IMD-OWPLIVE22-PostEvent-Report

→Digital

ACTION POINTS

LEGACY FIRMS NEED TO CONSIDER THREE CRITICAL QUESTIONS:

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What is new about modern data?

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How should you think of digital ecosystems that are tailored to your business needs?

What does a shift of focus from products and industries to data and digital ecosystems mean for your competitive strategy?

RECOMMENDED READING

to pilots to fly in ways that improve fuel efficiencies. Consumption ecosystems, on the other hand, are digital networks built from connected and complementary entities that expand the ways in which a firm’s products are consumed. Imagine smart toothbrushes connected to a network of dentists that track users’ dental health to predict and prevent cavities. Or smart mattresses that shut off lights, music, or televisions just when a user falls asleep.

Production ecosystems are digital networks built using a firm’s value chain infrastructure. Consider the construction- equipment manufacturer Caterpillar. The company tracks data on the wear and tear of its equipment to predict likely component failures and offers predictive maintenance services for new revenue streams. Another example is General Electric, the US conglomerate, which offers “smart value chains” that track sensor data from its jet engines to generate new data-driven services such as providing real-time guidance

Together, production and consumption ecosystems give a legacy firm a range of choices for turning data into a revenue- generating asset.

WHAT IS YOUR SOLUTION? Firms can leverage their existing assets, infrastructure, and traditional strengths to harness the new and explosive power of data and digital ecosystems. Doing so can not only increase operational efficiencies and transform traditional products into digital platforms, but help create entirely new data-driven services. To do so, legacy firms must visualize their digital ecosystems as a combination of production and consumption ecosystems.

THE FUTURE OF COMPETITIVE STRATEGY UNLEASHING THE POWER OF DATA AND

DIGITAL ECOSYSTEMS By Mohan Subramaniam (MIT Press, 16 August, 2022) THE 4 TIERS OF DIGITAL TRANSFORMATION By Mohan Subramaniam (Harvard Business Review, 21 September, 2021) IS YOUR COMPANY SQUANDERING DIGITAL OPPORTUNITIES? By Mohan Subramaniam (Harvard Business Review, 8 August, 2022)

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