IDSC 3001: Review Quiz A

Digital Strategy

• #1- Digital Platforms

• #2- Business transformation

• #3- Artificial Intelligence

• #4- Data

• #5- Security

Digital Building Blocks

• Employees - distributed, mobile

• Suppliers - securely capture, analyze, share data in real-time

• Customers - want seamless interaction, on demand

• Platforms - convergence of employee, customers

What is Digital Transformation

• Radical rethinking of how an organization uses technology, people and processes to change business performance

Market Capitalization

Total value of a publicly traded firm

R & D

Research and development - Drives tech innovation, especially AI and processing

Mircoprocessor

“Brains” computer for AI processing

• What made Canters transformation successful?

1) Strategic Positioning

Digital Transformation Framework

• Digital strategy

  • Where your business should be going

• Business model

  • What your business does

• Enablers

  • The engine of your transformation

• Orchestration

  • How you manage change along the way

Stages of Digital Transformation

• 1) Goal

  • Strategy defined, interest and excitement generated

• 2) Design

  • Options and ecosystem assessed

• 3) Deliver

  • Minimum viable proof of concept executed and communicated

• 4) Scale

  • Plan is commercialized and absorbed by enterprise

• 5) Refine

  • Assessment, optimization and reevaluation

• Strategic positioning

• Performing different tasks better than rivals or performing the same tasks in a different way

  • Higher value/revenue

  • Differentiation

•  Operational efficiency

• Performing the same actives better than rivals

  • Produce more output for the same cost

  • Produce the same output for less cost

Strategy:

Set of decisions made to achieve competitive advantage

Competitive advantage

• Ability of a firm to outperform its competitors

Sustainable competitive advantage

• Performance that outperforms industry averages

Technology:

• Can be leveraged to gain competitive advantage

Value Chain

• An organization’s value chain is the sum of all activities working together to create value

• Threat of New Entrance

• Barriers to entry

• Threat of Substitutes

• Buyer potential to substitute

• Bargaining power of suppliers

• Suppliers concentration/number of suppliers

• Bargaining power of buyers

• Buyer concentration / number of customers

• Competitive rivalry

• Number of competitors / firm concentration ratio

Brand

• Not just a logo, but a symbol of trust, reputation, and quality

Scale

• When firms grow large, they gain cost advantages (economies of scale) and bargaining power

• Example: Walmart lowers costs through bulk purchasing and vast logistics networks

• Switching Cost

• When customers face time, money, or effort to move to a rival, they’re “locked in”

• Network Effects

• A product or service becomes more valuable as more people use it

• Example: Social media, payment app

• Differentiation

• Unique features or services that set a product apart from rivals

• Example: Tesla’s electric performance cars or Apple’s design ecosystem,

• Different from other company

• Distributions Channels

• Unique and powerful ways to reach customers

• Ex: Coco-Cola’s global distribution system ensures its products are everywhere

Two types of Tech Literacy

1) Computer Science

2) Information Systems

Digital Marginal Costs

Near-zero for digital goods, but streaming = AWS, telecom, licensing costs