Innovative digital technologies are forcing companies to rethink how they compete. The focus of digital innovation in business has shifted from internal transformation within firms to their market interface and ecosystems. While opportunities for innovation in internal operations are well established, it’s less clear how to leverage technology at the market interface. This often has strategic implications, and the goal of this book is help you connect digital innovation to business strategy.
By understanding how to leverage digital technologies, you can redefine your market-facing business processes, your products, services and even your business models and stay competitive in today’s hybrid markets. This book provides a coherent and comprehensive approach to not just survive but rather thrive in the 21st Century global marketplace.
With global, real-world examples and original frameworks, this is an ideal book for executives and anyone who wants to understand digital strategy. Highly practical but infused with rigorous research, it shows you how your business can use digital technologies to compete in today’s hybrid markets.
Author(s): Amit Basu, Steve Muylle
Series: Palgrave Executive Essentials
Publisher: Palgrave Macmillan
Year: 2023
Language: English
Pages: 235
City: Cham
Acknowledgements
Contents
About the Authors
List of Figures
List of Tables
1: Introduction
Overview of the Book
Part I: Using Digital Technologies to Transform Processes and Products
10.1 Using the Digitalization Framework
2: Digitally Enhancing Market-facing Processes
Market-facing Processes
Transaction Processes
Search
Authentication
Valuation
Payment
Logistics
After-Sales Service
Decision Support Processes
Configuration
Collaboration
Business Intelligence
Operationalizing Externally Facing Process Support
Example: The Dow Corning Corporation
Example: Philips Lighting—Signify
3: Digitally Enhancing Existing Products
Four Dimensions of Product Digitalization
Composition
Connectivity
Capabilities
Context
Extent of Product Digitalization
Impact on Market-facing Processes
Operationalizing Product Digitalization
Example: Eneco Toon
Example: Philips Lighting—Signify InterAct Office
4: Creating New Digital Products
Types of Digital Products
Characteristics of Digital Products
Market-facing Process Support for Digital Products
Pure versus Hybrid Digital Products
Example: Barco Demetra
Part II: Using Digital Technologies to Transform Business Scope
10.1 Redefining Business Scope
5: Engaging Consumers
Market Scope
From B2B to B2B2C
1. Process Improvement for an Existing Product
2. Digitally Enhanced Business Product
3. Digital Business Product
4. Consumer Sales
5. Digitally Enhanced Consumer Product
6. Digital Consumer Product
From Linear to Triangular Consumer Engagement
Leveraging Social Media
Levels of Social Media Engagement
Level 1: Probing Social Media Activity
Level 2: Pushing Content and Applications
Level 3: Priming Content
Level 4: Participating in Dialog
Leveraging Social Media to Engage Consumers
Leveraging Social Media in B2B Settings
Social Media and System Integration
6: Digital Intermediaries
Types of Digital Intermediaries
Selecting a Digital Intermediary Role
Resource Base
Evolutionary Context
Leveraging Digital Platforms
What Is a Digital Platform
Network Effects
Same-Side Network Effects
Cross-Side Network Effects
Types of Digital Platforms
Competitive Effects of Digital Platforms
When to Use Digital Platforms
Identifying Digital Platform Opportunities
Digital Platform Development
Example. Eneco Toon Revisited
7: Digital Revenue Models
Consumer-Based Revenue Models
Advertiser-Based Revenue Models
Generating Revenues on a Digital Platform
Part III: Aligning with Strategy
8: Considering Strategic Priorities
Strategic Planning
Strategic Priorities
Operational Excellence
Product Leadership
Customer Intimacy
Beyond Strategic Priorities
Examples: Dow Corning, Philips Lighting and Barco Demetra
Digitalization for Competitive Advantage
Porter’s 5-forces Model
Example—Eneco Toon Revisited
9: Planning for Digitalization
Discovering Innovation Opportunities
Assessing Readiness
Choosing a Digitalization Approach
Digitalizing Within the Context of the Existing Business
Creating a New Business
Digitalizing Within and Outside the Existing Business
Developing the Initiative
The Waterfall Approach
Rapid Application Development (RAD)
Agile Development
The Dev-Ops Approach
Deploying the Initiative
10: Evaluating Digitalization Initiatives
Evaluating Process Digitalization
Evaluating Product Digitalization
Evaluating Financial Performance
Evaluating Network Externalities
Sustaining Competitive Advantage
11: Risks of Digitalization
Technological Risk
Competitive Risk
Information Risk
Rigidity Risk
Challenges for Digital Platforms
12: Broadening the Lens
Artificial Intelligence
The Metaverse
Web3
Index
