DB Summary Lecture / Video Notes
Table of Contents
Week 1: Setting the Stage .......................................................................................................... 2
Week 1: Digital Strategy ............................................................................................................. 4
Week 2: IT Governance ............................................................................................................ 13
Week 2: Internetworking for managers ................................................................................... 26
Week 3: Process Innovation: System’s development .............................................................. 36
Week 3: Managing IT initiatives ............................................................................................... 47
Week 4: Digital transformation and change ............................................................................ 56
Week 4: Digital Technologies – AI & Robotics ......................................................................... 66
Week 5: Digital Technologies – Big Data and Analytics ........................................................... 69
Week 5: Digital Process – Process Modelling........................................................................... 73
Week 6: Social Media, Crowdsourcing, P2P & Blockchain ....................................................... 79
Week 6: Wrap-Up ........................................................................ Error! Bookmark not defined.
Course outline
Setting the stage
1. Digital Strategy
a. Using digital technology for strategic advantage.
b. IT Governance
2. ICT-enabled process innovation
a. Information system’s development
b. Managing IT initiatives
c. Digital transformation (change management)
d. Process modelling
3. Enabling theories
a. (Inter)networking
Wrap-up
1
,Week 1: Setting the Stage
Changes happen in 3 areas.
1. Changes in technologies and big data
- Beyond smaller, faster and cheaper.
2. Changes in software architecture
- IT is about business (process) architecture.
- Focus on what, not how: you can design what you want and you can implement it
right away since the logic is already created. There is a fundamental shift, you can
get the job done and it enables us to find ecosystems in organizations.
- Flexibility and speed are king: the competitive advantage is not having modular
designs, but constructing new things with your building blocks. What does it
enable us to do? You have to be quick and build and kill bridges, constantly
changing your products.
➔ You need to be faster than someone else. If you’re faster you can be different and
you can charge a little bit more. If you’re late, you can only compete on price.
3. Changes in how organizations work
- Speed: cycle time reduction.
- Disappearing boundaries
a. Within firm: no more silos, globalization.
b. Between firms: supply chain management, partnering.
- Global business networks: dis-aggregation, consolidation, focus on core, virtual
organization and outsourcing.
ICT and business/industry redefinition
Evolutionary transformations: levels 1 and 2, can generate significant benefits:
1. Localization exploitation: IT can be used to simply automate an existing isolated
task.
2. Internal integration: IT can be used to link and integrate a number of tasks.
Revolutionary transformation: levels 3, 4 and 5, can generate more significant benefits:
3. Business process redesign: streamlining and reorganizing internal processes (and not
simply just linking them).
4. Business network redesign: extends level 3 beyond the boundaries of the
organization to involve suppliers and buyers.
5. Business scope redefinition: describes most radical transformation, where the entire
business scope is redefined.
2
,Digital business: trends and issues. Create the change rather than be affected. We spend a
lot of time on IT but we can’t seem to get it right.
Biggest concerns in 2019 of IT management and of IT leaders:
1. Security / cyber security / privacy.
2. Alignment of IT with the business.
3. Data analytics / data management.
4. Digital transformation.
5. Compliance and regulations.
6. Cloud / cloud computing
Business & IT alignment has been in the top three of concerns for 15 years and we still can’t
get it right. Also, flexibility and business change are major issues and security and privacy
issues are currently a new big concern.
The largest investments are in analytics/big data, ERP systems, security and privacy and in
software development / maintenance.
3
,Week 1: Digital Strategy
The alignment between IT and strategy does not seem to advance as quickly as wanted.
Quickness is the key in order to keep up with the competition. Therefore, corporations are
increasingly breaking down barriers between organizations. E.g., different marketing for
different tweaked models.
A hype – from an overhype to disillusion, is a curve. When it’s on neutral level, we know
how the technology works and how to deal with it. When you’re working with hypes you
need to know that this is happing so you know how to react to it (block chain, replacement
by robots etc.). When the new technology is sliding down the hype curve is it really tough
how to deal with it (cloud computing, social media, e-mail).
➔ The hype cycle can help companies develop their strategies to see the technologies
sliding over the curve.
Many IT innovations follow the 'hype-cycle' (made popular by Gartner).
1. After the introduction expectations are quickly becoming unrealistically high.
2. Once people realize this, the expectation (perceived value) changes from hype to
disillusion.
3. Real developments (is a straight line from the left side to the upper right side of the
graph) are typically different from the hype and disillusion and it is important for
managers to understand both real and perceived importance.
4. The X-axis in the chart shows the development of the e-business hype over time
(with the 'New Economy' perceived as replacing the 'Old Economy' in the late 1990's,
and the disillusion represented by the burst of the dot-com bubble in 2001), the
terms at the top of the Y-axis show various concepts related to IT that have gone (or
are going) through a similar hype-cycle at different points in time.
This chart shows Gartner's
hype cycle for emerging
technologies as published in
mid 2017. By now
eCommerce, particularly in
industries such as travel, are
well into the ‘plateau of
productivity’, but new
technologies continue to
emerge and market research
firms such as Gartner predict
their future path through the
‘hype cycle’ to help
companies develop their
strategies.
4
,5 Phases of the Hype Cycle
1. Technology Trigger
- A technology breakthrough kicks off - proof-of-concept media interest trigger publicity
- no usable products exist and commercial growth is unproven
2. Peak of Inflated Expectations
- number of success stories due to early publicity, sometimes some scores of failures
- some companies take action, some don’t
3. Trough of Disillusionment
- interest declines as experiments/implementations fail to deliver
- investment only continues if the providers improve their products to the satisfaction of
early adopters
4. Slope of Enlightenment
- how the technology helps the enterprise takes form + widely understood
- 2nd and 3rd generation products appear
- pilots are funded by more enterprises, but conservative companies remain cautious
5. Plateau of Productivity
- mainstream adoption
- criteria for providers’ growth are more clearly defined
- technology’s broad market applicability and relevance are paying off
IT fuels the disappearance of boundaries and creates a new ‘open’ playing field,
transforming industries, companies, supply chains, and the way we work, communicate,
socialize etc. IT can help us to make generate new strategies and can be the driver –
understanding is needed.
5
, Value Propositions and Business Models
How can IT influence your strategy? How can IT make a difference or support what your
organization is trying to do? Why do some businesses work and others don’t?
It’s important to understand how the different models in the videos are dealing with IT and
are influenced by IT.
Business model canvas: compete on business model.
What we do is looking at the customer profile that wants to do a particular customer job and
is experiencing a pain for which we are offering our products and services that hopefully
relieve those pains and bring some extra gains.
Start with something to offer (value proposition, more is possible) to the customers
(customer segments). Value propositions and customer segments are connected through
customer relationships and channels. Channels can be either online or offline. Customer
relationships can be about loyalty points or learning costs or anything that brings you back
into a particular platform. This leads to revenue streams and show which prices are captured
in the business model. Key activities are the activities that are included, and key partners can
help you with taking these activities. In order to make it you need key resources and a clear
cost structure.
➔ Thus, in order to fulfil our value propositions we need key partners, key activities and
key resources. They all bring in costs and as long as those costs are lower than the
revenue, we will make a profit.
Business Model ‘levers’: buttons you can press in order to make a difference. Map yourself
and map others and decide where and how you would like to move. Strategy, business
models and value propositions and how they can influence each other.
6
Table of Contents
Week 1: Setting the Stage .......................................................................................................... 2
Week 1: Digital Strategy ............................................................................................................. 4
Week 2: IT Governance ............................................................................................................ 13
Week 2: Internetworking for managers ................................................................................... 26
Week 3: Process Innovation: System’s development .............................................................. 36
Week 3: Managing IT initiatives ............................................................................................... 47
Week 4: Digital transformation and change ............................................................................ 56
Week 4: Digital Technologies – AI & Robotics ......................................................................... 66
Week 5: Digital Technologies – Big Data and Analytics ........................................................... 69
Week 5: Digital Process – Process Modelling........................................................................... 73
Week 6: Social Media, Crowdsourcing, P2P & Blockchain ....................................................... 79
Week 6: Wrap-Up ........................................................................ Error! Bookmark not defined.
Course outline
Setting the stage
1. Digital Strategy
a. Using digital technology for strategic advantage.
b. IT Governance
2. ICT-enabled process innovation
a. Information system’s development
b. Managing IT initiatives
c. Digital transformation (change management)
d. Process modelling
3. Enabling theories
a. (Inter)networking
Wrap-up
1
,Week 1: Setting the Stage
Changes happen in 3 areas.
1. Changes in technologies and big data
- Beyond smaller, faster and cheaper.
2. Changes in software architecture
- IT is about business (process) architecture.
- Focus on what, not how: you can design what you want and you can implement it
right away since the logic is already created. There is a fundamental shift, you can
get the job done and it enables us to find ecosystems in organizations.
- Flexibility and speed are king: the competitive advantage is not having modular
designs, but constructing new things with your building blocks. What does it
enable us to do? You have to be quick and build and kill bridges, constantly
changing your products.
➔ You need to be faster than someone else. If you’re faster you can be different and
you can charge a little bit more. If you’re late, you can only compete on price.
3. Changes in how organizations work
- Speed: cycle time reduction.
- Disappearing boundaries
a. Within firm: no more silos, globalization.
b. Between firms: supply chain management, partnering.
- Global business networks: dis-aggregation, consolidation, focus on core, virtual
organization and outsourcing.
ICT and business/industry redefinition
Evolutionary transformations: levels 1 and 2, can generate significant benefits:
1. Localization exploitation: IT can be used to simply automate an existing isolated
task.
2. Internal integration: IT can be used to link and integrate a number of tasks.
Revolutionary transformation: levels 3, 4 and 5, can generate more significant benefits:
3. Business process redesign: streamlining and reorganizing internal processes (and not
simply just linking them).
4. Business network redesign: extends level 3 beyond the boundaries of the
organization to involve suppliers and buyers.
5. Business scope redefinition: describes most radical transformation, where the entire
business scope is redefined.
2
,Digital business: trends and issues. Create the change rather than be affected. We spend a
lot of time on IT but we can’t seem to get it right.
Biggest concerns in 2019 of IT management and of IT leaders:
1. Security / cyber security / privacy.
2. Alignment of IT with the business.
3. Data analytics / data management.
4. Digital transformation.
5. Compliance and regulations.
6. Cloud / cloud computing
Business & IT alignment has been in the top three of concerns for 15 years and we still can’t
get it right. Also, flexibility and business change are major issues and security and privacy
issues are currently a new big concern.
The largest investments are in analytics/big data, ERP systems, security and privacy and in
software development / maintenance.
3
,Week 1: Digital Strategy
The alignment between IT and strategy does not seem to advance as quickly as wanted.
Quickness is the key in order to keep up with the competition. Therefore, corporations are
increasingly breaking down barriers between organizations. E.g., different marketing for
different tweaked models.
A hype – from an overhype to disillusion, is a curve. When it’s on neutral level, we know
how the technology works and how to deal with it. When you’re working with hypes you
need to know that this is happing so you know how to react to it (block chain, replacement
by robots etc.). When the new technology is sliding down the hype curve is it really tough
how to deal with it (cloud computing, social media, e-mail).
➔ The hype cycle can help companies develop their strategies to see the technologies
sliding over the curve.
Many IT innovations follow the 'hype-cycle' (made popular by Gartner).
1. After the introduction expectations are quickly becoming unrealistically high.
2. Once people realize this, the expectation (perceived value) changes from hype to
disillusion.
3. Real developments (is a straight line from the left side to the upper right side of the
graph) are typically different from the hype and disillusion and it is important for
managers to understand both real and perceived importance.
4. The X-axis in the chart shows the development of the e-business hype over time
(with the 'New Economy' perceived as replacing the 'Old Economy' in the late 1990's,
and the disillusion represented by the burst of the dot-com bubble in 2001), the
terms at the top of the Y-axis show various concepts related to IT that have gone (or
are going) through a similar hype-cycle at different points in time.
This chart shows Gartner's
hype cycle for emerging
technologies as published in
mid 2017. By now
eCommerce, particularly in
industries such as travel, are
well into the ‘plateau of
productivity’, but new
technologies continue to
emerge and market research
firms such as Gartner predict
their future path through the
‘hype cycle’ to help
companies develop their
strategies.
4
,5 Phases of the Hype Cycle
1. Technology Trigger
- A technology breakthrough kicks off - proof-of-concept media interest trigger publicity
- no usable products exist and commercial growth is unproven
2. Peak of Inflated Expectations
- number of success stories due to early publicity, sometimes some scores of failures
- some companies take action, some don’t
3. Trough of Disillusionment
- interest declines as experiments/implementations fail to deliver
- investment only continues if the providers improve their products to the satisfaction of
early adopters
4. Slope of Enlightenment
- how the technology helps the enterprise takes form + widely understood
- 2nd and 3rd generation products appear
- pilots are funded by more enterprises, but conservative companies remain cautious
5. Plateau of Productivity
- mainstream adoption
- criteria for providers’ growth are more clearly defined
- technology’s broad market applicability and relevance are paying off
IT fuels the disappearance of boundaries and creates a new ‘open’ playing field,
transforming industries, companies, supply chains, and the way we work, communicate,
socialize etc. IT can help us to make generate new strategies and can be the driver –
understanding is needed.
5
, Value Propositions and Business Models
How can IT influence your strategy? How can IT make a difference or support what your
organization is trying to do? Why do some businesses work and others don’t?
It’s important to understand how the different models in the videos are dealing with IT and
are influenced by IT.
Business model canvas: compete on business model.
What we do is looking at the customer profile that wants to do a particular customer job and
is experiencing a pain for which we are offering our products and services that hopefully
relieve those pains and bring some extra gains.
Start with something to offer (value proposition, more is possible) to the customers
(customer segments). Value propositions and customer segments are connected through
customer relationships and channels. Channels can be either online or offline. Customer
relationships can be about loyalty points or learning costs or anything that brings you back
into a particular platform. This leads to revenue streams and show which prices are captured
in the business model. Key activities are the activities that are included, and key partners can
help you with taking these activities. In order to make it you need key resources and a clear
cost structure.
➔ Thus, in order to fulfil our value propositions we need key partners, key activities and
key resources. They all bring in costs and as long as those costs are lower than the
revenue, we will make a profit.
Business Model ‘levers’: buttons you can press in order to make a difference. Map yourself
and map others and decide where and how you would like to move. Strategy, business
models and value propositions and how they can influence each other.
6
