Week 1A - Course Overview INFS7040 Digital Transformation WELCOME 2 • Please refer to the Class summary for the
teaching team contacts. COURSE LEARNING OUTCOMES Students will be able to: 1. Identify how Digital Transformation impacts corporate strategies (Remember & Ask); 2. Classify different forms of Digital Disruption (Understand & Ask); 3. Choose appropriate concepts and theories for developing business models (Apply &
Acquire); 4. Gauge the role information technology and the World Wide Web play in
transforming business models and recognize its social and ethical implications
(Analyse & Appraise); 5. Compare all types of relevant evidence towards finding an appropriate business
model on the Web for a disrupted organisation (Evaluate & Aggregate); 6. Design an appropriate business model for an organisation that addresses the
disrupted environment and design the change process required to arrive at the new
business model (Create & Assess) 3 COURSE LEARNING OUTCOMES • Note: the course has a management orientation,
but sometimes you need to understand the
underlying technologies to make decisions. – It is mainly for current or future executives/managers
who will work with and manage digital technologies,
but are not necessarily ICT professionals
– Class has range of students – covers basic concepts to
in-depth case analysis 4 COURSE STRUCTURE Each week • 2 hours lecture – presentation, case studies – Questions/exercises similar to exam questions • 1 hour tutorial – worksheet provided – Questions/exercises similar to exam questions Focus on material covered in lectures and tutorials. 5 READINGS • There is NO required textbook • Weekly readings will be posted to
Wattle • Business model navigator book will be
used extensively in two lectures – Digest:
http://sadaghianifar.com/uploads/2f58cf d1ea5446298adb215b7eeddd51.pdf
– Website:
https://businessmodelnavigator.com/
6 Gassmann, O., Frankenberger, K., &
Choudury, M. (2020). The Business Model
Navigator: The strategies behind the most
successful companies (2nd ed.). Upper
Saddle River, NJ: FT Press. Week 1B – Digital Transformation INFS7040 Digital Transformation LEARNING OUTCOMES • Define Digital Transformation • Identify external drivers that are enabling
Digital Transformation • Understand the phases of Digital
Transformation 8 DIGITAL TRANSFORMATION … a change in how a firm employs digital technologies, to develop a new digital
business model that helps to create and appropriate more value for the firm. What happened in the last decade+: – iPhone 1 released in 2007 (Smartphone) – AirBnB founded 2008 (Accommodation sharing) – Uber founded 2009 (Car sharing) – Bitcoin introduced in 2009 (Blockchain) – Kickstarter started in 2009 (Crowdfunding) – Instacart founded 2012 (Grocery delivery) – Ofo founded in 2014 (Bike sharing) – TikTok founded in 2016 (Short video/live streaming) – Bird founded in 2017 (Scooter sharing) – Upstart went public In late 2020 (AI lending platform) 9 DIGITAL TRANSFORMATION 10 External Drivers
of Digital
Transformation • Digital
Technology
• Digital
Competition • Digital
Customer
Behaviour Phases of Digital
Transformation • Digitization • Digitalization • Digital
Transformation
Strategic
Imperatives of
Digital
Transformation
• Digital
Resources • Organizational
Structure • Growth Strategy • Metrics and
Goals DIGITAL TECHNOLOGIES In 2009 Knowledge@Wharton set out to answer
for the Nightly Business Report to create a list of
the “Top 30 Innovations of the Last 30 Years” Internet, broadband and the World Wide Web
came out on top as the most important
innovations of the last 30 years 11 Source: Forbes (2009): Top 30 Innovations Of The Last 30 Years. 19th February 2009. Accessed 24-02-2020, [https://www.forbes.com/2009/02/19/innovation-internet-health-entrepreneurs-technology_wharton.html#5ebfcd432b2f] INTERNET 12 Source: Statista (2023): Number of internet users worldwide from 2005 to 2019. Accessed 23-07-2023, [https://www.statista.com/statistics/273018/number-of-internet-users-worldwide/] INTERNET ACCESS IN THE EUROPEAN UNION
(EU) 13 Source: Statista (2023): https://www.statista.com/statistics/377585/household-internet-access-in-eu28/. Accessed 23-07-2023, [https://www.statista.com/statistics/377585/household-internet-access-in-eu28/] PERCENTAGE OF INDIVIDUALS USING THE
INTERNET WORLDWIDE IN 2021 14 Source: Statista (2022): Percentage of individuals using the internet worldwide in 2021, by region. Accessed 01-07-2022, [https://www.statista.com/statistics/333879/individuals-using-the-internet-worldwide-region/] DAILY TIME SPENT ON SOCIAL NETWORKING 15 Source: Statista (2022): Daily time spent on social networking by internet users worldwide from 2012 to 2022. Accessed 01-07-2022, [https://www.statista.com/statistics/433871/daily-social-media-usage-worldwide/] NUMBER OF SOCIAL MEDIA USERS WORLDWIDE
(FORECAST) 16 Source: Statista (2022): Number of social media users worldwide from 2018 to 2027. Accessed 01-07-2022, [https://www.statista.com/statistics/278414/number-of-worldwide-social-network-users/] WORLD WIDE WEB Internet ≠ World Wide Web • WWW is only a subset of
the Internet – HTTP (World Wide Web) – HLS, RTSP, WebRTC etc.
(Video Streaming) – POP/IMAP (E-mail) – P2P (File sharing) – FTP (File transfer) – OTR (Instant messaging
protocol) 17 Internet HTTP World Wide
Web P2P POP IMAP FTP Video
Streaming (HLS, RTSP,
WebRTC etc.) OTR BROADBAND • Mobile computing has rapidly
evolved over the last three decades • Wireless technology made access to
the internet ubiquitous • 5G allows devices to communicate
with each other 18 COST OF COMPUTERS IN 1980 • TRS-80 computer with
printer for USD $5,492
→ USD $17,193 in
today’s money 19 Source: Anthony Catalano (2007), TRS-80 in Radio Shack Brochure 1980 Eighties 80s. Accessed 20-02-20, [https://www.flickr.com/photos/badwsky/2123730984/] MOORE’S LAW MADE CPU’S A COMMODITY – Digital technology contributed
to national productivity for
decades, but now productivity
gains are mostly from software – Effect of ICT improvements on
GDP often not measurable and
subject to diminishing returns →
“Productivity Paradox”. 20 Source: Economist (2015), The end of Moore’s law. Accessed 20-02-20, [https://www.economist.com/the-economist-explains/2015/04/19/the-end-of-moores-law] Moore’s Law (the # of transistors in CPUs doubles ~every 2 years) has
contributed to a significant cost reduction of hardware between 1965-2015 COMPUTERS ARE EVERWHERE • The new MBUX Hyperscreen dashboard in Mercedes S-Class has 8 CPU
cores, 24 GB RAM and 46.4 GB per second RAM memory bandwidth 21 Source: Daimler (2021): MBUX Hyperscreen. The big in-car cinema. Accessed 04-02-2021, [https://www.daimler.com/innovation/digitalisation/connectivity/mbux-hyperscreen.html] INTERNET OF THINGS (IOT) Network of physical objects, "things”, that are
embedded with software and hardware to
exchange data with other devices and systems
over the Internet. • Gartner, Inc. forecasted the enterprise and
automotive Internet of Things (IoT) market
to be 5.8bn endpoints in 2020, a 21%
increase from 2019. – e.g., Xiaomi sold 210m IoT devices in 2020 in
more than 90 countries, making it the world’s
largest consumer IoT firm, with its revenue
surpassing $37bn. 22 Source: Gartner (2019): Gartner Says 5.8 Billion Enterprise and Automotive IoT Endpoints Will Be in Use in 2020. Accessed 19-07-2021, [https://www.gartner.com/en/newsroom/press-releases/2019-08-29-gartner-says-5-8-billion-enterprise-and-automotive-io] Source:
Haiyang Yang, Jingjing Ma, and Amitava Chattopadhyay (2021): How Xiaomi Became an Internet-of-Things Powerhouse. Accessed 19- 07-2021, [https://hbr.org/2021/04/how-xiaomi-became-an-internet-of-things-powerhouse] DATA • Actively generated data – Content (e.g., Email, Social Media, Posts,
Messages, Apps) – Pictures, Videos, Music – Playlists (Music, Video) • Passively created data – History (Search, Purchase, etc.) – Mouse movement/Keyboard strokes – Location, Speed, Mode of transport – Device Information including IoT device use
(Smart Home, Watch, Fitness tracker etc.) – Biometrics • Passively created data exceeds actively created
data by orders of magnitude and is growing
more rapidly Source: Statista (2021): A Minute on the Internet in 2021. Accessed 21-02-2022, [https://www.statista.com/chart/25443/estimated-amount-of- data-created-on-the-internet-in-one-minute/] DIGITAL COMPETITION • Competition on the Web has become more global, e.g., – TikTok founded in 2016, with over 1bn users globally, in 150+
countries was valued at $140bn in latest fundraising → said to
be worth $400bn now • Big internet companies FAANGs (Facebook, Apple, Amazon,
Netflix, Google) are entering domains outside their
presumed “core competencies” – Apple Car – Google Android TV and Google Android Automotive – Facebook Metaverse (i.e., AR/VR via Oculus) 24 Source: CBSInsights (2021): The Complete List Of Unicorn Companies. Accessed 19-07-2021 [https://www.cbinsights.com/research-unicorn-companies] CONSUMER BEHAVIOUR • Digital touchpoint involved in almost all
purchasing decisions • Digital technologies allow consumers to co-create
value by designing and customizing products,
e.g.: – Google Reviews – Tripadvisor – Waze – Open-Source Ikea 25 DIGITIZATION • Digitization describes the conversion of analogue
information into digital information, e.g.: 26 • Cassette, VHS → mp3, mp4 • Prescriptions → Electronic
Prescriptions • Boarding Pass → QR Code • Academic Papers → Online
repositories such as arXiv.org DIGITAL TECHNOLOGY IS PENETRATING ALL INDUSTRIES 27 (1) Consumer packaged goods (31%) (2) Automotive and assembly (32%) (3) Financial Services (39%) (4) Professional services (42%) (5) Telecom (44%) (6) Travel, transport and logistics (44%) (7) Healthcare systems and services (51%) (8) High tech (54%) (9) Retail (55%) (10) Media and entertainment (62%) Source: J. Bughin, L. LaBerge, and A. Mellbye, The case for digital reinvention. Kinsey Quarterly, Feb 2017. ROI OF DIGITAL TECHNOLOGY INVESTMENT Organizations • Need organizational change as well as digital technologies
to reap value • Results may not show up for some years Customers • Consumers may be real beneficiaries, with improved goods
and services. Firms invest just “to keep up” – a “competitive
necessity” 28 DIGITALIZATION OF PRODUCTS AND SERVICES 29 Analog Digitized Owning Assets (Taxi Companies) Renting Assets (Uber/Didi) Analog Products (Universal Music) Digital Products (Spotify) Uniformity of Product (Hilton) Variety of Product (AirBnB) Selling Cars (Toyota) Selling experience (Tesla) Physical Locations (Blockbuster) On-Demand (Netflix) Transport Hub Locations (Avis, Hertz) Everywhere (Turo, DriveNow) DIGITAL TRANSFORMATION It describes a company-wide change that rearranges its
processes to change the business logic of a firm • Goes beyond digitalization — the changing of simple
organizational processes and tasks.
• Introduces a new business model, e.g., – Disney → Disney+ – Microsoft → Azure (Cloud software) 30 COVID-19 HAS ACCELERATED DIGITAL TRANSFORMATION 31 Source: Forbes (2020): COVID-19 Will Be Remembered As The ‘Great Accelerator’ Of Digital Transformation. Accessed 04-02-2021, [https://www.forbes.com/sites/davidarmano/2020/09/09/covid-19-will-be-remembered-as-the-great-accelerator-of-digital-transformation/?sh=7f0d13bb3cb2] COVID-19 HAS ACCELERATED DIGITAL TRANSFORMATION 32 Source: McKinsey & Compay (2020): How COVID-19 has pushed companies over the technology tipping point—and transformed business forever . Accessed 22-02- 2021, [https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/how-covid-19-has-pushed-companies-over-the-technology-tipping- point-and-transformed-business-forever#] QUESTIONS? 33 • Don’t forget to enrol in tutorials • Get to know your classmates/teaching team – Upload a picture to your Wattle profile • Read Week 1 articles 51作业君版权所有
