MANAGING DIGITAL

TRANSFORMATIONS
COURSE DETAILS
Text Book
 Venkatraman, Venkat. The Digital Matrix: New Rules for Business Transformation Through Technology.
Greystone Books, 2017.

Reference Book
 Westerman, George, Didier Bonnet, and Andrew McAfee. “Leading digital: Turning technology into
business transformation” Harvard Business Press, 2014.

DTI Research – WEF & Accenture

Evaluation
 Quiz – 2– 30%
 Group Assignment (Presentation) – Topics will be given in the following week – 25%
 Class Participation – 5%
 Final Exam – 40%
COURSE EXPECTATIONS
Preparation
 Cases

Participation
 Discussions
 Group Assignment
DIGITAL MASTERY ASSESSMENT
DIGITAL
DIFFUSION OF INNOVATIONS – EVERETT ROGERS
Innovation – Idea, Practice, Process or Object which is perceived as new by an
individual or any other unit of adoption
Diffusion – Process by which an innovation is communicated through certain channels
over a period of time among the members of a social system
Innovation Lifecycle – Development; decision &adoption ; consequences
DIFFUSION PROCESS
ADOPTER CATEGORIES
TYPES OF ADOPTION CURVES
DISRUPTIVE INNOVATIONS
Sustaining innovations – make good products even better
 They can be incremental or advanced (radical)

Disruptive Innovations – initially considered as inferior catch up once quality picks up

and customers adopt its lower price
CHARACTERISTICS OF DISRUPTIVE INNOVATION
Disruptive innovations originate in low-end or new market foot holds
Incumbents try to provide their most profitable and demanding customers with ever
improving products and services
Disrupters focus on providing low-end customers with good enough products
They create market where none existed
 XEROX versus New Challengers

Disruptive innovations catch up with main stream customers only after quality catches
up to their standards
DISRUPTIVE INNOVATION
Graham Bell and Western Union …. (1876)
Companies often miss opportunities that can potentially disrupt their industry
The most consistent pattern in business is the failure of leading companies to stay at
the top of their industries when technologies or markets change
Happened to several brick and mortar companies
 Mini computer companies …. PC companies
 Blockbuster ….. Netflix
 Borders …. Amazon
 Even in India despite the protection from regulation, rapid growth of Amazon, Uber etc.
DISRUPTIVE INNOVATION
Most disruptions are technology led
Clayton Christensen - Studied Digital – mini computer industry
Success in 70s and 80s attributed to managerial brilliance
Failure in 1990s attributed to managerial incompetence
How did good managers become bad managers so fast?
Why did the entire industry fail? (Data General, Prime etc.)
Ironically the demise started in 70s when they ignored PC business
What leads companies to disruption?
CATALYSTS TO DISRUPTION

V2

V1
V2>V1 in utility, satisfaction and margins
Performance

Eg. Early versus sophisticated spread sheet

Programs

Time

Every product goes through Product

Improvement Trajectory
CATALYSTS TO DISRUPTION

Unutilized features – Over serving

Customer Utilization Trajectory
Performance

Time

Customer utilization also goes through the trajectory

CATALYSTS TO DISRUPTION
Incumbents dilemma-
1. To improve existing product
2. To compete with inferior innovation
3. Parameters- customers, margins, growth
Performance

expectations

Disruptive Innovation

Time

Initially disruptive innovations inferior to main stream products

CATALYSTS TO DISRUPTION
Performance

PCs entered homes of people

facilitating basic computing
Disruptive Innovation

Time

disruptive innovations rarely stay where they started

VALUE NETWORKS ANALYSIS

Resources Processes Values

Customers Firm Suppliers

Competitors
TECHNOLOGY TRAJECTORIES – GARTNER’S HYPE
CYCLE

To understand the current maturity, adoption and social application of specific technologies
2018
“LEADING DIGITAL”
Relevance of Digital?
 Only for Tech, media, entertainment industries?
 Mobile, Analytics, Social Media, Sensors and Cloud Computing – Fundamentally changed the entire
business landscape
 Technology – Biggest story in business today
TECHNOLOGY EFFECTS
better technology is creating better connected world
Falling costs of technology
Cumulative capabilities of technology are increasing
Combinatorial effects of (Mobile, cloud, sensors, analytics, IoT) technology are
accelerating progress exponentially
TECHNOLOGY EFFECTS

DTI initiative WEF report in collaboration with Accenture

TOP TECHNOLOGIES
FUTURE
Innovations so far – only warm-up
Industries, Economies and Societies will be transformed in ways which you envisaged
only in sci-fic movies
Drones will generate lots of data
Robots will be more capable and prevalent
Autonomous vehicles will be used heavily
“Software is eating the world” – True
Software, Hardware, Data, Networks….
DIGITIZATION OF PRODUCTS
Digital Products – Products that are fitted with computing devices and are connected
to the cloud
light bulbs – connected to ios or android
Thermostat from nest labs
elevators, cars, tractors…
DIGITIZATION OF PROCESSES
Business systems that take advantage of digital technologies
Payroll accounting, bank mortgage processing
Any industry and all processes
Increase efficiency and lower operating costs
DIGITIZATION OF SERVICES
Computing, connectivity and cloud to deliver compelling, personalized experience
Mobile phone (+geolocation data)– channels to provide digital services
Smart watches, virtual and augmented reality devices
5G speed is going to enhance the whole game further
WHAT IS “DIGITAL” ?
should be seen less as a thing and more a way of doing things.
Can be broken it down into three attributes:
 creating value at the new frontiers of the business world,
 creating value in the processes that execute a vision of customer experiences
 building foundational capabilities that support the entire structure
RESEARCH ON DIGITAL MASTERS
How firms around the world and in various industries work with digital technologies?
Focus – large firms across various industries around the world
Digital Masters – firms that leverage digital technologies to drive significantly higher
levels of productivity, performance and thus – Profit
DIGITAL MASTERS
Bad news – several firms fail in digital efforts
Good news - We know why and the reasons are not too many
Companies that succeed excel at two essential capabilities
 Digital Capabilities
 Leadership Capabilities

More profitable than average industry competitors and generate 9% more revenue
with existing physical capacity and drive more efficiency in their existing products and
processes.
FUTURE
Digital Masters will take advantage of these innovations – AI, Machine Learning -
and use data to
 Understand customers
 Predict future
 Take better judgements
 Drive out inefficiencies
 Leave everyone behind
DIGITAL MASTER - NIKE
Sporting Goods Company
Digital Technologies for
 Improving product design, making mfg. faster and more efficient
 Improving visibility and performance of operations, increasing efficiency, reducing waste, enhancing
CSR in supply chain

Online customers can buy personalized shoes from 100s of color combinations and
designs
Social Media – To be integral part of conversations around sports, sporting events,
and sports apparel
Digital Products – like “Fuel Band” – athletes can track their workouts and share their
performance online and receive advice from their “Coaches”
DIGITAL MASTER - NIKE
This helped them collect lots of rich customer data
How did they do it?
Innovation from different parts of the company consolidated under one business unit –
Nike Digital Sport – “Innovation Kitchen”
Collaboration – people from different departments with the Nike Digital sport
business unit – work together to launch various products under “Nike+” banner
Kept focus on their goal “To connect with athletes to inspire and enable them to do
better”
DIGITAL MASTER – ASIAN PAINTS
India’s largest paint company and Asia’s third largest
Globalization – expanded to 17 countries
Achieved very high growth
By increasing efficiency along with reducing environmental impact
They built strong IT systems to integrate operations in 120 locations working with
around 20 thousand retailers
Centralized customer service – efficient
Always connected relationship managers (with always connected tablets)
Huge online presence
DIGITAL MASTERS - DNA
Research Question: How are large companies around the world using fast-evolving new
digital technologies in their businesses?
Interviewed 150 executives from 50 companies around the world
These observations from qualitative interviews were followed up with survey – 391
companies from 30 countries
Digital masters excel in two critical dimensions: the what of technology (digital
capabilities) and the how of leading change (leadership capabilities)
DIGITAL MASTERS – DIGITAL CAPABILITIES
Use technology as a means to change the way they do business- customer
engagement, internal operations and business models
Technology as tools to
 get closer to customers
 Empower their employees
 Transform their internal business processes
DIGITAL MASTERS – LEADERSHIP CAPABILITIES
“Committed Leadership” – lever that turns technology into transformation
Leaders created a clear and broad vision
 Started critical initiatives
 Engaged employees to build vision over time
 Stayed involved throughout transformation
 Continually making efforts to move the company to the next level of digital advantage
DIGITAL MASTERS – LEADERSHIP CAPABILITIES
Towards this direction……
Nike – “Nike Digital Sport” department to provide co-ordination, innovation and
shared resources for digital efforts
Asian Paints – CIO’s role extended to cover strategy as well as IT
Starbucks – New role – “Chief Digital Officer”
FOUR LEVELS OF DIGITAL MASTERY
BEGINNERS
Just at the start of digital journey
“Wait-and-see” strategy
Basic digital capabilities
Use regulation or privacy as an excuse for inaction
Eg. Insurance companies, medical and pharmaceutical companies
However it is possible to embark on digital journey – medical device company used
social media to inform medical providers about a gaming changing medical device
far faster than traditional media could have done
FASHIONISTAS
Invest in all kinds of trending digital technologies
Flaunt their tech trendiness but do not change what’s behind the veneer
Lack strong digital leadership and governance
Waste much of what they spend
Eg. One company built an employee collaboration platform for different divisions
using different (and incompatible) technologies; One company had three mobile
marketing initiatives for overlapping markets
No mechanisms to coordinate activities - Incompatible processes and systems, cannot
derive synergies – This limits bigger opportunities
CONSERVATIVES
Highly useful digital leadership capabilities
Problem with excess prudence
Focus on ensuring that every digital investment is carefully considered and strongly
coordinated
Don’t want to make mistakes
Makes way for “Governance trap”
In trying to prevent failure- they fail to make progress
DIGITAL MASTERY MATTERS
Digital masters –
Know how and where to invest
 Make new digital initiative easier and less risky while providing revenue leverage that can generate
new cash

Leaders are committed to guiding the company powerfully into digital future
 Creates synergies that free up money for investment

From the study of these firms, we observe that digital masters are 26% more
profitable than their industry peers and generate 9% higher revenue from their
physical assets
DIGITAL MASTERY MATTERS
DIGITAL MASTERY BY INDUSTRY
DO YOU HAVE TIME TO WAIT?
HOW TO GET STARTED?
Nike – Fashionista before moving to be a Digital Master
 Such movement requires investments to coordinate efforts into a unified and coherent digital program

Asian Paints – Conservative before moving to be a Digital Master

 In such cases, take advantage of leadership skills to build new digital capabilities in a smart way

If beginner – start with experimenting digital waters, build vision and create
capabilities to achieve it – start with capability which is most natural to you
DIGITAL JOURNEY
Fortune 500 Companies 1955 to 2015 ? 12% remain rate
Today life of a firm 15-20 years
Dow jones index top players: Apple, Alphabet, Microsoft, Amazon and Facebook
Companies who took advantage of digital:
 Google
 Amazon
 Facebook

Digitization is critical for businesses in every industry , everywhere

Right time to embark on DIGITAL JOURNEY ……
DIGITAL IS EATING THE WORLD
WHY IS DIGITAL NOT YET ON AGENDA?
Why do successful companies die? - Success traps
Competency trap – trapped in historical Core competencies
 Blackberry
 Nokia

Ecosystem trap – relationships with supply chain partners, tech vendors, key
marketing partners, R&D companies
 Microsoft
WHY IS DIGITAL NOT YET ON AGENDA?
Talent trap – trapped in historical deep expertise
 Motorola

Metrics trap – Wrong KPIs .

 Inability to measure benefits of digital initiatives
 Automotive Industry – “No. of vehicles sold”? Or “Share of people-miles traveled”?
YOUR BUSINESS IS BECOMING DIGITAL
Is your business becoming digital? If
 Big data, analytics, AI affect your business processes and how you take decisions.
 Social web shapes your customers’ actions, interactions and consumptions.
 Mobile apps and cloud computing essential to deliver services.
 IoT links your products to cloud.
 Robots, drones and 3D-printing drive evolution of your supply chain.
 Cognitive computing and robotics influence how you re-invent your business in the future.

Do you have competitors for whom the answer is yes?

YOUR BUSINESS IS BECOMING DIGITAL
Digital can:
 Improve business processes
 Improve decision making
 Improve customer engagement
THREE DIMENSIONS OF DIGITAL BUSINESS –
SCALE, SCOPE AND SPEED
Scale in industrial era –
 increasing sales
 Linear increase
 Based on access to human, physical and financial capital
 Coca-cola, Walmart

Scope in industrial era –

 New products
 Expansion in brands through mfg. or acquisitions
 P&G
 Gradual increase in scope
THREE DIMENSIONS OF DIGITAL BUSINESS –
SCALE, SCOPE AND SPEED
Digital era
 Scale and Scope increase – non-linear exponential scale
 At a speed which is widely different from industrial era

Locate your business at the nexus of scale, scope and speed

THREE DIMENSIONS OF DIGITAL BUSINESS –
SCALE, SCOPE AND SPEED
Scale
Google - 1 billion search queries in 2012 to 2 trillion (per year) by 2018
With android platform + Youtube – more than one-third of global online audience
Uber – small set of rides in 2011 to 10 billion rides by 2018
Airbnb grew to 4 million by 2018
THREE DIMENSIONS OF DIGITAL BUSINESS –
SCALE, SCOPE AND SPEED
Retail in earlier era – locational advantage and differentiated merchandize led to
existence of several retailers
Digital era in retail - sees the long tail effect – one or two large players and
countless niche players
Metrics comparisons between traditional players and digital players
 McDonalds – did not even count no. of burgers sold
 Uber, Netflix, Amazon etc. – huge amounts of data collected on individual basis
THREE DIMENSIONS OF DIGITAL BUSINESS –
SCALE, SCOPE AND SPEED
Scope
Apple – PCs to Music industry to telecommunication
Google – search to leading mobile web and media
Traditionally – companies only extended core businesses to adjacent areas based on
core competencies
Meat packaging to leather products to soaps and fertilizers
Digital era – core competency is data - coupled with analytics and machine learning
Expansion is possible even in unrelated areas
THREE DIMENSIONS OF DIGITAL BUSINESS –
SCALE, SCOPE AND SPEED
Speed
Traditionally - Helps you reap benefits from first-mover-advantage
In digital era – continuous improvements to products based on customer usage and
feedback – Fast-mover-advantage
COMBINATORIAL ADVANTAGES – SCALE, SCOPE
AND SPEED
In the digital era, scale-scope-speed are interconnected and they reinforce one
another
Provides ecosystem advantages and learning advantages
ECOSYSTEM ADVANTAGES
scale advantage in the industrial world - assets that a single firm controlled and the
units that it produced,
Scale advantaged in the digital world - being part of an ecosystem that includes key
partners that play complementary roles.
Ford and GM’S vs Uber’s scale
Nokia’s vs Google’s scale
ECOSYSTEM ADVANTAGES
Tap into the scale advantage conferred by your ecosystem
Structure your relationships to profit from the speed advantage of your ecosystem
Eg. Sony mobilized its game development partners to keep up with console versions
LEARNING ADVANTAGES
Learn from products in use at scale to glean early warning signals
 Possible to collect real time data from your products

Learn from customers that use complementary products to proactively improve key
features
 GE’s predix platform

Learn from experimentation through data and analytics

 For example, Netflix used machine learning, analytics, and A/ B testing
FOR TOMORROW:
Go through the Case: Social Strategy at Nike

“Skate to where the puck is going to be……”

By Wayne Gretzky
MANAGING DIGITAL Laxmi Gunupudi
TRANSFORMATIONS
TODAY
Digital Capabilities – Creating a compelling customer experience
(Social Media)
Digital Capabilities – Exploiting the power of core operations
Digital Capabilities – Reinventing Business Models….
DIGITAL CAPABILITIES
Creating a compelling customer experience
Exploiting the power of core operations
Reinventing Business Models
CREATING A COMPELLING CUSTOMER EXPERIENCE
Digital technologies are changing the game of customer interactions
Voice of customer - Social media
Continuous engagement for the customer on the move – mobile computing
Customer’s physical location – Geo-localization
Make better predictions for personalized experience – customer analytics
Combining technologies gets you closer to customers
CREATING A COMPELLING CUSTOMER EXPERIENCE
Delivering differentiated customer experience is a complex task
Expectations of customers are rising steeply
Integrating digital channels into existing operations is challenging
Digital interactions force evolution in culture – new clock speed, new decision making
methods, new rules for managing customer relationships
However – Huge benefits for companies who create compelling customer experience
CREATING A COMPELLING CUSTOMER EXPERIENCE
– CASE OF BURBERRY
Luxury goods market (growing at 12-13%)
In 2006, Burberry’s top line growth behind its peers (French and Italian companies)-
only at 1-2%
Target segment – refined to “millennial customers” while competitors focused on
“baby boomers” or “ladies who lunch”
Strategic choice of segment led to digital journey – target marketing spend on
millennial customers
 Average high-net-worth customer is 15 years younger
 Mother tongue – digital

Chief creative officer appointed – “brand czar” – top team aligned

CREATING A COMPELLING CUSTOMER EXPERIENCE
– CASE OF BURBERRY
Excelled digital marketing efforts
Revamped Burberry.com (11 languages)
Facebook integration – launching a fragrance with innovative sampling via facebook
Tweettalks and Live-stream fashion shows – Twitter
Collaboration with Google – “Burberry Kisses”
Partnering with Chinese “WeChat” – mobile content experience
CREATING A COMPELLING CUSTOMER EXPERIENCE
– CASE OF BURBERRY
Retail investment kept pace (20-30 new stores every year)
Retail theatre concept – multi faceted content in stores
Music, rich video content on huge screens, associates with iPads
Took several years implementing backbone platform to consolidate its systems and global
operations
Single view of customer through all its channels (retail/online), media (Facebook, Twitter,
Google etc.) and Platforms
Investments in customer service – store sales people and 24/7 * 365 customer service in 14
languages
Analytics tools – Chief Customer Officer – Customer 360 program – data driven personalized
shopping experience – buying histories, shopping tendencies and preferences
CREATING A COMPELLING CUSTOMER EXPERIENCE
– CASE OF BURBERRY
Fashion Brand with number one “digital IQ” by think tank L2
Included in Fast Company’s list
Interbrand’s list of best global brand
CREATING A COMPELLING CUSTOMER EXPERIENCE
– DIGITAL MASTERS
Successfully work on four related interventions
1. Designing customer experience from outside-in
2. Increase customer reach and engagement
3. Put Customer data at the heart of customer experience
4. Seamlessly mesh digital and physical experience
CONCLUSION
89% consumers in 2011 quit doing business because of bad customer experience up
from 68% in 2006
Creating compelling customer experience is a key pillar of digital transformation
Opportunities abound
But getting it right is complex:
 Thorough understanding of customer behavior
 Smart channel investments
 Grasp of customer data
 Creativity in blending the old and new
SOCIAL MEDIA AND COMPETITIVE ADVANTAGE

Porter’s Five Forces

SOCIAL MEDIA AND COMPETITIVE ADVANTAGE –
PORTER’S VALUE CHAIN
SOCIAL MEDIA AND COMPETITIVE ADVANTAGE –
PORTER’S VALUE CHAIN

Source: Singla, M. L., and Apoorv Durga.

"How social media gives you competitive
advantage." Indian Journal of Science and
technology 8 (2015): 90.
Source: Singla, M. L., and Apoorv Durga.
"How social media gives you competitive
advantage." Indian Journal of Science and
technology 8 (2015): 90.
SOCIAL STRATEGY AT NIKE
SOCIAL STRATEGY AT NIKE
SOCIAL STRATEGIES THAT WORK – DIGITAL
STRATEGY VERSUS SOCIAL STRATEGIES
SOCIAL STRATEGIES THAT WORK – DIGITAL
STRATEGY VERSUS SOCIAL STRATEGIES
Social strategies are better than digital strategies because – You are tapping into
how people really want to connect – with other people, not with the company
A business with successful social strategy helps people form and strengthen
relationships in ways that also benefit the company
First think how to address customer’s unmet social needs and then connect the
proposed solution to business goals
 Ex. Bringing cardholding moms together for buying child care products
 Ex. Bringing executive traveler card holding women together (events at hotels)
 Ex. Recommending gifts for a card holding friend based on his purchase history
 Ex. Shop together reward points for card holders
SOCIAL STRATEGIES THAT WORK
DIGITAL CAPABILITIES
Creating a compelling customer experience
Exploiting the power of core operations
Reinventing Business Models
CORE OPERATIONS – CASE OF CODELCO
Largest copper producer of the world – owned by Govt. of Chile
Transformed its operational processes for efficiency and innovativeness
Mining industry
 Dirty, dangerous, labor-intensive
 Coordination is difficult – underground, transport trucks, ore processing machines
 Challenges with productivity, worker safety and environmental protection
CORE OPERATIONS – CASE OF CODELCO
Codelco digital initiative
First step – Strong technology back bone
improve internal administrative processes
Real-time mining – view of operations, centralized coordination and data feeds from
different parts of mines
Adjust schedules for efficiency real time
Mining trucks driving autonomously – more safety
Automation in mining
Technologies – mobile, embedded devices, analytics
CORE OPERATIONS – COMPETITIVE ADVANTAGE
Internal operations invisible to the external world
Difficult to imitate, competitor see the outcome, but not the how you get it
US car manufacturers and Toyota’s lean manufacturing
Digital operations advantage
 Better data – better decisions
 Employees stay connected anywhere, anytime
 Resolve operational issues in innovative manners
 Robots for workflow management and diagnostics
 Technology augmenting labor, more fulfilling jobs
 Separating work processes from locations
OPERATIONAL PARADOXES OF PRE-DIGITAL AGE
Six levers of operational improvement and three key management paradoxes
“either-or” instead of “both-and”
Standardization Vs. Empowering
 Artisans with standardized methods versus own methods
 Standardization – more efficient but leads to de-skilling, reduced wages and elimination of jobs

Controlling Vs. Innovating

 Controlling variation improves efficiency and reduces risk, but prevents people from innovating
 Loosening control – inefficiency and fraud
OPERATIONAL PARADOXES OF PRE-DIGITAL AGE
Orchestrating Vs. Unleashing
 Tying people closer to work places and methods – reduces productivity and reduces freedom
 But unleashing can introduce problems in the coordinating efforts

Managers choose to reduce variation and flexibility

Design processes – more standardized, better controlled and more orchestrated
BUILDING ORGANIZATIONAL ADVANTAGE
People + Process + Technology -> connected in a unique way gives competitive
advantage
PCs to mobile phones to internet to robotics, analytics, 3D printing etc.
Rethink your processes ->
 Question your assumptions
 using digital technology opportunities - Use real time data and provide it to people and machines that
need it
 Use multiple levers to transform operations
DIGITAL CAPABILITIES
Creating a compelling customer experience
Exploiting the power of core operations
Reinventing Business Models
BUSINESS MODEL OF YOUR FIRM?
What is the business model of your firm?
TRADITIONAL BUSINESS MODELS
a business model as the architecture with which an organization creates value
for customers, how it delivers that value, and how it captures that value.
Also add – how it defends that value – VRIN
Adding software – marginal benefits
Eg. Appliances with connectivity etc.
DIGITAL BUSINESS MODELS
Digital business models causing disruption
The telecommunications industry
Transportation
Advertising
E-commerce
DIGITAL BUSINESS MODELS
Digital business models are novel ways to generate demand from new users, new
products, new partners and new markets, by practicing techniques first pioneered by
Internet companies
Apple generates demand for its iPhone, iPad, Apple TV and Apple Watch products
from a new form of partner: software developers who develop apps
Walgreens allow software developers to offer a "print-at-Walgreens" function to
their photo applications. Therefore driving the users of photo apps to Walgreens.
REINVENTING BUSINESS MODELS
Why to reinvent business models?
How to reinvent ? -
LONDON TAXI MARKET
How were taxi companies managing supply and demand earlier?
Customer problems – getting cab not easy
Driver problems – Occupancy and isolation
Hailo
Analytics based engine –
 Drivers had visibility to available jobs
 Efficiency in getting the jobs and tracking their performance
 Drivers can send burst alerts to others
 Could create sub-groups and communicate with close friends
LONDON TAXI MARKET
Customer benefits
 Cab within 4 minutes
 Convenience increased – payment through mobiles

Driver benefits
 Higher occupancy and efficiency
 More engagement with other drivers – beats isolation

Benefits for Hailo

 60% drivers on the network
 10% flat fee on every ride
 Low cost of operations
LONDON TAXI MARKET.. TAKE AWAYS
Excellent customer experience, efficient operations weaved into a differentiated
business model
Elements:
 Supply side control
 Economic model
 Customer experience
 Efficiency in execution

Emerging technologies, start-ups, small new entrants, and firms in adjacent industries
– all warrant consideration
Not all technologies are disruptive – but in combination they have a substantial
impact over time
ARCHETYPES OF BUSINESS MODEL REINVENTION
Reinventing industries
Substituting products or services
Creating new digital businesses
Reconfiguring value delivery models
Rethinking value propositions
BUSINESS MODELS
 Successful business models do not last forever
 Take care of symptoms –
 gradual decline in traditional revenue streams or marginal erosion due to commoditization;
 New competitors emerging from unexpected places or adjacent industries
 Cheaper digital substitutes for your products making way
 Traditional barriers to entry coming down in industry
 You need to constantly be vigilant, enter unchartered territories and
challenge existing business models
 Digital masters are not paranoid – but they assume that new entrants and
competitors may use digital technologies and go after their business
SOME INTERESTING NEWS
https://www.weforum.org/agenda/2017/10/amazon-is-planning-to-let-couriers-deliver-
packages-inside-your-
home?utm_content=buffer805c7&utm_medium=social&utm_source=facebook.com&utm_camp
aign=buffer

https://www.weforum.org/agenda/2017/10/a-robot-has-just-been-granted-citizenship-of-
saudi-
arabia?utm_content=buffer4c5bb&utm_medium=social&utm_source=facebook.com&utm_cam
paign=buffer

https://www.weforum.org/agenda/2017/12/this-google-ai-created-a-child-ai-to-help-it-
solve-
problems?utm_content=buffer31aa1&utm_medium=social&utm_source=facebook.com&utm_c
ampaign=buffer
PREPARATION FOR NEXT SESSIONS
Tech Talk: Creating a Social Media Strategy (Some of the interesting social media
success strategies)
E-Business Transformation in the Banking Industry: The Case of Citibank (Examine the
role of cloud computing)
GE and the Industrial Internet (How was GE planning to leverage IoT)