Digital Transformation 2021

Domains in digital transformation cover aspects like competition, customers, data, value, and innovation, all working together to redefine how businesses operate in a digital age.

The strategic theme "build platforms, not just products" emphasizes creating flexible and scalable ecosystems that can adapt and grow, rather than focusing on isolated products.

Incumbent operating models use digital transaction platforms like company-wide platforms, digital processes for efficiency, and digitized communication to adapt to new digital landscapes.

The "be faster, be easier, be everywhere, be always on" strategy aims to provide customers with seamless access to services and support wherever they are, whenever they need it.

This theme of digital transformation highlights how the digital age has blurred the lines between partners and rivals, and shifted from internal assets to network-based resources.

Platforms are characterized by distinct customer groups, direct interactions between them, and a focus on enabling transactions and facilitating value creation.

Platforms like Uber and Airbnb are examples of "exchange" platforms, connecting users through a system of shared resources.

Platforms often create "direct network effects," meaning the value of the service increases as the number of users grows.

This domain explores how businesses manage information for production, management, and utilization in the digital age.

These data types are crucial for effective business strategy: business process data to understand workflows, product/service data to analyze performance, and customer data to tailor approaches.

While volume, velocity, and variety are characteristics of big data, "structure" is not. Big data can be structured, semi-structured, or unstructured.

These exploratory experiments have an informal design and focus on exploring new ideas without strict controls.

Two-sided markets face challenges related to pricing their platform, dealing with winner-take-all dynamics, and defending against potential envelopment by competitors.

Convergent experiments are characterized by a causal hypothesis, test and control groups, and blind testing, but they are not informal.

In the analog era, value propositions were defined by industry standards, focusing on a limited range of customer needs.

In a shrinking market, firms can find new ways to appeal to existing customers, attract new customer segments, or leverage disruptive partnerships to expand their reach.

Companies face challenges when adapting their value proposition, including dedicating committed leadership, allocating resources effectively, avoiding short-sightedness, and understanding the potential use cases for their business.

Firm Y's approach of entering the car market with a new service like car sharing represents an "outside in" trajectory of disruptive business models.

Firm X's investigation reflects the "value train" approach, where they are trying to understand the changing customer needs and the underlying reasons driving those shifts.

Firm X launching "X sharing cars" to compete directly with Firm Y is an example of "launching an independent disruptor" as a strategy to deal with disruptive rivals.

The customer network strategy of "be faster, be easier, be everywhere, be always on" is best suited to the following customer network behavior: (d) Connect.

The three key characteristics of platforms are: (a) Distinct types of customers, direct interaction and facilitating.

Types of experiments characterized by exploratory nature and informal design are: (b) Divergent.

Once the new technologies kick in, this can decline the relevance of a once valued product or service. One of the routes out of shrinking market can be through: (a) New customers.

Two sided markets are faced with three challenges, namely: (a) Pricing the platform, winner-take-all dynamics and the threat of envelopment.

As firms try to continuously adapt their value’s proposition, they may run into some organizational challenges. Which of the following does NOT belong to these challenges: (d) Use case of their business.

The way the firm Y started selling their product/service to the customers and entering the car market is an example of which trajectory of the disruptive business models: (c) Outside out.

The way the firm X started exploring potential impact on them and other incumbents reflects the approach of: (c) Laddering.

Creation of a firm of "X sharing cars" by X to directly compete with the firm Y reflects which of the strategies to deal with disruptors: (b) Launch an independent disruptor.