Presentation of research paper in Global Forum for Intellectual Capital Paper available at Research Gate: https://www.researchgate.net/publication/332963342_Digital_Transformation_of_the_Enterprise_Value_Chains

1. Digital
Transformation
of the
Enterprise
Value Chains
(conceptual paper)
Rui Ribeiro
rui.ribeiro@ulusofona.pt
COPELABS – Cognitive and People Centric
Computing Labs, Universidade Lusofona
de Humanidades e Tecnologias

2. This paper aims to
▪ Present that Digital Transformation
(DX) is also a Value Chain
Transformation
▪ Describe the impact of need to
achieve a real-time Data,
Information, Knowledge & Wisdom
(DIKW) cycle
▪ Justify why it’s fundamental to
understand why Information Systems
is a strategic partner of the business
and needs to be considered as a core-
activity in the Value Chains

3. • “the information
revolution is sweeping
through our economy”
Porter, M.E., Millar, V.E., 1985. How Information Gives You Competitive
Advantage. Harvard Business Review
1985

4. From the Information Age to the
Information Prediction
80’s and 90’s
• companies were starting to face the
challenge to create data and get
information
Today
• data and information are already
considered commodities
• decision makers need to upgrade their
information and digital ecosystems to
get knowledge and wisdom
to be able to take the lead and
be able to get a competitive
advantage

5. Technologies converts
data into valuable
business insight and
future control
Disruptive Technologies :
• In satellite mapping, GPS
controlled machinery,
predictive analytics, drones,
and robotics, Internet of
Things (IoT), Artificial
Intelligence (AI), etc
Businesses examples:
• connected farms, soil-
moisture sensors,
autonomous tractors, smart
cities, health diseases
prevention, livestock
wearables, the industry is
changing
Image sources: JohnDeere.com, agroman.in, microsoft.com, forbes.com
Sources: O’Reilly, 2015. “Connected Cows?” - Joseph Sirosh , Kite-Powell, J., 2017. Fujitsu Bets On Connected Cow Technology To Transform Farms One by One Forbes

6. DIKW
Knowledge
Hierarchy
Image Source: KARIM VAES
R.L. Ackoff, 1989. From Data to Wisdom. Journal of Applied Systems Analysis 16 3–9.

7. DIKW is a virtuous cycle
Knowledge Management spiral
Data
Information
Knowledge
Wisdom
ƒ(X)
Optimum
Market
Value
function
ƒ'(X)

8. In 1985, Michael Porter defined the
Value Chain concept
With this Porter
understood that
Information value has
a fundamental
infrastructure to
achieve efficient
models

9. But … today
• We live in a Digital
Transformation paradigm,
which is reengineering
the processes with
today’s technology
• and Technology is today
quite mature
Source: Collins, J., 2001. Good to Great: Why Some Companies Make the Leap and Others
Don’t, 1st edition. ed. HarperBusiness, New York, NY
People Technology
Processes
Information Systems

10. There is a need to change the paradox and assume
Information Systems as a strategic and a core activity
“CEOs are more dependent on CIO insights to innovate and improve these
processes” - in IBM CIO Study 2009

11. Digital and
Information
Systems Strategy
Several studies confirm:
• best digital companies are
26% more profitable than
their industry competitors
and generate 9% more
revenues
• companies that are
effectively using the new
Data Science capabilities are
more productive and
profitable in 5% to 6% than
its peers
Sources: Anthony et al., 2018; CapGemini and MIT Center for Digital Business, 2012; Court et al., 2015; Kasturi, 2018

12. An Intelligent Enterprise
has Digital Strategy in the center

13. In conclusion
• Automate the Data,
Information, Knowledge and
Wisdom (DIKW) hierarchy
• Digital transformation is
changing the way that
companies understand its core
strategic activities
• Digital and Information
Systems need to be seen as a
Core and strategic activities in
Value Chains