Di 03-09 Setting the stage: Issues, challenges, and opportunities
1. Changing Technologies + Big Data - Beyond Smaller, Faster, Cheaper
2. Changing Software Architecture - The Return of Lego
● IT is about business (process) architecture
● Focus on what, not how
● Flexibility, speed is king
● Modular design (ERP, Apps, SaaS, outsourcing etc.)
3. Changes in Strategy & Organization - Economies of Speed, Scope and Scale
● Speed: Cycle Time Reduction
● Disappearing Boundaries
- Within firm: no more silos, globalization
- Between firms: supply chain management, partnering
● Global Business Networks
- Dis-aggregation, consolidation, focus on core
- Virtual organizations, outsourcing
ICT and Business/ Industry Redefinition
IT can be used to provide several different benefits:
● Localized exploitation = automate an existing isolated task
● Internal integration = link and integrate a number of tasks
● Business process redesign = streamlining and reorganizing internal processes
● Business network redesign = streamlining and reorganizing external processes (suppliers, buyers etc.)
● Business scope redefinition = most radical
1. The importance of ICT and digital business
● Fundamental changes in how we work, compete, collaborate, socialize, play, learn etc.
● Information Management dominates and cuts across all disciplines
● >50% of capital expenditures
● Crucial dependence on ICT for individuals, business, governments
● ICT key source for innovations and start-ups, fastest path to entrepreneurial success
1
,2. Digital business: trends and issues (2018)
Organization’s Top 10 most important IT IT leader’s most important/ worrisome concerns
management issues 2018 (compared to 2017) 2018 (compared to 2017)
1. (1) Security and privacy 1. (1) Security/ cybersecurity / privacy
2. (2) Business & IT alignment 2. (3) IT Talent/ skills shortage/ retention
3. Data analytics/ data management 3. (2) Credibility of IT/ perception of IT leadership
4. (7) Innovation 4. (4) Alignment of IT and/ white the business
5. (10) Agility/ flexibility (IT) 5. (8) Business continuity
6. (4) Compliance and regulations 6. (5) Compliance and regulations
7. (8) Digital transformation 7. (6) Agility/ flexibility (IT)
8. (9) Agility / Flexibility (Business) 8. (7) Data analytics/ data management
9. (5) IT cost reduction/ cost controls 9. (12) Disaster recovery
10. (6) Business cost reduction/ controls 10. (10) Velocity of change (technology)
(Simnet, 2018 survey) (MISQe 2018)
3. Theories of DIgital Business: Course Outline
1. Digital Strategy (3x)
1. Using digital technologies for strategic advantage
2. IT governance
2. Digital Processes (ICT enabled process innovation) (4x)
1. Information system’s development
2. Managing IT initiatives
3. Digital transformation & change
4. Process modeling
3. Digital technologies (3x)
1. (Inter)networking for managers
2. AI and Robotics
3. Big Data & Analytics
2
,Hype-cycle = after introduction expectations are quickly becoming unrealistically high. Once people realize
this, the expectation (perceived value) changes from hype to disillusion - Many IT innovations follow this
1. Technology Trigger
2. Peak of Inflated Expectations (first disappointments)
3. Trough of Disillusionment
4. Slope of enlightenment
5. Plateau of Productivity
Gartner’s most recent Hype Cycle: emerging technologies
3
, Do 05-09 Digital Strategy I: Using digital technologies for Strategic Advantage
Digital Strategy: Open visions breed success
1. Open business models
2. Open departments
3. Open supply chains
4. Open platforms
5. Open innovation
6. Open partnerships
IT fuels the disappearance of boundaries and creates a new ‘open’ playing field, transforming industries,
companies, supply chains, and the way work, communicate socialize etc.
Different IT alignment frameworks can help companies assess challenges and opportunities (link IT and
Strategy)
No perspective or framework is better than another, they merely highlight a different aspect
1. Open business models
● Forget your customers: reinvent yourself
● Business Model Canvas
4
1. Changing Technologies + Big Data - Beyond Smaller, Faster, Cheaper
2. Changing Software Architecture - The Return of Lego
● IT is about business (process) architecture
● Focus on what, not how
● Flexibility, speed is king
● Modular design (ERP, Apps, SaaS, outsourcing etc.)
3. Changes in Strategy & Organization - Economies of Speed, Scope and Scale
● Speed: Cycle Time Reduction
● Disappearing Boundaries
- Within firm: no more silos, globalization
- Between firms: supply chain management, partnering
● Global Business Networks
- Dis-aggregation, consolidation, focus on core
- Virtual organizations, outsourcing
ICT and Business/ Industry Redefinition
IT can be used to provide several different benefits:
● Localized exploitation = automate an existing isolated task
● Internal integration = link and integrate a number of tasks
● Business process redesign = streamlining and reorganizing internal processes
● Business network redesign = streamlining and reorganizing external processes (suppliers, buyers etc.)
● Business scope redefinition = most radical
1. The importance of ICT and digital business
● Fundamental changes in how we work, compete, collaborate, socialize, play, learn etc.
● Information Management dominates and cuts across all disciplines
● >50% of capital expenditures
● Crucial dependence on ICT for individuals, business, governments
● ICT key source for innovations and start-ups, fastest path to entrepreneurial success
1
,2. Digital business: trends and issues (2018)
Organization’s Top 10 most important IT IT leader’s most important/ worrisome concerns
management issues 2018 (compared to 2017) 2018 (compared to 2017)
1. (1) Security and privacy 1. (1) Security/ cybersecurity / privacy
2. (2) Business & IT alignment 2. (3) IT Talent/ skills shortage/ retention
3. Data analytics/ data management 3. (2) Credibility of IT/ perception of IT leadership
4. (7) Innovation 4. (4) Alignment of IT and/ white the business
5. (10) Agility/ flexibility (IT) 5. (8) Business continuity
6. (4) Compliance and regulations 6. (5) Compliance and regulations
7. (8) Digital transformation 7. (6) Agility/ flexibility (IT)
8. (9) Agility / Flexibility (Business) 8. (7) Data analytics/ data management
9. (5) IT cost reduction/ cost controls 9. (12) Disaster recovery
10. (6) Business cost reduction/ controls 10. (10) Velocity of change (technology)
(Simnet, 2018 survey) (MISQe 2018)
3. Theories of DIgital Business: Course Outline
1. Digital Strategy (3x)
1. Using digital technologies for strategic advantage
2. IT governance
2. Digital Processes (ICT enabled process innovation) (4x)
1. Information system’s development
2. Managing IT initiatives
3. Digital transformation & change
4. Process modeling
3. Digital technologies (3x)
1. (Inter)networking for managers
2. AI and Robotics
3. Big Data & Analytics
2
,Hype-cycle = after introduction expectations are quickly becoming unrealistically high. Once people realize
this, the expectation (perceived value) changes from hype to disillusion - Many IT innovations follow this
1. Technology Trigger
2. Peak of Inflated Expectations (first disappointments)
3. Trough of Disillusionment
4. Slope of enlightenment
5. Plateau of Productivity
Gartner’s most recent Hype Cycle: emerging technologies
3
, Do 05-09 Digital Strategy I: Using digital technologies for Strategic Advantage
Digital Strategy: Open visions breed success
1. Open business models
2. Open departments
3. Open supply chains
4. Open platforms
5. Open innovation
6. Open partnerships
IT fuels the disappearance of boundaries and creates a new ‘open’ playing field, transforming industries,
companies, supply chains, and the way work, communicate socialize etc.
Different IT alignment frameworks can help companies assess challenges and opportunities (link IT and
Strategy)
No perspective or framework is better than another, they merely highlight a different aspect
1. Open business models
● Forget your customers: reinvent yourself
● Business Model Canvas
4
