Digital Transformation Strategy - lecture notes
Lecture 1: Introduction to Digital Transformation Strategy 1
Lecture 2: Strategies for Digital Platforms and Ecosystems 3
Lecture 3: Digital governance of interorganizational relationships 7
Lecture 4: Big data and Business Analytics 11
Lecture 5: Artificial intelligence and Automation 16
Lecture 6: Digital Market Regulation 21
,Lecture 1: Introduction to Digital Transformation Strategy
Digitization = the process of making information digitally available and accessible
Digitalization = the process of considering how digitized information can best be used to
simplify certain operations
Digital transformation = the process of devising new business applications that integrate all
the digitized data and digitalized applications
→ Digitization and digitalizaiton are not necessarily conditions for digital transformation!
You can also jump directly to digital transformation, e.g. through digital platforms (lec 2)
The process of digital transformation
To understand the impact of digital transformation, we need to reflect on firms’ business and
operating model
Business model consists of:
- Value creation: innovation, efficiency
- Value capture: competition, isolating mechanisms
- Value delivery: sales channels, bundling and unbundling
Operating model consists of:
- Scale: volume, complexity, consumers
- Scope: variety, range
- Learning: R&D, continuous improvement, IP generation
In the digital economy, firms’ operating and business models are being radically reshaped.
1
, Transition to the digital economy:
Running traditional and digital businesses requires different logics regarding organization,
processes, and KPI’s
Traditional vs. digital business logic
Traditional business logic Digital business logic
Organization: Organization:
- Several products/product lines - One (integrated) software and data
- Focused and dedicated teams platform
- Heavyweight project management - Many application (internal and
- Software/hardware optimized by external)
product line - Functional structure, ad hoc teams
- Data analytics embedded in products - Centralized hub and spoke data group
- Distributed development, universal
application programming interface
Process: Process:
- Top down waterfall/stage gate - App development iterative, agile,
- Some agile sprints
- Internal development - Core platform development top-down
- Proprietary IP - Open APIs for internal and ecosystem
development
- Hackathons
- Open domain, crowdsourcing
KPIs: KPIs:
- Profit and cost per product line - Total audience engagement
- Satisfaction/quality per product line - Multi-sided monetization
- Product features, innovation - Platform enablement
- Data quality and completeness
2
Lecture 1: Introduction to Digital Transformation Strategy 1
Lecture 2: Strategies for Digital Platforms and Ecosystems 3
Lecture 3: Digital governance of interorganizational relationships 7
Lecture 4: Big data and Business Analytics 11
Lecture 5: Artificial intelligence and Automation 16
Lecture 6: Digital Market Regulation 21
,Lecture 1: Introduction to Digital Transformation Strategy
Digitization = the process of making information digitally available and accessible
Digitalization = the process of considering how digitized information can best be used to
simplify certain operations
Digital transformation = the process of devising new business applications that integrate all
the digitized data and digitalized applications
→ Digitization and digitalizaiton are not necessarily conditions for digital transformation!
You can also jump directly to digital transformation, e.g. through digital platforms (lec 2)
The process of digital transformation
To understand the impact of digital transformation, we need to reflect on firms’ business and
operating model
Business model consists of:
- Value creation: innovation, efficiency
- Value capture: competition, isolating mechanisms
- Value delivery: sales channels, bundling and unbundling
Operating model consists of:
- Scale: volume, complexity, consumers
- Scope: variety, range
- Learning: R&D, continuous improvement, IP generation
In the digital economy, firms’ operating and business models are being radically reshaped.
1
, Transition to the digital economy:
Running traditional and digital businesses requires different logics regarding organization,
processes, and KPI’s
Traditional vs. digital business logic
Traditional business logic Digital business logic
Organization: Organization:
- Several products/product lines - One (integrated) software and data
- Focused and dedicated teams platform
- Heavyweight project management - Many application (internal and
- Software/hardware optimized by external)
product line - Functional structure, ad hoc teams
- Data analytics embedded in products - Centralized hub and spoke data group
- Distributed development, universal
application programming interface
Process: Process:
- Top down waterfall/stage gate - App development iterative, agile,
- Some agile sprints
- Internal development - Core platform development top-down
- Proprietary IP - Open APIs for internal and ecosystem
development
- Hackathons
- Open domain, crowdsourcing
KPIs: KPIs:
- Profit and cost per product line - Total audience engagement
- Satisfaction/quality per product line - Multi-sided monetization
- Product features, innovation - Platform enablement
- Data quality and completeness
2
