digitalisering: vad, varför och hur?

Digitalisering:

vad, varför och hur ?

Trivector Framtidsseminarium:

Är du slav under digitaliseringen

eller är du med och leder den?

Lund, 29 Januari 2020

Darek M. HAFTORprofile:https://katalog.uu.se/profile/?id=N17-1049

1

https://katalog.uu.se/profile/?id=N17-1049

│ Digitalisering: vad, varför, hur? │ Darek M. HAFTOR │ Trivector Framtidsseminarium 29-01-2020 │

1. What ?

2. Why ?

3. How ?

4. Outlook…

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Technology: a means to realize some end

MechanicalTechnologies

Duplicates Human Physical Powers

(analogue)InformationTechnologies

Analogue Patterns are ENCODED:continuous stream of information

in-separability: encoded into its physical medium

DigitalTechnologies

Discrete Signals:separation:

- Signals from Medium - Data from Instructions

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Elasticity of Digital Technology

• The SEPARATION of

(a) signals from its medium

(b) data from instructions

enables FLEXIBILITY

• Digital Technologies offer unique functions of:

• Addressability

• Sensibility

• Communicability

• Memorability

• Traceability

• Associability

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Digital Objects manifest:

- editability

- interactivity

- openness

- distributedness

DigitalMaterialis Elastic

Software (data & instructions) that control Hardware

can be re-programmed (also by itself)

thereby change the behavior of software & hardware!


Digitalization is…

Digit:Latin word for ”finger”; referred to counting on fingers

Digital Business:Situations when a business utilizes digital technologyso as to activate economic value creation and appropriation

Digitization:The process that convertsanalogously represented information into digitally represented

Digital Transformation:The processes that change current organizations & their operationsfrom predominately not utilizing digital technologies into doing so

Digital:Information & Communication Technologies,that represent information digitally, i.e. 0 and 1, rather than analogously

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There is much more to come!

WWII 1960’ 1970’ 1980’ 1990’ 2000’ 2010’ 2020’ 2030’

G. Boole

1815-1864

A. Turning

1912-1954

Boolean logic

Turning

Machine

Military

applications

Automation

of structured

& isolated tasks:

order processing,

Pay-roll systems

Automation

of structured

& isolated processes:

ordering, warehousing,

manufacturing, etc.:

ERP, SCM, CRM

Linking actors,

tasks, processes

and organizations:

Coordination:

DELL Business Model

Emergence of

Business

Machines

Introduction of

Personal

computers

Commercialization

of the Internet

Advent of the

Smartphones

Introduction of the

Internet-of-Things

Emergence of

Additive

Manufacturing

Mobility

of digital

technology:

Spotify

Embedding

digitalization

and linking

Things:

A car orders

a service

automatically

Local, customized

manufacturing :

Nike shoes that fit

only your feet!

Future:

Mind-Body-

Machine

merge

Graphene:

The new

super-material:

Man-machine

integration

J. Gutenberg1445:printing in Europe

6

Written LanguageBC 3400printing in Europe


1. What ?

2. Why ?

3. How ?

4. Outlook…

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Internal use of digital technologies: productivity, quality, flexibility

Marketing

Logistics

Pricing

CAD CAM Changes of

production

Product

portfolioEnterprise

performance

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• The use of CAD enables the use of CAM, which increases quality & productivity!

• It also enables more frequent and rapid production changes at low cost,

that enables a larger product portfolio, which enables more sophisticated Marketing,

Dynamic Pricing, and Just-In-Time Logistics.

• It all enables higher performance of the enterprise!

Synchronization of

complementarities

Benefits from DT use


Unparalleled

Economic Value Creation

Firm Esta.Number of

Employees

Market

Cap.

Employee

Value

BMW 1916 116 000 $ 53 b $ 0,5 m

UBER 2009 5 000 $ 60 b $ 12,0 m

Marriott 1927 200 000 $ 17 b $ 0,1 mAirbnb 2008 3 000 $ 21 b $ 7,0 m

Disney 1923 185 000 $ 165 b $ 0,9 mFacebook 2004 12 700 $ 315 b $ 25,0 m

Kodak 1888 145 000 $ 30 b $ 0,2 mInstagram 2010 13 $ 1 b $ 77,0 m

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Value Creation from External Interactions

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How does Spotify create value…?


Spotify’ssources value creation

• Efficiency

• Transactions efficiency:

• easier access to music: where, when & what is needed

• legally valid

• Cost efficiency product: monthly fee = 1 DVD

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• Innovation

• Newness:

• first to market & globally born

• no competition => ’entrepreneurial rents’

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• Complementarities

• Attempted Fit:

• Spotify Show: content from:

ESPN, Comedy Central, MTV, BBC…

• Not very successful yet…

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• Lock-In mechanisms

• make it uncomfortable to migrate to another provider

• Sunk / Switching Cots:

• app download & registration

• learning time for the interface & navigation

• creation of playlists

• the Spotify system learns user’s presences

& suggests playlists etc.

• Network Effects:

• Intra-community: sharing of playlists with other users

• Inter-community: large customer-base is attractive to song

providers

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• Asset creation:

• analyses of user behavior…

• who and which songs

• how often

• when and where

• …that is monetized in such contexts as

• design of new songs

• design of marketing of new songs

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1. What ?

2. Why ?

3. How ?

4. Outlook…

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Five Dimensions of Transformation

1. Output

2. Activity

3. Actor

4. Transaction mechanism & order

5. Governance

• Governance:• command & control

• legal contracts

• norms

• incentives

• Content:• offerings

• activities

• capabilities

• Structure:• actors

• transaction mechanisms

• transaction order

Enterprise Dimensions

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Re-configuration of Outputs

Offerings are de-composed and…

• Books:• from: whole Book

• to Chapter

• Music:• from: Albums with a set of songs

• to: Song

• News Papers:• from: whole New Paper, incl. adds

to: New Articles only

• Value to customer:• You pay only for what you need!

A

B

C

A

B

C

“un-bundling & re-bundling”

Off-line: Ryan Air: seat, baggage, food & drink

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..offerings are re-composed!

• Reconfigurations of

• Outputs, and

• Customer Segments

• vs Pricing

A

B

C

A

B

C

1

2

3

A

1

i)

• ex: scientific articles:• University: all databases

• PharmaCo:s: medical databases only

• ex: films:

• All films available for monthly fee / household,

e.g. Netflix etc.


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• Innovation = Yes!

• Customer: one interface & data-standard => transaction efficiency & lock-in

• Complementarity: customers offered Apps for Car-use; collection of car and driver data for…

“un-bundling the car”

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b

Re-configuration of Activities

a b c

Consumer-Activity-Chain is re-configured! “de-coupling”

• IP telephony (e.g. Skype)• from: call + pay

• to call + add & new revenue source

• Cable TV:• from: show-add-show-add

• to: show only

• University Education• from: course + examination * X => degree

to: course only; examination only, degree only

Value to consumer• You receive only the activity that creates value for you!

Off-line: IKEA: furniture assembly…

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Re-configuration of Actors

Resources that conduct activities are re-configured!

a b c

x x x

a b c

y y y

• Transportation (e.g. uberTaxi)• from: dedicated car and driver

• to: shared car and driver

• Accommodation (ex: AirBnB)• from: dedicated hotels and staff

• to: share apartments

• Banking (peer-to-peer lending)• from: dedicated financial institution

to: sharing money

Value to consumer• sharing resources typically increases utilization

and thus reduces their cost per unit use

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Re-configuration of Transaction Mechanism

x

a

b

c

x

a

b

c

100

200

300

200

Transaction Mechanism / Transaction Order is re-configured!

• e-Commerce (ex: Amazon.com):• from: - paying as receiving the book in the book-store

- partial info about product & no-delivery

- partial customer info

• to: - to paying first and receiving later the book (rents)

- rich & reach info about product & delivery

- rich & reach customer info: habits, preferences

• Streaming music / film (ex: Spotify, Netflix)• from: - physical discs & pay per disc

to: - digital files & pay per song

to: - streaming songs & par per time period

• Reversed Auctions (ex: Priceline.com)• from: customers bid for the offering

• to: suppliers bid for the customer’s offer

• Outsourcing….

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Re-configuration of Governance Structures

x

a

b

c

x

a

b

c

Governance

Governance

• Spotify:

• legal transformation => listen to music, not possessing a copy

• publics’ incentive to become legal

• Peer-to-Peer Banking:

• re-location of decision-power & criteria from bank to peer

• Rating as a means for governance:

• Uber, Airbnb, etc.

Command & control

Legal contracts

Norms

incentives

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Five Dimensions of Transformation

1. Output

2. Activity

3. Actor

4. Transaction mechanism & order

5. Governance

• Governance:• command & control

• legal contracts

• norms

• incentives

• Content:• offerings

• activities

• capabilities

• Structure:• actors

• transaction mechanisms

• transaction order

Enterprise Dimensions

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• Governance of Digitalization

the single most important factor

for successful use of digital technologies

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Governance = the key to success!

Synchronization

Effort

s

High

Low

HighLow

conservative efficient

ambitious champion

Governance of digitalization:

efforts vs. synchronization

enterprise

Governance of digitalization:

vertical & horizontal synchronization

Re-Active Pre-Active Inter-Active

• Success is not caused by high resource allocation, only (money, competence, technology)

• Success is caused by a combination of Vision, Coordination & Focus

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Phases of a Transformation

Enterprise

Descriptions

Past Current

Potential 2

Potential 1

DesiredPhase 1 Phase 2 Phase 3

Developmental work

Analysis DesignPlan

Evaluation:

Realized = Planned ?

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from the Transformation of an enterpriseto the Evolution of an ecosystem

Current

Situation

Desired

Situation

Realization of Development

Description of

Current Situation

Description of

Desired Situation

Description of

Implementation Plan

Time 1 Time 2

Current

Situation

Desired

Situation

Realization of Development

Description of

Current Situation

Description of

Desired Situation

Description of

Implementation Plan

Time 2 Time 3

Desired becomes Current

Note!

Seldom exactly as planned,

hence often requires adaptations…

etcetera….

Actu

al

Descri

ptio

n

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1. What ?

2. Why ?

3. How ?

4. Outlook…

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More technology to come…

Big Data

Machine Leaning & AI

Block Chain

Virtual & Augmented RealityQuantum Computing

Speech Recognition

3-D printing

Technology’s value

comes from its use…

Internet of Things 31


Toward Model-Driven Enterprises

Digitalization to transform the Governance of Operations: efficiency, quality, control…

32dokumentslut

digitalisering: vad, varför och hur?

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