Digitally transforming existing business models is one way to reinvent a business. With competition from rivals, company
Question:
Digitally transforming existing business models is one way to reinvent a business. With competition from rivals, company are creating new avenues for revenues and increasing profitability for shareholders. For example, hotels are using new technologies to provide efficient, effective customer service as well as cost saving measures for the shareholders. Hotels are using smart thermostats and occupancy sensors that can monitor and respond to fluctuations in occupancy. This reduces electricity usage costs by automatically turning lights off if customers are not in the room. Other technologies including using smart system which monitors energy or water usage and can show excessive energy use. This could lead to preventive maintenance if the system believes there is an issue. For example, it can show excess water being used in a room which may be due to a leaking toilet or open faucet. Sensing the issues can lead to a quick fix before it becomes a serious issue. Businesses also use smart parking tools like sensors on the company's apps that can tell customers which parking area is available or assign them a space on arrival thereby saving customers time looking for places to park. Businesses with more efficient and effective technologies will win over customers compared to their rivals. Mobile room keys, smart room-service are some of the many examples in hotels.
Another example is Apple. It has created different streams to increase its profitability including Apple TV+,including Apple One (Apple News+, Apple Fitness+, Apple Arcade, iCloud, Apple Music), Apple Watch. This has caused its rivals to follow through. Google now has Pixel Pass, YouTube Music Premium, Google One, Google One + Play Pass and Google Pixel Watch. Apple's big drive to diversify its revenue streams and make more money from services, has caused Google to realize that bundling together popular content streams would make a lot of sense.
RESPOND.
- Select a company that has deployed digital technology and changed its business models, processes (IT,Marketing, production and operations, finance,HR), business analytics, AI connectivity as well as customer experiences in order to increase profitability and create competitive advantage over its rivals in its industry.
- Provide the actions, products, models, processes it has carried out as well as the challenges it has faced with this transformation (See examples provided in the Introduction).
- How has the company's rivals reacted to this change?
Requirements
- APA
- Citation Requirement: Minimum of one scholarly, peer-reviewed source properly cited and referenced.
- The textbook can be used as a reference.
- Online sources (e.g., Wikipedia, blogs, vlogs, online magazines) are not scholarly or authoritative sources.
- Industry-related, authoritative sources are acceptable
- See grading rubric for specific guidelines regarding scoring
Strategic Management An Integrated Approach
ISBN: 978-1111825843
10th edition
Authors: Charles W. L. Hill, Gareth R. Jones