3) Business models in digital ecosystems

What are the other points organisations must implement in the digital shift?

Create environments where human and robots can work successfully together Integrate your on-demand workforce

Why was Uber a disruptor?

Created a business model which avoided the need for licensed drivers, a vehicle fleet etc. Disrupted the original business model for traditional passenger services and have put some out of business

According to the World Economic Forum, CEOs should fulfil what six key roles in the digital age?

Creator of vision and mission Strategic planner (Greater focus on experimentation than long-term planning) Driver of information-based business models Enabler of the shift to on-demand operating models Innovation promoter Operational excellence driver

What are further examples of disruptive technology?

Cryptocurrencies: -Digital form of money -Meet the attributes of a store value -Unit of account -Medium of exchange Blockchain: -Distributed database existing on multiple computers -Old blocks preserved and new blocks added irreversibly -Each block contains timestamp and link to previous block -Impossible to falsify and manipulate

What five digital operating models are suggested by the World Economic Forum?

Customer-centric E.g. Argos Extra-frugal (Less is more, standard organisational structure) E.g. Michelin Data-powered (Data analytics) E.g. Google & Netflix Skynet (Intensive use of machine) E.g. Amazon Open and liquid (Built around the customer) E.g. Facebook & Paypal

How do you create a workforce with digital skills?

Develop required competencies within the workforce Mine your own organisation for hidden talent Bring new skills into the organisations

What is the innovator's dilemma?

Firms looking to become digital enterprises face two main challenges: -The business model that served them well for decades has been disrupted by digital innovation and no longer works as desired -All attempts to create a new, viable business model for the digital age will flounder unless a company is willing to disrupt itself

How can organisations become better placed in the digital age?

Flatter organisational structures More risk-tolerant culture - Accept failures and encourage employees to take more risk Cannot restrict to just short-term targets

What is Xiaomi?

Focus on low-end Android smartphones -Intense focus on performance and quality -Engage with customers informally, involving them in discussions on product design, product development -Employees required to spend 30 mins every day interacting with customers

According to the World Economic Forum how does an organisation become an employer of choice in the digital era?

Formulate a long-term working strategy for millenials Work with staff to formulate company values together Empower the workforce Build workspaces that attract digital talent Create policies that support collaborations and knowledge-sharing tools

What is an example of building a business model?

GE: -Launch industrial internet initiative -Move towards outcome-based business -Use big data and analytics -Further changes to strategy and operations with GE digital

Who are Glassdoor?

Glassdoor keeps 8 million reviews on more than 423,000 companies Information such as CEO approval ratings, interview reviews, office photos etc. Provided by employees through a peer-to-peer network

What are examples of cross-industry operational efficiencies?

HR - Virtual collaboration and digital interviews Finance - Cloud accounting and automatic procedures will reduce cost of finance function IT - Cloud computing leads to IT cost savings Supply chain management - Autonomous technology, sensor for monitoring and 3D printing R&D - Robotics and AI lead to performance improvements

What factors distinguish a digital culture from others?

Having a strong mission statement and a clear sense of purpose Lean business structures as opposed to individual divisions working separately A diverse workforce with good digital skills

What are the 2 largest growth sectors for disruptive technology?

Health services Financial services

What services do fintech businesses provide?

Investment advice Banking services Transfer money internationally Provide mortgages and loans Exchange currency

What is an example of a partner business model?

Novartis and Google joined forces to work on smart contact lenses that monitors blood sugar levels

Who are Zappos?

Online clothing retailer They have a reputation for a strong corporate culture that attracts employees. This is due to the following: -Task orientated structure -Employees can deal with customers how they feel -They can use Zappos twitter account to air their thoughts -Employees can work wherever

What is the definition of culture?

The shared set of beliefs, values and mindsets that guide a group's behaviours.

Why are digital operating models being used in the transformation of industries?

They replace rigid approaches to technology, data and processes with flexibility, while also encouraging a culture that is open to innovation and interaction with customers and partners.

What is the World Economic Forum's suggestion on how to become a digital enterprise?

Three-step plan: 1) Innovate on the periphery 2) Hire digital savvy individuals 3) Copy successful firms

What is an example of buying a business model?

UPS: -Acquired Coyote logistics -Coyote were highly digital, technology driven

What are examples of Fintech?

Zopa: -Peer-to-peer loan company -Removes role of traditional banks at a lower fee -No physical branches Betterment: -Financial portfolio management platform -Takes business from face-to-face financial advisors -Use smartphone for advice

What abilities must the executive leadership team demonstrate if they're to properly take advantage of a move to digital, or to survive digital disruption within its industry?

1) Inspirational leadership 2) Competitive edge 3) Establishing a strategic direction 4) Influence external parties (E.g. providers of finance) 5) Collaboration 6) Business judgement (What business model?) 7) Execution 8) Building talent

What five emerging trends have Accenture highlighted that are shaping the digital landscape for organisations and businesses?

1) The internet of Me Users placed at the centre of digital experiences through apps and services being personalised 2) Outcome economy Organisations have increased ability to measure outcomes of services they deliver 3) The platform revolution Global platforms becoming easier to establish and cheaper to run 4) The intelligent enterprise Using data in a smart way enables organisations to become more innovative and achieve higher degrees of operating efficiency 5) Workforce reimagined Ways in which humans and machinery are used is term-9reimagined

With increasing levels of digitisation in the workplace, what 2 features have become apparent with regards to employing staff?

1) There is much greater transparency about employment opportunities for those seeking a new challenge. Businesses are realising that transparency needs to be encouraged. 2) The competition for digital talent is increasing. There is a global skills shortage in this area.

What do organisations need to do to attract and retain the necessary talent?

1) They need to take notice of what their staff are saying about their organisation. Through monitoring Glassdoor/LinkedIn/Twitter. 2) Introduce a referral programme. Incentivise current staff to use such online networks to refer potential new employees.

What are the myths about digital transformation?

1) Those organisations that are not digital already have missed their chance 2) Becoming a digital business is an administrative exercise that focusses on achieving operational efficiencies 3) Digital transformation can be successfully achieved just by creating a digital business unit headed up by a Chief Digital Officer

According to the World Economic Forum what combination of approaches is used to develop new business models?

Build (Opportunity related to company's core business) Buy (Strategic imperative to own a market) Partner (Learn more about market and partners model) Invest (New start ups, connect with the right skills) Incubate/accelerate (Similar to investment, closer relationship to funding company)

How should organisations foster a digital culture?

Communications (by digital means) Journey management (Leadership team at forefront of cultural change) Make changes visible (Visual aids) Continuous change monitoring (Feedback and performance monitoring)

What are examples of companies successfully disrupting themselves?

Amazon releasing the kindle at the expense of their physical book sales Michelin adapted their business model, from only selling tangible goods, to selling driving tip packages

What is an example of the innovators dilemma in action?

Before iPod and iTunes released in 2001, both Nokia and Sony had similar products but chose not to proceed with them as they weren't willing to disrupt their business

What are the advantages of Fintechs?

Better use of data Frictionless customer experience More personalisation of products/services to individual customers Lack of physical presence Access to cheap capital to fund growth

What is Haier?

Largest maker of white goods They use digital trends and technologies to: -Diversify its products -Optimise business processes -Reduce the distance to the consumer -Develop new products

What are the five approaches suggested by the World Economic Forum to develop new business models?

Scenario-based design (Response to disruptive industry trends) Epicenter-driven design (Strengths and weaknesses of existing business model) Unorthodox design (Challenging existing industry logic and company clichés) Customer-centric design (Through the customers' eyes: Does this solve their problem?) Mirrored design (Imitates business model patterns from other industries)

What is disruptive technology?

Technology which is used to fundamentally change and 'disrupt' the existing business model in an industry E.g. Uber

What is an operating model?

The clear, 'big picture' description of the key relationships between business functions, processes and structures that are required for the organisation to fulfill its mission