Uploaded byLisa Harris
Bem2034
The document discusses how digital technologies and the internet are transforming business models and the future of work. It covers the evolution of the internet from basic infrastructure to platforms, and how organizations are becoming modular and constructed from service platforms. It identifies five key challenges organizations face in this new environment: culture, new entrants, legacy systems, speed of change, and thinking differently. Examples are provided for how different industries are impacted.
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Bem2034
- 1. Digital Technologies andthe Future of Work #BEM2034 (Streatham) #BEP2120 (Penryn) Professor Mark Thompson
- 7. Cambridge Judge BusinessSchool
- 8. Cambridge Judge BusinessSchool
- 11. …With thanks toSimon Wardley
- 12. …With thanks toSimon Wardley
- 13. …With thanks toSimon Wardley
- 14. …With thanks toSimon Wardley
- 15. …With thanks toSimon Wardley
- 17. Structure 1: Internet technologyand business: an introduction Infrastructure & open standards Containerisation Fourth revolution Web 1.0, 2.0, 3.0 2: From Pipes to platforms Deverticalisation Servitisation Efficiency & consumption Business model evolution Externalities & APIs Service architecture 3: Five Challenges Culture New entrants Legacy Speed Thinking differently
- 19. Part 1: Internettechnology & business: An introduction
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- 22. 1: Internet Velocity Breadth &Depth Systems Impact: economic, social & political Detroit 1990, 3 largest companies: • $36bn combined market cap • $250bn revenues • 1.2m employees Silicon Valley 2014, 3 largest companies: • $1.09trn market cap • $247bn revenues • 137,000 employees “The concentration of benefits and value in just such a small percentage of people is exacerbated by the so- called platform effect, in which digitally-driven organizations create networks that match buyers and sellers of a wide variety of products and services and thereby enjoy increasing returns to scale”. (2016:13)
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- 26. 1: Internet Game-changer Price comparisonwebsites Mobile internet transactions Telematics/IoT Blockchain/distributed ledger Social brokers P2P models Sharing models AI/robotics Cloud Analytics Voice/image recognition 3D Printing Industry Media Telecom Consumer financial services Retail Technology Insurance Consumer products Nonprofit Professional services Education Healthcare Industrial Automotive Public services Connective Intelligence
- 27. 1: Internet Game-changer Price comparisonwebsites Mobile internet transactions Telematics/IoT Blockchain/distributed ledger Social brokers P2P models Sharing models AI/robotics Cloud Analytics Voice/image recognition 3D Printing Industry Media Telecom Consumer financial services Retail Technology Insurance Consumer products Nonprofit Professional services Education Healthcare Industrial Automotive Public services Connective Intelligence
- 29. Moore’s Law isa law of demand as well as supply
- 30. Moore’s LawAmazon Snowmobile:100 petabytes (100 million GB - (or 5 complete copies of the internet archive) Moore, Gordon E. (1965-04-19). "Cramming more components onto integrated circuits". Electronics. Retrieved 2016-07-01.
- 31. 1: Internet Potential datasources Social network analysis Web-logs/search strings Sensors and devices (IoT) Imagery data GPS trails CRM records Contact Centre call recordings Business process data Data exhaust
- 33. Selection bias Reporting bias… Alsoconfirmation bias in training Try Google Images for: “Chief Executive” “House-Cleaner”
- 39. 1: Internet Web 1.0 (staticinfrastructure)
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- 54. 1: Internet SMAC Convergence of4 dimensions: Social networking Harnessing ‘timelines’ of customer base (eg Datasift) Mobile devices Users update profile, inform themselves of deals & promotions, & track locations Analytics New-generation ‘graph’ databases spot links between entities, informed by social networking Cloud Business capability to spin up huge capacity, consumed by the hour. No data warehouse: just spin up a cluser in cloud, consume it, & turn it off
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- 56. 1: Internet: Keypoints New ‘shared plumbing’ of infrastructure disrupts Arrival of shared infrastructure privileges adoption of standards & containerisation Mobile ubiquity Web 2.0: Shift to the user SMAC
- 60. Take a freshsheet of A4, fold into 8 squares You will generate ideas rapidly – 1 idea per square 1 minute per square
- 61. Think of 8goods or services have you bought or consumed recently, where the internet must have been essential. 1 per square. Write down: • The name of the good/service • The way this was provided before (who has been disrupted?)
- 62. Part 2: Pipesto Platforms
- 63. 2: Pipes toplatforms
- 64. 2: Pipes toplatforms
- 65. A platform isa set of common components, assembly methods or technologies that serve as building blocks for a portfolio of products or services • Internal platforms (common internal structure; stream of derivative products): eg Rolls Royce engine family, HP printer components • Supply chain platforms (replicates the above across interfaces): eg automotive (Renault Clio & Nissan Micra) • Industry platforms (intended to foster ecosystems of innovation) eg Apple’s IOS, Google’s Android, internet, payment cards, standard electricity voltages, etc Gawer, A. (2010) ‘Towards a general theory of technological platforms’, paper presented at Summer Conference, Imperial College London Business School, June 16-18, http://www2.druid.dk/conferences/viewpaper.php?id=501981&cf=43 2: Pipes to platforms
- 66. A platform isa set of common components, assembly methods or technologies that serve as building blocks for a portfolio of products or services. • Internal platforms (common internal structure; stream of derivative products): eg Rolls Royce engine family, HP printer components • Supply chain platforms (replicates the above across interfaces): eg automotive (Renault Clio & Nissan Micra) • Industry platforms (intended to foster ecosystems of innovation) eg Apple’s IOS, Google’s Android, internet, payment cards, standard electricity voltages, etc Gawer, A. (2010) ‘Towards a general theory of technological platforms’, paper presented at Summer Conference, Imperial College London Business School, June 16-18, http://www2.druid.dk/conferences/viewpaper.php?id=501981&cf=43 2: Pipes to platforms
- 67. A platform isa set of common components, assembly methods or technologies that serve as building blocks for a portfolio of products or services. • Internal platforms (common internal structure; stream of derivative products): eg Rolls Royce engine family, HP printer components • Supply chain platforms (replicates the above across interfaces): eg automotive (Renault Clio & Nissan Micra) • Industry platforms (intended to foster ecosystems of innovation) eg Apple’s IOS, Google’s Android, internet, payment cards, standard electricity voltages, etc Gawer, A. (2010) ‘Towards a general theory of technological platforms’, paper presented at Summer Conference, Imperial College London Business School, June 16-18, http://www2.druid.dk/conferences/viewpaper.php?id=501981&cf=43 2: Pipes to platforms
- 68. 2: Pipes toplatforms
- 69. 2: Pipes toplatforms
- 70. 2: Pipes toplatforms
- 71. 2: Pipes toplatforms
- 72. 2: Pipes toplatforms
- 73. 2: Pipes toplatforms
- 74. 2: Pipes toplatforms
- 75. 2: Pipes toplatforms
- 76. 2: Pipes toplatforms
- 77. 3 Phases ofPlatformization EFFICIENCY: Digitizing key interactions in the marketplace EVOLUTION: Adopting new, platform- enabled business models enabled by digitization EXTERNALITIES: Inviting third parties to engage with and innovate on the platform 2: Pipes to platforms
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- 79. 2: Pipes toplatforms
- 80. 2: Pipes toplatforms
- 81. 2: Pipes toplatforms
- 82. 2: Pipes toplatforms
- 83. 2: Pipes toplatforms
- 84. 2: Pipes toplatforms
- 85. 2: Pipes toplatforms
- 86. 2: Pipes toplatforms
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- 88. 2: Pipes toplatforms
- 89. Digital Capabilities willcome FIRST Is Sainsburys a grocer? Is Amazon a bookstore? Is Uber a taxi firm? What’s Google’s business model? How does Ryanair make money? What’s the role of a financial regulator? How will the digital economy underpin your career in 10 years’ time?
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- 91. Value/supply chains arefluid & require situational awareness 2: Pipes to platforms
- 92. Steve Yegge JeffBezos vs in “The Amazon Rant”, 2011 2: Pipes to platforms
- 93. Steve Yegge JeffBezos vs in “The Amazon Rant”, 2011 2: Pipes to platforms
- 94. Steve Yegge JeffBezos vs in “The Amazon Rant”, 2011 2: Pipes to platforms
- 95. What can weall learn from THIS MAN?
- 96. Each piece ofAmazon is being built with a service-oriented architecture, and Amazon is using that architecture to successively turn every single piece of the company into a separate platform — and thus opening each piece to outside competition. Amazon has replaced useless, time-intensive bureaucracy like internal surveys and audits with a feedback loop that generates cash when it works — and quickly identifies problems when it doesn’t. Fulfillment By Amazon (FBA):
- 100. 2: Pipes toplatforms
- 102. 2. Pipes toplatforms: Key points We can conclude that: • New organizing logic underpinning digital business • Unbundling service processes & tech stacks via modularisation • Organisations/industries are becoming necessarily modular and subject to the inertia of their service components • They are dynamic, entwined and increasingly constructed from modular service platforms
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- 108. Example: Creative media,distribution
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- 126. Example: Professional services Justplugging stuff together…!
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- 133. Can YOU talkabout where the digital economy is going at YOUR job interview? Financial services Medicine Consulting Startup Public / Third sector The arts Hospitality Energy Transport FMCG….. …??
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