the rise of digital ecosystems m skilton june 11 2014 conected suplychain liverpool v2
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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)
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Physical Economy, Digital Economy
and role of digital ecosystems
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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
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A wide range of Industry and
Technology Domains
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Advanced Technology Engineering
Transformation
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Technology in the Supply Chain
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Open and Proprietary Platforms
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Digitization is changing the way we
think about Supply chains
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Cost of Road Deaths
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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
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Funnel Vision
Tunnel Vision
Cost of Health
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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…
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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
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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
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Outcome value on the Economy
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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….
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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”
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Creating Digital Workspaces -
Redefinition of Data in the Internet
of things
The meaning of digital existence ..
The Quantified Self & Quantified Life
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Towards a connected society
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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
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The “Smart Hotel”
The rise of Digital Ecosystems
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The rise of Digital Ecosystems
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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.
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New Book Q1 2015
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@mskilton
M.R.Skilton@warwick.ac.uk
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