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Prof. Mark Skilton
Professor of Practice, Information Systems Management
Warwick Business School, UK
m.r.skilton@warwick.ac.uk
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
3Prof Mark Skilton Copy right 2014
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 Ecosystems
are shaping the supply chains that define the
Digital Enterprise
Rise of Technological Ecosystems
4Prof Mark Skilton Copy right 2014
A wide range of Industry and
Technology Domains
5Prof Mark Skilton Copy right 2014
Advanced Technology Engineering
Transformation
6Prof Mark Skilton Copy right 2014
Technology in the Supply Chain
7Prof Mark Skilton Copy right 2014
Open and Proprietary Platforms
8Prof Mark Skilton Copy right 2014
Digitization is changing the way we
think about Supply chains
9Prof Mark Skilton Copy right 2014
Cost of Road Deaths
10Prof Mark Skilton Copy right 2014
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
11Prof Mark Skilton Copy right 2014
Funnel Vision
Tunnel Vision
Cost of Health
12Prof Mark Skilton Copy right 2014
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…
13Prof Mark Skilton Copy right 2014
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
1020
10
Technology can make a difference
14Prof Mark Skilton Copy right 2014
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
15Prof Mark Skilton Copy right 2014
Outcome value on the Economy
16Prof Mark Skilton Copy right 2014
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….
17Prof Mark Skilton Copy right 2014
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”
18Prof Mark Skilton Copy right 2014
Creating Digital Workspaces -
Redefinition of Data in the Internet
of things
The meaning of digital existence ..
The Quantified Self & Quantified Life
20Prof Mark Skilton Copy right 2014
Towards a connected society
21Prof Mark Skilton Copy right 2014
Mobility
value
Social
value
Big data
value
+ +
Sensors
value
+Cloud
value
+
Machine
Intelligence
value
+ +THECONTEXTUALSELF
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
22Prof Mark Skilton Copy right 2014
The “Smart Hotel”
The rise of Digital Ecosystems
23Prof Mark Skilton Copy right 2014
The rise of Digital Ecosystems
24Prof Mark Skilton Copy right 2014
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.
25Prof Mark Skilton Copy right 2014
New Book Q1 2015
26Prof Mark Skilton Copy right 2014
@mskilton
M.R.Skilton@warwick.ac.uk

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

  • 1. Prof. Mark Skilton Professor of Practice, Information Systems Management Warwick Business School, UK m.r.skilton@warwick.ac.uk
  • 2. 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
  • 3. Physical Economy, Digital Economy and role of digital ecosystems 3Prof Mark Skilton Copy right 2014 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 Ecosystems are shaping the supply chains that define the Digital Enterprise
  • 4. Rise of Technological Ecosystems 4Prof Mark Skilton Copy right 2014
  • 5. A wide range of Industry and Technology Domains 5Prof Mark Skilton Copy right 2014
  • 7. Technology in the Supply Chain 7Prof Mark Skilton Copy right 2014
  • 8. Open and Proprietary Platforms 8Prof Mark Skilton Copy right 2014
  • 9. Digitization is changing the way we think about Supply chains 9Prof Mark Skilton Copy right 2014
  • 10. Cost of Road Deaths 10Prof Mark Skilton Copy right 2014 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
  • 11. Technology can make a difference Field of Context Information in Context , Information in Process 11Prof Mark Skilton Copy right 2014 Funnel Vision Tunnel Vision
  • 12. Cost of Health 12Prof Mark Skilton Copy right 2014 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
  • 13. Contextualization really really matters… 13Prof Mark Skilton Copy right 2014 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 1020 10
  • 14. Technology can make a difference 14Prof Mark Skilton Copy right 2014 Wearable Medical monitoring Alert ! Heart Attack imminent … illustrative The Outcome value of a life
  • 15. 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 15Prof Mark Skilton Copy right 2014
  • 16. Outcome value on the Economy 16Prof Mark Skilton Copy right 2014 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….
  • 17. 17Prof Mark Skilton Copy right 2014 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
  • 18. 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” 18Prof Mark Skilton Copy right 2014
  • 19. Creating Digital Workspaces - Redefinition of Data in the Internet of things The meaning of digital existence ..
  • 20. The Quantified Self & Quantified Life 20Prof Mark Skilton Copy right 2014
  • 21. Towards a connected society 21Prof Mark Skilton Copy right 2014 Mobility value Social value Big data value + + Sensors value +Cloud value + Machine Intelligence value + +THECONTEXTUALSELF 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
  • 22. The rise of Digital Ecosystems 22Prof Mark Skilton Copy right 2014 The “Smart Hotel”
  • 23. The rise of Digital Ecosystems 23Prof Mark Skilton Copy right 2014
  • 24. The rise of Digital Ecosystems 24Prof Mark Skilton Copy right 2014
  • 25. 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. 25Prof Mark Skilton Copy right 2014
  • 26. New Book Q1 2015 26Prof Mark Skilton Copy right 2014 @mskilton M.R.Skilton@warwick.ac.uk