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e-Business & Internet
Applications
summer term 2017
Frank Wiedemann, MBA
Introduction e-Business
& Digital Transformation
Frank Wiedemann, eMBA
Lecture: e-Business & Internet Applications, summer...
› Personal Introduction Frank Wiedemann
› Since 2016 Chief Sales & Marketing Officer at mission-one GmbH
› 2013 – 2016 CEO...
e-Business Definition
„E-Business (electronic business) is, in ist simplest form, the conduct of business on
the Internet....
e-Business Definition
› Content delineation e-business vs. e-commerce
E-Business
E-Commerce
E-Business
Business
Intelligen...
22/02/17 10:45 pm
source:http://www.internetlivestats.com/
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)
so...
The Internet of Things has the Power to
Revolutionize Everything … smart Home
Source: https://www.11880-elektriker.com/rat...
The Internet of Things has the Power to
Revolutionize Everything
Source: https://www.produktion.de/video/smart-factory-aud...
… 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
custome...
...the key to digital transformation is re-envisioning
and driving change in how the company operates.
That‘s a management...
Digital Business Models
source: Elgar Fleisch Professor of Information and Technology Management ETH Zurich / University o...
Internet of Things Value Chain
source: Telecomcircle, https://www.linkedin.com/pulse/internet-things-business-models-mohit...
Platform Disruption – How it Works
› Platforms bring together producers and consumers on a large
scale as intermediaries. ...
The Top
Online
Platforms
didn´t Disrupt
Traditional
Businesses
source: https://hbr.org/2016/09/the-businesses-that-platfor...
Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
The In...
Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
Infome...
Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
Infome...
Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
Infome...
Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
Infome...
Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
Infome...
Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
Infome...
Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
Infome...
Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
Infome...
Overview basic e-Business Models
The Brokerage Model
(B2B, B2C)
The Utility Model
(B2C)
The Advertising
Model (B2C)
Infome...
The web attacks traditional ways of doing
things and elites, and this is very
uncomfortable for traditional businesses
to ...
Disruption Definition
Disruptive innovation describes a process by which a
product or service takes root initially in simp...
Disruption Examples
› Any Ideas?
› Car  Horse carriage
› Electric locomotive  Steam locomotive
› Computer  Typewriter
›...
The Innovator's Dilemma
source: Replication from „The Innovator´s Dilemma“ by Clayton Christensen
Sustaining Technology
Di...
None of these six Companies existed
Twenty Years ago
› The world´s largest taxi company owns no vehicles
› The largest acc...
Most Valuable Companies in the
Fortune 500
COMPANY INDUSTRY
MARKET Value
$Bil
1 Apple Computers, Office Equipment 534
2 Al...
Disruption hurts
17.5 Billion SMS daily
3.5 Billion Users
70/% profit
margin per SMS
32 SMS per user per day
7 Billion SMS...
Disruption hurts
Disrupt yourself before someone
else 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 t...
Conversations on Digital Tranformation
at Microsoft's Envision 2016
source: Microsoft , blogs.microsoft.com
Digital Maturity Matrix
Digitalintensity
Transformation management intensity
Fashionistas
> Many advanced digital features...
Digital Maturity Matrix
Digitalintensity
Transformation management intensity
> Fashionistas
> Beginners
> Digirati
> Conse...
Opportunities and advantages of digital
transformation
> Customer
Insights
> Customer
Experience
Customer Product Processe...
Four ways digital transformation drives
business value
source: McKinsey analysis
„Digital can
reshape every
aspect of the
...
Digital
Service Unit
Digital
Business
Creation
Digital Strategy
&
Transformation
Digital Factory
Digital
Innovation
Digita...
Digital
Service Unit
Digital
Business
Creation
Digital Strategy
&
Transformation
Digital Factory
Digital
Innovation
Digita...
Digital
Service Unit
Digital
Business
Creation
Digital Strategy
&
Transformation
Digital Factory
Digital
Innovation
Digita...
Digital
Service Unit
Digital
Business
Creation
Digital Strategy
&
Transformation
Digital Factory
Digital
Innovation
Digita...
Digital
Service Unit
Digital
Business
Creation
Digital Strategy
&
Transformation
Digital Factory
Digital
Innovation
Digita...
Digital
Service Unit
Digital
Business
Creation
Digital Strategy
&
Transformation
Digital Factory
Digital
Innovation
Digita...
Digital
Service Unit
Digital
Business
Creation
Digital Strategy
&
Transformation
Digital Factory
Digital
Innovation
Digita...
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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Introduction E-Business & Digital Transformation

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Lecture: E-Business & Internet Applications, summer term 2017
HNU University of Applied Sciences

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Introduction E-Business & Digital Transformation

  1. 1. e-Business & Internet Applications summer term 2017 Frank Wiedemann, MBA
  2. 2. Introduction e-Business & Digital Transformation Frank Wiedemann, eMBA Lecture: e-Business & Internet Applications, summer term 2017 HNU University of Applied Sciences Neu-Ulm, 24/03/2017
  3. 3. › 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
  4. 4. 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 launched a campaign built arroud the term e-business.
  5. 5. e-Business Definition › Content delineation e-business vs. e-commerce E-Business E-Commerce E-Business Business Intelligence Customer Relationship Management Supply Chain Management Enterprice Resource Management E-Commerce Online Activities between Businesses Collaboration Electronic transfer within firm includs
  6. 6. 22/02/17 10:45 pm source:http://www.internetlivestats.com/
  7. 7. Digital Evolution source: Embracing the Internet of Everything To Capture Your Share of $14.4 Trillion, CISCO 2013
  8. 8. 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
  9. 9. The Internet of Things has the Power to Revolutionize Everything … smart Home Source: https://www.11880-elektriker.com/ratgeber/hausautomation/smart-home-systeme
  10. 10. The Internet of Things has the Power to Revolutionize Everything Source: https://www.produktion.de/video/smart-factory-audi-schafft-das-fliessband-ab-290.html … smart Factory
  11. 11. … smart City Source: https://www.linkedin.com/pulse/smart-city-blueprint-confluence-dynamic-master-plan-chakrabarti
  12. 12. 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
  13. 13. ...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 >> <<
  14. 14. 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 great advantage) IoT Data Model (connection digital an physical world) Digital charged Physical Products Sensor Data as a Service Remote Monitoring Digital Add-on Physical Freemium Object Self Service Innovation Platforms Free Freemium Subscription On-Demand Sharing Marketplace Premium Ecosystem 1 2 3 4
  15. 15. Internet of Things Value Chain source: Telecomcircle, https://www.linkedin.com/pulse/internet-things-business-models-mohit-agrawal
  16. 16. 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
  17. 17. The Top Online Platforms didn´t Disrupt Traditional 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 of consumers and services or products
  18. 18. Overview basic e-Business Models The Brokerage Model (B2B, B2C) The Utility Model (B2C) The Advertising Model (B2C) The Infomediary Model (B2B) The Merchant Model (B2C) The Manufacturer Model (B2B) The Community Model (B2C, B2B) The Subscription Model (B2C) The Affiliate Model (B2C) source: http://digitalenterprise.org/models/models.html
  19. 19. 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 Manufactor Model (B2B) The Community Model (B2C, B2B) The Subscription Model (B2C) The Affiliate Model (B2C) source:http://digitalenterprise.org/models/models.html
  20. 20. 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 Manufactor Model (B2B) The Community Model (B2C, B2B) The Subscription Model (B2C) The Affiliate Model (B2C) source: http://digitalenterprise.org/models/models.html
  21. 21. 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 Manufactor Model (B2B) The Community Model (B2C, B2B) The Subscription Model (B2C) The Affiliate Model (B2C) source:http://digitalenterprise.org/models/models.html
  22. 22. 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 Manufactor Model (B2B) The Community Model (B2C, B2B) The Subscription Model (B2C) The Affiliate Model (B2C) source:http://digitalenterprise.org/models/models.html
  23. 23. 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 Manufactor Model (B2B) The Community Model (B2C, B2B) The Subscription Model (B2C) The Affiliate Model (B2C) source:http://digitalenterprise.org/models/models.html
  24. 24. 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 Manufactor Model (B2B) The Community Model (B2C, B2B) The Subscription Model (B2C) The Affiliate Model (B2C) source:http://digitalenterprise.org/models/models.html
  25. 25. 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 Manufactor Model (B2B) The Community Model (B2C, B2B) The Subscription Model (B2C) The Affiliate Model (B2C) source:http://digitalenterprise.org/models/models.html
  26. 26. 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 Manufactor Model (B2B) The Community Model (B2C, B2B) The Subscription Model (B2C) The Affiliate Model (B2C) source:http://digitalenterprise.org/models/models.html
  27. 27. 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 Manufactor Model (B2B) The Community Model (B2C, B2B) The Subscription Model (B2C) The Affiliate Model (B2C) source: http://digitalenterprise.org/models/models.html
  28. 28. 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 >> <<
  29. 29. 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/ >> <<
  30. 30. Disruption Examples › Any Ideas? › Car  Horse carriage › Electric locomotive  Steam locomotive › Computer  Typewriter › Mobile Phone  Smart Phone › renewable energy  Nuclear energy › iTunes  Compact Disc
  31. 31. 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 Performance
  32. 32. None of these six Companies existed Twenty 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
  33. 33. Most Valuable Companies in the Fortune 500 COMPANY INDUSTRY MARKET 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
  34. 34. Disruption hurts 17.5 Billion SMS daily 3.5 Billion Users 70/% profit margin per SMS 32 SMS per user per day 7 Billion SMS per year in switzerland source: swisscom PPT
  35. 35. Disruption hurts Disrupt yourself before someone else does. Otherwise it could hurt you!
  36. 36. 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 >> <<
  37. 37. Conversations on Digital Tranformation at Microsoft's Envision 2016 source: Microsoft , blogs.microsoft.com
  38. 38. Digital Maturity Matrix Digitalintensity 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
  39. 39. Digital Maturity Matrix Digitalintensity Transformation management intensity > Fashionistas > Beginners > Digirati > Conservatives Media Finance Insurance Travel Telco Google Industry Pharmacy source: MIT Center for Digital Business and Capgemini Consulting Facebook Newsp.
  40. 40. 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 of productivity > 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
  41. 41. Four ways digital transformation drives business value source: McKinsey analysis „Digital can reshape every aspect of the modern enterprise“
  42. 42. 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 to Accelerate 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
  43. 43. 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.
  44. 44. 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
  45. 45. 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
  46. 46. 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
  47. 47. 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
  48. 48. 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 > Develops IT services to support internal and external clients such as marketing, sales, customers etc. Develops online content to facilitate new business opportunities
  49. 49. Alternative Business Transformation Pathways source: Deloitte analysis /Deloitte University Press
  50. 50. source: McKinsey analysis Six Steps Help get the Digital Transformation going
  51. 51. Thank You

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