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Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
Strategic Management in a Digital Economy
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Strategic Management in a Digital Economy

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A talk on how companies have to adjust their business strategy in a digital economy. This talk was presented at the British Council.

A talk on how companies have to adjust their business strategy in a digital economy. This talk was presented at the British Council.

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  • Thank you all for coming. It is an honour for me to be here today. I feel I have come full circle.As a citizen of this country, born and raised, I owe much to this great nation. It is, therefore, an honour to get a chance to make this small contribution today. This talk is about the management principles that apply when one is managing orgs in an economy driven by technological advances and software. What happens to business when the means of production are truly democratised. What it the appropriate philosophical orientation for businesses to have, effectively what is business for?
  • A lot of people tend to answer that question by saying that business is for making money. This perspective is fundamentally flawed, and in a digital economy can actually be disastrous for business.Business is not for making money, business is for the creation wealth. Wealth is actually different from money. Money is just a medium for exchanging value. Wealth is the things we want (land, clothing, shelter etc.) Money is the platform that allows us to exchange these things. In order to create wealth, business has to focus on creating value for customers. This is absolutely fundamental. Sure there are other way to get rich, but none of them are sustainable in the long term.
  • I strongly feel that we are on the precipice of something tremendous. Because, there is a storm waiting just outside the doors of Zimbabwe. As the economy opens up, life will get better for citizens, but might get difficult for business.This image show traditional business practices, getting washed away… In a digital economy, traditional business models are obsolete, even for organizations moving physical goods. Lets me give you some examples of what I mean from the so called established economies…
  • This WAS blockbuster… The idea now seems ludicrous. We used get in cars and drive to video shops… Blockbuster thought that the value they created for customers was in the shopping experience….So they optimised the business towards shops, location, layout etc. Actually, people just want to watch movies….
  • And so when someone creates Netflix, people are now not living their house… Movies stream directly to your devices at home. Not only that, it is much cheaper in terms of capital costs to run Netflix vs. Blockbuster.
  • And this is what has happened to Blockbuster now.
  • Remember Kodak. And its films…. Kodak was disrupted by technology it invented….
  • The same story is happening to book publishers…. And will happen to book publishers in Zimbabwe
  • And newspapers.... And will happen to newspapers in Zimbabwe.
  • This is a term coined by Marc Andresen. Founder of Netscape. The first web browser. What he mean is that software has a disruptive effect on businesses, even those involved in producing physical goods.
  • The cost of tech is so small now, if you can get a computer and get online… You pretty much set.
  • There is no third world in software.We can all do this. The challenge is to adapt a mindset that is right for this brave new world And importantly, drop some old habits….
  • But this deployment is not done at random, it is a systematic process directed towards responding to customers needs.
  • What you need are a set of outcomes related to customer values and revenue generationBut the tactical how you leave to the people on the ground….The more responsive you are the more likely you are to sustain.
  • Transcript

    • 1. Strategic Management in the Digital Economy Dr Tendayi Viki University of Kent Web: www.tendayiviki.com twitter: @tendayiviki
    • 2. Contemporary managers now work under intense
    • 3. The Rapid Pace of Technological Change
    • 4. The pace of change is staggering:  It took radio broadcasters 38 years to reach an audience of 50 million, television 13 years, and the Internet just four. • There were 50 pages on the World Wide Web in 1993; today there are more than 50 million pages. Vital Statistics - (http://buff.ly/1eZ3lZ4)  In 2004, the last episode of Friends aired. 52 million people watched it and not one person sent out a tweet about it. • Mark Zuckerberg was still a Harvard student. • Obama was still a senator in Illinois. • And…. The IPhone did not exist! Fast Company - (http://www.fastcompany.com/)
    • 5. Creative Destruction by Richard Foster
    • 6. Software is eating the world Marc Andresen
    • 7. There is no third world in software
    • 8. The Manufacturing Business Model
    • 9. INNOVATIVE BUSINESS MODELS
    • 10. THE LONG TAIL
    • 11. MULTISIDED PLATFORMS
    • 12. Software Development is now Continuous
    • 13. This continuous deployment environment allows Amazon to push out new code once every 11 seconds, on average.
    • 14. On Strategy…
    • 15. Organizations tends to have a silo structure: HR, Accounting, Legal, Marketing, Product Development
    • 16. Cross-Functional Teams
    • 17. Autonomous Teams • Self-Managing • Self-Prioritizing • Self-Directed • Guide on What • How is Left to Them
    • 18. Outputs are the products/services we produce as companies
    • 19. Outcomes are the benefits our customers receive from our products/services
    • 20. Customer Jobs to be Done Clayton Christensen
    • 21. People don't want to buy a quarter-inch drill. They want a quarter-inch hole! Theodore Levitt
    • 22. Technology goes beyond industry thinking. It helps customers achieve their goals. Businesses should create authentic value for customers.
    • 23. Customers will then give value back to your company.

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