Digital Business Strategy Session 1

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is a key factor in the changing customer dynamics in the digital era?

Decline in online shopping due to security concerns

Reduced expectations for service speed and quality

Increased customer loyalty to traditional brands

Customers having access to more information and options (correct)

Which statement best describes the changing competition landscape in the digital economy?

Established companies no longer face competition from startups.

Competition is solely based on price reduction.

Competitors are now primarily local businesses.

New entrants can leverage digital technologies to disrupt existing markets. (correct)

What is necessary for effective data management in the digital era?

Minimal data governance to expedite processes

Avoidance of cloud computing solutions

Reliance on older data processing systems

Investment in advanced digital capabilities and analytics (correct)

How can technology contribute to value creation in businesses?

By enabling innovation and enhancing customer experiences Signup and view all the answers

Which approach can businesses take to foster strategic partnerships and coopetition?

Develop alliances that leverage complementary strengths in the digital ecosystem Signup and view all the answers

What is a significant factor contributing to the changing competition landscape?

The ease of scalability in the digital environment. Signup and view all the answers

Which of the following best describes 'coopetition'?

Collaborations between competitors to create mutual value. Signup and view all the answers

What has largely diminished as a source of competitive advantage in the digital environment?

Vertical integration. Signup and view all the answers

What role does data play in the modern competitive landscape?

Data serves as a crucial strategic asset for transforming business. Signup and view all the answers

Which of the following statements about industry incumbents is accurate?

They need to adapt or face failure in the evolving market. Signup and view all the answers

What is one new capability that technology enables for businesses?

Opportunities for rapid innovation. Signup and view all the answers

How are transactional costs changing in the digital economy?

They are decreasing, particularly in financial services. Signup and view all the answers

What shift is occurring regarding competition between companies?

Focus is shifting from products to platforms. Signup and view all the answers

What is a major organizational challenge companies face when reconsidering their data capabilities?

Changing business processes Signup and view all the answers

Which factor contributes to the speed of the innovation process in companies?

Digital technologies for quick tests Signup and view all the answers

How does the new value proposition differ in the digital era?

It evolves based on customer needs Signup and view all the answers

In terms of competitive strategy, companies must understand new rules in order to:

Rethink their strategy based on new customer expectations Signup and view all the answers

What role do digital technologies play in value creation?

They create new opportunities for innovative value propositions Signup and view all the answers

What is a key aspect of fostering innovation through social media?

Encouraging collaboration from customers and employees Signup and view all the answers

What is a primary concern regarding data sharing with partners?

Which data will be shared with partners? Signup and view all the answers

How do companies benefit from incorporating external data in real time?

They improve predictive analysis results Signup and view all the answers

What should companies focus on to bridge data silos effectively?

Implementing unified data management practices Signup and view all the answers

What is a potential risk related to cybersecurity in the digital era?

Sharing of sensitive data with partners Signup and view all the answers

How have customer dynamics changed in the digital era?

Customers now influence the brand co-creation process. Signup and view all the answers

What is a key shift in the communication style between companies and customers?

Communications have transitioned to a two-way interaction. Signup and view all the answers

What defines the economics of customer value in the digital age?

Economics centered around customer value. Signup and view all the answers

What has led to changes in competition dynamics according to the new rules?

Dynamic involvement of customers in competitive strategies. Signup and view all the answers

Which of the following best describes the role of data in modern business?

Data serves as a strategic asset for transforming business operations. Signup and view all the answers

What is a primary focus of modern marketing in the context of customer interaction?

To inspire purchase, loyalty, and advocacy among customers. Signup and view all the answers

How has the concept of brand ownership shifted with customer engagement?

Brands are co-created between the company and customers. Signup and view all the answers

What is the new approach to value flows in business transactions?

Value flows are reciprocal, benefiting both firms and customers. Signup and view all the answers

What should firms consider when building strategic partnerships in the digital era?

Engagement with customers can enhance collaborative efforts. Signup and view all the answers

Which statement highlights a major misconception about customer loyalty in today's market?

Customer loyalty is as strong as ever in digital markets. Signup and view all the answers

Study Notes

Session 1: Rethinking Strategy in the Digital Era

Session is about the digital era and rethinking strategy
Two-year MSc course in Digital Business
Course coordinator: Nabila BOUKEF Ph.D, Associate Professor in information Systems and digital transformation, SKEMA Business School
Question addressed during this session: What has changed so far that triggers new ways of strategy thinking?
Drivers/domains of digital transformation: Analyzing the new rules of the games and opportunities enabled by the digital technologies, Create a competitive advantage, Strategy approach, Digital growth
Five domains of digital transformation: Customers, Competition, Data, Innovation, Value
Outline for this session: New rules of the game (Customers, Competition), New data capabilities enabled by the technology (New data capabilities, Data as a strategic asset, New opportunities to transform business), Conclusion
Customers: from passive to dynamic networks. Less loyal, Connected and active, Can be involved in the innovation process, Brand is no longer defined by the company, co-created by customers, Customers engagement at Dell quote: "We are at our best when we are hearing directly from our customers."
Reconsidering strategic assumptions about customers in the digital era: From/To chart detailing the shift from mass market to dynamic networks, broadcast communications to two-way communications, firm as key influencer to customers as key influencer, one-way value flows to reciprocal value flows, the paradigm shift from economies of firm scale to economies of customer value
Competition: Different players with different strategies (Digital giants: Amazon, facebook, google; Industry incumbents: need to adapt or fail; Tech entrepreneurs: innovating and disrupting). Old sources of competitive advantage are largely disappearing (Scale, Transactional costs, Vertical integration). Change in competition: Companies can partner with other competitors to create value for customers (coopetition). Companies are facing competition from different companies (different sector, different business model)
New capabilities enabled by the technology: Increased storage, Increased processing power, Faster communication
Data as a strategic asset: Data used to be highly focused on operations, Strategic use of data to innovate and create value for customers, Strategic use of data to improve decision-making, Strategic use of data to manage and optimize business processes and reduce risks
Big data use in Lufthansa
Different Use cases: Personalizing Customer Experiences, Handling Irregular Situations, Predicting Departure Delays and Proactive Irregular situation Recovery, Predictive and Preventive Aircraft maintenance
Main challenges companies face when reconsidering their data capabilities: Organizational challenges of data (the need to change business processes), Finding people with the right skill sets, Bridging silos, Sharing data with partners, Cybersecurity, privacy and consumer attitudes
New opportunities to transform business: Speeding up the innovation process, New value proposition. Speeding up the innovation process: Digital technologies enable quick test and real time experiment, Capability to explore many more innovative ideas, Social media enable to foster the innovation process, Learning curves are less pronounced, Value proposition is no longer static but is constantly evolving and adapting to the need of the market. Digital technologies create new opportunities for innovative value proposition, example Stitch Fix creating a new business model by selling personal style to mass market
Reflect and apply: Ford case study

Ford Case Study

Read the Ford case study and answer the question: Based on the information provided, analyze the triggers that incite Ford to invest in mobility services using the D. Rogers framework

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Explore the evolving landscape of strategy in the digital era during this session of the two-year MSc course in Digital Business. Led by Dr. Nabila Boukef, the discussion will focus on how digital technologies reshape customer dynamics, create competitive advantages, and encourage innovation. Understand the five domains of digital transformation and their impact on modern strategic thinking.