SESSION 1 – SETTING THE SCENE (CH. 1)
Changing Software Architecture
- With exponential Growth in CPU (Moore’s Law) Software Architecture is changing as well
- Software is often built in modules now (like Lego bricks)
- It’s not about having the best Lego bricks, it’s about how you put them together
- → Being the architect → Focus on Speed / Flexibility
Changes in Strategy & Organization
- Economies of Speed, Scope and Scale
- Speed: Cycle Time Reduction → You have to be the fastest (because competitors can copy)
- Disappearing boundaries
o Internal: no silos, globalization
o External: supply chain management, partnering → Companies work together
ICT and Business/Industry
- Relationship for different types of IT projects between:
o Degree of business transformation (low/high)
o Range of potential benefits (low/high)
- Evolutionary transformations (level 1+2) can have benefits but usually less than revolutionary
transformations (level 3-5)
1. Automate existing isolated task
2. Link and integrate several tasks
3. Streamline and reorganize
internal process
4. Extend beyond firm boundaries
and involve suppliers, buyers etc
5. Most radical, entire business
scope is redefined
Trends and Issues
- Business & IT alignment has been among top three concerns for IT managers for 15 years
- Still cannot get this right
- Flexibility and business change are major issues
- Security and privacy issues are a new big concern
- ‘Next Big Things’
o Big Data → Volume, Variety, Velocity (+ IBM Veracity: Not always consistent or true)
o Internet of Things
o Artificial Intelligence → AI 1.0 (IF … Then), AI 2.0 (Siri, OK Google), “AI 3.0” Today’s level of
machine learning, algorithms, self-learning, no need to tell goal beforehand
o Work redefined → Hyper-specialisation: Freelance platforms, Crowdsourcing
o Disrupt → Access is new ownership: Sharing Economy (Drivenow, AirBnb etc.)
, SESSION 2 – DIGITAL STRATEGY I – USING DIGITAL TECHNOLOGIES FOR STRATEGIC ADVANTAGE (CH. 2,3,4)
Gartner Hype Cycle for IT innovations / Emerging technologies
- After introduction, expectation quickly become unrealistically high → Hype Based on perceived
- When people realize this, bubble bursts, expectation drops → Disillusion value / importance
- Real developments are typically different from hype and disillusion
- Important to understand difference between perceived and real → try to look through it
Different Visions on how IT can make a difference → Open vision breeds success
- IT fuels disappearing boundaries and creates new ‘open’ playing field
- Different IT strategy alignment frameworks can help companies assess challenges and opportunities
1. Open business models
- Competitive advantage is to use the same Lego bricks better than others. Think outside the box
- Business Model Canvas: Value proposition at centre
o Connecting through customer relationships and channels to customer segments creating
revenue streams
o Key partners, key resources and key activities with cost structure on the other side
Key Customer
Activities relationships
Key partners Value Customer
proposition segments
Key
Channels
Resources
Cost structure Revenue streams
2. Open departments
- From Islands to Enterprise Resource Planning
o Islands: Local efficiency, Functional ‘silo’, ‘best of breed’ application for each department
o ERP: Integration, Cross-functional (end-to-end), Standardization, Responsiveness, Cost
reduction (ideal, but not always true)
- Framework 1 – Enterprise Value Chain (Porter)
o Look at the core and supporting processes of a firm → focus attention on important parts
o Easy to compare to other companies and see where it can still improve and copy concepts
o Identify where and how ICT can either add value or reduce cost
o Can also see what to outsource → leading to ‘virtual’ value chains
- Framework 2 – ‘Embrace and Extend’ (Cisco)
o Map current IT applications by ‘Ease of implementation’ vs. ‘Cultural & Economic Impact’
o Organizations looking for easy IT improvements can ‘embrace and extend’ the winning
applications in that map if it also fits with their needs
Changing Software Architecture
- With exponential Growth in CPU (Moore’s Law) Software Architecture is changing as well
- Software is often built in modules now (like Lego bricks)
- It’s not about having the best Lego bricks, it’s about how you put them together
- → Being the architect → Focus on Speed / Flexibility
Changes in Strategy & Organization
- Economies of Speed, Scope and Scale
- Speed: Cycle Time Reduction → You have to be the fastest (because competitors can copy)
- Disappearing boundaries
o Internal: no silos, globalization
o External: supply chain management, partnering → Companies work together
ICT and Business/Industry
- Relationship for different types of IT projects between:
o Degree of business transformation (low/high)
o Range of potential benefits (low/high)
- Evolutionary transformations (level 1+2) can have benefits but usually less than revolutionary
transformations (level 3-5)
1. Automate existing isolated task
2. Link and integrate several tasks
3. Streamline and reorganize
internal process
4. Extend beyond firm boundaries
and involve suppliers, buyers etc
5. Most radical, entire business
scope is redefined
Trends and Issues
- Business & IT alignment has been among top three concerns for IT managers for 15 years
- Still cannot get this right
- Flexibility and business change are major issues
- Security and privacy issues are a new big concern
- ‘Next Big Things’
o Big Data → Volume, Variety, Velocity (+ IBM Veracity: Not always consistent or true)
o Internet of Things
o Artificial Intelligence → AI 1.0 (IF … Then), AI 2.0 (Siri, OK Google), “AI 3.0” Today’s level of
machine learning, algorithms, self-learning, no need to tell goal beforehand
o Work redefined → Hyper-specialisation: Freelance platforms, Crowdsourcing
o Disrupt → Access is new ownership: Sharing Economy (Drivenow, AirBnb etc.)
, SESSION 2 – DIGITAL STRATEGY I – USING DIGITAL TECHNOLOGIES FOR STRATEGIC ADVANTAGE (CH. 2,3,4)
Gartner Hype Cycle for IT innovations / Emerging technologies
- After introduction, expectation quickly become unrealistically high → Hype Based on perceived
- When people realize this, bubble bursts, expectation drops → Disillusion value / importance
- Real developments are typically different from hype and disillusion
- Important to understand difference between perceived and real → try to look through it
Different Visions on how IT can make a difference → Open vision breeds success
- IT fuels disappearing boundaries and creates new ‘open’ playing field
- Different IT strategy alignment frameworks can help companies assess challenges and opportunities
1. Open business models
- Competitive advantage is to use the same Lego bricks better than others. Think outside the box
- Business Model Canvas: Value proposition at centre
o Connecting through customer relationships and channels to customer segments creating
revenue streams
o Key partners, key resources and key activities with cost structure on the other side
Key Customer
Activities relationships
Key partners Value Customer
proposition segments
Key
Channels
Resources
Cost structure Revenue streams
2. Open departments
- From Islands to Enterprise Resource Planning
o Islands: Local efficiency, Functional ‘silo’, ‘best of breed’ application for each department
o ERP: Integration, Cross-functional (end-to-end), Standardization, Responsiveness, Cost
reduction (ideal, but not always true)
- Framework 1 – Enterprise Value Chain (Porter)
o Look at the core and supporting processes of a firm → focus attention on important parts
o Easy to compare to other companies and see where it can still improve and copy concepts
o Identify where and how ICT can either add value or reduce cost
o Can also see what to outsource → leading to ‘virtual’ value chains
- Framework 2 – ‘Embrace and Extend’ (Cisco)
o Map current IT applications by ‘Ease of implementation’ vs. ‘Cultural & Economic Impact’
o Organizations looking for easy IT improvements can ‘embrace and extend’ the winning
applications in that map if it also fits with their needs
