This document provides an overview of the course "Digital Business 2015-2016" which covers major digital trends like the sharing economy, mobile technologies, cloud computing, data, and their impact on digital transformation. It discusses key concepts like digital platforms, e-business, data analytics, big data's four V's, and cloud computing. The rise of the sharing economy is explained by societal and economic drivers like population density, sustainability, community desires, and monetizing excess capacity. Governance challenges from digital disruption are also summarized.
2. 1. Introduction to the course.
Tools for your technology watch.
2. Introduction to the digital transformation.
Data, Cloud, Social, mobile, GAFA, NATU, Giga economy, …
3. The digital platform.
Web standards, API, apps, cloud based, (big) (open) data, …
4. E-business & digital marketing.
SEM & content, permission, social, mobile, …
5. Data, Cloud and Sharing economy
Your company facing the digital disruption, …
6. Digital business. Perspectives from the algorithmic world.
Focus on the media sector and the industry 4.0, …
2
Table of content (adapted)
3. Mobile
Smartphones, tablets, IoT, Internet of
Everything, … Permanent connectivity and
interactivity blur the boundaries between
real and virtual worlds.
Mobile technologies are the medium of
the digital transformation
Cloud
Unlimited development and storage
capacities “As a Service” unlock the
creation and deployment of digital projects
on an unprecedented scale .
Cloud computing is the platform
of the digital transformation
Empowerment
Social technologies disrupt the traditional relationships
and pyramidal organization of our society. They enable
the disintermediation of organizations.
Empowerment is the crowd driving
the digital transformation
Data
Global, customizable, open,
... Their activation allows to
consider the world from a
complete new algorithmic
and predictive point of view.
Data are the fuel of the
digital transformation
3
4. 4
Big Data. Collection of data sets so large and complex that it
becomes difficult to process using on-hand database management
tools or traditional data processing applications. The challenges
include capture, curation, storage, search, sharing, transfer,
analysis and visualization.
http://en.wikipedia.org/wiki/Big_data
Analytics. Discovery and communication of meaningful patterns in
data. Especially valuable in areas rich with recorded information,
analytics relies on the simultaneous application of statistics,
computer programming and operations research to quantify
performance. Analytics often favors data visualization to
communicate insight.
http://en.wikipedia.org/wiki/Analytics
9. Value. Data in itself is not valuable at all. The value is in the analyses
done on that data and how the data is turned into information and
eventually turning it into knowledge. The value is in how companies
will use that data and turn their organization into an “information
centric” company that relies on analytics and algorithms for their
decision-making and business transformation.
Visualization. Another challenge is to make a vast amount of data
comprehensible in a manner that is easy to understand and read.
With the right analyses and visualizations, raw data can be put to use
otherwise raw data remains essentially useless. Visualizations do not
mean ordinary graphs or pie charts. They mean complex and dynamic
graphs that can include many variables of data while still remaining
understandable and readable.
9Adapted from datafloq.com
… but also 2 other “V’s”
10. • Making information more transparent. In the public sector in
particular, making data more accessible will significantly reduce
searching and processing time.
• Segmenting target audiences to customize the offer. Data
volumes allow more segmentation and tailored services matching
the most specific needs of customers.
• Better decision making with algorithms. Significantly improve
decision making. Minimize risk-taking. Identify information with
high added value.
• New business models. Using data from crowdsourcing to improve
product development and to create innovative services.
10Adapted from datafloq.com
“Classic” challenges of Big Data
13. ... assign optimal price
... find the best route
... schedule resources
... give customers the best
next offer
... allocate limited resources
… optimize marketing mix
... acquire a company
… select a site for a power plant
… decide where to drill for oil
13Source : Gartner
Prescriptive Analytics
Decision Models
Common Techniques
Optimization
Linear programming
Constraint programming
Decision management
14. Data are nothing …
… if they are not activated by algorithms !
14
16. • Cloud computing changes the way we think about technology.
Cloud is a computing model providing web-based software,
middleware and computing resources on demand.
• By deploying technology as a service, you give users access only
to the resources they need for a particular task. This prevents
you from paying for idle computing resources. Cloud computing
can also go beyond cost savings by allowing your users to access
the latest software and infrastructure offerings to foster business
innovation.
• “Pay as you go” model.
• Public and/or hybrid and/or private clouds.
• XaaS : SaaS, PaaS, IaaS, …
• API (Application Programming Interface).
16
Cloud computing
17. 17
Cloud computing. A model for delivering IT services in which
resources are retrieved from the internet through web-based tools
and applications, rather than a direct connection to a server.
http://www.investopedia.com/terms/c/cloud-computing.asp
API (Application Programming Interface). An API specifies how
some software components should interact with each other. It
comes in the form of a library that includes specifications for
routines, data structures, object classes, and variables.
http://en.wikipedia.org/wiki/Application_programming_interface
21. • Highly Empowered and Resourceful Operatives.
• New innovators in companies and organizations.
• Heavily involved in the creation, development and launch of
projects with high added value and based on intensive use of ICT
resources (especially from the Cloud).
• The world of education has to prepare a digital revolution and to
adapt its transmission of knowledge to the new needs of the
professional world.
21
We can be HEROes
22. • Distributed co-creation is a the new model.
• Thanks to cloud computing, data, mobile and social technologies,
the ability to organize online communities, to develop, and to
commercialize new products and services, is moving from the
professional sphere to the public sphere.
• Employees are members of these 2 worlds now subject to a
stronger and more balanced interaction.
• BYOD / BYOA ... Bring Your Own Device / Application.
• The company must identify the activities of its employees around
ICT and establish internal collaborative processes to support the
development of these activities.
22
Co-creation
23. 23
Cloud computing. Also known as collaborative economy. Hybrid
market model, in between owning and gift giving, which refers to
peer-to-peer-based sharing of access to goods and services,
coordinated through community-based online services.
https://en.wikipedia.org/wiki/Sharing_economy
24. A social and economic system driven by digital technologies that
enable the sharing of assets from space to skills to objects to money
in ways and on a scale never possible before.
Social (and ICT) technologies radically disrupt communications,
marketing, and customer care. With these same technologies,
customers now buy products once and share them with each other.
The sharing economy impacts core business models.
2 main principles :
• shared access is better than individual ownership;
• shift from products to services based on reciprocity.
… I want to do things, not to own things.
24Adapted from www.euro-freelancers.eu & www.altimetergroup.com
The rise of the sharing economy
25. Me ><
Ownership ><
Global ><
Centralized ><
Competition ><
Enterprise ><
Ads & marketing ><
Credit ><
Money ><
B2B & B2A ><
(Hyper) Consumption ><
Us
Access and service
Local
Distributed
Collaboration
People
Community
Reputation
Value
P2P
Collaborative Consumption
Adapted from www.euro-freelancers.eu 25
Values of the sharing economy
26. • Increasing population density. Population density enables sharing
to occur with less friction. Access to more people mean more
points of supply.
• Drive for sustainability. There is growing awareness about the
environmental impact of our consumption habits. Reselling,
renting, co-owning, or gifting maximizes usage and reduces the
impact of physical goods that were once bought and discarded
after limited use.
• Desire for community. A latent desire to connect with people and
communities is re-surfacing. Individuals can now bypass faceless
brands as they transact with each other.
• Generational altruism. The internet is a persuasive technology. It
teaches people the power of sharing and collaboration. Once
people experience that power, it’s natural to apply the same logic.
26Adapted from Altimeter Group
Sharing economy : societal drivers
27. • Monetize excess. Anytime there is a resource that stays idle for
much of its lifetime, there is an opportunity to take
advantage of it.
• Increase financial flexibility. As owners begin to find uses for idle
inventory, the possibility emerges for earning income and gaining
greater financial independence and empowerment. It’s a new
world of the perpetual freelancer and micro-entrepreneur.
• Access over ownership. Individuals who can’t afford luxury goods
can now rent them. Businesses can hire on demand workers or
rent on-demand space. We’re moving to a world where access to
goods, services, and talent triumphs ownership.
• Influx of VC funding. Investors are key to the rise of the Sharing
Economy. In other internet-related markets, VC funding has
already been a core force for the growth of an industry.
27Adapted from Altimeter Group
Sharing economy : economic drivers
28. • Social networks. Social networking facilitates peer-to-peer
transactions by matching up supply and demand that wasn’t
previously possible. They help build trust between buyers and
sellers.
• Mobile devices and platforms. Many startups in the Sharing
Economy are mobile-driven. The rise of smartphone adoption
means that customers can increasingly offer or locate goods and
services anytime, anywhere.
• Payment systems. E-commerce and payment platforms are
required to broker transactions between buyers and sellers. In the
future, new forms of value will include nontraditional currencies
or new forms of measurement that account for resale or multiple
users in the total cost of ownership.
28Adapted from Altimeter Group
Sharing economy : technology drivers
29. 29Adapted from Altimeter Group
Desintermediation (“uberisation”)
Hospitality.
Homeowners displace
hotels. They can monetize their
extra space by renting out rooms
or homes to travelers from
around the world.
Labor.
Marketplaces empower workers
to find virtual work and managers to hire
on-demand staff. Businesses and individuals
are connecting to employees on their own.
Office rental.
Companies offset costs by renting
space from and to each other. This
growing marketplace enables on-
demand, ad-hoc workspace rental
in a pay-as-you-go transaction.
Banking. Consumers skip
the bank. P2P lending and
crowdfunding services sites enable
consumers to lend directly to each other
and to bypass traditional financial services.
Transports.
Every car-sharing vehicle
replaces 9-13 vehicles, reducing the
number of hours a car sits idle in a garage
or parking lot and car ownership overall.
Products & Apparel.
Consumers can now rent or
exchange any number of physical goods
instead of buying them from
traditional retailers.
H F
G
30. 30
www.kickstarter.com
Kickstarter is a new way to fund creative projects.
Kickstarter is full of projects, big and small, that
are brought to life through the direct support of
people like you.
31. • Zipcar Partners With SNCF to Offer New Mobility Solution in
France.
• Maven, the new service from GM is the latest in a string of moves
by the automaker including a $500 million investment in Lyft.
• Citigroup agreed a $150m tie-up with Lending Club, to finance
loans. Citizens Bank has bought $200m of loans from SoFi, a big
student loan-focused marketplace lender.
• …
31
Old economy // sharing economy
32. 32Adapted from thegovlab.org
5 governance deficits
Legitimacy
Effectiveness
BudgetsInnovation
Expectation
Loss of confidence of citizens in
their governments, particularly
because of the lack of transparency,
accountability and (real) citizen
participation in the decision process.
Because of their bureaucratic,
centralized and rigid nature, public
services are struggling to address the
challenges of the modern digital
world and the needs of citizens.
Deficits and budget cuts,
questionable expenditures
or taxes, ... suggest that
governments are not
really able to deal with
real world problems.
Governments are paralyzed by institutional
inertia and pyramidal structures. They are not
agile, innovative and creative enough.
While digital
empowerment is
breaking down
barriers to citizen
participation,
citizens are
frustrated that
governments do not
allow them to
contribute to public
policies.
33. 33
Open Data. Institutions, local actors and governments have
considerable amounts of data, but do not necessarily use them.
Open Data = make them available in public data clouds.
The idea is to allow other public or private players to build services
and applications based on these data, following specific licences.
34. 34Adapted from thegovlab.org
From Open Data to Open Government
Centralized
6
Decentralized
Intuitive
6
Goals
Closed
6
Open
Intermediary
6
Platform
Static
6
Evolutive
Deliberative
6
Collaborative
From a push and top-down model,
to a model involving a maximum
of voices in the
governance
process
Transition from
intuition and
repetition based
models to processes
based on the richness
and intelligence of
data, and on wide
scale
experimentation,
for better decisions
Personalization
of content and services,
One2One, pertinent and individual experiences,
collective proposals, …
Openness. Problems solved with the intelligence
of the crowd, rather than only by public services.
Validation and
co-design by allied
citizens
…
Cloud, mobile,
apps, augmented services,
programmable Web, suppression
of time and location barriers, NWOW, …
Networks, online and
cloud platforms, 3D,
DIY, crowdfunding &
crowdsourcing, loss
of influence of
"historical“
monopolies and
intermediaries …
Empowerment
numérique
35. 35
Walloon example
Next Ride is a mobile application based on
“open data”. Now part of the “official” offer
from the public transport company in Wallonia.
1 (non professional) developer versus a
company with more than 5000 workers !
36. 36
www.bepark.eu
BePark is a network of low-cost car parks
that you can access through your mobile.
This network consists of public parks as
well as private ones (hotels, offices,
supermarkets, etc.) which were not
available to the public so far.
37. Public data = Open Data ?
Europe highly promotes Open Data,
making it the default model for public services through
the PSI (Public Services Information) directive.
37
38. • Government officials oppose sharing that disrupts existing
regulations.
• Lack of trust between peer-to-peer “buyers” and “sellers.”
• Lack of industry-wide reputation systems and data standards.
• Historical players view sharing as a threat to their current
business models.
• Uncertainty about which startups will stand the test of time.
38Adapted from Altimeter Group
Of course … it’s not that simple !
39. 39Source : Orange & www.sparked.com
See you next week for Digital Business ;-)
A connected cow transmits
200 MB of data each year.
40. @ Home
andre.blavier@gmail.com
www.andreblavier.be … needs
to be updated :-(
@ School ;-)
Affiliate Professor
andre.blavier@ulg.ac.be
@ Work
Web & Communication Manager
andre.blavier@aei.be
www.digitalwallonia.be linkedin.com/in/andreblavier
facebook.com/unpeudeblabla
@unpeudeblabla
andre.blavier
unpeudeblabla.tumblr.com
slideshare.net/unpeudeblabla
scoop.it/t/unpeudeblabla