Table of contents

The book contains 15 chapters.

A SMART CHOICE (Foreword)

PART 1: UNDERSTANDING AND UTILIZING THE DATA BUSINESS

1. Cinematic stories: the digital transformation

• Everyone loves movies
  
• On the way to a happy ending?
  
• Lost in transformation
  
• Links to the chapter

2. On to a new world order? What the digital transformation means for (your) company

• The beginning and end of all certainties
  
• Digital companies: The winner takes it all
  
• (Not) a shot in the dark: embracing the VUCA world
  
• Links to this chapter
  

3. A look into the holodeck: How to identify key trends in digital transformation

• Feel good with Buddha, please
  
• Don't believe the hype?
  
• Auctions in the blink of an eye
  
• Links to this chapter
  

4. Connect, understand, change—why data is so essential for digital transformation

• From dots and dashes
  
• Big data, big actions
  
• What the new data world has in store for you
  
• Links to the chapter
  

5. Data for President: data and data treasures

• The gold of the data king
  
• Discover your assets: Understanding and evaluating data capital
  
• Strategically developing data assets
  
• Links to this chapter
  

6. To the roof or the moon? Data business visions

• A small step for a person
  
• How to find your "Mission Impossible"
  
• Going crazy alone? You need help!
  
• Links to the chapter
  

PART 2: BUILDING A DATA BUSINESS

7. With foresight to success: the  data strategy

• Failing to plan is planning to fail
  
• Are you ready for the data business?
  
• How to steer change in the right direction
  
• Links to this chapter
  

8. The fifth element—how to turn data into products

• Where revolutionaries meet to plan the future
  
• Tinker, test, triumph: basic rules of data product development
  
• Putting performance on the road
  
• Links to this chapter
  

9. The architect on the grindstone: an organization for data

• From start to finish: what works in the data business
  
• A "digital hub" against cable cutting
  
• The blueprint for data systems: data architecture
  
• Links to this chapter
  

10. When data goes round in circles

• A trichromat sees 6495ed
  
• From the loom to the railroad
  
• Consciously autonomous. Data business—take charge!
  
• Links to this chapter
  

11. From player to playing field

• The yellow elephant and platform disruption
• Stack building blocks—but do it right
• Above the clouds
  
• Links to the chapter
  

12. A business with culture: your data business

• Traditionally data-driven: What defines a data culture
• A proven framework: data empowerment
• Those who know data have a clear advantage
• Links to the chapter
  

PART 3: SELECTED KEY TOPICS IN THE DATA BUSINESS

13. Five stars for compliance: digital trust

• Trust is good, trust is better
  
• The three pillars of digital trust
  
• How to become a secure bank
  
• Links to this chapter
  

14. No scary valley: the breakthrough of artificial intelligence

• The fourth insult to humanity
• Your model solution: Understanding and using AI
• AI in practice—areas of application and process model
• Links to this chapter
  

15. Data Business for SMEs

• The digital backbone of the economy
• Pizza Milano: You snooze, you lose
• From hidden masters
• What remains of the day: Recommendations for medium-sized companies
• Links to this chapter
  

AFTERWORD

 

Reading sample

Reading time for this chapter: 11 minutes   Motivation: You want to understand the fundamental change that digital technologies are bringing about.

1. Cinematic stories: the digital transformation

In 1971, the microprocessor was invented, which would later enable the triumph of the personal computer. It was the starting point of the "digital transformation," a phenomenon that has fundamentally changed the world and continues to do so. We take a look at what exactly this transformation entails and why every company must respond to it.

Topics in this chapter: Understanding digitalization, knowing technology trends, implementing transformation planning, leveraging competitive advantages

Everyone loves movies

Reading time: 5 minutes

Do you remember "Lovefilm"? In the 2000s, many companies discovered a new storage medium: the DVD. With a capacity of 4.7 GB, it was able to store high-quality movies. But what was even more critical for some was that they could be sent by mail. So why not start a DVD rental service where customers could borrow movies by mail and return them?

That's precisely what Lovefilm did—it built its own website to support this business model and connect with customers. A decade earlier, in 1989, Tim Berners-Lee invented the World Wide Web, marking a milestone in the digital transformation. Lovefilm took advantage of this: online orders are cheaper to offer than video stores, which generate significantly higher rental and personnel costs, for example. At the same time, the potential customer base was vast, encompassing everyone with internet access. 

If you are not familiar with Lovefilm, you are probably familiar with another provider in the streaming industry: Netflix. Both companies shared the same business model and sought to utilize the then-new streaming technologies to digitize their offerings. However, while Lovefilm was eventually bought by Amazon and later dissolved, Netflix rose to become the market leader. Intelligent film recommendations, high-quality streaming playback, and a wide selection of its own films and series have clearly won over customers.

This brief sketch of the former DVD rental companies is, of course, only a tiny glimpse of the global change we are experiencing due to the digital transformation. But it gives an idea of what this change is all about:

• Transformation means that the nature or character of entire areas of life is changing noticeably. Technological advances are making behaviors or familiar processes in everyday working life redundant or fundamentally redesigning them.
• Ubiquity means that changes and effects occur everywhere and can influence each other. Politics, science, private relationships, technology, or the economy: no area is exempt.
• Digitalization means the conversion of analog information into digital form, e.g., from films on video cassettes to data on a DVD or hard drive. In addition to saving space, this also allows the data to be further processed by computers.
• Progress means that many small and large improvements and innovations are constantly taking place, to which people and companies must continually adapt. Examples include new technologies such as smartphones, social media, blockchain, and the Internet of Things (IoT).
• Companies must reorganize themselves in terms of their organization, technology, processes, culture, and/or business model to remain competitive. They must translate the far-reaching changes into opportunities for growth. Many formerly big names, such as Kodak and Nokia, failed to achieve this goal and had to sell business divisions or give up altogether. Kodak missed the opportunities offered by digital photography. It went bankrupt, while Nokia was left behind by Apple, Samsung, and others in the smartphone market and had to give up its phone division.
• Customers are no longer mere consumers, but are literally at the center of attention with their individual needs. For example, they expect offers to be available at all times and tailored to their personal requirements. At the same time, they are bombarded with information from market participants and institutions. Customer attention is therefore highly contested and places high demands on product communication.
  

For many years, the digital transformation has been bringing about fundamental and lasting changes in all these areas, with the pace of development constantly accelerating. Its key distinguishing feature is technological progress, such as the rapidly increasing use of "generative AI." This type of artificial intelligence enables the generation of any text or image. 

Although this technology can only mimic real intelligence, its widespread use is likely to have a significant impact on various aspects of life. For example, there are reasonable predictions that artificial intelligence will completely change the work activities of many people or enable new methods of treating serious illnesses. A whole range of other technological trends are also having or are expected to have a revolutionary impact:

• Cloud computing: Use of expandable computer capacity (hardware and software) via the Internet.
• Internet of Things (IoT): Networking of devices and sensors for the collection, analysis, and sharing of data.
• Big data analytics: Collection of large amounts of data for decision-making, creating predictive models, and identifying trends.
• Digital platforms: Provision of digital spaces, e.g., for trade, social interaction, or sporting competition, with a significant impact on traditional business models, forms of cooperation, etc.
• Cyber security and data protection: Exploitation of security vulnerabilities and misuse of data are on the rise. It is therefore becoming increasingly important to establish robust security and protection measures for sensitive (personal) data.
• Augmented reality and virtual reality: Immersive technologies that create enhanced and artificial worlds for users, e.g., for education, entertainment, or product presentations. The term "immersion" is used here because the synthetic world is designed to allow users to fully submerge themselves in it.
• Robotics and automation: (Robot-assisted) automation of processes, for example, in manufacturing, logistics, or customer service, using self-controlling equipment, assemblies, and systems.
• Blockchain: Distributed and openly controllable data storage and processing of business transactions for areas such as supply chain management, financial services, or digital identity verification.
• Edge computing: Provision of (low) computing power close to a data source or where it is needed. This enables local processing and direct conclusions and actions at the point of occurrence.

We are dealing with a wide range of exciting developments that often involve data. In Chapter 3, we take a closer look at how you can use such trends as a basis for your business decisions. 

On the way to a happy ending?

Reading time: 3 minutes

As we have seen with Lovefilm and the trends just presented, the digital transformation provides plenty of material for exciting stories. Ultimately, it is always people with their individual goals, ideas, and skills who are behind these developments. It is no coincidence that, even today, colorful personalities often compete with the top dogs, making ambitious, if not exaggerated, promises. 

Companies should not allow themselves to be driven by transformation; instead, they should take the lead to secure their future. They don't have to reinvent the wheel to do this; in the first step, it is sufficient to consider the familiar control principles of good management. When applied to digital transformation and the data economy, this could result in a roadmap such as the one below: 

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