The rise of digital ecosystems m skilton june 11 2014 conected suplychain liverpool v2

Prof. Mark Skilton

Professor of Practice, Information Systems Management

Warwick Business School, UK

[email protected]

The rise of the Digital economy

� Growing 30% of business is shifting online to

search and engage with consumers, markets and

transactions taking account of retail , mobile

and impact on supply channels (1)

� 80% of transport, real estate and hotelier

activity is processed through websites (2)

� over 70% of companies and consumers are

experiencing cyber-privacy challenges (3), (4)

2Prof Mark Skilton Copy right 2014

Physical Economy, Digital Economy

and role of digital ecosystems


Physical

Economy

Digital

Economy

Digital

Ecosystems

Physical markets

Companies, resources

and services that contribute

to GDP and Net worth

The digital ecosystem is a

described boundary of a

market and business activity

that is using connected

technologies to enable a

new kind of market and

business performance and

user experience

Virtual resources and digital

transactions in markets,

Companies, resources and

services that contribute to

GDP and Net worthDigital

Enterprise

Technological Ecosystemsare shaping the supply chains that define the

Digital Enterprise

Rise of Technological Ecosystems


A wide range of Industry and

Technology Domains


Advanced Technology Engineering

Transformation


Technology in the Supply Chain


Open and Proprietary Platforms


Digitization is changing the way we

think about Supply chains


Cost of Road Deaths


Estimated

Economic damage from a

Fatal Road Traffic Incident

£ 1 .8 million per Death

£200k per serious injury

£18 Billion per annum impact on GDP

UK, Department of Transport

1,754 Killed, 5 per day

23,039 Serious injuries, 63 per day

193,969 injuries, 532 per day

2012 in UK

UK, Institute of Advanced Motoring

Technology can make a difference

� Field of Context

� Information in

Context ,

Information in

Process


Funnel Vision

Tunnel Vision

Cost of Health


http://www.bhf.org.uk/heart-health/heart-

statistics.aspx

CHD is the UK’s single biggest Killer

British Heart Foundation

Cardiovascular Heart Disease CHD

“Collectively, heart and circulatory diseases

cause more than a quarter of all deaths in

the UK, accounting for more than 161,000

deaths each year”

Every seven minutes someone dies of a heart attack in the UK

One in three people who have a heart attack die before reaching hospital

CHD is responsible for almost

74,000 deaths in the UK each year,

an average of 200 people each day

80000 deaths in 2009

166000 deaths in 1961

Contextualization really really matters…


CHD is approx 50% less for Females compared to Males

for Cardiovascular disease, Coronary heart disease and Stroke

British Heart Foundationand

But it still the same outcome

£9 billion 2009 CVD cost the UK health care system

64% of this cost was for hospital care,

23% the cost of medication

Economic Impact

Male

5

Female

102010

Technology can make a difference


Wearable Medical monitoring

Alert ! Heart Attack imminent …

illustrative

The Outcome value of a life

These are complex issues – but all

have desirable outcomes we all want

� Technology is just part of the possible solution

� Trends in population growth, increasing scarcity

of resources, cyber threats, constraints in

capacity and demographic and educational skills

availability create increasing long term challenges

� OECD, WEF, Economic and Governmental studies

support these issues

� This is why a holistic, outcome perspective is

needed to address cost effective supply chains


Outcome value on the Economy


Industry Sector Outcome Cost Time to Outcome

Transport Cost of accidents Reaction time

Health care Cost of patient care Equity and equality

of healthcare for all

Energy Cost of Sustainability Food availability and

Planet Weather

cycles

Engineering Cost of product

innovation

Access to creative

potential

Banking Cost of Fraud Corporate cycle

failure

Insurance Cost of failures Preventative time

Consumer Foods Cost of Brand impact Effective brand

growth..

….. ….

Quality of life

More time

Less waste

Better education

New values (health..)

New Jobs..

It’s a phenomena that is interconnected, because digitization changes

physical and virtual boundaries….


Hype curves are a Provider – centric view that promotes income re-occurring charges

and “consulting” fee cycles

A Ecosystem – centric view drives systems, products and services together

Products and services come and go,

“Hype-saurus”

New ideas

Peak ideas

Old ideas

Death of the “Hype cycle” –

welcome the ecosystem era

Connecting the Digital Ecosystem

“a connected

convergence of

technologies in a

market and business

activity that enable

new consumer,

business and market

performance and user

experience”


Creating Digital Workspaces -

Redefinition of Data in the Internet

of things

The meaning of digital existence ..

The Quantified Self & Quantified Life


Towards a connected society


Mobility

va

lue

Social

va

lue

Big data

va

lue

+ +Sensors

va

lue

+Cloud

va

lue

+Machine

Intelligencev

alu

e

+ +T

HE

CO

NT

EX

TU

AL

SE

LF

Industrial Internet

Connected Spaces

Connected workspaces

- objects, bodies, rooms

- Transport, buildings, cities…

Connected industries

- Legislation, interoperability

- Bandwidth, Governance

Technological architecture constructions…

Digital life Digital Society

The rise of Digital Ecosystems


The “Smart Hotel”





Rise of digital ecosystems

� Outcomes thinking - systems, products and

services generativity together.

� The causes and effects of outcomes can be complex

, but contextualizing really really matters..

� Digital workspaces link your Big data (analytics) and

little data (customer experience intimacy) together

enable contextualization towards the desired

outcomes.

� Digital workspaces will define digital supply chains

of the future and your Digital Enterprise outcomes.


New Book Q1 2015


@mskilton

[email protected]