How to measure digital disruption in your business ?

I recently read a very good article on why“consumers pay more when they pay with BitCoin” by Benjamin Edelman, Associate Professor Harvard Business School. It raised a critical question in dealing with digital strategy and being able to measure the financial and consumer social experience of “going digital”. I see this as symptomatic of what I call the “triple scaling effect” transforming market economics through the convergence and entanglement of digital devices, consumer experience altering value networks and supply chain structures.

This is a question of our time with recent examples of the “threat” of the “google Tax” and the ongoing BEPS project by the OECD/G20 countries to tackle digital economics across physical world markets and sovereignties. Or the ramifications of the netneutrality legislation to the inscidious panopticon effects of cyber criminalty and attention needed to create new enterprise and international joined up governance. These are all aspects of the wider truth of what I call Ecosystem clustering and the drivers of culstering impacting on the distribution, equity and performance of an economy and its constituencies.

There is current work in this field in the International Open Group Standards body – The Open Group – in a new working group DB&CX – Digital Business and Customer Experience initiated by PA Consulting and Huawei. The Workgroup is a joint Architecture Forum and Open Platform 3.0 initiative with an aim is tackle a number of these issues in defining how to express and define these disruptove business model impacts and customer experience scenarios.

Ecosystem Drivers to measure degree of disruption in a market and/or business / individual

Various drivers affect ecosystems performance. These matters refer to measuring the degree of homogeneity, heterogeneity, and by implication the degree of market disruption in an ecosystem.

• Price coherence

• See article of “consumers pay more when they pay with Bitcoin”http://www.pymnts.com/in-depth/2014/consumers-pay-more-when-they-pay-with-bitcoin/#.VYFHt_lViko It illustrates the principle of “coherence” in an ecosystem

• Edelman makes a key point “The crux of the problem is price coherence—a market structure wherein buyers pay the same price whether buying directly or via an intermediary.”

• Given price elasticity and dynamic pricing practices are common place across digital commerce ( an aspect of cloud) this is a central issue in working our value for money transactions; for example in micropayment services and the value of data versus the cost of a micropayment. The issue is if this is equitable for consumers, suppliers and intermediaries. Many startups and mobile apps fail to get critical transaction volume and their MVP (minimum viable product) fails in the market.

• Another feature is in failed digital advertizing startups versus Facebook and google hyper advertizing revenue models and how companies and intermediaries make profitable viable businesses.

• Congruence

• The ability to have a consistent service irrespective of where you are in an ecosystem

• Contiguity

• The ability to run a service end to end through one or many channels through an ecosystem consistently

• Density Bias

• The degree of concentration of products and services in a specific location – physical or virtual – a measure of the degree of “accessiblity”

• The bias is a measure of equity of the access to one or more communities or individuals – a measure of ecosystem skew – regulation of political or commercial bias.

#Monetization #Digital #DigitalEconomy #Value