Digital Innovation and the Digital Economy
The emerging Digital Economy and Digital Innovation, presents a series of challenges to established business across the globe. These terms Digital Economy and Digital Innovation are presented under a series of guises, but fundamentally with the adoption of new technology, mobile devices, cloud based services or adoption of technology, the way people use services is changing.
With Digital Innovation the Value/Supply Chain moves to a Demand Value Chain driven by the Customer. This Digital Innovation will not be a gradual adjustment that can be addressed by incremental improvement; this will affect business and theory operations as a customer driven step change on current businesses and their operations.
One of the most extreme disruptions from Digital Innovation is seen within Retail Banking.
New Entrants are becoming established within the Value Chain, Google, Amazon, and Facebook are engaging in payment or account management; taking part of the current well established Banking operations. In addition new partnerships and collaborations are being established, Santander recently has established a partnership with a crowd funder - Funding Circle.
As a response a group of UK banks formed a consortium to build a mobile-payment utility (Paym) within the UK. Vodafone Money Transfer, or M-PESA, is well established in Africa with a 35% CAGR in mobile phones; and provides an integrated solution with the mobile technology provider, and is now entering the European market.
There are a number of trends underpinning this Digital Innovation, as technology becomes increasingly pervasive.
Within the world of Digital Innovation, corporations are expected to be more ‘open’ than ever before, and this presents new types of security threats as more and more sensitive data is exchanged online.
Digital forces reduce transaction costs, value chains disaggregate, however third-party products and service can be quickly integrated into the gaps.
John will be at Web Summit 2014 this year taking part in the People’s Panel discussions.
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