Podcast
Questions and Answers
What is a major factor contributing to the disappearance of old sources of competitive advantage?
What is a major factor contributing to the disappearance of old sources of competitive advantage?
What trend is observed in the competitive landscape according to emerging strategies?
What trend is observed in the competitive landscape according to emerging strategies?
Which statement best describes the role of tech entrepreneurs in the competitive environment?
Which statement best describes the role of tech entrepreneurs in the competitive environment?
What has changed regarding transactional costs in the digital era?
What has changed regarding transactional costs in the digital era?
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What is a significant aspect of new capabilities enabled by technology?
What is a significant aspect of new capabilities enabled by technology?
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What is one of the primary organizational challenges companies face when reconsidering their data capabilities?
What is one of the primary organizational challenges companies face when reconsidering their data capabilities?
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What significant change has occurred regarding customer loyalty in the digital age?
What significant change has occurred regarding customer loyalty in the digital age?
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Which aspect of cybersecurity is mentioned as a challenge companies face when dealing with data?
Which aspect of cybersecurity is mentioned as a challenge companies face when dealing with data?
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How has the role of communication changed between firms and customers?
How has the role of communication changed between firms and customers?
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How do digital technologies impact the innovation process according to the content?
How do digital technologies impact the innovation process according to the content?
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Who is now seen as the key influencer in the customer-firm relationship?
Who is now seen as the key influencer in the customer-firm relationship?
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What characterizes the new value proposition for companies?
What characterizes the new value proposition for companies?
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How has the flow of value between firms and customers changed?
How has the flow of value between firms and customers changed?
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What role do social media platforms play in the innovation process?
What role do social media platforms play in the innovation process?
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According to the D. Rogers framework, what should companies analyze to identify new opportunities and constraints?
According to the D. Rogers framework, what should companies analyze to identify new opportunities and constraints?
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What is emphasized in the new marketing approach towards customers?
What is emphasized in the new marketing approach towards customers?
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Why is understanding new customer behaviors essential for companies?
Why is understanding new customer behaviors essential for companies?
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What describes the transformation of customers in the digital age?
What describes the transformation of customers in the digital age?
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What opportunity does big data offer for organizations according to a director's perspective?
What opportunity does big data offer for organizations according to a director's perspective?
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What has shifted in terms of economic considerations relating to firms?
What has shifted in terms of economic considerations relating to firms?
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What is a key aspect of how brand identity is formed in the digital era?
What is a key aspect of how brand identity is formed in the digital era?
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What has changed regarding the generation of data in firms?
What has changed regarding the generation of data in firms?
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What is the primary challenge associated with data in the modern context?
What is the primary challenge associated with data in the modern context?
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How is unstructured data viewed in current strategic data management?
How is unstructured data viewed in current strategic data management?
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What aspect of data management reflects a shift towards strategic value in businesses?
What aspect of data management reflects a shift towards strategic value in businesses?
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Which of the following is NOT a use case for big data in Lufthansa?
Which of the following is NOT a use case for big data in Lufthansa?
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What was Lufthansa's data storage approach prior to implementing big data systems?
What was Lufthansa's data storage approach prior to implementing big data systems?
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What advantage does strategic use of data provide to firms?
What advantage does strategic use of data provide to firms?
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How are siloed data viewed in modern data management practices?
How are siloed data viewed in modern data management practices?
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Study Notes
Five Domains of Digital Transformation
- Five domains of digital transformation are customers, competition, data, innovation, and value.
- New rules of the game in digital transformation.
- New capabilities enabled by the technology.
Customers: From Passive to Dynamic Networks
- Customers are less loyal.
- Customers are more connected and active.
- They can participate in the innovation process.
- Brand definition is no longer solely controlled by the company, but co-created by customers.
- Dell Inc. emphasizes direct customer feedback for innovation.
Reconsidering Strategic Assumptions About Customers in the Digital Era
- From: Customers are mass market, firm is the key influencer, one-way value flows, economics of firm scale
- To: Customers are dynamic networks, customers are the key influencer, reciprocal value flows, economics of customer value
Competition
- Different players with different strategies.
- Old sources of competitive advantage are diminishing.
- Competition has changed.
- Different players: Digital giants (Amazon, Facebook, Google), Industry incumbents (need to adapt or fail), Tech entrepreneurs (innovate and disrupt the market)
- Old sources diminishing: Scale (easy and costless), transactional costs (decreasing), vertical integration (easy disintegration and specialization).
- Change in competition: Companies can partner with competitors (coopetition) to create value.
- Examples of coopetition: Volkswagen, BMW, and Daimler created mapping technology.
- Companies face competition from different sectors and business models
- Examples of cross-sector competition: Amazon in retail and Uber in automotive
New Capabilities Enabled by the Technology
- New data capabilities.
- Increased storage (cloud computing).
- Increased processing power.
- Faster communication.
- Data as a strategic asset.
- Data is used to improve and optimize business processes and to reduce risk.
- Examples include Stitch Fix and Lufthansa.
- New opportunities to transform business.
- Creating new value with digital technologies.
- Speeding up innovation processes.
- Creating new value propositions.
Speeding up the Innovation Process
- Digital technologies enable quick testing and real-time experimentation.
- Companies can explore more innovative ideas and learn from them quickly.
- Social media fosters innovation by involving customers and employees.
- Learning curves are less pronounced as companies learn quickly from failures.
New Value Proposition
- Value proposition is dynamic and adapts constantly to market needs.
- Digital technologies open up opportunities for innovative value propositions.
- Example: Stitch Fix, which created a new business model by selling personal style.
Main Challenges When Reconsidering Data Capabilities
- Organizational challenges: Changing business processes, finding skilled employees.
- Bridging silos: Bringing data together into a unified framework.
- Sharing data with partners: Determining relevant data to share with partners.
- Cybersecurity, privacy, and consumer attitudes: Ensuring data security and customers' trust.
Ford Case Study (20 min)
- Analyze the triggers for Ford's investment in mobility services using the D. Rogers framework.
Conclusion
- D. Rogers framework serves as a useful tool for analyzing new opportunities and constraints.
- To remain competitive, companies need to adapt to new rules, competition, customer expectations, and behaviors.
- Digital technologies create new opportunities for companies.
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Description
Explore the five key domains of digital transformation, focusing on how customer dynamics are changing in the digital age. Understand the shifting competitive landscape and the new capabilities that technology brings to businesses. This quiz will enhance your knowledge of strategic assumptions about customers and their impact on innovation.
