Five definitions important with digital change
The digital world is an ecosystem containing thousands of ecosystems of communities which are connected to each other. It is formed by individuals (clients and fans), distributers, developers and suppliers. They use each other’s strong points and strengthen each other by creating value together. Which five definitions should organisations be aware of if they commence with digital change?
Five definitions
The digital ecosystem is the foundation of the digital economy the modern entertainment industry, but also sectors such as sport and media, are an integral part of. Each industry is changing slowly from analogue to a digitally driven industry. They go from analogue to digital. The below definitions clarify a number of important aspects of the digital world.
Digital transformation
Digital transformation can be defined as follows. The change that a company undergoes, where managers or business owners want to create value by using the digital ecosystem, where, on the basis of the determined objectives, the optimisation of the organisation and the analogue and digital assets are achieved step by step by using analyses and the insights stemming from these. (2017, Doeland)
Digital maturity
Digital maturity has the following definition. The phases in the digital development of a company, where the people and processes are aligned with the objectives, steps and analyses supported by a framework that ensures constant improvement and acceleration of the objectives from the framework and securing the digital assets. (2017, Doeland)
Internet ecosystem
Definition of the internet ecosystem (also called the digital ecosystem). The comprehensive system of interaction between industry, brands, people and services and products. All stakeholders, the technical infrastructure and the functions that the system fulfils, make up part of the internet ecosystem. People can ensure value creation by viewing the system as a business ecosystem. The value is identified as the digital assets. (2017, Doeland)
Value creation
Creating value within the internet ecosystem can be define as follows. “Value creation by the internet and social media concerns constructing, distributing, maintaining and optimising the existing and new digital relationships on various internet platforms where additional and future net cashflows can be generated in a direct and demonstrable way.” (2013, Doeland and van Berkel)
Digital assets
Finally, the definition of digital assets. The rights and non-physical means consisting of digital connections and contextual data, that give a company a competitive advantage in the market, which represents a financial value by optimising and accelerating the current and future cashflows. (2017, Doeland and van Berkel)
Strongest relationships
Using the right definitions and statistics and following developments in the world of devices, infrastructure and processors, are a prerequisite for the foundation of a thorough digital strategy in the constantly growing digital world which has a rather revolutionary character.
The internet permeates all levels of organisations within every industry. It forms a fluid entity that affects almost every discipline of an organisation. To commence the digital change, the transition from analogue to digital, one must delve into the digital world, its chain and system.
In the digital culture, the attention from, and the relationship with the (future) fan or client has become the most important (economic) value. The organisation that is able to get the best place and the strongest relationships in the internet ecosystem will become the most successful and due to this strengthen their right to exist. In the long term, organisations will not survive without these relationships and go under. The personalisation of the relationship with the fan is the holy grail. Digital transformation + digital maturity + digital ecosystem + digital value creation = digital assets.
- This post is a pre-read of Part 1 — Chapter 5 of my new book ‘Digital Assets’ the translation of the Dutch publication ‘Digitaal Vermogen’.
- Also read the publication ‘EDM and the Digital Domain’
