The document discusses the transformation of value creation in the digital economy, highlighting the shift from traditional practices to the use of digital objects and assets. It outlines the concept of a 'digital first' approach, emphasizing the importance of algorithms and software in the value creation process. The text encourages companies to adopt a digital strategy to stay competitive amidst the ongoing digital revolution across various industries.

1. Digital First
Managing Disruption in the Digital Economy
Youngjin Yoo
Faculty Director, xLab
Elizabeth M. and William C. Treuhaft Professor in Entrepreneurship
Weatherhead School of Management
Case Western Reserve University
@YoungjinYoo
November 1, 2018
IOTC Thought Leadership Meeting

3. Digital innovation:
 transformation of the way
value is created…
through the use of digital
assets as the foundation

4. Previous wave of digital
innovation:
“paving cow’s path”
• 2G/3G mobile handset
• Digital TV
• Enterprise IT systems
• Electronic health records to support
the current practices

5. “A Tesla has 150
moving parts. A typical
internal combustion
engine car has about
10,000 moving parts
and none of them
overlaps with 150 parts
that Tesla uses.”
• smartphones
• ridesharing model
• what about healthcare
industry?
Current wave of digital innovation:

6. Digital objects
“objects that take shape on a
screen or hide in the back end
of a computer program,
composed of data and meta
data regulated by structures or
schemas” (Hui 2016, p. 1)

7. Which one is real?

8. Two essential properties of
digital objects
1. non-material
2. computed

9. 1. Non-materiality of digital
objects
demands them to be “printed”
on physical bearers so that
users can interact with

10. 2. Digital objects as computed
objects
any digital object require an
execution of a set of instructions to
come into being.
• Re-programmable
• Result of pre-formatted, automated, contingent,
“live actions” performed by software

13. When you do cut & paste …
each instance is an emergent
and temporary reproduction
of non-material objects
created instantaneously by a
set of instructions

14. Value creation process
“the steps and activities (within
and across firms or industries)
that lead to the production of
marketable goods”

15. rawmaterials
Industrial value creation process
Exchangeof
products&service
producer buyer

16. early and permanent binding
of resources through
irreversible process of value
creation to produce goods with
irrevocable status

17. the transfer of ownership as
the finality of economic
transactions

18. information as a
representational by-product
of physical activities

19. buyers only
but no users in sight

20. non-material
digital resources
physical
resources
deferred and temporary
value binding
point
of
use
Encoding Aggregation Computing Printing Sensing
Digital First value creation process

21. deferred and temporary
binding of resources at or near
the point of use through
reversible

22. Value co-creation process
on-demand, deferred, temporary,
and recombinant assemblage of
distributed material and non-
material resources through the “live
actions” by software-enabled
instructions

23. binding (assemblage) of resources
are done at or near the point or
near of use through “printing”

24. a firm as a nexus of algorithms that
carry out “print” instructions at or
near the point of use for deferred
binding

25. Data & algorithm are the
driver of value creation.
Physical resources are
combined only when and where
it adds value.

26. vs.

27. a “publishing” logic

28. a “printing” logic

29. A digital business is
“printed”.

30. Amazon “store”
script (algorithm)
user interface (look &
feel)
data (contents)
“print”digital physical

31. Digital
Technology
Strategic
Framework
Digital Talent
Digital
Business
Model
Connected Healthy Living
Connected Manufacturing
Connected Experience
CWRU Assets Digital First
Solutions Needed
xLab Themes
Technology
Engineering, IOTC,
think[box], Data
Analytics
Management
Design thinking,
Entrepreneurship,
Marketing, Finance
Domain Knowledge
Heatlhcare, Manufacturing,
Data Science

32. November 15, 2018
Every employee should think “Digital First”
Digital revolution is transforming every industrial sector. How does your
company fare in your digital strategy?
https://weatherhead.case.edu/executive-education/programs/your-digital-
strategy