Aantekeningen / Notes
-
Digital Transformation Strategy
(EBM212A05)
Lecturers: Semester 1B year 2022/2023
- Dr. Marvin Hanisch
- Dr. Pere Arque-Castells
Index
Lecture 1 – Introduction to Digital Transformation Strategy .................................................................. 3
What is Digital Transformation?.......................................................................................................... 3
Lecture 2 – Strategies for Digital Platforms and Ecosystems .................................................................. 7
Value creation of platforms................................................................................................................. 8
Growth of platforms ............................................................................................................................ 9
Competition between platforms ....................................................................................................... 11
Lessons Learned ................................................................................................................................ 13
Lecture 3 – Governance in Digital Age .................................................................................................. 14
The blockchain revolution ................................................................................................................. 14
Interorganizational (Inter-firm) Governance..................................................................................... 15
Governance by Blockchain ................................................................................................................ 17
Governance of Blockchain ................................................................................................................. 19
Lecture 4 – Big Data and Business Analytics ......................................................................................... 20
Big Data ............................................................................................................................................. 20
Business analytics .............................................................................................................................. 21
Sources of competitive advantage through the lens of management theory .................................. 24
Two Case studies discussed in “Big data: The Management Revolution” ........................................ 26
Takeaways ......................................................................................................................................... 27
Lecture 5 – Artificial intelligence and Automation................................................................................ 28
AI – Technical overview - Berente et al. (2021)................................................................................. 28
AI – State of the art ........................................................................................................................... 29
AI and decision-making - (Agrawal et al. (2018, 2019)...................................................................... 30
How can firms apply AI? – Agrawal et al. (2018, 2019)..................................................................... 31
AI and the boundaries of the firms – Agrawal et al. (2018, 2019) .................................................... 32
Automation and employment – Dixon et al. (2021).......................................................................... 33
1
, Takeaways ......................................................................................................................................... 34
Lecture 6 – Digital Market Regulation................................................................................................... 35
Platforms – basic definitions ............................................................................................................. 36
Causes of market power.................................................................................................................... 36
Consequences on market power....................................................................................................... 37
Should we worry about market power? ........................................................................................... 38
Remedies ........................................................................................................................................... 38
Case study: Epic Games vs. Apple ..................................................................................................... 39
Takeaways ......................................................................................................................................... 40
EXAM ..................................................................................................................................................... 41
2
,Lecture 1 – Introduction to Digital Transformation Strategy
In this lecture, the main topics of discussion will be:
1. Overview of the course
2. Schedule, deadlines, and course policies
3. Understanding the meaning and implications of digital transformation
Literature:
1. Adner, R., Puranam, P., & Zhu, F. 2019. What is different about digital strategy? From
quantitative to qualitative change. Strategy science, 4(4): 253-261.
2. Nambisan, S., Wright, M., & Feldman, M. 2019. The digital transformation of innovation and
entrepreneurship: Progress, challenges and key themes. Research Policy, 48(8): 103773.
3. Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein,
M. 2021. Digital transformation: A multidisciplinary reflection and research agenda. Journal
of Business Research, 122: 889–901.
Learning objectives for this lecture
1. Understand the difference between digitization, digitalization, and digital transformation.
2. Analyze technologies with regard to their business implications.
3. Apply your knowledge to different industries and contexts.
What is Digital Transformation?
Digital transformation means a change at the strategic level that affects a company’s entire
business model
From digitization to digital transformation
Verhoef et al. 2021
Digitization Apply transform annual information to digital information.
Digitalization Goes a step further, you would like to automize the steps in an organizations.
Digital Transformation goes again a step further, means you changing your business model based on
you digitalized applications.
A business model has 3 components: value creates,
value capture, value delivery.
Digital business are transforming how value can be
created, captured, shared, and delivered – with
significant inequality
Value creation of leading platform firms
Firms in the left have digital platforms (lecture 2)
3
, Digital technologies are creating upheaval in our economy – but this trend is by no means recent
The process of digital transformation
Hub economy is sharing information across
industries with different players.
Our economy is being re-architected from
separate industries into a massive network or
“ecosystem” of related businesses
The network economy
An example for a massive ecosystem is the Ant Group,
a platform that organizes different participant around
a common hub
Ant financial platform (China)
4
-
Digital Transformation Strategy
(EBM212A05)
Lecturers: Semester 1B year 2022/2023
- Dr. Marvin Hanisch
- Dr. Pere Arque-Castells
Index
Lecture 1 – Introduction to Digital Transformation Strategy .................................................................. 3
What is Digital Transformation?.......................................................................................................... 3
Lecture 2 – Strategies for Digital Platforms and Ecosystems .................................................................. 7
Value creation of platforms................................................................................................................. 8
Growth of platforms ............................................................................................................................ 9
Competition between platforms ....................................................................................................... 11
Lessons Learned ................................................................................................................................ 13
Lecture 3 – Governance in Digital Age .................................................................................................. 14
The blockchain revolution ................................................................................................................. 14
Interorganizational (Inter-firm) Governance..................................................................................... 15
Governance by Blockchain ................................................................................................................ 17
Governance of Blockchain ................................................................................................................. 19
Lecture 4 – Big Data and Business Analytics ......................................................................................... 20
Big Data ............................................................................................................................................. 20
Business analytics .............................................................................................................................. 21
Sources of competitive advantage through the lens of management theory .................................. 24
Two Case studies discussed in “Big data: The Management Revolution” ........................................ 26
Takeaways ......................................................................................................................................... 27
Lecture 5 – Artificial intelligence and Automation................................................................................ 28
AI – Technical overview - Berente et al. (2021)................................................................................. 28
AI – State of the art ........................................................................................................................... 29
AI and decision-making - (Agrawal et al. (2018, 2019)...................................................................... 30
How can firms apply AI? – Agrawal et al. (2018, 2019)..................................................................... 31
AI and the boundaries of the firms – Agrawal et al. (2018, 2019) .................................................... 32
Automation and employment – Dixon et al. (2021).......................................................................... 33
1
, Takeaways ......................................................................................................................................... 34
Lecture 6 – Digital Market Regulation................................................................................................... 35
Platforms – basic definitions ............................................................................................................. 36
Causes of market power.................................................................................................................... 36
Consequences on market power....................................................................................................... 37
Should we worry about market power? ........................................................................................... 38
Remedies ........................................................................................................................................... 38
Case study: Epic Games vs. Apple ..................................................................................................... 39
Takeaways ......................................................................................................................................... 40
EXAM ..................................................................................................................................................... 41
2
,Lecture 1 – Introduction to Digital Transformation Strategy
In this lecture, the main topics of discussion will be:
1. Overview of the course
2. Schedule, deadlines, and course policies
3. Understanding the meaning and implications of digital transformation
Literature:
1. Adner, R., Puranam, P., & Zhu, F. 2019. What is different about digital strategy? From
quantitative to qualitative change. Strategy science, 4(4): 253-261.
2. Nambisan, S., Wright, M., & Feldman, M. 2019. The digital transformation of innovation and
entrepreneurship: Progress, challenges and key themes. Research Policy, 48(8): 103773.
3. Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein,
M. 2021. Digital transformation: A multidisciplinary reflection and research agenda. Journal
of Business Research, 122: 889–901.
Learning objectives for this lecture
1. Understand the difference between digitization, digitalization, and digital transformation.
2. Analyze technologies with regard to their business implications.
3. Apply your knowledge to different industries and contexts.
What is Digital Transformation?
Digital transformation means a change at the strategic level that affects a company’s entire
business model
From digitization to digital transformation
Verhoef et al. 2021
Digitization Apply transform annual information to digital information.
Digitalization Goes a step further, you would like to automize the steps in an organizations.
Digital Transformation goes again a step further, means you changing your business model based on
you digitalized applications.
A business model has 3 components: value creates,
value capture, value delivery.
Digital business are transforming how value can be
created, captured, shared, and delivered – with
significant inequality
Value creation of leading platform firms
Firms in the left have digital platforms (lecture 2)
3
, Digital technologies are creating upheaval in our economy – but this trend is by no means recent
The process of digital transformation
Hub economy is sharing information across
industries with different players.
Our economy is being re-architected from
separate industries into a massive network or
“ecosystem” of related businesses
The network economy
An example for a massive ecosystem is the Ant Group,
a platform that organizes different participant around
a common hub
Ant financial platform (China)
4
