Value Creation in Digital Economy

1. Change of the World
“CHANGES IN PRACTICE ARE EVOLUTIONARY.
CHANGES IN PRINCIPLE ARE REVOLUTIONARY”
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Richard Nolan (HBS)
INDUSTRIALISM => INFORMATIONALISM
Production Economy Digital Economy
- land, labor, capital - technology, knowledge,
networks
Materialism “Mind Age”
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2. Short Economic History of
Mankind
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- Hunting and Gathering 100 000 yrs
- Agrarian Economics 10 000 “
- Industrialism/Production Economics 200 “
- Informationalism/Digital Economics ?
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3. Value Creation in Digital
Economy
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Microsoft
Market Value (-97) USD 120 mrd
Assets USD 10 mrd
Explanation: INTELLECTUAL CAPITAL
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4. Drivers of Digital Economy
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SPEED - Anytime Customer Response
CONNECTIVITY - Online, Interactive
- Anyplace Customer Response
INTANGIBLES - Learning, Knowledge
- Anticipating
- Customizing
- Upgrading
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5. Intellectual Capital
MARKET CAPITAL KNOWLEGDE CAPITAL
- Brands - Patents
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- Customer Base - Copyrights
- Permanent Business - Business Secrets
- Company Name - Know-how
- Business Relationships - Design
HUMAN CAPITAL INFRASTRUCTURE
- Training and learning - Mgt systems
- Knowledge - Company Culture
- Leadership - Networks
- Capabilities - Finance
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6. Human Intensity
Definition:
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“Human Intensity is the ability of companies to
combine large amounts of human qualities such as
insight, imagination, know-how, sensitivity and
passion for excellence, in ways which make a
Value added difference to customers ”
=> COMPANY VALUE
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7. Increasing the Company Value
Mission and
Put the Exciting
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Human Challenges
Center
Stage
AMPLIFY THE
HUMAN
CAPITAL
Effective Investing in
Intelligence Future
Learning and
Leading
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8. Principles for the Development
of a Complete Mind
1. Study the Science of Art
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2. Study the Art of Science
3. Develop your Senses - especially
learn how to see
4. Realize that Everything connects
to Everything else
(Leonardo da Vinci)
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9. The Use of Human Capital
“Unlike Capital, Knowledge is most
valuable when it is controlled and
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used by those on the Front Lines of
the Organisation.”
Bartlett&Ghoshal, HBR 1997
Nordstrom Policy Manual:
“Use your own best judgement at all times.”
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10. Lane Exchange Highway
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Seller
INFO
MONEY
EMOTION
MONEY
EMOTION
INFO
Buyer
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11. Development of the Exchange
From Industrialism to Informationalism
TRADITIONAL TRANSACTIONS NEW TRANSACTIONS
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Seller Buyer Exchange
Value Role CREATE CONSUME BOTH CREATE&CONSUME
Value Received MONEY PRODUCT/SERVICE MONEY/INFO/EMOTION
Communication SENDER RECEIVER INTERACTER
Information IN CONTROL LIMITED ACCESS SHARED ACCESS/CREATION
Time BUSINESS HOURS BUSINESS HOURS CONTINUAL/CONNECTED
Space POINT OF SALE MARKETPLACE CONNECTED ANYWHERE
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