Anshuman Khare · Brian Stewart Rod Schatz Editors Phantom Ex Machina Digital Disruption’s Role in Business Model Transformation www.ebook3000.com Phantom Ex Machina Anshuman Khare • Brian Stewart • Rod Schatz Editors Phantom Ex Machina Digital Disruption’s Role in Business Model Transformation www.ebook3000.com Editors Anshuman Khare Athabasca University Edmonton, AB, Canada Brian Stewart School of Computing University of Eastern Finland Joensuu, Finland Rod Schatz Alidade Strategies Inc St Albert, AB, Canada ISBN 978-3-319-44467-3 ISBN 978-3-319-44468-0 DOI 10.1007/978-3-319-44468-0 (eBook) Library of Congress Control Number: 2016953465 © Springer International Publishing Switzerland 2017 This work is subject to copyright All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made Printed on acid-free paper This Springer imprint is published by Springer Nature The registered company is Springer International Publishing AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Preface Today’s business ecosystem is bringing furious and frenetic change to existing business structures, operations and models And just like the Greek Furies that drove their victims mad, the dislocating effects of technological change are disrupting the accepted norms of business This book explores the pivotal role that technology plays in creating new dynamics to business operations and forcing business model changes In particular, the operating environment in which businesses function today has, and will, changed to a greater degree and at a faster pace than any period in the past The dynamic that enabled the television to gain critical mass over five decades has accelerated to allow Internet-based companies to reach the same critical mass within months Market convergence is reducing business barriers to entry, destabilising long established businesses and their underlying business models The dynamic forces of unleashed technological advancements that new technically advanced businesses are using are rapidly and significantly disrupting long-established sustainable products, companies, industries and sectors The creative adoption of technology is creating a strategic imbalance comprised of firms who understand how to use technology effectively and firms that have not yet realised that they are playing in an unstable ecosystem The intent of this book is to explore the factors that make digital disruption possible, the effects this has on existing business models, the industries that are most susceptible to disruption and what executives can to take advantage of disruption to reinvent their business model Adoption of digital technology has caused process disruptions in some industries (e.g automotive and services) and led to new business models (e.g Über, AirBnb) and new products (e.g robots, 3D printing, etc.) While most of these examples are in front of us and we read and hear about them in media, this book targets not-so-obvious disruptions (e.g in the education sector, in services and changing business models) along with some obvious ones (e.g 3D printing and in addressing mobility issues) In short, the digital disruptions are around us If one has not experienced it, one can sense it How we produce goods and services and how we deliver them are all under the digital disruption microscope The goal of the book is to get a discussion started by gathering the perspectives from around the world v www.ebook3000.com vi Preface The contributors to this book are consultants, academics, senior executives and business operators from North America and Europe They present their views on technology disruptions they are facing and how they are reacting to it This book is targeted at business practitioners, entrepreneurs, senior leadership, managerial and administration teams and anyone interested in understanding how to guide corporate strategy and operate competitive businesses Edmonton, AB, Canada Joensuu, Finland St Albert, AB, Canada Anshuman Khare Brian Stewart Rod Schatz Editor Bios Anshuman Khare is professor in operations management at Athabasca University, Canada He joined Athabasca University in January 2000 He is an Alexander von Humboldt fellow and has completed two postdoctoral terms at Johannes Gutenberg University of Mainz, Germany He is also a former Monbusho scholar, having completed a postdoctoral assignment at Ryukoku University in Kyoto, Japan He has published a number of books and research papers on a wide range of topics His research focuses on environmental regulation impacts on industry, just-in-time manufacturing, supply chain management, sustainability, cities and climate change, etc As his commitment to the community, Anshuman also serves on the Board of Directors of Northern Alberta Business Incubator (NABI) and is the vice chair of Smart City Masterplan Steering Committee for the City of St Albert He is on the Steering Committee of Alexander von Humboldt Cities and Climate Change Network of research scientists and on the executive of Humboldt Association of Canada Anshuman serves as associate editor of the International Journal of Sustainability in Higher Education published by Emerald Brian Stewart is the deputy CIO at the University of Alberta His role is to provide strategic leadership, vision and direction for Information Services and Technology and to direct project, change and benefit management and lead a lean initiative for continuous operational improvement Brian’s background is in strategic operational and technology management in the printing industry and higher education, and he has written and spoken widely on these topics Brian has an MA in Economics from University College Cork and an MBA from Athabasca University Rod Schatz is a senior executive with an information systems focus where he delivers business value to organisations through the use of systems in unique and creative ways Rod holds a Master of Science degree in geospatial technologies from the University of Alberta During his graduate studies, he focused on the application of location-allocation studies with geospatial technologies (GIS) Rod has presented vii www.ebook3000.com viii Editor Bios over 20 conference presentations dealing with the applied use of geospatial technologies to municipalities for infrastructure asset management, sustainable development and land management More recently, Rod has specialised in implementing cloud technologies, dealing with large data management problems, service-oriented architecture (SOA) and business process management (BPM) solutions to organisations to assist them with their journey into truly digital businesses Editorial Board1 Andreas Krämer* is a marketing and strategy consultant, living in Bonn, Germany, and professor of Customer Value Management and Pricing at BiTS Business and Information Technology School, Iserlohn He studied Agricultural Economics and earned his PhD at the University of Bonn After working for two strategy consultancies, he founded his own consulting firm in 2000: exeo Strategic Consulting AG is focused on data-driven decision support in marketing—especially pricing and customer value management He is author of several books and numerous publications and speaker at international conferences and meetings Dwight R Thomas* is professor emeritus with the Athabasca University Faculty of Business and has been engaged in design of innovative technology and its applications to online and distance education since the late 1970s Professor Thomas was one of the “innovators” who launched the Athabasca University online executive MBA programme in 1993 and has most recently served as a course developer and facilitator for a new MBA advanced elective course in the management of technology and innovation He has also been commissioned to serve as an external reviewer for a variety of academic texts and scholarly articles in marketing and management Iain Reid* is a senior lecturer at the University of Huddersfield Business School Iain has numerous publications in the areas of engineer-to-order, supply chain integration, agility, and mass customisation Iain’s PhD from Sheffield Hallam University, UK, centred on knowledge transfer engineer-to-order Iain has over 15 years of experience working in the manufacturing sector, specialising in make to order and engineer-to-order (MTO/ETO) manufacture Prior to embarking upon an academic career, Iain worked as a project manager on an European Regional Development Fund (ERDF) project supporting over 80 manufacturing small-to-medium enterprises (SMEs) on manufacturing operations and other process improvement initiatives, a number of which became knowledge transfer partnerships (KTPs) Editorial Board members who also authored a chapter are identified with a * ix www.ebook3000.com x Editorial Board After joining IBMs Strategy Consulting practice in 1996, Jean-Franỗois Barsoum began developing technology business plans and strategies for businesses and diverse organisations, such as financial institutions, higher education institutions, professional associations, pharmaceutical companies and telecommunications companies His specific focus has been on developing business plans of new and disruptive technologies, for which he developed IBM’s method He subsequently trained several hundred IBM consultants in the use of that method He has been a keynote speaker on the topics of smart cities, innovation, corporate responsibility and climate change in Canada, the United States, South America, Europe and Asia In 2008, selected by Al Gore’s Climate Project, he was one of the few Canadians to receive training from the Nobel Peace Prize laureate Since then, he has presented the science of climate change dozens of times to diverse audiences, from high schools, universities and public sector organisations to banks and telecommunications firms In 2011, he joined the board of directors of Al Gore’s foundation, since renamed “the Climate Reality Project Canada”, and acts as a mentor to the other presenters in the business community and in the province of Quebec He is a member of the steering committee of the David Suzuki Foundation (Québec), a director at the Canadian Water Network (a federally funded research granting organisation) and the leader of IBMs Green Community, founded in 1999 and has over 1000 members worldwide Kam Jugdev is a professor in Project Management and Strategy at Athabasca University, Canada She joined the University in April 2003 Kam holds undergraduate degrees from the University of Calgary, a Masters in Health Services Administration from the University of Alberta, a Masters in Engineering from the University of Calgary and a PhD in Engineering (Project Management) from the University of Calgary Kam’s research programme spans project management lessons learned and communities of practice, project management tools and techniques, project success/failure, project management as a source of competitive advantage using the resource-based view of the firm, burnout in project managers and the free rider problem on project teams Kam enjoys being able to relate theory to practice with students and through her research Oliver Mack* is a researcher, entrepreneur, coach and consultant located in Salzburg and Vienna, Austria He studied Business Administration and Law at the University of Mannheim and got his PhD in Political Science at Johannes Gutenberg University of Mainz, Germany He is author of several publications and speaker at international conferences and meetings, and he is an academic teacher in international organisations Mack is founder of Mack Consulting, a consulting company helping companies and organisations in the “3rd mode of consulting”, combination of traditional top management consulting and systemic change consulting in the main areas of project orientation, new organizational design, change and complexity Oliver Mack is network partner of Osb International, Vienna, a leading systemic consulting company in Europe He is also founder of the xm:institute, an organisation doing applied research and application of Ideas for Management and Leadership in the Next Society He is also active in various associations 312 B Stewart et al The ability to overlay and integrate information into physical experiences offers endless opportunities to reinvent services and products The technology to support and enable IoT has been developing steadily driven by Moore’s and Metcalfe’s laws which are reducing cost and increasing capacities in processing power, data storage, device miniaturisation, wireless connectivity, process digitisation and economic accessibility to computing power This cheapening of interconnected computing technology allows devices to be connected and to share information, thereby making them smart Automotive geopositioning systems use satellite positioning to provide a car with direction-finding capabilities, which are further leveraged into self-drive cars Building systems are being integrated with databases to develop big data warehouses that facilitate the development of efficiency algorithms The popularity of Fitbit and similar smart wearable technology evidences the growth in IoT in the health, wellness and fitness sectors Given the societal ageing demographic, it is reasonable to expect substantial and rapid developments in these areas A term cyber-physical systems (CPS) has been coined to reference systems within integrated computational and physical capabilities These can interact through sensors with humans on a broad range of modalities affording opportunities Fig 20.4 The internet of things—from connected devices to action www.ebook3000.com 20 Disruptions: Truth and Consequences 313 to create intelligent spaces and on an ever-broadening scale from wearables, smart appliances, smart rooms, smart houses and smart cities (Baheti & Gill, 2011) Asay (2014) quotes VisionMobile which projects that the number of IoT developers will grow from roughly 300,000 in 2014 to more than 4.5 million by 2020 Figure 20.4 shows a sample of interconnected scenarios and the potential experiential benefits The fourth industrial revolution has introduced us to a world of “sensor technology, interconnectivity and data analysis allow mass customization, integration of value chains and greater efficiency” (European Parliament, 2015, p 3) Industry 4.0 is a “combination of many elements, including distributed intelligence, network security, massive data, cloud computing, and analytics, among other things” (Singh, Al-Mutawaly, & Wanyama, 2015) While this development promises higher productivity and growth along with better service to industry and customers, it is not without its challenges First and foremost, many of the technologies have yet to prove themselves Industry is still trying to determine the benefits from adopting the Internet of things, dealing with big data and, most important of all, the changes in business model these technologies demand We are also moving through a period of low economic growth with low financial risk appetites Finding new investment and bringing major change are not the first priority of organisations, and they tend to stay with status quo or adopt incremental changes The initial adoption may exist in process rather than product, and the digital disruption will grow more expansively in the area of improving how rather than what is made This is evidenced by the desire to reduce and automate value chains, apply digital workflows and develop automated decision support systems In addition, and most notably, process automation is applied to disintermediate through self-serve, whether for financial management, travel and event booking, online shopping, B2B procurement and even customised manufacturing and design The improvement of process here not only reduces the waste in the system but also allows improved service by passing ownership of knowledge to users to make a more informed choice 20.4 Conclusion All through this book, the keyword has been “disruption” It means something that interferes and disturbs a preexisting condition, and by extension it also infers that it is unanticipated To some extent, it is fair to say that the environment in which present day changes happen is best described by VUCA (volatility, uncertainty, complexity and ambiguity) (Mack & Khare, 2016) Unpredictably situations can change rapidly resulting in the obsolescence of existing models (Mack & Khare, 2016) Unfortunately, there are no new models either that can replace the existing models As such the way to address the situation is also not anticipated or given, we are in a new era where the rules are being written while the game is in play We therefore have little choice but to return to “first principles” to determine our approach and to not abandon our current business logic, but to use it mindfully, always aware that it 314 B Stewart et al may be imperfect and must undergo challenges to be reset, refreshed and reshaped to address an environment for which it was never designed and one where only expost review will allow success to be conferred Disruptions emphasise the need for agility Success will be defined by how fast one can recover from disruptions, indeed business sustainability will depend on it References Anderson, C (2013) The long tail Amsterdam: Nieuw Amsterdam Asay, M (2014) The internet of things will need millions of developers by 2020 ReadWrite Available from http://readwrite.com/2014/06/27/internet-of-things-developers-jobs-opportunity/ (accessed June 8, 2016) Baheti, R., & Gill, H (2011) Cyber-physical systems The Impact of Control Technology, 12, 161–166 Available from http://ieeecss.org/sites/ieeecss.org/files/documents/IoCT-Part302CyberphysicalSystems.pdf (accessed April 24, 2016) Collins, E (2012) Library usage and dropping out Library Impact Data Project Available from 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Business essentials Gartner Available from http://www.iab.fi/media/tutkimus-matskut/gartner_big_data_strategy_components.pdf (accessed June 6, 2016) Lewis, M (2004) Moneyball: The art of winning an unfair game New York: W W Norton Mack, O., & Khare, A (2016) Perspectives on a VUCA World In Managing in a VUCA World (pp 3–19) Springer International Publishing Masnick, M (2012) Why netflix never implemented the algorithm that won the Netflix $1 million challenge from the times-change dept Innovation TechDirt Available from https://www.techdirt.com/blog/innovation/articles/20120409/03412518422/why-netflix-never-implementedalgorithm-that-won-netflix-1-million-challenge.shtml (accessed June 6, 2016) Muoio, D (2015) Elon Musk just announced a new artificial intelligence research company Tech Insider Available from http://www.techinsider.io/elon-musk-just-announced-a-new-artificialintelligence-research-company-2015-12 (accessed June 10, 2016) Ponemon Institute (2014) 2014 global report on the 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(2013) DIGCOMP: A framework for developing and understanding digital competence in Europe Available from http://omk-obrazovanje.gov.rs/wpcontent/uploads/2015/02/A-Framework-for-Digital-Competence-in-Europe.pdf (accessed April 24, 2016) Schwanbel, D (2012) How recruiters use social networks to make hiring decisions now The TIME—Business: Career Strategies Available from http://business.time.com/2012/07/09/ how-recruiters-use-social-networks-to-make-hiring-decisions-now/ (accessed June 10, 2016) Singh, I., Al-Mutawaly, N., & Wanyama, T (2015) Teaching network technologies that support industry 4.0 Proceedings of the Canadian Engineering Education Association Skatova, A., Johal, J., Houghton, R., Mortier, R., Bhandari, N., Lodge, T., et al (2013) Perceived risks of personal data sharing Proceedings of the Digital Economy: Open Digital Available from http://mor1.github.io/publications/pdf/de13-dataware.pdf (accessed April 24, 2016) Steinberg, L (2015) Changing the game: The rise of sports analytics Forbes—SportsMoney Available from http://www.forbes.com/sites/leighsteinberg/2015/08/18/changing-the-gamethe-rise-of-sports-analytics/#4182f09e31b2 (accessed June 7, 2016) Symantec (2013) 2013 Norton report Symantec Available from https://www.symantec.com/ Content/En/Us/About/Presskits/B-Norton-Report-2013-Singapore.Pdf (accessed June 5, 2016) The Economist (2016) Sliver-screen playbook (Print ed.) New York: Hollywood Available from http://www.economist.com/news/business/21693594-how-make-hit-film-silver-screenplaybook (accessed June 9, 2016) Winnefeld, P A S., Jr., Kirchhoff, C., & Upton, D M (2015) Cybersecurity’s human factor: Lessons from the Pentagon Harvard Business Review, 93(9), 87–95 Available from https://hbr.org/2015/09/ cybersecuritys-human-factor-lessons-from-the-pentagon (accessed June 4, 2016) Index A ABS See Anti-block system (ABS) Academic dishonesty student motivation, 215 types, 213 Academic honesty, 212 Airbnb, 130 Amazon business model, elements, 96–97 characteristics, 96 customer centricity, 97–99 customer equity, 97–99 e-commerce, 96 financial performance indicators, 97, 98 price discrimination, 100–102 Trust, 97–99 unique selling proposition, 98, 99 Anti-block system (ABS), 140 Arctic Climate Change Emerging Leaders Fellowship (ACCEL), 293 Artificial Intelligence (AI), 229–230 Associate-based consulting, 259 Association to Advance Collegiate Schools of Business (AACSB), 214 Athabasca University (AU), 224, 225 Augmented reality (AR), 231 Automotive industry, 138–149 car manufacturers, 110–111 cybersecurity, 115 disruptive technological innovation (see Disruptive innovation) electrical innovation (see Electrical innovations) vogue car-sharing offerings, 115 Autonomous driving cloud computing, 143 B Base-level category, 41, 42, 47, 48 Battery concept, 139 Battery electric vehicles (BEV), 139 BiBo system, 132 Big Data, 94, 102 and advanced analytics, 309–311 changed market and customer environment, 58 competitive factor, 69 CRM, 67 IoT, 57 Blockchain technology, 122 Blood diagnostic test, 179 Browsing-based pricing, 95 Business management occupations, 273 Business models, 282 academic researchers, 12 consulting companies, 12 digital and computer technology, 107–108 ICT, 72 metal 3D printing company, 167 platform concepts, 77 tractor manufacturer, 169, 170 Business performance See Social media Business school programmes, 216 Business strategy, 311 © Springer International Publishing Switzerland 2017 A Khare et al (eds.), Phantom Ex Machina, DOI 10.1007/978-3-319-44468-0 www.ebook3000.com 317 318 C CAD See Computer-aided design (CAD) Car manufacturers autonomous driving, 110 BMW, 113 electric mobility, 112 on-demand mobility, 110 Porsche, 113 supercharger stations, 113 Tesla, 112, 114 Car sharing, 130 Center for American Progress (CAP), 290 Cheat sites, 213 Check-in check-out (CICO), 132 Clean factories, 282 Cloud computing, 229 COL See Commonwealth of Learning (COL) Collaborative assessments, 219 Commodity trap, 88 Commonwealth of Learning (COL), 208 Communication, 44–47 cultural (see Cultural communication patterns) direct and indirect, 267 email, 273 embodiment, 40 indirect, 267 industrial revolution, 38 interdisciplinary and multidisciplinary, 39 interpretation, 273 language, 49 languages, 46 making sense, 42 management skills, 272 mechanistic approach, 38 motives (see Motivation) online, 273 online and offline workplace, 267 online/distributed teams, 267 online/non-face-to-face form, 267 product development, 39 specialization of disciplines, 38 survey results, 274 synchrony, 42, 43 team cooperation, 43, 44 transactional leadership/human-oriented leadership, 272 virtual environments and teams, 268 Communication channels, 123 Communication functionality, 245 Communication networks VT, 239–240 Competitive-based pricing, 94 Competitiveness, 202–203, 206 Index Computer anxiety, 125 Computer-aided design (CAD), 164 Connected car, 141–142 Connected mobility, 121 Cooperation cultural compatibility, 38 human and nonhuman, 43 interdisciplinary communication, 39 Cost of ownership, 150–154 Cost of usership, 150, 154 CPS See Cyber-physical systems (CPS) CRM See Customer relationship management (CRM) Cultural communication patterns motivation, 47–48 traditional cultures, 47 Cultural influences characteristics, 271 definition, 270 face-to-face meetings, 271 globalization, 270 implement policies and practices, 271 language barriers, 275 language problems, 270 location, 275 offline and online alike, 270 popularity, VT grows, 270 research, 271 spatial and temporal dispersions, 275 time zone, 275 time zones, 270, 271, 275 virtual and traditional, 274 virtual communication, 270 virtual environments, 270 VT, 275 Customer centricity, 97–99 Customer engagement social media, 28–29 Starbucks, 29 Customer life cycle, 55, 56 Customer relationship management (CRM), 63–65, 144 automotive sector, 60 behavior, 61 challenges, 54 company-to-customer perspective, 57 customer feedback big data and central customer, 64, 65 marketing decision-makers, 63 satisfaction information, 64 customer life cycle, 56, 57 customer-to-company perspective, 57 data, 61 data generation process, 60 319 Index data management, 58 digital business model, 67–69 digitizing products, 60 disruptive technologies, 62 experience, 62–63 IoT, 55 omnichannel, 59 online/mobile environment, 57 requirements, 54, 65–66 retention rate, 67 SEO, 55 service, 61 technology and cultural change, 61 value chain, 56, 57 Customer value management, 62, 69 Customer-centred barriers advertising, 10 customer loyalty, 10, 11 switching costs, 10 Customer-centric business model, 68 Customers of mobility BRIC markets, 145 digitalization, 147 modes of drive, 146 triad markets, 144 Customer-specific information, 99 Cybercrime, 306 Cyber-physical systems (CPS), 81, 312 Cybersecurity, 306–308 D Data analytics, 309–311 Data collection and survey design, 271 Degree of skepticism, 225 Democratized knowledge, 254 Demographically based pricing, 95 Demographics, 201 Desktop revolution, Device-based pricing, 95 DIE See Digitisation impact evaluation (DIE) DIGICOMP framework, 302–303 Digital age think tanks, 289–291 Digital associate-based consulting, 259 Digital business disruption, 260–261 Digital business model CRM, 67–69 Digital disruptions, 94–96, 224, 282 adapting, 300 advanced analytics, 309–311 Big Data, 309–311 bottom-up analysis, communication, 300 computer-driven evolutions, conceptual framework, 12–20 digital technology, 300 dynamic pricing (see Dynamic pricing) elements of business, 300, 301 evidence-based verification, evolutionary impact, 224 expanding, 225–226 experience, 300 firm-based structure, generational development of distance education technology, 223 graduate management online education (see Online management education) ICT, 72 IoT, 311–313 issues and risks, 300–309 pricing strategies, 88–89 principle of business, 300 and virtual think tanks (see Think tanks) Digital economy price models, 89–96 Digital entrepreneurialism, 254–255 Digital plagiarism, 214 Digital platforms, 252 Digital risks and issues accessibility, 302–303 competence, 302–303 cybersecurity, 306–308 Human Comprehension and Ability to Act, 301–302 personal information, 305–306 senior leadership, 308–309 socioeconomics, 303–305 Digital transformation, 183 (see Digitization) Digital trends and disruptions, education academic dishonesty, 213 cheat sites, 213 course-helping/tutoring sites, 213 definition of cheating, 213 digital plagiarism, 214 flexible online courses, 213 instant text messages, 213 online courses, 214 online resources, 213 traditional cheating, 214 Digital world living, 121 Digitalization autonomous driving, 143 connected car, 141–142 definition, 141 development, 143 www.ebook3000.com 320 Digitalization (cont.) ICT, 140 internet of things, 142–143 Digitisation impact evaluation (DIE), 16 Digitization car manufacturers, 110–111 car-2-car communication, 111 cars on demand, 109 data-driven infrastructure, 109 dynamic environment, 108 Industry 4.0, 107 Internet of Things, 107 product-related changes, 111 resource and competence Base, 112 sharing economy, 108 value creation, 112 Web 2.0, 107 Diglectrification, 137 cost of ownership, 150 cost of usership, 150 customer-focused strategies, 151–153 mitigation technologies, 153, 156 OEMs, 155 open and discrete innovation approaches, 149–150 societal strategies and measures, 153, 155 strategies and measurement, 148, 149 Direct communication, 267 Discrete innovation approaches, 149–150 Disruption assessment matrix (DAM) actions and behaviours, 16 additional strategic and competitive analyses, 20 DIE, 16 digitisation impact evaluation, 18–19 open-ended analysis framework, 16 organisational disruption, 14 Disruption assessment model, 14, 16 DAM (see Disruption assessment matrix (DAM)) DIE (see Digitisation impact evaluation (DIE)) Disruptive innovations, 138 customer requirements, 144–145 digital disruption (see Digitalization) electrification, 139–140 societal and political requirements, 145–149 Disruptive technology, 123–126 characteristics, 128 in mobility (see Mobility) TAM, 123–126 Disruptor, 260–261 Index Distance education technology first generation, 224 generational development, 223 Distance-based pricing, 95 Driving assistance systems, 140 Dynamic merchandising, 95 Dynamic pricing age-old practice, price discrimination, 94 algorithms, 94 at Amazon, 96–102 browsing-based pricing, 95 competitive-based pricing, 94 customer accounts, 94 demographically based pricing, 95 device-based pricing, 95 distance-based pricing, 95 dynamic merchandising, 95 Internet era Amazon, 95 managers, 94 online businesses, 95 past-behavior pricing, 95 personalized prices, 94 public criticism, 95 time-based pricing, 94 value of the customer, 95 variation of prices over time, 94 E E-cheating, 215–216 academic dishonesty, 212 academic matter, 214 business school programmes, 216 business students, 214 cheat sites, 213 collaborative assessments, 219 definition, 213 in higher education, 212 interactive assessments, 218–219 measure, 216, 217 motivation to cheat, 215 opportunity, 213, 215–216 opportunity reduction, 217 real-life assessments, 219–220 reducing time frame, 218 student violation, academic integrity, 212 types, 213 unique course-specific assignment assessments, 218 Echo chambers, 288 EcoScholars network, 291 Education changing, student expectations, 202 competitiveness, 202–203, 206 321 Index complexity, 201–202 costs, 202–203 demography, 201 innovation, 203, 206–208 internationalization, 203 operating institutions, 199 revolution, 200 technological developments, 203–206 transformation, 199 transformative role, 200 e-Health Apple, 178 blood diagnostic test, 179 body temperature, 181 digital healthcare market, 182 ear infections, 180–181 Google, 178 health tracker, 181 heart’s health monitoring, 179 incompatible and disparate systems, 178 medical records, 180 medication plan, 179–180 non-existing interfaces between systems, 178 patient-centered healthcare market, 183 pharma, 182 smartphone, 180 stakeholders, 178 telehealth, 181 Electrical innovations See Disruptive innovations Electrification battery concept, 139 BEV, 139 definition, 139 driving assistance systems, 140 fuel-cell concept, 140 Electronic journal databases, 213 Electronic stability program (ESP), 140 Embodiment base-level categories, 41, 42 cognition, 40, 41 cognitive categories, 42 misunderstandings, 41 Emerging Leaders in Environmental and Energy Policy (ELEEP) Community, 292–293 Emotionalization, 148, 151 Employee involvement Igloo internal social platform, 28 Innovation Café, 27 SAP’s, 28 social media, 27 Enterprise-wide social media Marks and Spencer, 33 Motorola’s, 33 organisations, 32 Tripcentral’s, 33 vanity metrics, 32 ESP See Electronic stability program (ESP) E-ticketing, 132–133 E-ticketing system at public passenger transport, 132–133 F Finnish telecommunications company, 90 First-order disruptions, 13 Free calls (Skype), 91 Free cloud-based storage (Dropbox), 91, 92 Free music (Spotify), 91 Freemium, 89 advantages, 91 company’s goodwill, 92 conversion rate, 92 customer behavior, 92 free and premium, 91 internet services, 91 online music, 91 user-friendliness, 91 venture capitalists, 91 Fuel-cell concept, 140 G Game changer, 139 Gamification, 205 General Abonnement (GA), 93 Geographic connectivity, 286 German Rail (DB), 90 Global pollution, 121 Global snapshot of digital statistics, 241 Globalization, 288 Gottlieb Duttweiler Institute (GDI), 126, 127 Governance, 282, 290 Growing energy costs, 122 H Healthcare market, 177 challenges, 176, 177 cybersecurity, 183 e-Health market (see e-Health) smartphones and internet access, 177 trends and stakeholders, 176 Healthcare service, 183 The Honest Company, 93 Human Comprehension and Ability to Act, 301–302 www.ebook3000.com 322 I ICT See Information and communication technologies (ICT) ICT innovation, 288 Indirect communication, 267, 268 Industry 4.0 (I4.0), 80, 313 application, 81–82 platform concepts, 82–83 vs IoT, 80–81 Industry disruption customer-centred barriers, 10–11 low complexity industries, 7, printing and publishing industry, soft barriers, 11–12 structural barriers, 9–10 well-established industry, Information and communication technologies (ICT), 72, 140 Innovation COL, 208 EcoScholars, 291 ICT, 288 nano-certification, 208 stages, 206, 207 web and social media channels, 290 Innovation Café, 27 Intelligence Unleashed: An Argument for AI in Education, 230 Interactive assessments, 218–219 Interdisciplinary teams, 39, 46, 48, 49 Intermodality, 121 Internal communications, 241 International Crisis Group (ICG), 290 International Institute for Sustainable Development (IISD), 290 International Policy Coordination and diplomacy, 286–287 Internationalization, 203 Internet of Everything (IoE), 228–229, 232 Internet of Things (IoT), 142, 143, 227–228, 311–313 application, 81–82 game changer, 55 vs Industry 4.0, 80–81 mobility, 122 platform concepts, 82–83 IT/digital strategy, 311 K Knowledge Doubling Curve, 205 Index L Leadership central role in inspiring and supporting knowledge sharing behaviours, 273 characteristics or skills, 265 communication skills and techniques, 265 definition, 265 effective, 273 exchange, 266 individual level, 265 Internet, 265 management of professional employees, 266 managerial skills, 266 managing team dynamics, 265 methods and skills, 265 online vs offline communication, 266 organizational level, 266 organizational space, 273 PMLC, 265 senior, 308–309 survey results, 274 team level, 266 transactional, 272 transactional and transformational, 266 transformational, 266, 272 Learning assessment, 212 academic honesty, 212 digital trends and disruptions, education, 213–214 E-cheating (see E-cheating) higher education, 211 motivation to cheat, 215 online publications, 212 opportunity, 215–216 Learning management systems (LMS), 226 Library impact data project (LIDP), 310 Low-emission vehicle, 138 Low-politics issues, 288 Lyft, 129 M Management consulting advisory service contract, 251 associate-based consulting, 259 borderless competition and connectivity, 258 client sophistication, 257 commoditization, 257 democratized knowledge, 254 democratized technology, 258 digital associate-based consulting, 259 digital entrepreneurialism, 254–255 disruptor, 260–261 323 Index industry, 252 MCFs, 252, 253 modular offerings, 255–256 Peer-to-Peer Consulting, 260 productization, 256 productized expertise, 259–260 self-sufficiency, 254 transparency, 256–257 Management consulting firms (MCFs), 252–259, 261, 262 Map of disruption, 126–128 Marketing Science Institute (MSI), 28 Mechanical engineering, 82, 83 Mechanistic approach, 38 Metal 3D printing company, 167–171 prototypes, 166 tractor manufacturing (see Tractor manufacturing company) value delivery, 167 value network, 168 Micro-policies, 288 Mobility Airbnb, 130 automotive, 109 blockchain technology, 122 business, 128 car sharing, 130 challenges, 123 changing communication channels, 123 competition, 123 connected, 121 demographic trends, 120 electric, 112 E-ticketing system at public passenger transport, 132–133 global pollution, 121 growing energy costs, 122 IoT, 122 living in digital world, 121 Lyft, 129 map of disruption, 126–128 on-demand, 110 public transport, 122 rethinking ownership, 121 rural depopulation, 121 security issues, 122 self-driving cars, 130–131 states and municipalities, 122 suppliers of mobility solutions, 122 TAM, 123–126 Tesla/electric cars, 131–132 Uber, 129 western world, 120 Motivation, 44, 45 communication advantage, 45 cognitive processes, 44 evolutionary biology, 45 preverbal, 45 cultural patterns, 47–48 Motivation to cheat, 215 MSI See Marketing Science Institute (MSI) MSPs See Multisided platforms (MSPs) Multisided platforms (MSPs), 75, 76 N National Platform for Electric Mobility (NPE), 145 Near-field control (NFC), 132 Netflix, 93 Netflix Prize, 310 Non-digital world, 93 NPE See National Platform for Electric Mobility (NPE) O OEMs diglectrification, 155 Omnichannel management, 59 One-to-one pricing, 89, 101, 102 Online communities, 241 Online food service, 93 Online management education, 225–226 advantages, 225 AU, 224, 225 degree of skepticism, 225 expanding digital disruptions accessible library resources and databases, 225–226 audio and video materials, 225 face-to-face coaching, 225 growth of personal desktop and portable and laptop computers, 225 internet access, 226 LMS, 226 tutorial, 225 OU, 224, 225 social media, 226–227 Web 2.0, 226–227 Web 3.0, 227–231 Online publications, 212 Open University (OU), 224, 225 Open-innovation approaches, 149 Opportunities to cheat, 215–216 www.ebook3000.com 324 Optimal pricing definition, 88 Original equipment manufacturers (OEMs) car-sharing market, 108 Overseas Development Institute (ODI), 291 P Participative pricing mechanisms, 89 Past-behavior pricing, 95 Pattern language context-specific problems, 48 interdisciplinary teams, 48 meta-patterns, 46 perception and action patterns, 49 Peer-to-Peer Consulting, 260 Perceived ease of use (PEU), 125 Perceived enjoyment (computer playfulness), 125 Perceived usefulness (PU), 125 Personal information, 305–306 Pharma, 177, 182 Platform concepts business model, 77 definition, 74 Industry 4.0, 82–83 integrated firms, 72–74 intermediary, 73 IoT, 82–83 marketplaces, 73 MSPs, 75, 76 Policy, 285–286 Policy community connectivity, 286 Policy institutes, 282 Policy-making, 285–286 Policy-making process, 284, 286, 290 direct access, 283 Policy-relevant research organizations See Think tanks Polity, 285–286 Price discrimination at Amazon customer perspective, 101–102 research, 100–101 Price management, 124 Price models, digital economy, 90, 91, 94–96 corporate environment, 89 digital age and customer, 95, 96 dynamic pricing (see Dynamic pricing) for free, 90–91 advantages, 91 behavioral economics, 90 BlaBlaCar, 90 cross-finance, 91 description, 90 Index Finnish telecommunications company, 90 German Rail (DB), 90 life cycle of product, 90 product free of charge in market, 90 search engine, 90 WhatsApp, 90 freemium, 91–92 freemium model, 89 one-to-one pricing, 89 product/services, 89 subscriptions model, 92–93 Pricing strategies and positioning, 88 businesses and markets, 88 consumers’ perceptions, 88 consumers’ willingness, 88 corporate environment, 89 customer loyalty and customer relationship management, 88 factors, 88 optimal pricing, 88 participative pricing mechanisms, 89 pricing models, 89 sellers profits, 88 Prime membership, 98 Product development and design, 29–30 Banana Republic’s marketing, 30 Dell’s, 30 NASA’s, 30 Productized expertise, 259–260 Project management environment social software, 239 Project Management Life Cycle (PMLC), 265, 269 Project’s supplier network communication networks, 239–240 communication tools, 239 decision-making process, 238 global supply chains, 238 growth of technology, 239 information flow, 238 internet services, 239 inter-project learning practices, 238 knowledge transfer, 238 project-driven environments, 238 social media, 239–241 social networks, 239, 241–244 social software, 239 Project-based organisations, 238 Project-driven environments, 238 Project-driven organisations, 237 Public passenger transport E-ticketing system, 132–133 325 Index Q Qualitative research method, 166 R Real-life assessments, 219–220 Reducing time frame, assessments, 218 Rural depopulation, 121 S SAP’s, 28 Second-generation distance education (DE) model variations, 224 Second-hand dealers in ideas, 282 Second-order disruptions, 13 Security issues, 122 Self-driving cars, 130–131 Self-sufficiency, 254 semi-structured interview procedure, 166 Senior leadership, 308–309 Sharing economy, 129 Simplexity, 127 Social capital store, 243 Social communication, 244, 246–247 Social CRM, 60, 61, 67 Social media bubbles, 288 channels and platforms, 290 customer engagement, 28–29 employee involvement, 27–28 enterprise, 26 enterprise-wide social media, 32–33 planning process, 34 platforms, 282 product development and design, 29–30 SAP’s, 28 SCM, 31 VT, 240–241 and Web 2.0, 226–227 and worldwide web, 289 Social network medium, 238 Social networks, 241–244 and VT effectiveness and efficiency, 241 forms of communication, 242 global snapshot of digital statistics, 241 internal communications, 241 organisational department, 241 organisational structures, 241 production orientation to networked structure, 241 project-driven environments, 241 SoSo, 241–244 web portal promotes, 241 Social software (SoSo) characteristics and expertise, 243 communication process, 242 definition, 242 members of collaborative community, 243 members of community/project, 243 project/program support employees, 244 shared learning, 243 social capital store, 243 types, 242 uptake, 242 VT, 242 Socially orientated growth, VT communication functionality, 245 conceptual framework, 244 conceptual model, 244 culture, 245 resources, 246 technology, 245–246 Socioeconomic considerations, 303–305 Statecraft, 285–286 Structural barriers capital, control of resources, government regulation and legislation, 10 operating scale, Subscriptions model, 92–93 Supply chain management (SCM) collaboration, 31 Dairy Queen’s supply chain, 32 data mining, 31 data sharing, 31 General Electric, 32 Ikea, 31 Survey design and data collection, 271 T Team dynamics communication methods, 269 cultural backgrounds, 269 forming, 268 life cycle of project, 268 norming, 268 online teams, 269 performing, 268, 269 PMLC, 269 stage of development, 274 stages of team development, 268 storming, 268 team development in offline setting, 269 www.ebook3000.com 326 Team dynamics (cont.) trust building, 274 Tuckman’s team development model, 269 VT, 269 VT members, 269 Technology collaborative technologies, 205 gamification and virtual reality, 205 Internet of Things, 204 machine learning and artificial intelligence, 204 mobile and integrated devices, 204 predictive analytics, 204 social media, 205 Technology acceptance model (TAM) adoption of disruptive innovations, 124 computer anxiety, 125 different rates, 123 diverse risks, 126 ease of use, 126 IT system, 124 market environment, 124 mobility context, 125 objective usability, 125 perceived enjoyment (computer playfulness), 125 PEU, 125 price management, 124 PU, 125 in societies, 124 transaction cost analysis, 124 value, 124 value-generating features, 126 Telehealth, 181 Tesla/electric cars, 131–132 The Wall Street Journal, 94 Think tanks adapting to digital age, 289–291 business models, 282 conflicts of interest, 284 and digital disruptions, 288–289 diplomacy and international policy coordination, 286–287 direct access to policy-making process, 283 discrete functions, 284 ELEEP Community, 292–293 excellent scholarship, 282 framing and narratives in public discourse, 284 function, 283 funding model, 282 global ranking, 283 Google, 282–283 independence, 284 Index logic models, 283 perceived dependencies, 284 policy, 285–286 policy institutes, 282 policy-making, 285–286 polity, 285–286 practice, 284–285 science, 284–285 society, 284–285 sources of funding, 284 statecraft, 285–286 strong science base, 282 Tomes, 282–283 Tweets, 282–283 Virtual Arctic Summer College, 291–292 and vulnerability to disruption, 287 whispers, 282–283 3D printing technology, 166–168 additive manufacturing, 164 automotive industry, 164 business models, 165, 166 CAD, 164 medical instruments, 164 metal (see Metal 3D printing technology) rapid manufacturing, 164 rapid prototyping, 164 space, 164 value expectations, 172 value network, 171 Three Generations of Distance Education Pedagogy, 223 Time-based pricing, 94 Tire-pressure monitoring system (TPMS), 140 TPMS See Tire-pressure monitoring system (TPMS) Tractor manufacturing company business models, 169, 170 internal and external actors, 169 Unlimited Studio, 169, 171 Traditional cheating, 214 Transaction cost analysis, 124 Transdisciplinary methods, 285 Trial policy balloons, 285 Tuckman’s team development model, 269 U Uber, 129 Uberification, 129 Uber-Principle, 129 Unique course-specific assignment assessments, 218 University College London (UCL) Knowledge Lab, 230 327 Index University of Waterloo, 26 US health-care sector, 310 V Value delivery, 165, 169, 171, 173 Value networks, 165, 169, 171 Value of the customer, 95 Venture capitalists, 91 Virtual Arctic Summer College, 291–292 Virtual reality (VR), 231 Virtual team (VT), 239–244 amount of information, 264 communications, 263, 265, 267–268, 272–274 computer-mediated communication technologies, 264 cultural influences, 270–271 culture, 265, 274–275 data collection, 271 digital environment, 263 internet, 264 leadership, 265–267, 272–274 management skills, 264 offline and online team, 264 online versus offline teams, 272 project-driven organisations, 237 project’s supplier network communication networks, 239–240 social media, 240–241 social networks, 241–244 risk management, 238 social network medium, 238 socially orientated growth, 244–246 supply chains, 237, 238 survey design, 271 team dynamics, 265, 268–270, 274 value and performance, 237 Virtual think tanks See Think tanks W Wal-Mart’s products, 99 Web 2.0 components, 227 description, 226 developments, 226 online facilitator/instructor, 227 online graduate teaching, 226 Social Media Technologies to Enhance Online Learning, 227 TED, 227 unpublished paper, 226 Web 3.0 AI, 229–230 AR, 231 characterization, 227 cloud computing, 229 IoE, 228–229 IoT, 227–228 VR, 231 Web search engines, 213 Western world mobility, 120 WhatsApp, 90 Z Zero-emission vehicles, 138 Zero-price offer, 90–91 www.ebook3000.com .. .Phantom Ex Machina Anshuman Khare • Brian Stewart • Rod Schatz Editors Phantom Ex Machina Digital Disruption’s Role in Business Model Transformation www.ebook3000.com... explores the pivotal role that technology plays in creating new dynamics to business operations and forcing business model changes In particular, the operating environment in which businesses function... not-so-obvious disruptions (e.g in the education sector, in services and changing business models) along with some obvious ones (e.g 3D printing and in addressing mobility issues) In short, the digital disruptions