Digital Transformation in Brief
Digital transformation
The core concepts:
Deconstructed Value Chain:
The stack structure
Solow computer paradox, for Robert Solow:
The very important trends in digital transformation which impact the business:
1- Big Data:
is a collection of data that is huge in volume, yet growing exponentially with time. It is a data with so large size and complexity that none of traditional data management tools can store it or process it efficiently.?
1- Structured: Any data that can be stored, accessed and processed in the form of fixed format.
2- Unstructured: Any data with unknown form or the structure is classified as unstructured data. In addition to the size being huge.
3- Semi structured: Semi-structured data can contain both the forms of?data.
1- Volume: Size of data plays a very crucial role in determining value out of data.
2- Velocity: refers to the speed of generation of data.
3- Variability: This refers to the inconsistency which can be shown by the data at times.
4- Variety: refers to heterogeneous sources and the nature of data, both structured and unstructured.
1- Businesses can utilize outside intelligence while taking decisions.
2- Improved customer services.
3- Early identification of risk to the product or services.
4- Better operational efficiency.
2- Internet of Things (IoT):
In 2017 there was 3 or 4 devices connected per each human but now in 2020 there are from 7 to 10 devices connected per each human.
3- Clouding:
refers to servers that are accessed over the Internet, and the software and databases that run on those servers. Cloud servers are located in data centers all over the world. By using cloud computing, users and companies don't have to manage physical servers themselves or run software applications on their own machines.
Additive Manufacturing:
Additive manufacturing (AM) or additive layer manufacturing (ALM) is the industrial production name for 3D printing, a computer controlled process that creates three dimensional objects by depositing materials, usually in layers. It is Opposite to the traditional manufacturing which shaping materials by cut out of blocks of materials
4- Cyber Security:
is the practice of defending computers, servers, mobile devices, electronic systems, networks, and data from malicious attacks. The economic losses from cyber and hacking attacks Werner around $4 Billion and expected to be $6 Trillions in 2021.
? Common Categories:
5- Artificial Intelligent:
AI is a system that is able to exhibit traits of human intelligence like reasoning, learning from experience or interacting with humans in natural language. This definition feels intuitive, but it is a bit ambiguous. Google buying AI startup DeepMind in 2014 for $400 million and the market Expected to reach $50 billion of AI investments in 2020 including telecommunications and financial services
? Types:
6- Blockchain:
is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. It is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger.
? Characteristics:
Digital transformation applications: like;
Strategic planning:
o Classical strategic planning: predictable and non malleable, start with analyzing the business environment, his starting, and target position, the gap between the two, then he plan how to bridge that gap with a sequences of programs, initiatives, actions, then he go to the execution mode, reallocation resources and controlling the outcomes versus competition. This approach works in business environments that are satisfying two conditions: highly predictable and non flexible like candy industry like MARS.
o Adaptive strategic planning:unpredictable and non malleable, a trial and error approach, when a new idea or new product new business model doesn’t work, stop it quickly and when it does, scale it up and then go to the next idea like Telenor, a Norwegian telco.
o Vision strategy: predictable and malleable, It takes resources( to build those products or services), efforts (to see what others have missed a u met customer need that no body has addresses) and a lot of persistence ( waiting for the inflection point) like UPS
o Shaping strategy: Unpredictable and malleable, Where they work with a whole ecosystem of suppliers, customers, competitors, policy makers, to gradually build the vision like apple and google
o Renewal strategy: it’s needed in harsh environments, It’s required the company to proceed in two steps, conserve resources to ensure its survival, and then choose a new approach to rejuvenate growth. This can sometimes mean abandoning the core business and going to somewhere less crowded.
Innovation phases:
o Structuring the innovation process to combine the benefits of creativity, curiosity, ingenuity, science, and even chance
o Understanding the end user, their challenges, needs, and wants alongside the resulting impacts of any innovation
o Engaging these end users and other potential stakeholders as directly as possible with some version of the product or services
To organize for digital transformation:
o Decentralized archetype modem: digital activities integrated in each of the existing BU,
each BU has its own digital team, so companies can develop BU specific headed by Chief
Digital Officer (CDO) to lead the transformation.
o Agile scale: relies on small execution units usually 10 to 1t people who are fully responsible to deliver a certain product or feature with full power to take decisions using a minimum viable product (MVP), and some benefits of applying agile scale are:
The key components to build digital transformation:
o You need a business purpose that gets the balance between alignment and autonomy. o You need to translate it to governance and funding principles.
o Then you need to build supporting mechanisms based on three pillars, a new structure defining the squads, the tribes, the chapters.
o New processes less linear are more iterative, more empowering.
o And new behaviors, how you hire employees, how you want them, develop them, promote them.
o And last but not least, you need a measurement framework and technology platform that allow fast iteration, testing and measurement.
References:
https://www.coursera.org/learn/bcg-uva-darden-digital-transformation https://www.impactmybiz.com/blog/blog-5-benefits-of-the-internet-of-things-for-smbs/ https://www.oracle.com/internet-of-things/what-is-iot/ https://www.cloudflare.com/en-ca/learning/cloud/what-is-the-cloud/ https://www.twi-global.com/technical-knowledge/faqs/what-is-additive-manufacturing https://www.kaspersky.com/resource-center/definitions/what-is-cyber-security https://www.nouveau.co.uk/content-hub/top-10-cyber-security-benefits/ https://www.hcltech.com/technology-qa/what-are-the-advantages-of-artificial-intelligence https://www.euromoney.com/learning/blockchain-explained/what-is-blockchain https://www.forbes.com/sites/ilkerkoksal/2019/10/23/the-benefits-of-applying-blockchain-technology-in-any- industry/?sh=6def10a749a5
# BriefMe Feb 2021?