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Digital Disciplines: Attaining Market Leadership via the Cloud, Big Data, Social, Mobile, and the Internet of Things

Joe Weinman, Fred Wiersema (Foreword by)
ISBN: 978-1-118-99539-6
400 pages
August 2015
Digital Disciplines: Attaining Market Leadership via the Cloud, Big Data, Social, Mobile, and the Internet of Things (1118995392) cover image

Description

Leverage digital technologies to achieve competitive advantage through market-leading processes, products and services, customer relationships, and innovation

How does Information Technology enable competitive advantage? Digital Disciplines details four strategies that exploit today's digital technologies to create unparalleled customer value. Using non-technical language, this book describes the blueprints that any company, large or small, can use to gain or retain market leadership, based on insights derived from examining modern digital giants such as Amazon, Netflix, and Uber, established firms such as Burberry, GE, Nike, and Procter & Gamble, and lesser-known innovators such as Alvio, Fruition Sciences, Opower, and Quirky.

Companies can develop a competitive edge through four digital disciplines—information excellence, solution leadership, collective intimacy, and accelerated innovation—that exploit cloud computing, big data and analytics, mobile and wireline networks, social media, and the Internet of Things. These four disciplines extend and update the value disciplines of operational excellence, product leadership, and customer intimacy originally defined by Michael Treacy and Fred Wiersema in their bestselling business classic The Discipline of Market Leaders.

  • Operational excellence must now be complemented by information excellence—leveraging automation, information, analytics, and sophisticated algorithms to make processes faster, better, and more cost-effective, seamlessly fuse digital and physical worlds, and generate new revenue through techniques such as exhaust data monetization
  • Product leadership must be extended to solution leadership—smart digital products and services ranging from wind turbines and wearables to connected healthcare, linked to each other, cloud services, social networks, and partner ecosystems, focused on customer outcomes and creating experiences and transformations
  • Customer intimacy is evolving to collective intimacy—as face-to-face relationships not only go online, but are collectively analyzed to provide individually targeted recommendations and personalized services ranging from books and movies to patient-specific therapies
  • Traditional innovation is no longer enough—accelerated innovation goes beyond open innovation to exploit crowdsourcing, idea markets, innovation networks, challenges, and contest economics to dramatically improve processes, products, and relationships

This book provides a strategy framework, empirical data, case studies, deep insights, and pragmatic steps for any enterprise to follow and attain market leadership in today's digital era.  It addresses improved execution through techniques such as gamification, and pitfalls to beware, including cybersecurity, privacy, and unintended consequences.

Digital Disciplines can be exploited by existing firms or start-ups to disrupt established ways of doing business through innovative, digitally enabled value propositions to win in competitive markets in today's digital era.

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Table of Contents

FOREWORD xvii

PREFACE xix

ACKNOWLEDGMENTS xxiii

PART ONE—Overview and Background

CHAPTER 1 Digital Disciplines, Strategic Supremacy 3

From Value Disciplines to Digital Disciplines 4

Information Excellence 7

Solution Leadership 8

Collective Intimacy 9

Accelerated Innovation 10

Exponential Value Creation 11

The Leadership Agenda 13

Information Technology in Context 15

Notes 17

CHAPTER 2 Value Disciplines and Related Frameworks 21

Value Disciplines 22

Operational Excellence 23

Product Leadership 24

Customer Intimacy 25

Importance of Focus 26

The Unbundled Corporation 27

Business Model Generation 30

Michael Porter and Competitive Advantage 31

Blue Ocean Strategy 33

Innovation: The “Fourth” Value Discipline 34

Notes 36

CHAPTER 3 Digital Disciplines 39

Information Excellence 40

Solution Leadership 42

Collective Intimacy 43

Accelerated Innovation 45

All of the Above? 47

Notes 49

CHAPTER 4 Digital Technologies 51

The Cloud 52

Big Data 54

Mobile 57

The Internet of Things 59

Social 60

Notes 61

PART TWO—Information Excellence

CHAPTER 5 Operations and Information 65

Processes 66

Process Advantage 67

Process Optimization 72

Asset Optimization 74

Business Value of Information 76

The Role of Information Technology 78

Caveats 79

Notes 80

CHAPTER 6 The Discipline of Information Excellence 83

From People to Machines 85

From Physical to Virtual 87

From Virtual to Digical 88

From Processes to Experiences 89

From Operations to Improvement 90

From Static Design to Dynamic Optimization 91

From Mass Production to Mass Personalization 92

From Cost Reduction to Revenue Generation 92

From Direct to Indirect Monetization 93

From Touchpoints to Integration 94

From Firms to Networks 95

From Data to Actionable Insight 97

From Answers to Exploration 98

Notes 99

CHAPTER 7 Burberry—Weaving IT into the Fabric of the Company 103

Operational Excellence and Product Leadership 105

From Operational Excellence to Information Excellence 105

From Physical to Virtual 106

From Virtual to Digical 107

From Processes to Experiences 109

From Mass Production to Mass Personalization 110

From Cost Reduction to Revenue Generation 111

From Touchpoints to Integration 112

From Firms to Networks 113

Notes 114

PART THREE—Solution Leadership

CHAPTER 8 Products, Services, and Solutions 119

Competitive Strategy 120

Product Elements 121

The Experience Economy 125

Pricing and Business Models 126

Notes 129

CHAPTER 9 The Discipline of Solution Leadership 131

From Products and Services to Solutions 135

From Generic and Expected to Augmented and Potential 136

From Transactions to Relationships 138

From Sales Results to Customer Outcomes 139

From Standard Products to Custom Solutions 142

From Products and Services to Experiences and Transformations 143

From Standalone to Social 144

From Product to Platform 145

From Engineered to Ecosystem 146

Notes 148

CHAPTER 10 Nike—A Track Record of Success 151

From Products to Solutions 153

From Generic and Expected to Augmented and Potential 154

From Transactions to Relationships 155

From Sales Results to Customer Outcomes 155

From Standard Products to Custom Solutions 156

From Products to Experiences and Transformations 156

From Standalone to Social 158

From Engineered to Ecosystem 158

Nike and the Other Digital Disciplines 159

Notes 163

PART FOUR—Collective Intimacy

CHAPTER 11 Customer Experience and Relationships 167

Customer Intimacy 171

A Broad Spectrum of Relationships 173

Dimensions of Interaction 174

Collaborative and Content Filtering 176

Notes 178

CHAPTER 12 The Discipline of Collective Intimacy 181

From Transactions to Relationships 182

From Relationships to Intimacy 184

From Physical to Virtual 185

From Virtual to Digical 187

From Company to Community 188

From People to Algorithms 188

From Individual to Collective 191

Notes 194

CHAPTER 13 Netflix—Entertaining Disruption 197

Information Excellence 199

Accelerated Innovation 200

Solution Leadership 201

From Relationships to Intimacy 202

From Physical to Virtual 203

From Virtual to Digical 204

From Company to Community 205

From People to Algorithms 205

From Individual to Collective 207

Notes 209

PART FIVE—Accelerated Innovation

CHAPTER 14 Innovation and Transformation 213

Successful Commercial Innovation 215

The Innovation Process 219

Innovation Principles 221

Innovation of Products, Processes, Relationships, and Innovation 225

Business Model Innovation and Corporate Transformation 227

Notes 230

CHAPTER 15 The Discipline of Accelerated Innovation 233

From Solitary to Collaborative 235

From Internal to External 237

From Closed to Open 239

From Inside-Out to Outside-In 241

From Products to Platforms 242

From Linear to Agile 243

From Employees to Crowds 245

From Salaries to Prizes 247

From Theoretical to Data-Driven 248

From Human to Machine 250

From Incremental to Transformational 251

Notes 252

CHAPTER 16 Procter & Gamble Cleans Up 255

From Solitary to Collaborative 257

From Internal to External 258

From Closed to Open 260

From Inside-Out to Outside-In 262

From Employees to Crowds 263

From Incremental to Transformational 264

Notes 265

PART SIX—Successful Execution

CHAPTER 17 General Electric—Flying High 269

Digital Disciplines at GE 271

Software at GE 273

Information Excellence 274

Solution Leadership 276

Collective Intimacy 277

Accelerated Innovation 279

Notes 281

CHAPTER 18 Human Behavior and Gamification 283

Human Behavior 285

Gamification 289

Gamifying Information Excellence 290

Gamifying Solution Leadership 291

Gamifying Collective Intimacy 292

Gamifying Accelerated Innovation 293

Gamification across Disciplines 294

Notes 295

CHAPTER 19 Opower—The Power of the Human Mind 299

Human Behavior and Energy Consumption 301

Opower, Information, and Intimacy 303

Notes 305

CHAPTER 20 Digital Disasters 307

Strategic Errors 308

Cyberattacks 310

Software Design and Development Challenges 312

Operational Issues 314

Unintended Consequences 315

Erratic Algorithms 316

Politics and Pushback 319

Digital Disappointments 319

Notes 323

PART SEVEN—What’s Next?

CHAPTER 21 Looking Forward 329

The Exponential Economy 329

Future Technologies 333

Opportunities 336

Critical Success Factors 337

Next Steps 340

Notes 342

ABOUT THE AUTHOR 345

INDEX 347

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Author Information

JOE WEINMAN is considered the leading global authority on cloud economics, and is the author of Cloudonomics: The Business Value of Cloud Computing from Wiley. He is the cloud economics editor for IEEE Cloud Computing magazine and a contributor to Regulating the Cloud: Policy for Computing Infrastructure. Weinman is an experienced senior executive with a career spanning R&D, corporate strategy, product management, operations and engineering, and marketing and sales at companies such as Bell Labs, AT&T, and Hewlett-Packard.

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Press Release

August 31, 2015
Digital Disciplines: Attaining Market Leadership via the Cloud, Big Data, Social, Mobile, and the Internet of Things

Success is more difficult to achieve than ever in today's turbulent, hypercompetitive world where customer demands are mounting relentlessly. However, technologies such as cloud computing, big data and analytics, social media, mobile and wireline networks, and the Internet of Things can be strategic enablers for thriving, market-leading companies, or existential threats if competitors utilize them first.

In Digital Disciplines, Joe Weinman, the leading authority on cloud economics and business value, helps both the technical and non-technical leader—chief executive, marketing, financial, information, digital, or innovation officer—and their teams not only understand, but exploit these critical digital technologies to achieve and maintain competitive advantage, using a framework that is not only practical, but immediately applicable to virtually any firm in any industry, whether serving consumers or businesses. He argues that digital technologies do not just enhance efficiencies, reduce costs, and increase productivity; their true value lies in creating market-leading strategies that deliver unparalleled customer value.

Digital Disciplines is richly illustrated with detailed case studies from high-tech innovators such as Amazon, Apple, Facebook, Google, Netflix, and Uber, as well as longstanding blue chips such as Burberry, General Electric, Nike, and Procter & Gamble, and lesser known innovators such as Alvio, Fruition Sciences, and Opower.

Digital Disciplines comprehensively delineates blueprints for four generic strategies to attain competitive advantage, marketplace success, and strong financials while creating unique customer value:

  •  Information excellence complements operational excellence to not only drive process and resource efficiencies and advantage, but to create seamless digital-physical experiences for customers, respond in real-time to shifting conditions, and drive additional revenue by monetizing process data.
  • Solution leadership connects smart, digital products and services to the cloud, social media, communities, and an infinitely extensible ecosystem, transforming a one-time sale into an ongoing relationship and subscription, services, and support revenues, and enabling customer experiences and transformations focused on customer outcomes.
  • Collective intimacy transcends customer intimacy, leveraging big data analytics across all customers to not just create marketing insights, but to deliver better targeted, personalized services and recommendations to each customer, ranging from upsell/cross-sell to maximizing relevance and results, such as with patient-specific therapies.
  • Accelerated innovation takes open innovation to an entirely new level, through challenges, crowdsourcing, crowdfunding, idea markets, and innovation networks, enabling companies to collaborate and innovate with greater agility and higher quality results, yet with the financial advantages of contest economics.

These four proven strategies expand on and update the value disciplines of operational excellence, product leadership, and customer intimacy originally defined by Michael Treacy and Fred Wiersema in their bestselling business classic The Discipline of Market Leaders.

Comprehensive in scope and written in accessible terms, this essential resource integrates a strategic framework, illustrative case studies, deep insights, and practical steps for any enterprise that wants to win in today's digital era. Digital Disciplines also addresses the secrets and challenges of successful execution, including human motivation and gamification, cybersecurity and privacy, strategic alignment, and unintended consequences.

Digital Disciplines illuminates the complex array of current and emerging digital technologies that are shaping and transforming the ways companies create better customer value and attain market leadership.

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