S.2.6 Creating a digital strategy

Question 1

Key strategic themes

Answer 1

• Scope of Digital Business Strategy
• Scale of Digital Business Strategy
• Speed of Decision Making
• Sources of Value Creation and Appropriation

Question 2

Key external digital trends

Answer 2

• Pervasive Connectivity
• Information Abundance
• Global Supply Chains
• Improved Price/Performance of IT
• Growth of Cloud Computing
• Emergence of Big Data

Question 3

Key organizational shifts

Answer 3

• Limitations of Traditional Business Models
• Trans-functional Role for IT
• New Mandate for IT and the CIO
• Increased Familiarity with IT

Question 4

Scope of Digital Business Strategy

Answer 4

DBS: -Transcends Traditional Functional and Process Silos

• Includes Digitization of Products and Services and the Information Around Them
• Extends the Scope Beyond Firm Boundaries and Supply Chains to Dynamic Ecosystems That Cross Traditional Industry Boundaries

Question 5

Scale of Digital Business Strategy

Answer 5

• Rapid Digital Scale Up/Down as Strategic Dynamic Capability
• Network Effects Within Multisided Platforms Create Rapid Scale Potential
• Scale with Digital Business Strategy Will Increasingly Take Place under Conditions of Information Abundance
• Scale Through Alliances and Partnerships

Question 6

Speed of Digital Business Strategy

Answer 6

• Speed of Product Launches
• Speed of Decision Making
• The Speed of Supply Chain Orchestration
• Speed of Network Formation and Adaptation

Question 7

Value Creation in Digital Business

Answer 7

• Efficiency
• Complementaries
• Lock-In
• Novelty

Question 8

Platform types

Answer 8

• Transaction
• Innovation
• Integrated
• Investment

Question 9

Content Model (Financial Times, Wikipedia)

Answer 9

• Packing and offering content on digital platforms

- Core resource: Content creation, sourcing, distribution

Question 10

Commerce Model (eBay)

Answer 10

• Initiation, negotiation, and/or settlement of business transactions
• Core resource: customer and supplier/product base and interaction

Question 11

Search Model (Bing)

Answer 11

• Classification and systematization of information available on the Internet
• Core resource: Search algorithm

Question 12

Connection Model (Facebook)

Answer 12

• Creation of the possibilty to exchange information in networks
• Core resource: Brand, user base and interaction