Read the Article below and answer the questions that follow

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Digital business transformation $$ getting it right

By Michael R$.$ Wade, Karine Avagyan, Susan Stehli and Frank Vivier

At a recent Discovery Event, $55$ participants from $32$ companies learned about addressing the digital

transformation execution challenge and balancing the need to drive value from their core business

while exploring new digitally$-$enabled opportunities. They were also introduced to $($and practiced

using$)$ a new execution framework.

Executives are mostly aware that disruption is going to hit hard in one way or another and that they

need to do something. Indeed, most participants at this event were working for organizations that

were themselves going through a digital business transformation $($DBT$).$ Organizations threatened by

so$-$called value vampires sucking up an ever$-$increasing share of the revenues need to respond

rapidly to threats and opportunities. Yet, less than one$-$third of them are responding effectively

because they do not know what to do or how, and when they do respond, legacy systems and rigid

cultures often impede their efforts.

What DBT really means and why companies should embark on it$...$ or not

Many organizations are still confused as to what DBT really means. IMD$$s Global Center for Digital

Business Transformation defines it as $$organizational change through the use of digital technologies

and business models to improve performance.$$ In other words, what$$s important is not the digital

technologies themselves. The real focus is on transforming the business; technology only serves to

support the new business model.

Considering the complexity involved in DBT$,$ before even considering such a journey, companies

should clearly define why they need to transform, what they need to transform and how to execute

the transformation.

For some companies, successfully implementing DBT is a matter of survival. Those are the ones in

industries that are closest to the center of what we call the Digital Vortex. Companies with a core

product that can be digitized are in the middle of the vortex and at the highest risk of digital

disruption. That does not mean industries on the edge of the vortex can afford to be complacent;

disruption can come from any direction.

Other companies do not really need to transform and should thus not aim to because it$$s expensive,

difficult to manage and can disrupt the company unnecessarily. Instead, those companies should

just keep doing what they do$,$ but better and cheaper.

Disruption, blurring industry boundaries and value vampires

Disruptive companies are blurring industry boundaries. Take Amazon $$ in what industry would you

place it$?$ It started as an online retail company, then developed its own brands, moved into consumer

goods, and expanded into web services, media and entertainment. Amazon CEO Jeff Bezos once

remarked, $$Your margin is my opportunity.$$

Disruption is about the combination of technology and business model innovation. Digital disruptors

create value in three fundamental ways:

$$ Cost value $($by offering the same product or services cheaper or even free$)$

$$ Experience value $($by focusing on customer satisfaction$)$

$$ Platform value $($where customers gain more value from the wider network$).$

Many disruptive companies focus on one or two types of value creation, and they sometimes forget

that when they switch from free to paid services, they risk losing customers and killing the business.

Companies like Amazon that combine all three values are called $$value vampires.$$ Another value

$1$

vampire is Airbnb, which, compared to hotels, offers more spacious accommodation for a lower cost,

a large network$/$offering$,$ a more pleasant experience $($friendly$,$ homely accommodation$).$

Question: Discuss the drivers, objectives, and impacts of digitization based on the information provided in the

article "Digitisation: Drivers, Objects, and Impacts" and the listed megatrends of the $4$th industrial

revolution. Explain how these megatrends are shaping the future of technology and society, and

analyze their implications for businesses and individuals. Provide examples to illustrate the

significance of each megatrend.