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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.
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.
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.
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
