Digital Transformation Introduction (WK1) Get away from the common belief that you • A company that adds
away from the common belief that you
Boiling Frog:
• This metaphor represents the
phenomenon where individuals are
unable to respond to slow or
routine changes or happenings.
Advantages: Enhanced comfort
without any exertion necessary.
Disadvantages: Gradually lag
behind, oblivious to evolving
dangers.
Digital Transformation
• Digital transformation is a
strategic corporate transformation
that is driven by customer needs
and includes making changes
throughout the whole company, as
well as using digital technology.
Leading Digital (WK2)
Digital Master:
Leadership capabili es:
+Commi ed leadership is a catalyst for
technological transforma ons
+ Excecu ves lead transforma ons with
decisive top-down leadership
+ Leaders set broad visions for future
+They remain ac vely involved to advocate for
change, propel the transforma on
What make a good tech leader:
+ Personal Mastery: self-awareness and
interpersonal skills
+ Leadership Skill Mastery: mo va on
and guidance
+ Business Understanding: opera ons
and naviga on
+ Organiza onal Understanding
+ Crea ng a Support Working
Environment
+ Effec ve Use of Resources
+ Flexibility of Leadership
+ Ability to Gain Business A en on
Stages of Successful Innova on
Three Types of Digital Vision:
a. Re-envisioning the customer experience:
Advantages: More business attention and
happier customers.
b. Re-envisioning operational process:
• Increasing process viability and decision
making.
• Operational vision.
Advantages: Increasing speed, enhance the
satisfaction of customers and stakeholders.
c. Combining these two approaches:
• Defensive approach – use by company under
threat need to survive long term.
• Offensive approach – use by company not
facing crisis.
Digital Matrix (WK3)
Ecosystem:
-Digital giants: key players horizontally extend
core competencies into an industry (e.g Apple
and Alphabet)
-Industry Incumbents: Enormous conventional
players (E.g Ford, BMW, Toyota)
-Tech Entrepreneurs: Innovative players
bringing vertical and specialized to tackle the
existing industries (E.g Tesla, Uber, and Lyft)
Digital Matrix:
• A company that adds value by allowing direct
Digital Matrix – Sensing
• Phase 1: Testing at the edge :
+ The first phase of digitalization
involves the experimentation and
evolution of corporate structures in
response to the process of digital
transformation.
+ Reflect upon the current state of
experimentation occurring both
inside and outside the sector.
• Phase 2: Collision at the Core :
+ The rise of digital technology is
disrupting conventional industrial
processes as concepts transition
from experimental prototypes to
viable commercial solutions. This
might also be due to the fact that
contemporary organizational
frameworks rely on automation,
algorithms, and analytics instead of
mechanical engineering.
 This prioritizes experimentation, real-
time ecosystem cooperation, and
machine learning above
standardization, specialization, and
value chain optimization.
• Phase 3: Reinvention at the Root :
+ Digital Giants, Industry Incumbents, and
Tech Entrepreneurs (or combinations) work
together to solve digital consumer problems.
• "Digital" will be fundamental to every
product and service value proposition, and
every company will be digital.
• A B2B2C network will replace B2B and B2C
(agility and flexibility are key).
• Defined responsibilities for customer
communication, social and mobile interface
design, and data analysis for insights. New
thoughts, actions.
Digital Matrix – Responding
The 9 Rules
Rule 1: Evaluate the role in Experience
Ecosystem
• Objective:
Change from a self-centered company to one
that welcomes and engages complementors in
ecosystems.
• Steps:
+ Observe the horizon for key digital
developments and invest early in areas that
have yet to demonstrate effect but are
promising.
+ Participate in experiments across a broad
range of general-purpose ecosystems, with the
goal of orchestrating in a few chosen areas
with high potential value for you.
Rule 2: Explore Capability Co-creation
Options
• Objective:
should not collaborate with rivals. (You are
urged to collaborate with competitors.)
• Steps:
+ Select one or two ecosystems outside of the
sector and see how conventional competitors
interact.
+ Examine potential futures and choose those
that are most plausible for the present industry
and will enable the firm to distinguish itself
and provide value.
Rule 3: Examine the Intersection of Human
talent and Machine Power
• Objectives:
Explore Smart Tech that is redefining
efficiency and innovation.
• Steps:
+ Look for areas of work where technology
may magnify human expertise in ways that
allow the business to differentiate itself and
provide value.
+ Describe the sort of talent the organization
will seek and how they will collaborate with
powerful machines to provide value.
Rule 4: Engage ecosystems as
Transformational triggers
• Objectives:
Recognize when a firm needs to make changes
by involving and organizing its environment.
• Steps:
+ Try to grasp the ecosystem's network
structure, how it is changing, and who is
emerging as leaders in these sectors.
+ Establish a distinct section inside the firm to
develop and generate new ideas.
+ Examine the importance of orchestration and
participation in ecosystems to accelerate digital
transformation.
Rule 5: Navigate your Preferential
Partnerships:
• Objectives:
Select key relationships and structures and
manage them like a monetary portfolio.
• Steps:
+ Choose a set of favored connections that will
lead the transition from the conventional to the
digital world.
+ Maintain existing co-creative ties while
developing new relationships in ecosystems
that will help the organization achieve its
digital objectives.
Rule 6: Augment smart humans with
powerful machines:
• Objectives:
Examine the whole collection of tools that
make up the boundary of smart machines and
create a road plan for adopting them and
adapting current methods of functioning.
• Steps:
+ Create areas of differentiation in expertise
using sophisticated technology and human
abilities.
+ Implement the new vision in areas where the
implications are expected to be considerable.
+ Develop and explain areas where humans
and machines may bring unique value to your
company and work operations.
Rule 7: Design your new digital ecosystems
• Objectives:
State clearly where you place the relevant
ecosystems.
• Steps:
+ Scan broadly and collaborate with a diverse
group of stakeholders to discover issues.
+ Connect your goods and services with others
on various platforms.
+ Fine-tune your product to meet the demands
of your partners and clients.
Rule 8: Co-create new business capabilities
with preferred partners
• Objectives:
Co-develop new business capabilities with
chosen partners.
• Steps:
+ Explore how other sectors are using strong
ecosystems to remake themselves for the
digital age.
+ Understand the desired relationships.
+ Balance your portfolio of partnerships to
reflect changes in market conditions.
Rule 9: Differentiate via computer & human
capital working together
• Objectives:
Find the best talent to work with machines.
• Steps:
+ Understand how computer and human capital
interact today.
+ Examine how amplification might help you
organize ecosystems.
Platform, Product, and Services (WK4)
Platform:
1
contacts between two or more diverse sorts of
clients.
• Connect distinct user groups and allow them
to communicate with each other in useful
ways.
• Act as an open infrastructure that enables
these users to produce value for one another.
Key Characteristics:
• Must serves two or more distinct user groups.
• Direct interaction: Allow customers to
interact directly is a must.
• Facilitation: The platform needs to facilitate
interactions.
Digital Tech drives 4 platform Elements:
• Frictionless acquisition
• Scalable growth
• On-demand access
• Trust
Platform and Traditional Business
Differences:
• Value Creation:
The platform's value is built by the interactions
between users, not by the corporation alone.
• Competitive Advantage:
Platform's competitive advantage derives from
the ecosystems of users and companies that it
develops, rather than the resources it possesses.
• Focus:
Platforms need to concentrate on acquiring and
managing users rather than merely controlling
resources.
Pipes to Platform:
• Business Design:
- Value is generated at an earlier
stage and used at a later stage,
resulting in a continuous and
cumulative flow of value, similar
to the movement of water through
a pipe.
- Pipes: Specifically built to
facilitate the unobstructed
movement of wealth in a linear
fashion.
- Service organizations function
similarly to conduits, as they gather
and consolidate resources for the
purpose of providing services to
customers.
• Market:
From consumers to producers, including those
who generate value on the platform.
• Competitive Advantage:
From owning resources to building strong
ecosystems for value creation.
• Value Creation:
From internal processes to interactions that
orchestrate users and resources.
Experience Economy (WK5)
I. Decoupling of experiences from services
+ Services: Services - intangible
activities providing for customers
+ Customers: Purchasing for experience
= Paying for the opportunity to enjoy
memorable events offering by company
+Company: Staging an experience =
Personalizing and engaging with
customers in memorable way
Economic distinctions
The Progression of Economic
Value
II. Recognizing experiences as a distinct
economic offering
 Experience Economy: why now?
Technology powers many
experiences
Increasing competitive intensity →
enhance ongoing search for
differentiation
The nature of economic value and
its natural progression
(commodity → good → services
→ experience)
Agile, Lean and Design Thinking (WK6)
Agile:
• A flexible project management style focused
on generating software solutions that
correspond with customers' changing demands.
• Allows teams to work flexibly and effectively,
frequently by splitting the project into small
iterations known as "sprints".
• A excellent technique to cope with the
growing complexity.
• Continuous iteration of development and
testing (initially for the software development
process, but now extensively used in various
areas).
• Splits the good into smaller builds.
Scrums:
• An Agile approach focuses on generating
business value in the quickest period.
• Delivers the software after each sprint.
• All development starts with a product vision.
• Highly experimental and employs several
prototypes.
LEAN START-UP (LEAN):
• Summarized around the idea of employing
smaller, quicker iterations to test a vision.
LEAN START-UP = Customer Development +
Agile Software Development + Lean
• Startups that thrive are those who manage to
repeat enough times without running out of
resources.
• Lean startup refers to a very particular
approach and attitude that entrepreneurs might
adopt to launch a firm.
Lean Canvas:
• Company model that allows entrepreneurs
and startups to swiftly visualize and verify their
company concepts.
• A brief and executable version of the typical
business plan that focuses on the most
important parts of a firm.
Network Effects (WK7)
Changes in strategic assumptions from the
analog to digital era:
Business Model:
• Describes the logic behind how an
organization develops, delivers, and captures
value (economic, social, cultural, or other types
of value).
Freemium Models:
• 1-2% of freemium clients convert from free
to paid. You must reach millions of clients
before the giveaway model becomes lucrative -
Price Effects.
Brand Effects:
• Stickier, and appear when consumers begin to
identify a certain brand with quality. However,
brand impacts, like pricing effects, are
sometimes difficult to maintain.
Scaling Network Effect:
+ A network with easy access can grow quickly
and without any limits.
+ Easy access means people can join a pla orm
fast and start adding value right away.
+ This easy access is important for a pla orm
to grow fast.
+ Scaling network effects: A network’s growth
necessitates propor onal expansion of both
market sides.
+ Side switching: Occurs when par cipants
from one market side start contribu ng to the
other side.
+ Enhancing network effects: A scalable
business model, fric onless entry, and side
switching all aid in amplifying network effects.
Kinds of Network Effects:
+ Same-side effects: These are the impacts
that users on one side of the market have on
others within the same group.
+ Cross-side effects: These are the impacts
that users from one side have on those from
the opposite side—how customers affect
producers and vice versa.
 Both of these effects can be posi ve or
nega ve.
Basic models for Business – Old
Models:
Here’s a paraphrased version with the
terminologies kept:
+ Strategic objec ve: it is used to navigate
Porter’s five forces to construct a defensive
barrier around the company, rendering it
unassailable.
+ Technological advancements: They are
leading to reduced and more rapid cycle mes
for products ranging from "microchips to corn
chips".
partners, leading to immediate gains but
poten ally harmful consequences over me.
Partner against Partner:
+ When two independent pla orm partners
compete for posi ons within the pla orm
ecosystem, or when two game app developers
contend to capture the same audience on a
single console.
How Pla orm Compete:
• Leveraging data value:
Involves both tac cal and strategic methods. A
comprehensive strategic data analysis goes
further by pinpoin ng en es that generate,
manage, and extract value within and outside
the pla orm. It examines their ac ons to
refine the ecosystem’s efficiency.
• By Fostering innova on, then capturing its
value:
To nurture innova on and seize its benefits,
pla orm leaders strive to oversee the principal
value origins produced by and for users within
their ecosystem. They can expand their
enterprises by providing partners with
seamless opportuni es for innova on and
subsequently capturing a por on or the
en rety of the value through acquisi on or
replica on.
• Prevent mul homing:
+ Mul homing leads to users par cipa ng on
mul ple pla orms, which firms try to prevent
as it promotes switching between services.
+ Restric ng mul homing is an essen al
strategy for compe ve pla orms. They o en
seek sole access to key resources or limit
access to their pla orm.
• By Redefining mergers and acquisi ons:
+ Tradi onal M&A strategies encourage
leaders to look for acquisi ons that offer
complementary products, market entry, or
cost reduc ons in the supply chain. Pla orm
leaders need to rethink this approach.
• By pla orm envelopment:
+ Leaders of pla orms should keep an eye on
“neighboring pla orms” that share user
groups or have similar func ons.
• Improved pla orm design:
+ While companies strive to outdo each other
with superior products and services, pla orms
focus on enhancing the quality of their tools to
draw in users, enable be er interac ons, and
link creators with consumers.

Design Thinking:
Definition:
• An approach to innovation.
• The core premise is that issues may be better
handled when individuals from various
disciplines collaborate.
• The Design Thinking process phases are run
through several times.
• The approach is based on the work of
industrial designers.
Innovation arises between the needs of:
• The users
• The technical feasibility
• The economic exploitation
Effects:
• Recognize the hidden desires, requirements,
and expectations of users, consumers, and
stakeholders.
• Generate a huge number of ideas, create them
as prototypes, test and tweak them.
• Create unique ideas that reflect a meaningful
value proposition for the consumer (visualize
and communicate them).
Platform Network Effects:
• Definition: The impact that the number of
users of a platform has on the value created for
each user.
• Positive network effects: The capacity of a
big, well-managed platform community to
provide enormous value for each platform user.
• Negative network effects: The prospect that
the increase in numbers of a poorly-managed
platform community might lower the value
delivered for each user.
Pla orm Strategy:
- It’s akin to classical strategy as three-
dimensional chess compares to tradi onal
chess.
- Within the ecosystem, the leading en ty
orchestrates dynamic trade-offs, engaging in
compe on across three ers:
+ Pla orm against pla orm (e.g., PlaySta on
vs. Xbox vs. Wii)
+ Pla orm against partner (e.g., Microso
collabora ng with innova ve so ware
partners in search technology)
+ Partner against partner
Pla orm against Pla orm:
+ Strategic advantage stems from the
robustness of en re ecosystems, rather than
the a rac veness of specific products or
services.
Pla orm against Partner:
+ It’s a sensi ve and risky strategy. Although it
might enhance the pla orm, it could weaken