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DIGITAL

TECHNOLOGY
TRENDS
TRANSFORMING
HOW BUSINESS
IS DONE
CHAPTER 1
DOING BUSINESS IN
DIGITAL TIMES
COMPANY OVERVIEW
DOING
 McCain is a market leader in the frozen food
BUSINESS IN industry—producing one-third of the world’s
DIGITAL supply of french-fries. The company
TIMES manufactures, distributes, and sells more than
100 oven-ready frozen foods—pizzas,
appetizers, meals, and vegetables. McCain is a
global business-to-business (B2B)
manufacturer with 55 production facilities on 6
continents. The company sells frozen foods to
other businesses—wholesalers, retailers, and
restaurants from sales offices in 110 countries.
McCain supplies frozen fries to Burger King
and supermarket chains
DOING BUSINESS IN DIGITAL TIMES
MCCAIN FOODS THREE MAJOR
CHALLENGES AND THREATS:

Drop in demand for Perishable Technology-


frozen foods inventory dependent.
Health-conscious inventory of raw need information
trends were shifting materials and reporting systems
customer demand finished goods can and digital devices to
toward fresh food  spoil, losing all their manage and
slowing growth in the value, or food can automate operations,
frozen foods market become track inventory, keep
contaminated  the right people
Regulatory informed, support
requirements decisions, and
collaborate with
business partners.
MCCAIN FOODS’ BUSINESS AND IT STRATEGIES
 Simple philosophy and branding effort
Data visualizations of KPIs make
them easy to understand briefly.  McCain philosophy: “Good ethics is good business.” Branding: It’s All Good
 Managing with Digital Technology
 McCain Foods invested in data analytics and visualization technologies to maximize
its capability to innovate and gain insights from its huge volumes of data.
 Dashboards Create Productive Competition Among Factory
Workers
 McCain implemented 22,000 reports and 3,000 personal reporting systems that
include dashboards. Dashboards display summarized data graphically in a clear and
concise way  reach 18,000 employee
 Better Predictions, Better Results
 Dashboards keep management informed because they can discover answers to their
own questions by drilling down. Combining weather and geopolitical data to predict
and avoid food shortages
EVERY BUSINESS IS A DIGITAL BUSINESS

Digital business is a social,


Business model is how a
mobile, and Web-focused
business makes money.
business.

Customer experience (CX) is


about building the digital
Digital business model infrastructure that allows
defines how a business customers to do whatever
makes money digitally. they want to do; through
whatever channel they choose
to do it.
EVERY BUSINESS IS A DIGITAL
BUSINESS
 Cloud computing is a style of computing in which IT
services are delivered on demand and accessible via the
Internet. Common examples are Dropbox, Gmail, One drive,
and Google Drive.
 Machine-to-machine (M2M) technology enables sensor
embedded products to share reliable real time data via radio
signals. M2M and the Internet of Things (IoT) are widely
used to automate business processes in industries ranging
from transportation to health care.
 Internet of things (IoT) refers to a set of capabilities
enabled when physical things are connected to the Internet
via sensors.
BIG DATA

 Big data are what high volume, mostly text data are
called. Big data stream in from multiple channels and
sources, including:
 mobile devices and M2M sensors embedded in
everything from airport runways to casino chips.
 social content from texts, tweets, posts, blogs.
 clickstream data from the Web and Internet searches.
 video data and photos from retail and user-generated
content.
 financial, medical, research, customer, and B2B
transactions
 The exploding field of big data and analytics is
called data science
SOCIAL-MOBILE-
CLOUD MODEL
 Model of the integration of cloud,
mobile, and social technologies.
The cloud forms the core. Mobile
devices are the endpoints. Social
networks create the connections.
 Strong interest in smart wearable
technology reflects growing
consumer desire to be more
digitally connected at all times
using a collection of multiple
devices.
 A smartwatch used at work,
such as in a retail store, can
provide shop floor staff with a
screen to check stock
availability.
DIGITAL BUSINESS MODELS

Business models are the Digital business models


ways enterprises generate refer to how companies
revenue or sustain engage their customers
themselves digitally to create value via
websites, social channels,
and mobile devices.
BUSINESS PROCESS
MANAGEMENT AND
IMPROVEMENT
BUSINESS PROCESS MANAGEMENT AND IMPROVEMENT

Objectives, all functions and departments in the enterprise have tasks that they need
to complete to produce outputs, or deliverables, in order to meet their objectives.

A business processes are series of steps by which organizations coordinate and


organize tasks to get work done.

A process consists of activities that convert inputs into outputs by doing work.
THREE Examples of common business processes are:
COMPONENTS  Accounting: Invoicing; reconciling accounts; auditing

OF BUSINESS  Finance: Credit card or loan approval; estimating credit risk and financing terms
 Human resources (HR): Recruiting and hiring; assessing compliance with regulations;
PROCESSES evaluating job performance
 IT or information systems: Generating and distributing reports and data visualizations;
data analytics; data archiving
 Marketing: Sales; product promotion; design and implementation of sales campaigns;
qualifying a lead
 Production and operations: Shipping; receiving; quality control; inventory management
 Cross-functional business processes: Involving two or more functions, for example,
order fulfillment and product development
CHARACTERISTICS OF BUSINESS PROCESSES

Formal processes are documented and have well-established steps. Order taking and credit approval processes
are examples.

Standard operating procedures, or SOPs, a routine formal processes are referred to. A SOP is a well-defined
and documented way of doing something. An effective SOP documents who will perform the tasks; what materials
to use; and where, how, and when the tasks are to be performed. SOPs are needed for the handling of food,
hazardous materials, or situations involving safety, security, or compliance.

Informal processes are typically undocumented, have inputs that may not yet been identified, and are
knowledge-intensive. Although enterprises would prefer to formalize their informal processes in order to better
understand, share, and optimize them, in many situations process knowledge remains in people’s heads.
PROCESS IMPROVEMENT & BUSINESS PROCESS
MANAGEMENT

Business Process Reengineering (BPR) Business Process Management (BPM)

Methods and efforts to eliminate wasted steps Consists of methods, tools, and technology to
within a process. support and continuously improve business
The goal of BPR is to eliminate the processes.
unnecessary, non-value-added processes, The purpose of BPM is to help enterprises
then to simplify and automate the remaining become more agile and effective by enabling
processes to significantly reduce cycle time, them to better understand, manage, and adapt
labor, and costs their business processes.
THE POWER OF
COMPETITIVE
ADVANTAGE
 Agility means being able to respond quickly.
 Responsiveness means that IT capacity can be easily scaled up
or down as needed, which essentially requires cloud computing.
 Flexibility means having the ability to quickly integrate new
BUILDING business functions or to easily reconfigure software or apps.
BLOCKS OF Two key components of corporate profitability are:
COMPETITIVE 1. Industry structure: An industry’s structure determines the range
of profitability of the average competitor and can be very difficult
ADVANTAGE to change.
2. Competitive advantage: This is an edge that enables a
company to outperform its average competitor. Competitive
advantage can be sustained only by continually pursuing new
ways to compete.
STRATEGIC
PLANNING AND
COMPETITIVE Weaknesses: Lack of
MODELS Strengths: Reliable
expertise; competitors
processes; agility;
with better IT
motivated workforce
SWOT analysis, involves infrastructure
the evaluation of
strengths and Opportunities: A Threats: Price wars or
weaknesses, which are developing market; other fierce reaction by
internal factors, and ability to create a new competitors;
market or product obsolescence
opportunities and threats,
which are external
factors.
What Is Strategic Planning? Strategic planning is a series
of processes in which an organization selects and arranges its
businesses or services to keep the organization healthy or
able to function even when unexpected events disrupt one or
more of its businesses, markets, products, or services STRATEGIC
PLANNING
AND
COMPETITIVE
What Is Strategy? Strategy defines the plan for how a MODELS
business will achieve its mission, goals, and objectives. The
plan specifies the necessary financial requirements, budgets,
and resources.
Basis of the competitive forces model Before
examining the model, it is helpful to understand that it is PORTER’S
based on the fundamental concept of profitability and COMPETITIVE
profit margin:
FORCES MODEL
AND STRATEGIES
Profit is increased by increasing
PROFIT = TOTAL total revenues and/or decreasing
REVENUES minus TOTAL total costs. Profit is decreased
when total revenues decrease
COSTS and/or total costs increase:

PROFIT MARGIN = SELLING PRICE minus COST


OF THE ITEM
PORTER’S COMPETITIVE FORCES MODEL

Threat of entry of new competitors. Bargaining power of Bargaining power of Threat of substituting Competitive rivalry among
Large profit margins attract entrants. In suppliers. Bargaining customers or buyers. products or services. existing firms in the industry.
order to gain market share, entrants power is high where the This force is the reverse Where there is product- Fierce competition involves
usually need to sell at lower prices as an supplier or brand is of the bargaining power for-product substitution, expensive advertising and
incentive  force companies already in powerful, such as Apple, of suppliers. Examples such as Kindle for Nook, promotions, intense investments in
the industry to defend their market share Microsoft, and auto are Walmart and there is downward research and development (R&D),
by lowering prices—reducing profit margin. manufacturers. Power is government agencies. pressure on prices. As or other efforts that cut into profit
This force also refers to the strength of the determined by how This force is high when the threat of substitutes margins. This force is most likely to
barriers to entry into an industry. The much a company there are few large increases, the profit be high when entry barriers are
threat of entry is lower (less powerful) purchases from a customers or buyers in a margin decreases low, the threat of substitute
when existing companies have ITs that are supplier. The more market. because sellers need to products is high, and suppliers and
difficult to duplicate or very expensive  powerful company has keep prices buyers in the market attempt to
ITs create barriers to entry that reduce the the leverage to demand competitively low. control it. That is why this force is
threat of entry. better prices or terms, placed in the center of the model.
which increase its profit
margin.
STRATEGIES FOR COMPETITIVE ADVANTAGE
CRITICAL
SUCCESS
FACTORS
A FIRM’S VALUE CHAIN. THE
ARROWS REPRESENT THE
FLOW OF GOODS, SERVICES,
AND DATA.
ENTERPRISE TECHNOLOGY TRENDS

The direction is away from the


MORE MOBILE BUSINESS APPS,
FEWER DOCS ON DESKTOPS traditional desktop and documents era
and toward business apps in the cloud

Engaging customers via mobiles and


MORE SOCIALLY ENGAGED— social media sites—and those
BUT SUBJECT TO REGULATION customers who do not tolerate delays—
is the norm
NFC technology relies on sensors or RFID chips.
MORE NEAR-FIELD NFC is used for tracking wine and liquor to manage
the supply chain efficiently. NFC smartphones are
COMMUNICATION (NFC) being integrated into payment systems in
TECHNOLOGY supermarkets so customers can pay for purchases
without cash or credit cards.
ANY QUESTIONS??? I will prove myself strong when they think I am sick.
I will prove myself brave when they think I am weak

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