18-12-2023

TM2147 / 0210220201

Fundamentals of Digital
Business Ecosystem

Unit I – L01
Learning Outcomes
 After today’s lecture the student will be able to
 understand the basic concepts of DBE
 know how are information systems transforming business, and
why are they so essential for running and managing a business
today?
 learn how does DBE work?
 Course Outcomes
 CO1: Demonstrate understanding of the relationship between business
ecosystems and business models

 CO2: Demonstrate the use of business ecosystem modelling tool is being

used by Telecom Service Providers, vendors and system integrators to
develop new business models and ecosystems.

 CO3: Demonstrate understanding of B2B2X Business scenario blueprint for

digital business ecosystem projects

 CO4: Demonstrate understanding of how to define the financial, operational

and contractual relationships between ecosystem stakeholders

 CO5: Explain why Platform business model is so important for many digital
business ecosystems

Towards Engaged Teaching

 Syllabus
 Unit I - Introduction
 Introduction to digital business ecosystem: Definition, need, objective and role of
business ecosystem, Key components of business ecosystem, Complementarity
and Ecosystem Formation, Different stakeholders of digital business ecosystem,
Case study
 Unit II – Digital Infrastructure
 Digital infrastructure: Platforms and ecosystems in action, Server infrastructure,
Network infrastructure, Storage infrastructure, Emerging technologies in IT
infrastructure, Role of telecom network, Case study
 Unit III – Ecosystem Modelling Framework
 Ecosystem modelling framework: Network effects and complementarity, Assets to
support the ecosystem modelling framework, B2B2X business scenario blueprint
– ecosystem modelling framework, Digital ecosystem - digital ecological
approaches, Application Programming Interface API or Micro services, Case
study

Towards Engaged Teaching

 Syllabus
 Unit IV - Data Architecture
 Data Architecture: Data, value and services, Value of data, Power of data
economy, API Data pipeline end to end, Data Lake, Data Monetisation, Meaning
and components of data warehousing, Data architecture, Data Mining:
Introduction to mining - Functionalities, classification of data mining systems,
Data warehouse and OLAP for mining, Types of information from mining and
application areas, Case study
 Unit V – Digital Marketing
 Digital Marketing: Concept of digital publicity platforms, Social media in
interpersonal communication, importance of interpersonal communication,
Facebook - Tools and activities, Twitter - Tools and activities, LinkedIn - Tools
and activities, E-Mail Marketing - Tools and activities, Case study
 Unit VI – Ecosystem Governance
 Ecosystem Governance: Ecosystem Governance, Partnering guide defining the
relationships between ecosystem stakeholders, Case study

Towards Engaged Learning

 Syllabus
 Unit VII - Applications of digital business ecosystem
 Applications of digital business ecosystem: Digital business ecosystem today,
Banking, Insurance, Airline, Hotels and Education, Automotive, Healthcare,
Retail, BFSI combine banking, insurance fintech and Digital industry, Application
in Manufacturing: Finance, HR, Material and Marketing, Case study
 Unit VIII - Securing Ecosystem
 Definition, secrecy and confidentiality - Accuracy, integrity and authenticity, Role
and types of computer crime, Malicious software, Introduction to security
information system, Security challenges and vulnerabilities, Corporate firewalls,
Encryption, Cyber Laws Section 72A, 66B, Sec. 65, 45j, etc., Data privacy, Zero
trust Framework, Case study

Towards Engaged Learning

 Basic Details (TM2147)
 Crédits: 2

 Course Weightage
 CA: 20 External: 30

 Course Components
 Theory 22 Sessions
 Expérientiel Learning 8 Sessions

Towards Engaged Teaching

 Books
 Text Books:
 Management Information System, Managing the Digital Firm
 15th Edition
 9789352865475
 By C. Laudon Kenneth (Author), P. Laudon Jane (Author)
 © 2018 | Published: 10 January 2018

 References:
 Management Information System
 6th Edition
 By Waman S Jawadekar
 Tata McGraw-Hill Education
 1259081613, 9781259081613

Towards Engaged Teaching

CA 1 Assignment
 To check learning level of students driven by application of MIS.

 One page writeup / summary of a movie

 Allotment Week: 3 Submission Week: 4

 Individual Exercise Max Marks - 10

CA 2 Presentation
 To understand how the MIS is maintained in different offices.

 Group exercise. Each Group will got to different company offices.

 Allotment Week: 6 Submission Week: 7

 Max Marks - 10
 CA 3 Test
 Written Test based on unit 5 and 6

 Allotment Week: 12 Submission Week: 13

 Max Marks - 10

Towards Engaged Learning

 Business Models
 A business model is a
strategic plan of how a
company will make
money.
 The model describes
the way a business will
take its product, offer it
to the market, and drive
sales.

Towards Engaged Learning

 Disruptive Business Models
 Brings a new idea or technology to an existing market.
 Disruptive market entrants usually capture unmet-
demands in the existing market
 Disruptive business models focus on
 creating,
 disintermediating,
 refining,
 reengineering, or
 optimizing
a product/service, role/function/practice, category,
market, sector, or industry.

Towards Engaged Learning

 Disruptive Business Model
(Digital) - Types

Towards Engaged Learning

 Disruptive Business Model -
Types

Towards Engaged Learning

 Freemium Model
 One of the most frequently used business models.
 The consumer receives a product or service free of charge.
 Either only basic functions are offered and for premium functions, no
branding or extension of the services, the customer must then pay.
 This way you can quickly reach a broad customer base, scale your
business into new markets, and generate incomes when converting
customers into paying ones.
 This model is especially applicable for products or services that have low
marginal costs (additional costs per additional customer) or where
marketing and customer information has a higher value than the operating
costs.
 The key for such models is also the conversion.
 You need to find a free solution that is attractive to a customer, but also not
perfectly satisfying, so they are willing to pay for the premium.
 Typical examples: Spotify, LinkedIn, Xing, Canva.com, MailChimp

Towards Engaged Learning

 Subscription Model
 Products and services can usually also be offered as subscriptions.
 An amount that would normally only occur once is split or a new service
is created that is billed periodically.
 The aim is to bind the customer in the long term.
 In contrast to the one-time purchase, the customer benefits from
improvements and extensions of the service.
 Non-divisible products can also be converted into a subscription here.
 Amazon has already provided an example with this system how
products such as detergents, cosmetics, etc. can also be delivered
automatically regularly.
 Subscription is very powerful as this allows you to generate income over
time and grow your company without too much “highs and lows”.
 Typical examples: Amazon, Netflix, Internet Provider

Towards Engaged Learning

 Free Offering
 A model that has gained in popularity, especially through Google.
 For many entrepreneurs, this is also the most incomprehensible
business models, but it has great potential for some services.
 Since such business models usually evaluate customer data for
advertising or personalized offers, it is interesting to use a lot of
information about customers.
 When you are considering only a free service, then you also need
to plan for a long ramp-up phase.
 This means you are investing for a long period of time before you
reach the critical mass of users to have a profitable business.

 Typical examples: Google, Facebook

Towards Engaged Learning

 Marketplace Model
 For some industries, marketplaces already had or have
great disruptive potential.
 The business model used here is usually a digital
marketplace that connects the seller and buyer on a
common platform.
 Money is usually generated via brokerage fees,
commissions, or fixed transaction costs.
 However, it is also possible to use membership fees on
the platform or to generate money through
advertising/premium positioning services.
 Typical examples: Amazon, Alibaba, Uber, eBay

Towards Engaged Learning

 Sharing Economy – Access-over-
Ownership Model – Renting & Leasing
 The sharing economy is referred to as letting.
 Goods or services that can usually only be purchased or
made available to another person for a limited period of
time.
 There is the example of car sharing.
 The car is made available for a certain period of time and a
number of km for another person against payment.
 In general, this can be applied to all products, whether from
private individuals or companies, real estate, or intangible
assets.
 Typical examples: Airbnb, Sharoo, Mobility, Lyft

Towards Engaged Learning

 User Experience Premium
 A premium model that can be easily observed using
Apple.
 A good customer experience adds value to an
exchangeable product.
 The service, the brand, and especially the experience
of the customer are improved and premium prices are
charged.

 Typical examples: Tesla, Apple and Premium-Brands

Towards Engaged Learning

 Pyramid Model
 The model is a typical sales model that has been
available for years.
 Especially due to the easy billing by technical aids,
these pyramid models can be quickly built up and
easily managed.
 It is especially interesting for products with high
margins and which can be easily explained.

 Typical examples: Amazon Affiliate, Microsoft, Dropbox

Towards Engaged Learning

 On-demand Model
 Time is money, that is the structure of this business model.
 The immediate access is sold or also the premium access to
“time”.
 The delivery, the product, or the service can be called up at
a certain point in time.
 Video-on-demand, taxi (over) on-demand, and many other
systems are good examples. Companies or persons goods
or time provide their services for persons without goods and
time but with money.

 Typical examples: Amazon Prime, Uber, Upwork, Cloud

Services

Towards Engaged Learning

 Ecosystem – Create your own
ecosystem
 To bind customers to an ecosystem in the long term through
a “lock-in” process in a service is a dream for every
entrepreneur.
 For example, if you have a mobile phone from Apple or with
Android, you are probably included in this ecosystem.
 You buy the hardware and use software that may only be
compatible with the same system.
 This makes the change difficult and also prevents new
competition from gaining a foothold.

 Typical examples: Apple, Google

Towards Engaged Learning

 What is DBE
 A group of interconnected information
technology resources that can function as a
unit.
 A network of interconnected digital
technologies, platforms, and services that
interact with each other to create value for
businesses and consumers.
 It is composed of various elements such as
 software,
 hardware,
 data, and
 people,
 which work together to facilitate digital
transactions, communication, and collaboration
along various customer journeys.

Towards Engaged Learning

 Digital Business Ecosystem

Towards Engaged Learning

 DBE - Dynamics

Towards Engaged Learning

 DBE - Types

 In House

Towards Engaged Learning

 DBE- Types
 Multi Company Partnership

Towards Engaged Learning

 DBE: Technical Aspects

 MIS provides a foundation to digital

business ecosystem

Towards Engaged Learning

 MIS
 The MIS is defined as a system which provides information support
for decision-making in the organisation.

 The MIS is defined as an integrated system of man and machine for

providing the information to support the operations, the
management and the decision-making function in the organisation.

 The MIS is defined as a system based on the database of the

organisation evolved for the purpose of providing information to the
people in the organisation.

 The MIS is defined as a Computer-based Information System.

Towards Engaged Learning

 What is MIS

Towards Engaged Learning

 MIS - Dimensions

Towards Engaged Learning

 MIS - Components

Software

Data
Hardware

MIS
Components

People Tele
Networks

Procedure

Towards Engaged Learning

 MIS - Objectives

Towards Engaged Learning

 MIS - Functions

Towards Engaged Learning

 Organization System – Types

Towards Engaged Learning

 Organization Information
System - Types

Towards Engaged Learning

 TPS
 Transaction processing systems (TPS) are the basic business systems
that serve the operational level of the organization.
 A transaction processing system is a computerized system that performs
and records the daily routine transactions necessary to conduct business.
Examples are sales order entry, hotel reservation systems, payroll,
employee record keeping, and shipping.

Towards Engaged Learning

 MIS
 Serve the management level of the organization, providing managers with reports
and often online access to the organization’s current performance and historical
records.
 Oriented almost exclusively to internal, not environmental or external, events.
 Serve the functions of planning, controlling, and decision making at the
management level.
 Depend on underlying transaction processing systems for their data.
 Summarize and report on the
company’s basic operations.
 The basic transaction data
from TPS are compressed and
are usually presented in long
reports that are produced on a
regular schedule.

Towards Engaged Learning

 DSS
 Also serve the management level of the organization.
 Help managers make decisions that are unique, rapidly changing, and not easily
specified in advance.
 Use internal information from TPS and MIS, they often bring in information from
external sources, such as current stock prices or product prices of competitors.
 More analytical than other systems. Use a variety of models to analyze data, or
they condense large amounts of data into a form in which they can be analyzed by
decision makers.
 DSS are interactive; the user can
change assumptions, ask new
questions, and include new data.

Towards Engaged Learning

 ESS
 Senior managers use executive support systems (ESS) to help them make
decisions.
 ESS serve the strategic level of the organization. They address nonroutine decisions
requiring judgment, evaluation, and insight because there is no agreed-on procedure
for arriving at a solution.
 ESS are designed to incorporate data about external events, such as new tax laws
or competitors, but they also draw summarized information from internal MIS and
DSS. They filter, compress, and track critical data, displaying the data of greatest
importance to senior managers.
 ESS employ the most advanced
graphics software and can present
graphs and data from many sources.

Towards Engaged Learning

 IS - Relationship

Towards Engaged Learning

 MIS – Other Categories
 Executive Information System (EIS)
 Senior management use an EIS to make decisions that affect the entire
organization. Executives need high-level data with the ability to drill down as
necessary.
 Marketing Information System (MkIS)
 Marketing teams use MkIS to report on the effectiveness of past and current
campaigns and use the lessons learned to plan future campaigns.
 Business Intelligence System (BIS)
 Operations use a BIS to make business decisions based on the collection,
integration, and analysis of the collected data and information. This system is
similar to EIS, but both lower level managers and executives use it.
 Customer Relationship Management System (CRM)
 A CRM system stores key information about customers, including previous sales,
contact information, and sales opportunities. Marketing, customer service, sales,
and business development teams often use CRM.

Towards Engaged Learning

 MIS – Other Categories
 Sales Force Automation System (SFA)
 A specialized component of a CRM system that automates many tasks that a
sales team performs. It can include contact management, lead tracking and
generation, and order management.
 Knowledge Management System (KMS)
 Customer service can use a KM system to answer questions and troubleshoot
problems.
 Financial Accounting System (FAS)
 This MIS is specific to departments dealing with finances and accounting, such as
accounts payable (AP) and accounts receivable (AR).
 Human Resource Management System (HRMS)
 This system tracks employee performance records and payroll data.
 Supply Chain Management System (SCM)
 Manufacturing companies use SCM to track the flow of resources, materials, and
services from purchase until final products are shipped.

Towards Engaged Learning

Pre 1955

Eras of MIS
1955 - 1965

1965 - 1980

1989… birth of www

 DBE - Benefits
 Better prepared for economic change or global issues
 Build customer loyalty with a ‘family’ of products
 Quickly create new revenue streams
 Lower customer acquisition costs

Towards Engaged Learning

 Transformation of Digital
Businesses

Towards Engaged Learning

 Key changes in digital
platforms

Towards Engaged Learning

 Key changes in digital
platforms

Towards Engaged Learning

 Recent Developments
 Artificial Intelligence
 Narrow AI (AI for specific tasks) is now pervasive in many organizations.
Advances in machine learning and deep learning are making narrow AI much
more valuable to all of us. Think instantaneous translation, autonomous
vehicles, robots, digital manufacturing (3D printing), etc. MIS departments must
try to keep up with these advances and decide how narrow AI can be used in
their organizations.
 The Internet of Things (IoT)
 The rapid increase of placing sensors on all objects (animate and inanimate) is
leading to a sense-and-respond environment. MIS employees should perform
the SWOT analysis on IoT for their organizations. A well-publicized example of
IoT is General Electric and its Predix operating system.
 Blockchain
 Financial Technology (FinTech)
 Quantum Computing
 ChatGPT

Towards Engaged Learning