Digitalisation strategies
- 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.