Lecture 1

• Horizontal innovation (new innovations can come on any time for example uber or the effects of mp3 Technology on the music indutry)

• Disruptive power of start-ups and obsolete business models

• Shifting competitive advantages (old powerful industries may loose their power to newer ones)

• threat of new entrants (Bedrohung durch neue Marktteilnehmer)

• bargaining power of buyers (Verhandlungsmacht der Käufer)

• threat of substitute products or services (Bedrohung durch Ersatzprodukte oder -diensleistungen)

• bargaining power of suppliers (Verhandlungsmacht der Lieferanten)

• rivalry among existing competitors (Konkurrenz unter bestehenden Wettbewerbern)

• ‘Data explosion’

• Push (or pull) to engage in digital technologies

• Boom of corporate entrepreneurship

• Data security threats (are a major issue)

• Greater connectedness throughout the industry

• Unexpected spawning of new competitors

• Sharing economy

• Changed modes of social interaction (e.g. smaprthones, poularity if you get followers on social media)

• Altered behavioral patterns (smartphones affect our walking or how we drive)

• Altered brain circuits and functions (some believe it affects our ability to concetrate)

It means that we now have many options to go for if we want to invent smth or if we want to decide what technologies we want to use (Options may be regions, technology or strategie business units)

• industry turbulence (-)

• industry growth (+)

• industry concentration (+)

affect the way digital indunstries transform, they push industries into the digital transformation

• Intersection of digital technologies and entrepreneurship

• Subfield of the research stream on ‘technology entrepreneurship’ (where technology is rather a context factor)

• Simply defined: entrepreneurship based on digital technologies

1. Entrepreneurial outcomes and processes are less bounded

   • Digital artifacts: ‘reprogrammable, recombinable, and open’

   • Digital platforms: generativity of entrepreneurial outcomes (by sharing knowledge new things can be invented)

   • Extreme scalability (it can grow verry quickly)

2. Entrepreneurial agency less pre-defined (can evolve much fast than expected)

   • Contingent on digital technology

   • Distributed entrepreneurial agency (e.g., in open source sector; Mozilla Firefox)

1. Purely digital:

   • All primary activities are digital (i.e., non-physical) Examples: Airbnb, LinkedIn, Facebook, Tinder

2. Clicks-and-Mortar

   • Some primary activities digital, others physical, Example: Amazon

3. Digital spin-offs:

   • Company started with non-digital business (‘bricks-and-mortar’)

   • Diversification by adding a digital business unit (spinoff) Examples: Tchibo, Walmart

Transforming customer experience

• Customer understanding

• Top-line growth

• Customer touch points

Transforming operational processes

• Process digitalized

• Worker enablement

• Performance management

Transforming business models

• Digitally modified businesses

• New digital businesses

• Digital globalization