
Benefit-Dependency Network (BDN) and Innovation-Driven vs. Problem-Based Frameworks How does the Innovation-Driven approach differ from the Problem-Based approach?
The Innovation-Driven approach emphasizes creating new opportunities and possibilities without necessarily addressing a pre-existing problem.
51
Benefit-Dependency Network (BDN) and Innovation-Driven vs. Problem-Based Frameworks What are the potential risks and rewards of an Innovation-Driven approach compared to a Problem-Based approach?
The Innovation-Driven approach carries higher risks due to market uncertainty but offers transformative rewards, while the Problem-Based approach has lower risks and ensures a clear link to existing needs but may lack disruptive potential.
52
Benefit-Dependency Network (BDN) and Innovation-Driven vs. Problem-Based Frameworks How can organizations effectively combine both approaches to maximize value creation?
By addressing immediate needs with a Problem-Based approach and leveraging the insights and technologies gained to explore new opportunities through an Innovation-Driven strategy.
53
The Benefits Dependency Network (BDN) Model What are the three levels of the BDN model?
Enabling Changes (ECs), Business Changes (BCs), and Benefits (Bs).
54
The Benefits Dependency Network (BDN) Model What is the purpose of linking Enabling Changes to Business Changes in the BDN model?
To ensure that technological or process adaptations directly support the organizational transformations needed to achieve desired benefits.
55
The Benefits Dependency Network (BDN) Model Why is it essential to clearly define the relationships between changes and benefits in the BDN model?
Clear relationships ensure alignment between investments, operational adjustments, and measurable outcomes, reducing the risk of misaligned initiatives or wasted resources.
56
The Benefits Dependency Network (BDN) Model How can organizations use the BDN model to evaluate the success of digital transformation projects?
By assessing whether the implemented enabling and business changes have resulted in the anticipated benefits and making adjustments to address gaps or unforeseen challenges.
57
Organizational Framework of AI and Business Value (Enholm et al., 2022) What are the two primary ways organizations leverage AI, according to the framework?
Answer: Automation and Augmentation.
58
Organizational Framework of AI and Business Value (Enholm et al., 2022) What is the role of technological enablers in AI adoption?
Answer: They include access to quality data, advanced tools, and infrastructure necessary to deploy AI effectively
59
Organizational Framework of AI and Business Value (Enholm et al., 2022) How do first-order and second-order effects differ in the framework’s analysis of AI impacts?
Answer: First-order effects focus on immediate improvements like efficiency and insight generation, while second-order effects involve broader, long-term impacts such as market performance, sustainability, and potential unintended consequences.
60
Organizational Framework of AI and Business Value (Enholm et al., 2022) What organizational and ethical challenges might hinder the realization of AI's second-order effects?
Answer: Challenges include resistance to change, lack of trust in AI outcomes, ethical concerns such as bias, and regulatory constraints that may limit adoption and innovation.
61
Dynamics of Power (Heimans and Timms, 2024) What is the main difference between "Old Power" and "New Power"?
Answer: Old Power is centralized and leader-driven, while New Power is participatory and distributed.
62
Dynamics of Power (Heimans and Timms, 2024) How do digital platforms like Airbnb exemplify New Power dynamics?
Answer: They rely on user participation and peer-to-peer interactions to create value, fostering a collaborative and decentralized model.
63
Dynamics of Power (Heimans and Timms, 2024) What are the strategic implications of adopting New Power principles in business models?.
Answer: Businesses must prioritize community engagement, open innovation, and network effects while balancing transparency and control to maintain trust and scalability
64
Dynamics of Power (Heimans and Timms, 2024) How can emerging technologies like IoT and AI amplify New Power dynamics?
Answer: IoT enhances connectivity for real-time collaboration, and AI democratizes access to insights and decision-making tools, empowering individuals to participate more actively in innovation and value creation.
65
The S Curve (Johnson, 2022) What does the S Curve represent in innovation and growth?
Answer: The S Curve represents the lifecycle of innovation, showing phases of slow initial progress, rapid growth, and eventual maturity or decline.
66
The S Curve (Johnson, 2022) Why does growth slow down in the maturity phase of the S Curve?
Answer: Growth slows due to market saturation, diminishing returns from existing innovations, and the emergence of newer technologies or competitors.
67
The S Curve (Johnson, 2022) How can businesses prepare to transition from one S Curve to another?
Answer: By investing in R&D, monitoring emerging technologies, and fostering a culture of innovation to create new growth opportunities before the current curve reaches maturity.
68
The S Curve (Johnson, 2022) What strategic risks are associated with staying too long on a declining S Curve?
Answer: Companies risk losing competitive advantage, market share, and relevance as newer, more innovative players capture demand in emerging markets.
69
Emerging Technologies' Impact on Digital Strategies (Noland & McFarlan, 2005) What are the two dimensions of the Noland & McFarlan model for categorizing organizations' IT strategies?
Answer: The need for IT reliability (low to high) and the need for IT innovation (low to high).
70
Emerging Technologies' Impact on Digital Strategies (Noland & McFarlan, 2005) What quadrant describes companies with high needs for both IT reliability and IT innovation?
Strategic mode
71
Emerging Technologies' Impact on Digital Strategies (Noland & McFarlan, 2005) How do companies in the "Turnaround Mode" quadrant use IT innovation to shift their business strategy?
Answer: They focus on adopting new IT systems to prepare for future critical needs, emphasizing transformation to stay competitive in a rapidly changing environment.
72
Emerging Technologies' Impact on Digital Strategies (Noland & McFarlan, 2005) What challenges might organizations in the "Factory Mode" face if market demands shift towards more innovation-driven strategies?
Answer: They may struggle to adapt quickly due to their focus on reliability and efficiency, requiring significant investments in innovation capabilities and cultural change.
73
The Hype Cycle (Dedehayir & Steinert, 2016) What are the five phases of the Hype Cycle?
Answer: Innovation Trigger, Peak of Inflated Expectations, Trough of Disillusionment, Slope of Enlightenment, and Plateau of Productivity.
74
The Hype Cycle (Dedehayir & Steinert, 2016) What occurs during the "Trough of Disillusionment" phase?
Answer: Expectations decline as the technology fails to meet initial hype, and adoption slows as practical challenges emerge.
75
The Hype Cycle (Dedehayir & Steinert, 2016) Why is the "Slope of Enlightenment" critical for the eventual success of a technology?
Answer: This phase involves the development of practical applications and best practices, leading to steady adoption and a more realistic understanding of the technology’s value.
76
The Hype Cycle (Dedehayir & Steinert, 2016) How can organizations use the Hype Cycle to make informed decisions about adopting emerging technologies?
Answer: By avoiding over-investment during the hype phase, focusing on iterative improvements during the Trough of Disillusionment, and strategically investing as the technology moves towards maturity
77
Capabilities of Smart Connected Products (Porter and Heppelmann, 2014) What are the four key capabilities of smart connected products?
Answer: Monitoring, Control, Optimization, and Autonomy.
78
Capabilities of Smart Connected Products (Porter and Heppelmann, 2014) How does the "Monitoring" capability add value to smart connected products?
Answer: It provides real-time data on the product’s condition, usage, and environment, enabling early detection of issues and performance insights.
79
Capabilities of Smart Connected Products (Porter and Heppelmann, 2014) What strategic changes must organizations make to fully leverage the "Optimization" capability of smart connected products?
Answer: They must invest in advanced analytics, enhance data management systems, and develop algorithms to improve product performance and efficiency.
80
Capabilities of Smart Connected Products (Porter and Heppelmann, 2014) How does the integration of "Autonomy" in smart connected products reshape customer relationships and business models?
Answer: Autonomy shifts the focus from reactive to proactive services, enabling subscription-based or outcome-oriented models and fostering long-term customer engagement.
81
The Company’s Technological Infrastructure (Porter & Heppelmann, 2015) What are the six core layers of technological infrastructure for smart, connected products?
Answer: Product (base layer), Connectivity, Product Cloud, External Information Sources, Integration with Business Systems, and Identity and Security.
82
The Company’s Technological Infrastructure (Porter & Heppelmann, 2015) What is the primary function of the Product Cloud layer?
Answer: To process, store, and analyze data collected by smart connected products, enabling capabilities like monitoring, control, and optimization
83
The Company’s Technological Infrastructure (Porter & Heppelmann, 2015) How does the integration of external information sources enhance the functionality of smart connected products?
Answer: By incorporating data such as weather, traffic, or market trends, external sources enrich product performance and enable more personalized or adaptive functionality.
84
The Company’s Technological Infrastructure (Porter & Heppelmann, 2015) Why is security a critical cross-cutting layer in the technological infrastructure, and how can it impact customer trust?
Answer: Security ensures data privacy, system integrity, and protection against breaches, which are essential for maintaining customer trust and compliance with regulations.
85
New Organizational Company Structures (Porter & Heppelmann, 2015) What are the two new organizational functions introduced for managing smart connected products?
Answer: Unified Data Organization and Customer Success Management.
86
New Organizational Company Structures (Porter & Heppelmann, 2015) What is the primary role of the Unified Data Organization?
Answer: To aggregate, analyze, and share data across departments to support decision-making and product improvements.
87
New Organizational Company Structures (Porter & Heppelmann, 2015) How does the Customer Success Management function support value creation in smart connected products?
Answer: By proactively engaging with customers, ensuring they derive maximum value from the product, and building long-term loyalty through insights and support.
88
New Organizational Company Structures (Porter & Heppelmann, 2015) What role does DevOps play in the dynamic development of smart connected products?
Answer: DevOps integrates development and operations to enable continuous updates, faster product releases, and real-time performance improvements.
89
Dynamic Capabilities What are the three core activities of dynamic capabilities?
Answer: Sensing, Seizing, and Transforming.
90
Dynamic Capabilities What is the purpose of the "Sensing" activity in dynamic capabilities?
Answer: To identify and evaluate opportunities and threats in the external environment.
91
Dynamic Capabilities How does the "Seizing" activity differ from "Sensing"?
Answer: While sensing focuses on identifying opportunities, seizing involves mobilizing resources and strategies to capture value from those opportunities.
92
Dynamic Capabilities Why is "Transforming" critical for long-term success in dynamic markets?
Answer: It enables organizations to continuously adapt, renew, and realign their capabilities with changing technological and market landscapes, ensuring resilience and relevance.
93
Dynamic Capabilities Provide an example of a company that demonstrates strong dynamic capabilities. What specific actions illustrate these capabilities?
Answer: Amazon exemplifies strong dynamic capabilities by sensing market shifts (e.g., growing demand for cloud services), seizing opportunities through AWS, and transforming its operations to dominate the cloud computing sector
94
Dynamic Capabilities What are the main challenges organizations face when developing dynamic capabilities?
Answer: Challenges include high resource demands, cultural resistance to change, the need for strategic foresight, and maintaining alignment between operational and transformative goals.
95
Capabilities vs. Dynamic Capabilities (Teece, 2023, and Teece et al., 2016) What is the primary difference between ordinary capabilities and dynamic capabilities?
Answer: Ordinary capabilities focus on operational efficiency, while dynamic capabilities enable adaptation and innovation in response to changing environments.
96
Capabilities vs. Dynamic Capabilities (Teece, 2023, and Teece et al., 2016) Why are dynamic capabilities harder to imitate than ordinary capabilities?
Answer: They require deep organizational learning, a culture of innovation, and long-term investments, making them unique to each organization.
97
Capabilities vs. Dynamic Capabilities (Teece, 2023, and Teece et al., 2016) How do sensing, seizing, and transforming activities differentiate dynamic capabilities from operational capabilities?
Answer: Dynamic capabilities are forward-looking and focus on strategic alignment with market changes, while operational capabilities optimize existing processes without anticipating future shifts.
98
Capabilities vs. Dynamic Capabilities (Teece, 2023, and Teece et al., 2016) Why is achieving evolutionary fitness important for firms with strong dynamic capabilities?
Answer: Evolutionary fitness ensures that firms remain competitive by adapting to and shaping external opportunities, sustaining long-term value creation in dynamic markets
99
Finding the Sweet Spot (Teece et al., 2016) What two dimensions does the "Finding the Sweet Spot" model emphasize for balancing organizational performance?
Answer: Efficiency and Agility.
100
Finding the Sweet Spot (Teece et al., 2016) What characterizes organizations positioned on the outer trade-off curve in the model?
Answer: They exhibit strong dynamic capabilities, enabling them to achieve both high efficiency and high agility.
101
Finding the Sweet Spot (Teece et al., 2016) Why is the "sweet spot" (high efficiency and high agility) difficult for organizations to achieve?
Answer: It requires significant investment in dynamic capabilities, such as sensing opportunities, reallocating resources quickly, and fostering continuous innovation, which can strain operational and financial resources.
102
Finding the Sweet Spot (Teece et al., 2016) How can an organization move from a business model characterized by high efficiency and low agility (BM1) to the sweet spot (BM4)?
Answer: By developing and strengthening dynamic capabilities, such as flexible resource allocation, iterative decision-making processes, and cultural openness to change, enabling a balance between operational stability and market responsiveness.
103
Transformation as an Evolution in 3 Stages (Soluk and Kammerlander, 2021) What are the three stages of digital transformation described by Soluk and Kammerlander (2021)?
Answer: Process Digitalization, Product/Service Digitalization, and Business Model Digitalization.
104
Transformation as an Evolution in 3 Stages (Soluk and Kammerlander, 2021) What is the primary focus of the Process Digitalization stage?
Answer: Improving internal processes for efficiency and cost reduction through the adoption of digital tools.
105
Transformation as an Evolution in 3 Stages (Soluk and Kammerlander, 2021) How does the focus shift from Process Digitalization to Product/Service Digitalization?
Answer: The focus transitions from internal operational improvements to customer-facing innovations, where digital features are integrated into products or services to enhance value propositions.
106
Transformation as an Evolution in 3 Stages (Soluk and Kammerlander, 2021) What role do dynamic capabilities play in the Business Model Digitalization stage?
Answer: Dynamic capabilities enable organizations to reconfigure their business models, adapt to technological and market changes, and build ecosystems that support continuous innovation and long-term competitiveness.

Value creation flashcards (3 decks)

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