DIGITAL ORGANISATION
Table of contents
Lesson 1: Introduction..........................................................................................................................................................4
What is a digital organization?.........................................................................................................................................4
Lesson 2: Business and IT strategy.......................................................................................................................................5
2.1 Business and IT strategy.............................................................................................................................................5
2.1.1 Strategic business objectives of information systems........................................................................................6
2.1.2 Porter’s competitive forces model......................................................................................................................8
2.3 Disruptive innovation model....................................................................................................................................10
2.4 Value webs, synergies, core competencies and network-based strategies............................................................11
2.5 Digital transformation framework...........................................................................................................................13
Lesson 3: Organizational dimension of IS..........................................................................................................................14
3.1 What is an information system................................................................................................................................14
3.2 Dimensions of information system..........................................................................................................................15
3.3 Organizational dimensions of information system..................................................................................................16
3.3.1 Organisational structure...................................................................................................................................16
3.3.2 Business processes............................................................................................................................................18
3.3.3 Business culture................................................................................................................................................19
3.3.4 Organization of politics.....................................................................................................................................19
3.3.5 Organizational environment.............................................................................................................................19
3.4 Theories of the impact of IS on companies.............................................................................................................20
3.5 Complementary assets.............................................................................................................................................21
Lesson 4: Technology dimension of IS...............................................................................................................................24
4.1 Gartner Hype cycle...................................................................................................................................................24
4.2 Overview of course’s IS............................................................................................................................................25
4.2.1 transaction processing systems (TPS)...............................................................................................................27
4.2.2 Business intelligence.........................................................................................................................................27
4.2.3 Systems for linking the enterprise....................................................................................................................29
4.3 Systems for collaboration........................................................................................................................................31
4.3.1 Systems that encourage collaboration.............................................................................................................33
Lesson 5: Enterprise applications.......................................................................................................................................35
5.1 ERP: Enterprise Resource Planning..........................................................................................................................35
5.2 CRM: customer relationship management..............................................................................................................37
5.3 SCM: Supply Chain Management.............................................................................................................................39
5.4 Enterprise application challenges............................................................................................................................41
5.5 Next-gen enterprise applications.............................................................................................................................41
1
,Lesson 6: E-commerce, digital market and digital goods..................................................................................................42
6.1 Unique features of e-commerce..............................................................................................................................42
6.2 E-commerce business and revenue models............................................................................................................44
6.3 Internet Marketing...................................................................................................................................................45
6.4 M-commerce............................................................................................................................................................47
6.5 Buidling e-commerce presence...............................................................................................................................47
6.6 B2B e-commerce......................................................................................................................................................48
Lesson 7: Decision-making and analytics...........................................................................................................................50
7.1 Decision-making process..........................................................................................................................................50
7.2 Business intelligence and business analytics...........................................................................................................50
7.3 Business intelligence users.......................................................................................................................................52
Lesson 8: Knowledge Management and Artificial Intelligence..........................................................................................54
8.1 Knowledge................................................................................................................................................................54
7.2 Knowledge Management Value Chain.....................................................................................................................54
7.3 Enterprise-wide knowledge management systems.................................................................................................56
8.4 Knowledge work systems (KWS)..............................................................................................................................57
8.5 Artificial intelligence and machine learning.............................................................................................................57
Lesson 9: Securing information systems - Cybersecurity..................................................................................................61
9.1 Vulnerability of IS.....................................................................................................................................................61
9.1.1 Malware............................................................................................................................................................62
9.1.2 Hackers and computer crime............................................................................................................................64
9.1.3 Internal threats.................................................................................................................................................65
8.1.4 Software vulnerability.......................................................................................................................................65
9.1.5 Organized crime................................................................................................................................................65
9.2 Security and control.................................................................................................................................................66
Lesson 10: Innovative technologies...................................................................................................................................71
10.1 The fourth industrial revolution.............................................................................................................................71
10.2 Innovative technologies.........................................................................................................................................71
10.4 The IS department..................................................................................................................................................75
Lesson 11: Concluding the course......................................................................................................................................76
Exam information...........................................................................................................................................................77
Guest Lectures....................................................................................................................................................................79
Guestlecture: Delaware: SAP and Salesforce.................................................................................................................79
Guestlecture: Solventure: Arkieva.................................................................................................................................80
Guestlecture: Royal Belgian Football Association.........................................................................................................82
Guestlecture: KMPG: lighthouse....................................................................................................................................84
Guestlecture: Umicore: AI..............................................................................................................................................85
Guestlecture: KMPG cybersecurity................................................................................................................................86
2
,Exam information:
3 points group assignment
17 points Exam 12 multiple choice questions, 2 open questions
Multiple choice questions: 8/12 correct for 3/6 points (63% cut off)
2 open questions on 6 points and 5 points
3
, Lesson 1: Introduction
WHAT IS A DIGITAL ORGANIZATION?
Digital organization
- Implements information systems (vb: ERP, e-commerce, VR, KMS, collaboration, cybersecurity…)
- To achieve strategic objectives in order to achieve a competitive advantage
- Creates stakeholder value
- In a rapidly changing environment
BUT it's more than just using technology, customers must be able and willing to use it
availability of information technology does not guarantee (correct) usage of this technology, it requires more then the
mere implementation of IT (Information technology)
Implementation of information systems: architectural exercise
building blocks =
- Technology
- Organization
- Management
→ not only technology and information systems lead to a competitive advantage
Competitive Advantage Strategies
- Lowest costs (e.g.: Colruyt, Ryanair)
→ Ryanair will offer an app, with low costs so that it has to deploy fewer staff
- Differentiated products (e.g.: Tesla, Apple,
Investing in technology and willing to pay a lot for it to stand out from the crowd
- Market niche
Making sure everyone knows the brand
Brand awareness
- Customer and provider intimacy
Customer relationships
Keeping the customer as close to the company as possible
Using data to find out as much information as possible about the customer and respond to this
Using data to personalize a product
Strategy is very important, every company will invest differently depending on the strategy
Role of information systems
- Current price support, current course
- Change of current course or business model
- Source of new businesses and industries
→ all companies will use technology for something else
Disruptive impact of new industries and business models: banks, translators, cashiers and stores, owning a car …
Stakeholder value: Three P's
- Profit: basis
- Planet: using technology to create more sustainability
- People: using technology to improve employee well-being, better working environment
4
Table of contents
Lesson 1: Introduction..........................................................................................................................................................4
What is a digital organization?.........................................................................................................................................4
Lesson 2: Business and IT strategy.......................................................................................................................................5
2.1 Business and IT strategy.............................................................................................................................................5
2.1.1 Strategic business objectives of information systems........................................................................................6
2.1.2 Porter’s competitive forces model......................................................................................................................8
2.3 Disruptive innovation model....................................................................................................................................10
2.4 Value webs, synergies, core competencies and network-based strategies............................................................11
2.5 Digital transformation framework...........................................................................................................................13
Lesson 3: Organizational dimension of IS..........................................................................................................................14
3.1 What is an information system................................................................................................................................14
3.2 Dimensions of information system..........................................................................................................................15
3.3 Organizational dimensions of information system..................................................................................................16
3.3.1 Organisational structure...................................................................................................................................16
3.3.2 Business processes............................................................................................................................................18
3.3.3 Business culture................................................................................................................................................19
3.3.4 Organization of politics.....................................................................................................................................19
3.3.5 Organizational environment.............................................................................................................................19
3.4 Theories of the impact of IS on companies.............................................................................................................20
3.5 Complementary assets.............................................................................................................................................21
Lesson 4: Technology dimension of IS...............................................................................................................................24
4.1 Gartner Hype cycle...................................................................................................................................................24
4.2 Overview of course’s IS............................................................................................................................................25
4.2.1 transaction processing systems (TPS)...............................................................................................................27
4.2.2 Business intelligence.........................................................................................................................................27
4.2.3 Systems for linking the enterprise....................................................................................................................29
4.3 Systems for collaboration........................................................................................................................................31
4.3.1 Systems that encourage collaboration.............................................................................................................33
Lesson 5: Enterprise applications.......................................................................................................................................35
5.1 ERP: Enterprise Resource Planning..........................................................................................................................35
5.2 CRM: customer relationship management..............................................................................................................37
5.3 SCM: Supply Chain Management.............................................................................................................................39
5.4 Enterprise application challenges............................................................................................................................41
5.5 Next-gen enterprise applications.............................................................................................................................41
1
,Lesson 6: E-commerce, digital market and digital goods..................................................................................................42
6.1 Unique features of e-commerce..............................................................................................................................42
6.2 E-commerce business and revenue models............................................................................................................44
6.3 Internet Marketing...................................................................................................................................................45
6.4 M-commerce............................................................................................................................................................47
6.5 Buidling e-commerce presence...............................................................................................................................47
6.6 B2B e-commerce......................................................................................................................................................48
Lesson 7: Decision-making and analytics...........................................................................................................................50
7.1 Decision-making process..........................................................................................................................................50
7.2 Business intelligence and business analytics...........................................................................................................50
7.3 Business intelligence users.......................................................................................................................................52
Lesson 8: Knowledge Management and Artificial Intelligence..........................................................................................54
8.1 Knowledge................................................................................................................................................................54
7.2 Knowledge Management Value Chain.....................................................................................................................54
7.3 Enterprise-wide knowledge management systems.................................................................................................56
8.4 Knowledge work systems (KWS)..............................................................................................................................57
8.5 Artificial intelligence and machine learning.............................................................................................................57
Lesson 9: Securing information systems - Cybersecurity..................................................................................................61
9.1 Vulnerability of IS.....................................................................................................................................................61
9.1.1 Malware............................................................................................................................................................62
9.1.2 Hackers and computer crime............................................................................................................................64
9.1.3 Internal threats.................................................................................................................................................65
8.1.4 Software vulnerability.......................................................................................................................................65
9.1.5 Organized crime................................................................................................................................................65
9.2 Security and control.................................................................................................................................................66
Lesson 10: Innovative technologies...................................................................................................................................71
10.1 The fourth industrial revolution.............................................................................................................................71
10.2 Innovative technologies.........................................................................................................................................71
10.4 The IS department..................................................................................................................................................75
Lesson 11: Concluding the course......................................................................................................................................76
Exam information...........................................................................................................................................................77
Guest Lectures....................................................................................................................................................................79
Guestlecture: Delaware: SAP and Salesforce.................................................................................................................79
Guestlecture: Solventure: Arkieva.................................................................................................................................80
Guestlecture: Royal Belgian Football Association.........................................................................................................82
Guestlecture: KMPG: lighthouse....................................................................................................................................84
Guestlecture: Umicore: AI..............................................................................................................................................85
Guestlecture: KMPG cybersecurity................................................................................................................................86
2
,Exam information:
3 points group assignment
17 points Exam 12 multiple choice questions, 2 open questions
Multiple choice questions: 8/12 correct for 3/6 points (63% cut off)
2 open questions on 6 points and 5 points
3
, Lesson 1: Introduction
WHAT IS A DIGITAL ORGANIZATION?
Digital organization
- Implements information systems (vb: ERP, e-commerce, VR, KMS, collaboration, cybersecurity…)
- To achieve strategic objectives in order to achieve a competitive advantage
- Creates stakeholder value
- In a rapidly changing environment
BUT it's more than just using technology, customers must be able and willing to use it
availability of information technology does not guarantee (correct) usage of this technology, it requires more then the
mere implementation of IT (Information technology)
Implementation of information systems: architectural exercise
building blocks =
- Technology
- Organization
- Management
→ not only technology and information systems lead to a competitive advantage
Competitive Advantage Strategies
- Lowest costs (e.g.: Colruyt, Ryanair)
→ Ryanair will offer an app, with low costs so that it has to deploy fewer staff
- Differentiated products (e.g.: Tesla, Apple,
Investing in technology and willing to pay a lot for it to stand out from the crowd
- Market niche
Making sure everyone knows the brand
Brand awareness
- Customer and provider intimacy
Customer relationships
Keeping the customer as close to the company as possible
Using data to find out as much information as possible about the customer and respond to this
Using data to personalize a product
Strategy is very important, every company will invest differently depending on the strategy
Role of information systems
- Current price support, current course
- Change of current course or business model
- Source of new businesses and industries
→ all companies will use technology for something else
Disruptive impact of new industries and business models: banks, translators, cashiers and stores, owning a car …
Stakeholder value: Three P's
- Profit: basis
- Planet: using technology to create more sustainability
- People: using technology to improve employee well-being, better working environment
4
