introduction e-business & digital transformation
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e-Business & Internet Applicationssummer term 2017
Frank Wiedemann, MBA
Introduction e-Business & Digital TransformationFrank Wiedemann, eMBALecture: e-Business & Internet Applications, summer term 2017
HNU University of Applied SciencesNeu-Ulm, 24/03/2017
› Personal Introduction Frank Wiedemann› Since 2016 Chief Sales & Marketing Officer at mission-one GmbH
› 2013 – 2016 CEO NPG Digital
› 2011 – 2013 Head Online Business Development, Swisscom Schweiz AG
› 2007 – 2011 Digitals Strategy Consultant, various Online Agencies
› eMBA – Study Strategic Information Management, HNU
› Diploma – Study Business Administration, HNU
› Banker
e-Business Definition
„E-Business (electronic business) is, in ist simplest form, the conduct of business on
the Internet. It is a more generic term than eCommerce because it refers to not only
buying and selling but also serving customers, empowering internal processes an
collaborating with business partner. It therefore also impacts management,
marketing and sales operations, and legal aspects of operating a firms business“
In 1997, IBM was one of the first companys who used the term when they launcheda campaign built arroud the term e-business.
e-Business Definition
› Content delineation e-business vs. e-commerce
E-Business
E-Commerce
E-Business
Business Intelligence
Customer RelationshipManagement
Supply Chain Management
EnterpriceResource
Management
E-Commerce
Online Activitiesbetween
Businesses
Collaboration
Electronic transfer
within firm
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Digital Evolution
source: Embracing the Internet of Everything To Capture Your Share of $14.4 Trillion, CISCO 2013
Internet of Things (IoT) –Internet of Everything
number of connected devices worldwide from 2012 to 2020 (in billions)
source: https://www.statista.com/statistics/471264/iot-number-of-connected-devices-worldwide/
Global Population
The Internet of Things has the Power toRevolutionize Everything … smart Home
Source: https://www.11880-elektriker.com/ratgeber/hausautomation/smart-home-systeme
The Internet of Things has the Power toRevolutionize Everything
Source: https://www.produktion.de/video/smart-factory-audi-schafft-das-fliessband-ab-290.html
… smart Factory
… smart City
Source: https://www.linkedin.com/pulse/smart-city-blueprint-confluence-dynamic-master-plan-chakrabarti
General development - it just starts!
“We are currently at the beginning of a transformation phase. The DNA of our customers is changing fundamentally.”
source: PwC: Oktober 2013, Analysis Swiss population
...the key to digital transformation is re-envisioning
and driving change in how the company operates.
That‘s a management and people challange, not just
a technology one.
Capgemini Consulting, Digital Transformation Report
>>
<<
Digital Business Models
source: Elgar Fleisch Professor of Information and Technology Management ETH Zurich / University of St. Gallen
Platform Model(Network effects)
Transaction Platforms
Innovation Model
(digital technology)
Scale Model(digital greatadvantage)
IoT Data Model(connection digital an physical world)
Digital chargedPhysical Products
Sensor Data as a Service
Remote Monitoring
Digital Add-on
PhysicalFreemium
Object SelfService
Innovation Platforms
Free Freemium
Subscription
On-Demand
Sharing
Marketplace
Premium
Ecosystem
1
2
3
4
Internet of Things Value Chain
source: Telecomcircle, https://www.linkedin.com/pulse/internet-things-business-models-mohit-agrawal
Platform Disruption – How it Works
› Platforms bring together producers and consumers on a large scale as intermediaries. Consumer reduce their transaction costs (e.g. search, negotiation, transaction), the producers can easily find customers, but they have to surrender part of their profit margin to the platform operator.
› Platforms are today the dominant business model of the digital world
The Top Online Platformsdidn´t DisruptTraditional Businesses
source: https://hbr.org/2016/09/the-businesses-that-platforms-are-actually-disrupting / David S. Evans and Richard Schmalensee, based on data from PwC, Alexa, CB insights
In most cases, victim was another matchmaker ofconsumers and services orproducts
Overview basic e-Business Models
The Brokerage Model (B2B, B2C)
The Utility Model (B2C)
The Advertising Model (B2C)
The InfomediaryModel(B2B)
The Merchant Model (B2C)
The ManufacturerModel (B2B)
The Community Model (B2C, B2B)
The SubscriptionModel (B2C)
The Affiliate Model (B2C)
source: http://digitalenterprise.org/models/models.html
Overview basic e-Business Models
The Brokerage Model (B2B, B2C)
The Utility Model (B2C)
The Advertising Model (B2C)
Infomediary(B2B)
The Merchant Model (B2C)
The ManufactorModel (B2B)
The Community Model (B2C, B2B)
The SubscriptionModel (B2C)
The Affiliate Model (B2C)
source:http://digitalenterprise.org/models/models.html
Overview basic e-Business Models
The Brokerage Model (B2B, B2C)
The Utility Model (B2C)
The Advertising Model (B2C)
Infomediary(B2B)
The Merchant Model (B2C)
The ManufactorModel (B2B)
The Community Model (B2C, B2B)
The SubscriptionModel (B2C)
The Affiliate Model (B2C)
source: http://digitalenterprise.org/models/models.html
Overview basic e-Business Models
The Brokerage Model (B2B, B2C)
The Utility Model (B2C)
The Advertising Model (B2C)
Infomediary(B2B)
The Merchant Model (B2C)
The ManufactorModel (B2B)
The Community Model (B2C, B2B)
The SubscriptionModel (B2C)
The Affiliate Model (B2C)
source:http://digitalenterprise.org/models/models.html
Overview basic e-Business Models
The Brokerage Model (B2B, B2C)
The Utility Model (B2C)
The Advertising Model (B2C)
Infomediary(B2B)
The Merchant Model (B2C)
The ManufactorModel (B2B)
The Community Model (B2C, B2B)
The SubscriptionModel (B2C)
The Affiliate Model (B2C)
source:http://digitalenterprise.org/models/models.html
Overview basic e-Business Models
The Brokerage Model (B2B, B2C)
The Utility Model (B2C)
The Advertising Model (B2C)
Infomediary(B2B)
The Merchant Model (B2C)
The ManufactorModel (B2B)
The Community Model (B2C, B2B)
The SubscriptionModel (B2C)
The Affiliate Model (B2C)
source:http://digitalenterprise.org/models/models.html
Overview basic e-Business Models
The Brokerage Model (B2B, B2C)
The Utility Model (B2C)
The Advertising Model (B2C)
Infomediary(B2B)
The Merchant Model (B2C)
The ManufactorModel (B2B)
The Community Model (B2C, B2B)
The SubscriptionModel (B2C)
The Affiliate Model (B2C)
source:http://digitalenterprise.org/models/models.html
Overview basic e-Business Models
The Brokerage Model (B2B, B2C)
The Utility Model (B2C)
The Advertising Model (B2C)
Infomediary(B2B)
The Merchant Model (B2C)
The ManufactorModel (B2B)
The Community Model (B2C, B2B)
The SubscriptionModel (B2C)
The Affiliate Model (B2C)
source:http://digitalenterprise.org/models/models.html
Overview basic e-Business Models
The Brokerage Model (B2B, B2C)
The Utility Model (B2C)
The Advertising Model (B2C)
Infomediary(B2B)
The Merchant Model (B2C)
The ManufactorModel (B2B)
The Community Model (B2C, B2B)
The SubscriptionModel (B2C)
The Affiliate Model (B2C)
source:http://digitalenterprise.org/models/models.html
Overview basic e-Business Models
The Brokerage Model (B2B, B2C)
The Utility Model (B2C)
The Advertising Model (B2C)
Infomediary(B2B)
The Merchant Model (B2C)
The ManufactorModel (B2B)
The Community Model (B2C, B2B)
The SubscriptionModel (B2C)
The Affiliate Model (B2C)
source: http://digitalenterprise.org/models/models.html
The web attacks traditional ways of doing
things and elites, and this is very
uncomfortable for traditional businesses
to deal with.
Sir Martin Sorrell, CEO, WPP Group
>>
<<
Disruption Definition
Disruptive innovation describes a process by which a
product or service takes root initially in simple applications
at the bottom of a market and then relentlessly moves up
market, eventually displacing established competitors.
Prof. Clayton Christensen, Harvard Business School
source: http://www.claytonchristensen.com/
>>
<<
Disruption Examples
› Any Ideas?
› Car Horse carriage
› Electric locomotive Steam locomotive
› Computer Typewriter
› Mobile Phone Smart Phone
› renewable energy Nuclear energy
› iTunes Compact Disc
The Innovator's Dilemma
source: Replication from „The Innovator´s Dilemma“ by Clayton Christensen
Sustaining Technology
Disruptive Technology
High End Customer
Low End Customer
Time
Perf
orm
ance
None of these six Companies existedTwenty Years ago
› The world´s largest taxi company owns no vehicles
› The largest accommodation provider owns no real estate
› The most popular media provider creates no content
› The most valuable photo company sells no cameras
› The fastest growing television network lays no cables
› The most valuable retailer has no inventory
Uber now has a $66
billion valuation
Alibaba logged a record $14.3
billion in sales on Singles' Day
Most Valuable Companies in the Fortune 500
COMPANY INDUSTRYMARKET Value
$Bil
1 Apple Computers, Office Equipment 534
2 Alphabet Internet Services and Retailing 507
3 Microsoft Computer Software 413
4 Exxon Mobil Petroleum Refining 326
5 Facebook Internet Services and Retailing 321
6 Berkshire Hathaway Insurance: Property and Casualty (Stock) 312
7 Johnson & Johnson Pharmaceuticals 288
8 General Electric Diversified Financials 271
9 Amazon.com Internet Services and Retailing 250
10 Wells Fargo Commercial Banks 242
source: S&P Capital IQ 2016/2
Disruption hurts
17.5 Billion SMS daily
3.5 Billion Users
70/% profitmargin per SMS
32 SMS per user per day
7 Billion SMS per year in switzerland
source: swisscom PPT
Disruption hurts
Disrupt yourself before someoneelse does.
Otherwise it could hurt you!
We have moved from a world
where the big eat the small
to a world where the fast eat the slow
Klaus Schwab, President of the Davos Economic Forum
>>
<<
Conversations on Digital Tranformationat Microsoft's Envision 2016
source: Microsoft , blogs.microsoft.com
Digital Maturity MatrixD
igit
al in
ten
sity
Transformation management intensity
Fashionistas> Many advanced digital features (such as social,
mobile) in silos
> No overarching vision
> Underdeveloped coordination
> Digital culture may exist in silos
Beginners> Management skeptical of the business value of
advanced digital technologies
> May carry out some experimentation
> Immature digital culture
Digirati> Strong overarching digital vision
> Good governance
> Many digital initiatives generating business value in measurable ways
> Strong Digital culture
Conservatives> Overarching digital vision exists, but may be
underdeveloped
> Few advanced digital features, though traditional digital capabilities many be mature
> Strong digital governance across silos
> Taking active steps to build digital skills and culture
source: MIT Center for Digital Business and Capgemini Consulting
Digital Maturity MatrixD
igit
al in
ten
sity
Transformation management intensity
> Fashionistas
> Beginners
> Digirati
> ConservativesMedia
Finance
Insurance
Travel
Telco
Industry
Pharmacy
source: MIT Center for Digital Business and Capgemini Consulting
Newsp.
Opportunities and advantages of digital transformation
> Customer Insights
> Customer Experience
Customer Product Processes
Digital Business Transformation
> New Products Services
> New Tecnology > Cost & time savings
> increase ofproductivity
> Professional web controlling enables the analysis of usage behavior and generation of insights
> Cross-media customer experiences through mobile, social and online platforms
> New digital services and products, e.g. apps offer added value for customers
> New technologies enable advanced services such as apps or digital signage terminals
> Reduced sales, delivery and service costs for fast time to market
> Increase process and employee productivity through the use of digital applications
External Chances Internal Opportunities
source: TWT Consulting
Four ways digital transformation drives business value
source: McKinsey analysis
„Digital canreshape everyaspect of the
modern enterprise“
Digital Service Unit
Digital Business Creation
Digital Strategy&
Transformation
Digital Factory
Digital Innovation
Digital Skills
Digital Monetization
Roles and Key Functions of a DSU
source: Capgemini Consulting, Digital Transformation Report 2013
> Digital Services Unit as a Tool toAccelerate Digital Transformation
> A Digital Services Unit (DSU) is a centralized entity that delivers a broad catalog of digital services and coordinates efforts across various units
Digital Service Unit
Digital Business Creation
Digital Strategy&
Transformation
Digital Factory
Digital Innovation
Digital Skills
Digital Monetization
Roles and key functions of a DSU
source: Capgemini Consulting, Digital Transformation Report 2013
> Focuses on ensuring seamless Digital Transformation by aligning marketing, Finance, HR, Operations, Branding functions with all digital channels.
Digital Service Unit
Digital Business Creation
Digital Strategy&
Transformation
Digital Factory
Digital Innovation
Digital Skills
Digital Monetization
Roles and key functions of a DSU
source: Capgemini Consulting, Digital Transformation Report 2013
> Key objective of DSU is to give back to the brands and markets, the data and intelligence on their consumers Facilitates collaboration across various resources in the organization
Digital Service Unit
Digital Business Creation
Digital Strategy&
Transformation
Digital Factory
Digital Innovation
Digital Skills
Digital Monetization
Roles and key functions of a DSU
source: Capgemini Consulting, Digital Transformation Report 2013
> Promotes online innovation and establishes a culture of ideation and collaboration in the company
Digital Service Unit
Digital Business Creation
Digital Strategy&
Transformation
Digital Factory
Digital Innovation
Digital Skills
Digital Monetization
Roles and key functions of a DSU
source: Capgemini Consulting, Digital Transformation Report 2013
> Enhances digital skills and capabilities across the organization Avoids silos of digital capabilities
Digital Service Unit
Digital Business Creation
Digital Strategy&
Transformation
Digital Factory
Digital Innovation
Digital Skills
Digital Monetization
Roles and key functions of a DSU
source: Capgemini Consulting, Digital Transformation Report 2013
> Evaluates new platforms such as e-commerce, social media, viral video etc., to create new revenue generating avenues and drive sales
Digital Service Unit
Digital BusinessCreation
Digital Strategy&
Transformation
Digital Factory
Digital Innovation
Digital Skills
Digital Monetization
Roles and key functions of a DSU
source: Capgemini Consulting, Digital Transformation Report 2013
> Develops IT services to support internal and external clients such as marketing, sales, customers etc. Develops online content to facilitate new business opportunities
Alternative Business Transformation Pathways
source: Deloitte analysis /Deloitte University Press
source: McKinsey analysis
Six Steps Help get the Digital Transformation going
Thank You
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