Digital Thinking and Innovation PDF

Digital Thinking and Innovation CT109-3-1 Innovation in Digital Trends  Content Digitization of Businesses Digital Trends: – Big Data, Cloud Computing and Mobile Internet – Software-Defined Anything – Outsour...

Digital Thinking and Innovation CT109-3-1 Innovation in Digital Trends  Content Digitization of Businesses Digital Trends: – Big Data, Cloud Computing and Mobile Internet – Software-Defined Anything – Outsourcing and Crowdsourcing – Prosumer Economy – Long Tail – Digital Finance – Collaboration CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 2  A Business World Reshaped by Digitization As social media platforms have connected people from all over the world with each other, time and space are no longer barriers to communication – Telegram: 400 million users – Sina Weibo: 500 million users – WeChat: 500 million users – Facebook: 1.2 billion users – WhatsApp: 1.6 billion users CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 3  A Business World Reshaped by Digitization With the rapid evolution of digital technologies, the flood of information sweeps all over the world at virtually no cost Promotes closer links: – between humans – between things – between humans and things Individuals, companies, industries and countries will be affected when the revolution on the horizon arrives. CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 4  Kodak: Missing Its Own Moments Kodak (more than 130 years old giant) was the undisputed king of photographic film, with two thirds of global market share. Kodak created many “firsts”: – It came out on top in the imaging and photographic film market – It created the world’s first digital camera using a Charge Coupled Device (CCD), a major piece of technology for digital imaging – The first company to flame out in the imaging industry It failed to capture its own moments: – To keep abreast of digital technologies CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 5  The Ever-Changing Digital Business World The leaders in the digital age can easily fall behind – Top 4 Tech giants Microsoft, Intel, HP, and Yahoo have been dethroned by Apple, Google, Amazon, and Facebook Many companies have fallen because of a resistance to reform; or have undergone disruptive changes – Nokia and Blackberry ended up selling their assets Market Players are inspired by the Internet CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 6  Learning Outcomes for the Lecture At the end of this lecture you will be able to: – Explain how a business world is reshaped by digitization – Understand the role of the Internet in the business world – Explain the categories of digital trends CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 7  The Digital Trends Big data, cloud computing, mobile internet - focuses on changes in infrastructure Software-defined anything - focuses on changes in productivity Outsourcing and crowdsourcing - focuses on changes in production organization Prosumer economy - focuses on changes in forces of economic growth CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 8  Big Data Big data emphasizes not the amount of data but rather using new thinking to interpret the data, with the help of the Internet – Spotify, an on-demand music providing platform, uses Big Data Analytics, collects data from all its users around the globe, and then uses the analyzed data to give informed music recommendations and suggestions to every individual user. – Amazon Prime that offers, videos, music, and Kindle books in a one- stop shop is also big on using big data. CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 9  Cloud Computing Cloud computing - an environment that provides resources and services accessed via the Internet Computing over the Internet Virtualized Computing Platform Scalable use of computing resources Pay-per-Use concept CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 10  Mobile Internet If the PC has changed our work style and ways of production, then the mobile Internet is reshaping our lifestyle. – Jack Ma, President of Alibaba When you get lost in an unfamiliar place, Waze on your mobile phone will guide you to your destination Wherever you are, you can browse the news, read a novel, tweet, play games or watch movies on your mobile phone or tablet When you need a taxi, you can use Grab app on your mobile phone to find a taxi nearby CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 11  Software-Defined Anything “Software-defined anything” is identified as one of the “Top 10 Strategic Technology Trends” as a technology with the potential for significant impact on enterprises In an era where young entrepreneurs are keen on disruptive innovation, “software-defined anything” is not merely a concept but a growing trend towards disrupting traditional way of thinking – Examples include: Amazon, the world’s largest bookseller; Netflix, the largest video service by number of subscribers; Apple’s iTunes, one of today’s dominant music companies; CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 12  Outsourcing and Crowdsourcing The idea behind outsourcing is “focus on what you do best and let others do the rest” Crowdsourcing encourages consumers and users to take charge and pursue their goals Table 1: The difference between Outsourcing and Crowdsourcing CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 13  Outsourcing and Crowdsourcing Wreckage searching: When MH370 went missing, DigitalGlobe, an American satellite mapping company, set up Tomnod, a crowd-sourcing initiative, encouraging internet users to scan and tag images of more than 1200 mi2 of ocean to locate the missing plane Mapping: User editors made hundreds of millions of map edits and updated Waze’s map to reflect the changes on the ground CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 14  Outsourcing and Crowdsourcing Software testing: Applause (formerly uTest), an American venture-funded software and application testing company collaborates with more than 140,000 crowdtesters and debuggers, to remove all the possible bugs in the software applications Knowledge: Wikipedia has over 4 million entries in English, and other standalone Wikis in 282 languages totaled up to 21 million entries, 32 million users and 1.2 billion edits. Wikipedia is ranked among the ten most popular websites on the Internet CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 15  The Digital Trends Big data, cloud computing, mobile internet - focuses on changes in infrastructure Software-defined anything - focuses on changes in productivity Outsourcing and crowdsourcing - focuses on changes in production organization Prosumer economy - focuses on changes in forces of economic growth CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 16  Prosumer Economy Competition is getting fierce globally Companies are under great pressure to offer more and better products and services at lower costs and higher speed A game change: from Supply Chain to Prosumer Economy CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 17  Prosumer Economy Prosumer Economy: Consumer demand play a leading role reshaped into the demand chain – The term prosumer is a portmanteau of the words 'provider' and 'consumer‘ – A prosumer is an individual who not only consumes but also produces CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 18  The Digital Trends Long tail - focuses on changes in competitive landscape Digital finance - focuses on changes in financial entities and technologies Collaboration - focuses on changes in operations models CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 19  Long Tail “We can summarize the secrets of creating a prosperous long tail market in two sentences: Provide the customers with all the products; Help me to find it.” —Long Tail Theory Companies focus more on achieving economies of scale – Average costs decrease with the increase of production A company experiences diseconomies of scale if its profits decrease with expanded production CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 20  Long Tail and Economy of Scale Refers to the large number of products that sell in small quantities, as contrasted with the small number of best- selling products Companies achieve economies of scale by increasing production and lowering costs - costs are spread over a larger number of goods. Reduction in per unit cost of production when production volume increases e.g. Fixed cost of $1000 needed to produce 10 units of Pencil A a) Therefore, Cost = $100 per pencil b) To produce 50 units of Pencil A, Cost = $20 CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 21  The Digital Trends Long tail - focuses on changes in competitive landscape Digital finance - focuses on changes in financial entities and technologies Collaboration - focuses on changes in operations models CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 22  Digital Finance In traditional payment models, customers can’t gain access to the settlement systems of all banks given the cost and efficiency restrictions Third-party payment companies integrate the gateway interfaces and build a bridge between numerous merchants and banks – PayPal – Alipay – Google Wallet CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 23  The Digital Trends Long tail - focuses on changes in competitive landscape Digital finance - focuses on changes in financial entities and technologies Collaboration - focuses on changes in operations models CT109-3-1 Digital Thinking and Innovation Innovation in Digital Trends SLIDE 24