Competitive Digital Innovation: Transforming Products, Processes and Business Models to Win in the Digital Economy (Palgrave Executive Essentials)

Innovative digital technologies are forcing companies to rethink how they compete. The focus of digital innovation in business has shifted from internal transformation within firms to their market interface and ecosystems. While opportunities for innovation in internal operations are well established, it’s less clear how to leverage technology at the market interface. This often has strategic implications, and the goal of this book is help you connect digital innovation to business strategy. By understanding how to leverage digital technologies, you can redefine your market-facing business processes, your products, services and even your business models and stay competitive in today’s hybrid markets. This book provides a coherent and comprehensive approach to not just survive but rather thrive in the 21st Century global marketplace. With global, real-world examples and original frameworks, this is an ideal book for executives and anyone who wants to understand digital strategy. Highly practical but infused with rigorous research, it shows you how your business can use digital technologies to compete in today’s hybrid markets. Acknowledgements Contents About the Authors List of Figures List of Tables 1: Introduction Overview of the Book Part I: Using Digital Technologies to Transform Processes and Products 10.1 Using the Digitalization Framework 2: Digitally Enhancing Market-facing Processes Market-facing Processes Transaction Processes Search Authentication Valuation Payment Logistics After-Sales Service Decision Support Processes Configuration Collaboration Business Intelligence Operationalizing Externally Facing Process Support Example: The Dow Corning Corporation Example: Philips Lighting—Signify 3: Digitally Enhancing Existing Products Four Dimensions of Product Digitalization Composition Connectivity Capabilities Context Extent of Product Digitalization Impact on Market-facing Processes Operationalizing Product Digitalization Example: Eneco Toon Example: Philips Lighting—Signify InterAct Office 4: Creating New Digital Products Types of Digital Products Characteristics of Digital Products Market-facing Process Support for Digital Products Pure versus Hybrid Digital Products Example: Barco Demetra Part II: Using Digital Technologies to Transform Business Scope 10.1 Redefining Business Scope 5: Engaging Consumers Market Scope From B2B to B2B2C 1. Process Improvement for an Existing Product 2. Digitally Enhanced Business Product 3. Digital Business Product 4. Consumer Sales 5. Digitally Enhanced Consumer Product 6. Digital Consumer Product From Linear to Triangular Consumer Engagement Leveraging Social Media Levels of Social Media Engagement Level 1: Probing Social Media Activity Level 2: Pushing Content and Applications Level 3: Priming Content Level 4: Participating in Dialog Leveraging Social Media to Engage Consumers Leveraging Social Media in B2B Settings Social Media and System Integration 6: Digital Intermediaries Types of Digital Intermediaries Selecting a Digital Intermediary Role Resource Base Evolutionary Context Leveraging Digital Platforms What Is a Digital Platform Network Effects Same-Side Network Effects Cross-Side Network Effects Types of Digital Platforms Competitive Effects of Digital Platforms When to Use Digital Platforms Identifying Digital Platform Opportunities Digital Platform Development Example. Eneco Toon Revisited 7: Digital Revenue Models Consumer-Based Revenue Models Advertiser-Based Revenue Models Generating Revenues on a Digital Platform Part III: Aligning with Strategy 8: Considering Strategic Priorities Strategic Planning Strategic Priorities Operational Excellence Product Leadership Customer Intimacy Beyond Strategic Priorities Examples: Dow Corning, Philips Lighting and Barco Demetra Digitalization for Competitive Advantage Porter’s 5-forces Model Example—Eneco Toon Revisited 9: Planning for Digitalization Discovering Innovation Opportunities Assessing Readiness Choosing a Digitalization Approach Digitalizing Within the Context of the Existing Business Creating a New Business Digitalizing Within and Outside the Existing Business Developing the Initiative The Waterfall Approach Rapid Application Development (RAD) Agile Development The Dev-Ops Approach Deploying the Initiative 10: Evaluating Digitalization Initiatives Evaluating Process Digitalization Evaluating Product Digitalization Evaluating Financial Performance Evaluating Network Externalities Sustaining Competitive Advantage 11: Risks of Digitalization Technological Risk Competitive Risk Information Risk Rigidity Risk Challenges for Digital Platforms 12: Broadening the Lens Artificial Intelligence The Metaverse Web3 Index