Digital Colonization in Regulated Industries

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Questions and Answers

Which company's data capture is most limited to its own platform activity?

  • Google
  • Amazon (correct)
  • Apple
  • Facebook

Which company has a very large user base across three dominant social media and messaging platforms?

  • Facebook (correct)
  • Google
  • Apple
  • Microsoft

Which company utilizes its extensive employee base as both an internal user group and for piloting new products?

  • Facebook
  • Microsoft
  • Apple
  • Amazon (correct)

Which company's data collection is primarily through proprietary hardware devices?

<p>Apple (A)</p> Signup and view all the answers

Which company has a large user base and is expanding in the cloud services sector?

<p>Microsoft (D)</p> Signup and view all the answers

What primary factor led the study to concentrate on Big Tech's involvement in U.S. education?

<p>Big Tech firms showed a significantly higher level of activity in the U.S. education sector than in the UK. (D)</p> Signup and view all the answers

After case studies were completed, what was the next step the research team undertook?

<p>They started comparing Big Tech firms' activities across different platforms, countries, and industries. (D)</p> Signup and view all the answers

What was the initial step when comparing cross platform activities within a single industry?

<p>Mapping the core activities each Big Tech firm employed in specific industries. (C)</p> Signup and view all the answers

What was the key purpose of grouping common approaches and activities across different platforms?

<p>To establish the correlation between platform capabilities and their market entry strategies. (D)</p> Signup and view all the answers

When conducting cross-industry comparisons, what elements were specifically considered?

<p>Customer needs, opportunities for partnerships and regulated activities in the value chain. (C)</p> Signup and view all the answers

In the comparison of the United Kingdom and the United States' healthcare sectors, what factors were identified as contributing to variance in Big Tech entry processes?

<p>The level of regulation, the structure of systems (centralized versus distributed), and the presence of private actors. (A)</p> Signup and view all the answers

What did the researchers iteratively engage with to develop their mid-range theory?

<p>Empirical findings and academic theories. (D)</p> Signup and view all the answers

According to the provided text, what information is summarized in Table 2?

<p>The resources, capabilities, and monetization methods of each Big Tech firm. (C)</p> Signup and view all the answers

What sector has Google become an essential partner in?

<p>Infrastructure projects (A), Healthcare (D)</p> Signup and view all the answers

What major step did Microsoft take in 2011 concerning healthcare?

<p>Formed partnerships for interconnectivity solutions (C)</p> Signup and view all the answers

Which cloud service platform is mentioned in relation to Microsoft's healthcare expansion?

<p>Azure (A)</p> Signup and view all the answers

What was a significant trend in many industries that led Microsoft to support healthcare?

<p>Digital transformation (B)</p> Signup and view all the answers

When did Microsoft announce the expansion of its AI and cloud services for healthcare?

<p>2017 (C)</p> Signup and view all the answers

How has Microsoft been able to collect large-scale data in the healthcare system?

<p>Through established partnerships with various players (D)</p> Signup and view all the answers

What type of projects does Google lead in the healthcare industry?

<p>Diagnostic tools and treatments (B)</p> Signup and view all the answers

What educational venture was launched by Amazon in 2020?

<p>Amazon Academy (C)</p> Signup and view all the answers

What type of partnership does Facebook pursue in the healthcare sector?

<p>Partnerships with non-profits for research (C)</p> Signup and view all the answers

Which service is NOT associated with Amazon's offerings in education?

<p>PillPack (C)</p> Signup and view all the answers

How does Facebook utilize its platform for education?

<p>Through data collection from users (A)</p> Signup and view all the answers

What technology is mentioned as part of Amazon's healthcare platform?

<p>Alexa for telehealth (B)</p> Signup and view all the answers

Which Amazon initiative focuses on healthcare product sales?

<p>PillPack (B)</p> Signup and view all the answers

What is described as a core function of Facebook's platform in healthcare?

<p>Location-based health suggestions (A)</p> Signup and view all the answers

Which educational program is linked to Amazon's internal operations?

<p>Amazon Career Choice (B)</p> Signup and view all the answers

Which of the following is least likely to be part of Facebook's educational initiatives?

<p>Partnerships with vocational schools (C)</p> Signup and view all the answers

What is a key factor for incumbent firms to consider when entering highly regulated industries?

<p>Data capture and analysis strategies (D)</p> Signup and view all the answers

What advantage do entering Big Tech firms have in regulated industries?

<p>Hardware/software-independent data capture (B)</p> Signup and view all the answers

What must new entrants, such as biotech startups, prioritize for their success in regulated industries?

<p>Strong partnership with established incumbents or Big Tech (A)</p> Signup and view all the answers

What is a major concern for regulators regarding dominant Big Tech platforms?

<p>Their ability to harvest large amounts of user data (B)</p> Signup and view all the answers

How might the locus of competition shift in highly regulated industries?

<p>Towards data-driven products and services (D)</p> Signup and view all the answers

Which of the following is a necessary consideration for incumbent firms when interacting with entering platforms?

<p>Assessment of the entrants' pre-entry resources and capabilities (C)</p> Signup and view all the answers

What long-term implication must incumbent firms consider regarding Big Tech's value-creating actions?

<p>The risk of commoditization of their activities (D)</p> Signup and view all the answers

What should entrepreneurs of tomorrow focus on in light of changes in competition due to Big Tech platforms?

<p>Building ecosystems around Big Tech platforms (A)</p> Signup and view all the answers

Why are data analytics capabilities especially important in highly regulated industries?

<p>They facilitate entry by breaking high entry barriers. (C)</p> Signup and view all the answers

What role do successful platforms play in existing value chains in regulated industries?

<p>They add value through data infrastructure services. (D)</p> Signup and view all the answers

What is a critical first step for platform managers entering data-intensive industries?

<p>Negotiating access to primary service data. (C)</p> Signup and view all the answers

How might platform firms effectively gain access to data?

<p>By subsidizing hardware and services access. (B)</p> Signup and view all the answers

What is a primary concern for platforms dealing with sensitive data in regulated industries?

<p>Balancing the interests of diverse stakeholders. (D)</p> Signup and view all the answers

What aspect drives the value of a platform for its users in the context of sensitive data?

<p>Effective management of stakeholder interests. (D)</p> Signup and view all the answers

How can platforms capture value in data-intensive industries after accessing data?

<p>By focusing on selling data-driven insights and new services. (A)</p> Signup and view all the answers

What implication does the study hold for incumbent firms in response to Big Tech platforms?

<p>They must adapt to a new form of competition. (D)</p> Signup and view all the answers

Flashcards

Existing User Base

The number of users who already use a company's products or services.

Resources and Capabilities

Companies like Amazon, Apple, Google, Facebook, and Microsoft have significant resources (like money and employees) and capabilities (like advanced technology).

Data Capture

Data captured by companies like Amazon, Apple, Google, Facebook, and Microsoft through user interactions and activities on their platforms.

Large User Base

These companies have a massive user base across various products and services.

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Big Tech Dominance

Big Tech companies have vast resources, capabilities, and data capture mechanisms that allow them to dominate their respective industries.

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Google's Expansion in Healthcare

Google's involvement in healthcare expanded beyond individual niches. It also formed strategic collaborations with governmental agencies and state-run institutions to play a crucial role in building infrastructure for healthcare projects.

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Microsoft's Data Collection in Healthcare

Microsoft's long-standing presence as an IT provider in healthcare allowed them to gather extensive data on healthcare processes and operations.

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Microsoft's Partnerships for Interconnectivity

To strengthen its position in healthcare, Microsoft established partnerships in 2011 focused on creating solutions for seamless communication between hospitals, doctors, and patients.

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Microsoft's Support for Healthcare Digital Transformation

Microsoft's commitment to supporting the digital transformation of healthcare organizations aligns with the broader trend of digitalization across industries.

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Microsoft's Expansion of AI & Cloud Services in Healthcare

Microsoft's announcement in 2017 to expand its AI and cloud services for healthcare leveraged their expertise in Azure cloud services and AI/ML technologies.

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Cross-Platform Analysis

A comparison method to identify common activities and variations across Big Tech firm platforms within a single industry, like healthcare or education.

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Cross-Industry Comparison

Examining Big Tech firms' entry and activities across different industries, like healthcare and education, to identify commonalities and differences.

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US-UK Healthcare Comparison

A study comparing Big Tech firms' entry processes and strategies in the United States and United Kingdom, focusing on healthcare and considering factors like regulation and system structures.

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Theory & Findings Iteration

A research method that involves iteratively refining theoretical ideas based on emerging empirical observations.

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Big Tech Disruption

Big Tech's ability to create new services and products in highly-regulated industries by disrupting existing processes or adding value to current ones.

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Big Tech Entry

The process of exploring the ways in which Big Tech firms enter regulated industries like healthcare and education, considering their resources, capabilities, and monetization strategies.

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Big Tech Monetization

The specific ways Big Tech companies use their resources and capabilities to make money in various industries.

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Big Tech's Potential Influence

The idea that Big Tech firms might have a dominant influence on highly regulated industries like education, potentially impacting how they function globally.

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Facebook Healthcare

Facebook's approach to using its social platform for data collection, partnerships, and platform integration to enhance healthcare services.

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Data Collection through Users

Facebook leverages its social platform to collect user information relevant to health and wellness.

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Research Partnerships

Facebook partners with organizations like universities and medical device companies to conduct research and develop healthcare initiatives.

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Self-Assessment Tests and Location-Based Suggestions

Facebook's platform allows users to take self-assessment tests, find relevant healthcare resources, and receive personalized support.

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Amazon Healthcare

Amazon utilizes its retail platform, cloud services, and hardware like Alexa to influence the healthcare landscape.

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Retail Platform for Product Sales

Amazon sells healthcare products and medical devices through its online marketplace.

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Cloud Services

Amazon's cloud computing services enable healthcare providers to store and manage patient data securely.

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PillPack, Haven, Alexa for Healthcare

Amazon develops initiatives like Alexa for healthcare, PillPack, and Haven to offer integrated health solutions.

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Data Analytics Capabilities

The ability to analyze data and generate insights based on that data.

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Multi-Stage Entry Strategy

A strategy for entering highly regulated industries by focusing on data-related activities, such as providing data infrastructure, insights, and eventually new products and services.

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Capturing Novel Data

The process of using proprietary hardware and software to collect unique data about users.

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Subsidizing Hardware and Services

Offering initial services or resources at a lower cost to attract users and gain access to data.

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Data-Driven Value Creation

The ability of platforms to provide valuable insights, products, and services based on analyzed data.

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Platform Policies and Procedures

Policies and procedures that ensure the responsible use of sensitive data, especially in regulated industries.

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Balancing Stakeholders' Interests

The importance of balancing the interests of various stakeholders, including users, regulators, and the platform itself, when handling sensitive data.

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Incumbent Firms

Companies within a regulated industry that are already established and face competition from Big Tech firms.

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Data-related Capabilities

The ability to collect, organize, and analyze large amounts of data to gain insights and create value.

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Data Access

The ability to access and utilize data to gain a competitive advantage in a market.

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Platform Entry

The process of a large, established tech company (like Google or Facebook) entering a new industry.

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Hardware/Software-Independent Data Capture Strategy

The ability to operate independently of specific hardware or software technologies, allowing flexibility and adaptability.

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Partnership

The act of a company working with another company instead of competing directly.

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Commoditization

The gradual process of a product or service becoming commonplace and less valuable.

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Ecosystems

A group of businesses, organizations, and individuals that work together in a shared ecosystem.

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Data-Driven Products and Services

The process of using technology to create new products and services that utilize data.

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Study Notes

Digital Colonization of Highly Regulated Industries

  • Digital platforms have not visibly transformed highly regulated industries, like healthcare and education, despite disrupting many other sectors.
  • The study analyzes how Big Tech enters highly regulated industries through a four-stage process called "digital colonization".
  • This process involves providing data infrastructure, capturing relevant data, generating insights from the data, and creating new products.
  • Platforms gain competitive advantages using these methods in highly regulated industries.
  • Platforms' entry is characterized by a focus on data, leveraging existing data infrastructure across various industries, and understanding specific regulatory contexts.

Platform Business Model & Data

  • Platforms create value by connecting users, facilitating transactions, and reducing costs.
  • Network effects enhance platform value as more users join.
  • Data network effects increase platform value with accumulated data.
  • Big Tech firms use data analysis to improve products, which can improve overall services.
  • Data is a key element for platform business models, significantly influencing their influence.

Regulations and Platform Entry

  • Highly regulated sectors, like healthcare and education, face higher entry barriers due to extensive regulatory oversight.
  • These industries have significant regulatory control from governments and specialized regulatory bodies.
  • These regulations often impose high entry barriers and operational compliance costs, making platform entry challenging.
  • Data privacy, fair competition, and value balance are critical concerns in regulatory-intensive industries.
  • Table 1 (in the document text) provides examples of healthcare and education industry regulations.

Platform Entry in Healthcare and Education

  • Big Tech has entered healthcare by providing data infrastructure services to incumbents like hospitals; they focus on data acquisition and analysis, generating new products and services.
  • Big Tech's entry in education often involves providing hardware, software, and learning platforms.
  • Examples include providing cloud services, API capabilities, and targeted resources.
  • Big Techs use relationships as well as AI/ML capabilities to generate data-driven insights for product development, enabling value addition beyond incumbents' offerings.

Research Design and Methodology

  • A comparative case study approach was used for this research, focusing on cross-industry, cross-country, and cross-platform comparisons.
  • The study included over 3,500 articles, business reports, and company press releases on healthcare and education.
  • Specific focus was on the UK and the US to analyze and compare State dominance in service delivery and Big Tech entry strategies.

Big Tech Activities Timelines

  • Tables 3 and 4 provide timelines of Big Tech activities in healthcare and education in specific countries.
  • Google's initial focus was on healthcare data collection and analysis, and later on developing healthcare products and services.
  • Key investments in AI/ML and partnerships in healthcare and education sectors were highlighted.
  • Other key platforms such as Apple, Facebook, and Amazon have parallel activities and timelines for their entry into healthcare and education.

Data Capture and Value Addition

  • Direct data capture is when Big Tech firms create their own data through interactions or partnerships.
  • Indirect data capture involves obtaining existing data from incumbents.
  • Big Tech firms convert acquired data into valuable insights, designs new products/services.

Contributions to Theory and Practice

  • Platform entry into highly regulated industries is identified as "digital colonization".
  • Data capture and analysis are critical competitive advantages in these sectors.
  • The study emphasizes the importance of access to data, data infrastructure services, and data analysis capability for successful platform entry.
  • High entry barriers make collaboration or partnering necessary, leading to a new competitive landscape in these sectors.

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