Introduction

to
Digitalization
Digital Technology for Business
BUS 2401
Ajarn Haha
Learning Objectives

Define Digital Thing,

Understand the brief history
Digitization, Digitalization,
of the Evolutions of Society
and Digital Transformation
and Industrial Revolution
(4D)

Understand how the 4Ds are Recognize the implications

encapsulated to the 3rd and of Digitalization and Digital
4th Industrial Revolutions Transformation in businesses
Industrial Revolution in
the evolution of society

• Year: 250,000 B.C. - Society 1.0: Hunting Society

• Year: 8,000 B.C. - Society 2.0: Agricultural Society
• Year: 1,600 A.D. - Society 3.0: Industrial Society
• Year: 1980 - Society 4.0: Information Society
• Year: 2020 - Society 5.0: Cyber-physical Society
Progression of
the major
technological
revolutions &
societies (Lee
et. al., 2021)
 Industrial Revolution

INDUSTRY 1.0: INDUSTRY 2.0: INDUSTRY 3.0: INDUSTRY 4.0:

AIRPLANE, MICROPROCESSOR CYBER-PHYSICAL
STEAM ENGINE, COMPUTERS,
AUTOMOBILE,
WEAVING TELEPHONE, INTERNET
LOOMS PETROLEUM
The pace of human
advancements

• Society 1.0: 250,000 years

(around)
• Society 2.0: 10,000 years
• Society 3.0: 400 years
• Society 4.0: 40 years
Acceleration of • The adoption levels of the technologies under the 3rd and 4th
Technology Industrial Revolution
The 4 th
Industrial
Revolution: Industry 4.0

Industry 4.0 refers to the integration of information

and communication technologies in an industrial
environment
(GüntherSchuh et al., 2014; Xu et al., 2018).
 Principles of Industry 4.0 (Omnare et. al., 2023)
1. Interconnectivity: connects all devices, tools, machines, and
sensors so users can extract, share, and analyze real time data. e.g.,
Internet of Things and Internet of People
2. Information Transparency: Massive amounts of information and
data for decision making and productivity.
3. Technical Aid: a.) physical system to support the user physically; b.)
providing all information to the user
4. Decentralized Decisions: Autonomously carry out tasks
 digitisation, optimisation and personalisation of
production,

automation and adaptation,

Five key
elements of human–machine cooperation,
Industry 4.0
(Roblek et. al.)
value-added services and warehousing, and;

automatic data exchange and communication

Three interrelated factors for Industry 4.0

DIGITISATION AND DIGITISATION OF NEW MARKET MODELS

NETWORK INTEGRATION PRODUCTS AND SERVICES
Class Activity
Kodak Case Study
 • Digital Thing
• Digitization
What are…. • Digitalization
• Digital
Transformation?
Digital Thing
• something built out of
binary code, which forms
data and software
commands.
• no tangible form, being
composed of numbers
and comprising only
digital information.
Digitization
• process of converting
analogue information
into digital form is
termed digitization
• traditional products
are replaced by digital
products or at least
digital features are
added (Prem, 2015)
 Facets of digital information
Facet Advantage

Non- Digital information can be indefinitely stored without degradation

degradation

Ability to Digital information can be infinitely copied

copy

Ease of Digital information can be distributed almost instantly without error, for instance
Information through email, link sharing, messaging, and so forth.

Processing Digital information can be processed & manipulated with great precision & complexity
&
manipulation
Repeatability Digital information can be processed & manipulated with infinite & flawless
repeatability (for instance, once programmed correctly a software robot will usually
continue to faithfully execute tasks)
Class
Activity
Identify simple conversions
of analogue information to
digital
Digitalization
• bigger set of all transformations and changes that
are required to make that digitization process
work.
• reconceptualization and reconfiguration of
processes and systems from analogue- and
physical-centric forms into maximally digital-centric
forms.
• goes beyond products; it affects the business
model, organisation, management systems and
entire value chain processes.
 Computer Processing and Networking

Digital Data Storage and Analysis (First Gen)

Technologies
under The Internet (First Gen)
Industry 3.0
Digital and Mobile communication (First
Gen)
Digital Technologies
under Industry 4.0

• Robotics Process Automation

• Internet of Things
• Big Data
• Cybersecurity
• Biotechnology
• Cloud Computing
• Artificial Intelligence
• Virtual and Augmented Reality
• Additive Manufacturing
• Blockchain
 refers to the
integration and
Digital exploitation of digital
technologies to
Transformation increase productivity
and social welfare
(Nagy et. al., 2023)
From digitization to digital transformation (Bleicher and Stanley, 2016)
 Improve processes

Why businesses Create new or enhanced

products and services
engage to Digital Create a new business

Transformation? model

Prioritizing Responsibility
 How we do our business?

Organizational Processes

Improve Operations (e.g. IOT)

processes Production (e.g. IOT)

Customer Services (e.g. Chatbots)

Management (e.g. RPA)

Creating a new or enhanced product or
service, or accessing new markets
What kind of business we do?

Technology is embedded in products, services, and channels

E.g. AI enhanced cameras, IOT and AI on vehicles

 Create a new business model

Where we create value?

Organizations arise to fulfil the role of producing, supplying, or servicing

the new technology (e.g., Apple from personal computing to smart
phones market)

Organizations arise where existing industries and markets fundamentally

change the way that they create, capture and distribute value (e.g.,
Photography industry shift to digital)
 Why we do business?

Prioritizing Long-term interests of the firm,

responsibility shareholders, or the society.

Examples: Profits + Social and

Environmental Impact
Identify the reason in each business impact
 When Digital Disruption Occurs

CONVERGENCE CRUCIAL TRIAD

Convergence

• bringing together of
things that did not
used to be combined
• often creates
something more
than the sum of the
parts
Types of Convergence

•Technology +
industry
•Digital +
analogue/physical
•Digital + digital
Technology +
industry
• Netflix converged film and
television with streaming
technology,
• Uber converged ride ailing and
technology,
• Airbnb converged
accommodation seeking and
technology,
• Amazon retail and technology.
Digital +
analogue/physical

• quality of the interfaces between

analogue and digital can heavily
influence the success of analogue
digital systems
• Apple device design is their
success together with their
technological platforms
Digital +
digital
Artificial Intelligence +
Augmented Reality of
Google
Major Forces of Successful
Digital Disruption (Crucial
Triangle)

• Technology and its

ecosystem
• Transforming Markets
and Societies
• Business Model
Crucial
Triangle
How digital • disruption often
disruption unfolds
exponentially
• disruption often
typically involves certain
steps or stages
occurs?
Exponential
Growth of
Digital
Disruptions
Exponential
Growth of
Digital
Disruptions
Exponential
Growth of
Digital
Disruptions
Limitations in
Expectations of
Digital Exponentials
• not all digital things will reach
exponential growth (remember
the crucial triad), and;
• nothing can grow exponentially
forever.
Several steps of Digital Disruption
Several steps of Digital Disruption
Several steps of Digital Disruption
Reflective Journal
Activity

• Write a minimum of 300 words

reflection about the class discussion
today
• Some students will share their
reflections in the class