This is a summary of all the lectures of the course "Digital Organisation", lectured in the 3rd bachelor TEW by Professor Alexander Naessens. It is based on the slides used in the lectures and the lecturer's explanation. The guest lecture from KMPG is also included. Version December 2023
Summary Digital Organisation 2023-2024
Introduction
1) Introduction to the course
What is a digital organization? A digital organization implements information systems to realize its
strategic objectives in order to achieve a competitive advantage and create stakeholder value in a
rapidly changing environment
What information technologies are there present today?
- Enterprise Applications (ERP, CRM, SCM)
- E-commerce and M-commerce
- Knowledge Management Systems (KMS)
- Emerging digital solutions (Artificial Intelligence, Cloud, Augmented and Virtual Reality)
- Business Intelligence and Analytics
- Cybersecurity
This course is about why companies use these technologies and the adoption in the production
processes.
The course is divided in three main parts. Digitizing organizations is an architectural exercise with
following building blocks:
1) Technology
2) Organization: How can we make sure that they will eventually be used in the way they are
intended to be used.
3) Management: We hope that the technologies will make it a lot easier for companies to make
decisions. It is up to the management to decide which technologies they want, how much they
want to spend etc.
Implementing information systems and technology alone does not deliver a competitive advantage.
There are different strategies do gain this advantage:
- Lowest cost
Ex. Ryanair: Main reasons to use an app and website is to be able to offer the lowest price (they can
reduce the costs of loans for people who would normally change the flight for the clients)
- Differentiated product
Ex. Tesla: Technology is used to have a differentiated product. For example, the tablet is the only
way to manage the car (no other cars have this technology)
- Market niche
A small group of people who are targeted by companies, especially for their interest in a particular
service or group E.g. Alpro
Technologies are used in a totally different way then the two above. They are used for example to
help with social media to connect with influencers etc.
- Customer and supplier intimacy
You want to build a good and sustainable relationship and to keep you as a client
Try to make you feel like they know you, and want to help you the best way
Invest a lot of money in AI-algorithms, data collection, …
Ex. Apple, Netflix, …
1
,Companies have three ways to use technologies:
- Supporting the current course
- Driver for fundamental change of the current course or the current business model
Netflix is a good example of this: Netflix started as a DVD-rental company
They stubbed out the DVDs to your home and then you had to send them back to them....
It used to be logistically a lot of work because they had to send and pick everything up, etc.
What it does now, that wasn't always the plan
Technology has actually changed their whole plan
d
- Source of new companies and industries: Building a company around a new technology
It can even destroy existing industries and jobs
We are constantly on the outlook for:
- Technological innovation
- Competitors
- Customers
- Society
- Government
Tripple P
Profit
Planet
People
2) Importance of the course
Main reason to give this course: You will work in a digital organization
There is no such thing anymore as a non-digital organization, it is present in all types of firms:
Non-profit sector, Public sector, Start-ups, Established firms, …
What do you need to do?
Guide your company through their digital transformation as a consultant or as an employee
Business-IT fusion: everyone digital
From purchasing to production and sales
From production operator to CEO
From junior to senior
War for talent
Goal of the course:
- Prepare you to work in a digital organization
- Prepare you to drive digital transformations
- By providing you with digital literacy
- By introducing you to all building blocks of a digital organization
- By giving you as much examples from practice as possible
2
,Chapter 1: Information Systems in Global Business Today
1.1) How are information systems transforming business, and why are they so essential for
running and managing a business today?
Information and technology capital investment
IT capital investment grew from 21% to 33% of all
invested capital between 1999 and 2017
It-investments kept on rising, even when total
investments declined in 2008
It becomes more relevant in the business
world: The number of dollars invested keep on
growing
The effects of these investments are large
1.1.1) Industrial revolutions
The biggest effect of all the investments is an industrial revolution.
We already had 3 industrial revolutions, all because of innovation
in technologies.
We are currently in the middle of the 4th
What makes an industrial revolution possible? There
are 3 ingredients necessary:
- Technological innovation
- Transformation of the ‘way of working’ (impacting management methods, working conditions, job
content, organization of work, etc.)
- Transformation of the ‘way of living’ (impacting customer requirements, lifestyle, society, planet)
Before the 17th century
Everything was done by hand, there was a lot or labor and working needed to make life possible
First industrial revolution (1784 – 1870)
- Steam power, mechanization, weaving loom
- Factories with machines
- Urbanization
- Increase in productivity
- Gas lighting (producing when it’s dark): Makes it possible to work 24/7, even if it is dark
- Hard working conditions (area of the musical Daens)
- Pollution was born
3
, Second industrial revolution (1870 – 1969)
- Electricity
- Production lines: Invented by Ford, to make standardization possible
- Mass production (standardization)
- Taylorism (scientific management)
- Railroads: Allowed worldwide trade and consumption of exotic food
- Global sales
- Human robots: Repetitive work
Third industrial revolution (1969-2011)
- Automation (robotics)
- Digitalization (computers, internet)
- Lean management (self-steering teams, job autonomy)
- Reduction of manual work (new skills)
- Improved ergonomics
- Globalization & e-commerce (competition for job, resources, ideas)
- Offshore production (drastic reduction of costs of operating and transacting on global scale)
This innovation introduced a totally new way of working
Fourth industrial revolution (2011 - …): This is the revolution that is happening right now. It includes
the integration of numerous technologies and innovations: Iot, big data, AI and machine learning,
cloud computing, blockchain, 5G, cybersecurity, autonomous robots, digital twins, simulations, …
- Internet of Things, Artificial Intelligence, Augmented and Virtual Reality, Cloud, … : These
technologies will be discussed later on in the course
- Cyber-physical production systems
- Human-centric
- Personalization
- Servitization
- Resilience
- Sustainability & transparency
d
Five big changes in Management information systems
1. It innovations
A really important one is Internet of Things: Sensors make it really easy for people to detect things in
electrical devices. These sensors are connected with the internet
Operators (humans) can be supported by all these sensors and information from the past, stored and
controlled by AI algorithms
Other application: The operator is left out and the product 'talks' to the machines about what to do
with it
Everything happens without the operator and automatically
4
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