Digital Technologies:

Composite Technologies, Session 4

Probal Mojumder

January 2022
 Digital Technologies Taxonomy
Six Technology Categories / Elements
Digital Taxonomy Categories (Taxonomy Elements)

INSTRUMENTATION COMPUTATION COMMUNICATION INTERFACES DATA DIGITAL

MANAGEMENT SECURITY

Information Information Information Interaction Information Assurance

Gathering Processing Dissemination between Storage, Retrieval,
Machines/Humans Preparation,
Analysis

First Order Capabilities

8:42 AM 2
Second Order Capabilities result from richer digital
representation of the real world
• Information richness dimensions • Resulting capabilities for business

1. Information Scope Increase

2. Precision/Granularity of Information
1. Decision Making
3. Increased information shelf-life
(retention) 2. Decision Execution
• Automation
4. Real Time / Near-Real Time Information
• Augmentation
5. Greater Information Processing /
Cognition
6. Predictive Capabilities based on
Information

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Higher Order Capabilities - Overview

• Context of Higher order capabilities • Line of sight to business outcomes

• Decision Making & Decision Execution Contexts
• Business Processes:
• CRM, SCM, Product Development, HRM, etc. 1. Enhanced Cashflows
• Industry Domains 2. Accelerated Cashflows
• Autonomous Vehicles, Bio-technology, Inventory
Management, Manufacturing, etc. 3. Reduced Risk / Volatility of
• Intermediate / Process Objectives Cashflows
• Turn-around-time, reduced attrition, asset utilization
Composite
Technologies
1. Artificial Intelligence (AI)
2. The Internet of Things (IoT)
3. Blockchain
4. Others

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IoT Definitions[1]
IoT Thing/Object:
• With regard to the Internet of things, this is an object of the physical world
(physical things) or the information world (virtual things), which is capable of
being identified and integrated into communication networks.

IoT Device:
• With regard to the Internet of things, this is a piece of equipment with the
mandatory capabilities of communication and the optional capabilities of
sensing, actuation, data capture, data storage and data processing.

Internet of things (IoT):

• A global infrastructure for the information society, enabling advanced
services by interconnecting (physical and virtual) things based on existing and
evolving interoperable information and communication technologies

[1] ITU, “Overview of the Internet of things,”

Landscape of “Things” within Iot

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Anatomy of IoT

Process
• Sound • Sound
• Light • Light
• Computation
• Touch (Pressure, • Space (Location)
Heat, Vibration, etc.) • Communication
• Etc…
• Space (Location) • Data Handling
(Capture, Store,
Sense Process) Respond
(Sensors) (Actuators)
IoT Architecture - A Managerial Abstraction
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IoT Objects are typically special purpose. Their
main function is NOT to general purpose
computation in contrast to typical computers
Commonalities & Differences?
Discussion

This Photo by Unknown Author is licensed under CC BY- This Photo by Unknown Author is licensed under This Photo by Unknown Author is licensed under CC BY-
SA-NC CC BY SA-NC

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Blockchain

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Block Chain Structure and Mechanism
• Blockchain is a decentralized, encrypted ledger
technology with inbuilt security mechanism which makes
the data stored in a blockchain practically tamperproof. FIRST LATEST
BLOCK BLOCK

• The core aspects that underpin the properties of a blockchain PEER A

are, …

Structure: Data stored in blocks with encrypted identification.

PEER B
[Hash, Data, Hash of Parent Block] …

Mechanism:
a. All changes to the data are preserved chronologically PEER C

through cross referencing blocks. …

b. Multiple copies of the chains of data blocks stored in a

…
peer-to-peer (P2P) network of nodes.
c. Any change to the chain requires consensus among the
nodes in the P2P network.

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Advanced details on blockchain - Link
Digital Building Blocks of Blockchain
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New Block Creation

FIRST LATEST LATEST

BLOCK BLOCK BLOCK

PEER A

PEER B
…

PEER C

* Digital Technology Elements …

…
Blockchain Building Blocks (Taxonomy Elements)

• Computation
• Consensus Mechanism
• Transaction Processing
• Communication
• Distributed Network of Nodes
• Data Management
• Distributed Data Storage
• Digital Security
• Cryptography / Hash

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Types of blockchain deployments
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 Frontier of
emerging
technologies

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Challenges with Digital IT
Boutique startups, Threat of
agencies, threat of new New
players getting into digital Entrants
transformation
(Very High)
Several digital services
provides, large IT
companies, boutique
Intensity of Bargaining
startups, agencies
High employee turnover, competition Power of
talent war, low rivalry Suppliers
differentiation of services (High) (Low)
provided, consolidation
happening via M&A Digital IT

Investment is huge and therefore

One can replace a vendor Bargaining buyers have the power and can
Threat of command prices, outcome-based
partner with another one, Power of
Substitutes contracts
technology innovation is Buyers
(High)
rapidly making yesterday’s (High)
technology outdated

Global Investment in Digital Transformation is $1.3 Trillion

Divami Case

• What is design thinking, and why is it gaining prominence in the digital world?
• What were some of the challenges being faced by Paysoft after the launch of its SaaS
product? What were the causes of these challenges?
• Discuss the merits of insourcing and outsourcing of services such as design. What steps
can Divami take to get the buy-in from Gupta?
• What are the benefits and disadvantages of using a third party like Divami ?

• 2.5 marks per question

Goldman Case

• What business was Goldman traditionally in? Why did it want to

enter the consumer business? 2 marks
• What strengths and weaknesses did Goldman’s heritage bring to
Marcus? 2 marks
• What was Marcus’ platform strategy? Describe its people, product
and marketing, and IT strategy to support the overall platform
strategy. 3 marks
• Marcus had the option of growing rapidly with new product
launches or steadying it already successful operations. As a platform
company, what could be the +ves and –ves of each of these
strategies. Which would you recommend and why? 3 marks
Questions & Discussion

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