2. DIGITALISATION
STRATEGIES
Digitalisatio n is defined as digitalco ding o f info rmatio n
and the gro wing pro ductivity gains in pro cessing and
transmissio n it enables.
Digitalisation isacombination of variousareasof
business, social sciencesand technology.
Themain termsused in context of Digitalisation are:
– Computerisation(through computers)
– Electronisation(conversion of physical datainto
electronic data)
– Digitisation (conversion of analogueelectric signalsto digital
signals)
3. • These3 aresupported by other two componentsof
networking and telecommunicationthat createa
phenomenon of convergance.
• Convergenceisthemerging of all typesof
information into acommon digital form.
• Organisationsusing thesefivecomponentsaretermed
asdigitalised enterprisesand theprocessiscalled
digitalisation.
4. Digitalisation within anD
beyonD organisations
• Computerisation of Recordsetc.
• Interconnectivity through Computers
• Evolution of Telecommunication
• Intranet connectivity
• Digitalisation
• Electronisation {e-banking, e-trading etc.}
• Digitisation
5. PrinciPles UnDerPinning
Digitalisation strategies
According to Larry Do wnes and Chunka Mui, therearethree
stageprocessfor adoption strategiesof Digitalisation.
In the1st
stage, organisationsmust consider reshaping the
competitivelandscape, like
1. Outsourcing to thecustomer by letting them perform
many of theservicefunctionson their own.
2. Cannibalising their marketsbeforetheir competitorsdo
it.
3. Treating each customer asamarket through mass
communication.
4. Creating communitiesof valueby creating groupsof
like- minded peoplein cyber space.
6. In the2nd
stage, theorganisationsmust build new connectionsby
linking closely to thecustomer.
1. Replacing human interfaceswith learning interfaces
through customer operated facilities.
2. Ensuring continuity for thecustomer by using E-
commerce, that helpsthecustomersperform their own
servicefunctions.
3. Giving away asmuch information to thecustomers.
4. Structuring every transaction asajoint venturewith the
customer.
In the3rd
stage, theorganisationsmust redefinetheir interiors.
1. Treating physical assetsasliabilitiesto bereplaced as
virtual assets.
2. Destroying one’svaluechain.
3. Managing innovation asportfolio to minimiserisk.
4. Hiring children who instinctively understand digital
technologies.
7. Digitilisation, Value Chain & Value
system
Digitalisation transformsthevaluechain and valuesystem in several
different asbelow:
– Deconstruction: Servicescan bedelivered digitally (likeservicemanuals)
– Disintermediation: Someprocessin thevaluechain areeliminated (likeonline
ticket booking)
– Re-intermediation: Processin thevaluechain aresupplemented by 1 or more
intermediaries(likeonlineshopping sites)
– Industrymorphing: Traditional boundariesof businessarechanged and
transformed by morphing (likebanksonlinebanking)
– Cannibalisation: Set of activitiesperformed in valuechain arereplaced by
new set of activities(replacement of travel agentswith internet booking)
– Techno-intensification: Intensiveuseof technology and decreased useof
human resources(outsourcing,3rd
party alliancesetc)
– Re-channeling: Morefocuson services, marketing, selling etc. of valuechain
processthrough online.
8. the Digitalisation
strategies
According to Ravi Kalakotaand MarciaRobinson the3 phasesof
digitalisation strategiesare
– Cho o sing amo ng the e-business patterns
– Cho o sing the e-business mo dels
– Cho o sing the e-business designs
The five patterns o f e-business are
• E-channel pattern
• Click and Brick pattern
• E-po rtal pattern
• E-market o r Net market pattern
• Pure e-digitalpro ducts pattern
9. Digitalisation strategies in
inDian organisations
Most banksin Indiaconverted from traditional Banking
to Hightech Banking. (ATMs, Internet Banking,
TeleBanking, MobileBanking etc.)
Conversion of paper documentsto e-documents. (Bills,
Recepitsin E-form in insurancecompaniesetc.)
Communicationsthrough teleconferencing, emails, sms
in medical fields, pharmaetc.
E-portal pattern in Railways(IRCTC), Airlinesetc.
