digital, data and decision making

a startup is called digital when…

its main assets are linked to technological changes at the same time

sharing economy

a new economic model where customers share assets via a digital platform without transferring ownership to create economic value e.g. airbnb or uber

benefits of the sharing economy

• lower price and costs

• greater availability

• efficient use of resources

• access without ownership

• instant gratification

• social exchange

3 success factors of the sharing economy

1. develop a culture of trust

2. smooth transaction process

3. constant engagement of users

lock in effect

when a company makes it extremely hard for their customers to leave them e.g. through a strong network effect

younger generations want

• to own fewer resources

• to have cheaper options

digital transformation

the use of technology to improve performance or reach of businesses in order to meet the needs of the growing population

3 levels of organisational tasks for digital transformation

• strategic tasks

• tactical tasks

• operational tasks

3Vs of Big Data

• data volume (the amount and form of data)

• data velocity (the time the data is collected and analysed)

• data variety (the type of data collected)

advantages of Big Data

• cost savings

• time reductions

• understand the market conditions

• boosts customer retention and acquisition

• offers market insights

• drives innovation and product development

internet of things

smart devices that use wireless technology to communicate to each other and to us e.g. ring

digitisation

creating a digital representation from physical objects

knowledge driven DSS

provides recommendation or suggestions to aid the user in selecting and an appropriate solution to a problem

expert systems

computer programs that try to replicate knowledge and skills of human experts and solves problems how human experts would

advantages of expert systems

• can find solutions faster than humans

• always available whereas human experts can only be at one place at a time

• can be used in dangerous environments such as space

disadvantages of expert systems

• mistrust by users

• effective only in specific areas of expertise

descriptive

what happened and what is happening

predictive

what will happen and why will it happen

prescriptive

what should I do and why should I do it

knowledge base

contain all the knowledge of expert systems in a form of rules and facts

digital nomad

people who work remotely without being physically present in the office due to cheap access to wifi and mobile devices

gig economy

the emergence of new forms of contingent employment through zero hour contracts, self-employed workers and digital platforms

effects of the gig economy

• maximises flexibility for employer

• minimises job security for workers

society 5.0

a human-entered society that improves our standard of living by resolving social challenges through AI