Riassunto Digital Business Innovation DBI

THE MAIN PERFORMANCES IN THE B2C ECOMMERCE:

1. Order cycle time: It's the time window between the order issue and the delivery to the end customer. It's affected by the following activities: Order processing, Picking and preparation, Delivery.
2. Punctuality
3. Accuracy: It's the ability of the supplier to fulfill the customer requests in terms of: Compliance with what they ordered, Packaging, Compliance with the documents/information.
4. Available information about the items in the catalogue and the delivery times: There are 4 possible scenarios: static catalogue and the order has to be checked (in terms of availability), order in a catalogue which has the availabilities of the items, order in a catalogue which includes the available items only, order in a catalogue which is updated in real time. For the stock out management there are 2 approaches: ex-ante approach: the customer cannot order an item which is not available in the warehouse or ex-post approach:

customer can order every product and then the stock out has to be managed.

5) Order tracking: It's the ability of the e-tailer to provide information about the order delivery in a quick and accurate way. 2 approaches: pull when the customer ask the information; or push, with update through email or sms.

6) Post-transaction process (after sale support, return management, etc.)

TYPES OF COMMUNICATION:

Online communication

• SEO (Search Engine Optimization)
• SEM (Search Engine Marketing)
• Newsletter
• Display Advertising
• Affiliation programs
• Social network presence

Offline communication

• TV
• Media
• Radio
• Synergies with traditional channels (like in store pick up)

VALUE-ADDED SERVICES IN THE DELIVERY PHASE: Delivery services (or informational services supporting the delivery phase) for B2c eCommerce aim to create value for the consumer by overcoming the difficulties of home delivery. Type of value-added service in the delivery phase:

1. ...

Value-added delivery services

• Time oriented (Saturday delivery, delivery at night, scheduled delivery...)
• Place oriented (in store, lockers, collection point...)
• Premium service (delivery at a required floor, delivery and installation...)

Value-added informational services in support of the delivery phase (monitoring, prevision, promptness) INNOVATIVE LAST MILE DELIVERY:

• Crowdsourcing logistics (Glovo)
• In-trunk delivery and in-home delivery (Amazon last mile)
• Drones and Robots
• Dynamic pricing based on delivery time
• Mapping customer behavior
• Real time tracking
• Green vehicles
• Innovative packaging

CLOUD COMPUTING & 5G COULD DEFINITION: The NIST define could with:

• 5 essential characteristics
1. Self-Service on Demand: meaning that you just have to decide which service you want and go for it. Different from a standard IP approach in which you have to get in contact with the provider and personalize your product (this approach needs more

1. On-demand self-service: you can access the service whenever you need it, without having to go through a service provider or wait for their availability.
2. Broad network access: you can use the service from anywhere, as long as you have an internet connection. For example, I can use Microsoft Teams even if I'm not in the office or connected to my company's network.
3. Resource pooling (shared resource): in traditional IT, you usually pay for and use a service exclusively for yourself. With cloud computing, multiple companies can share the same resources, making it more cost-effective. However, you don't have access to other companies' data.
4. Rapid elasticity: there are two ways to scale the service: horizontal scalability and vertical scalability. Horizontal scalability allows you to increase the service capacity to meet high demand, while vertical scalability involves modifying the existing resources (such as CPU or storage) to handle different usage requirements.
5. Measured service: since cloud services are typically billed based on usage, everything is monitored and measured. This is different from the traditional CAPEX model, where you make a one-time investment in IT infrastructure.

Expenditure Model

We currently have a fixed expenditure model, which can lead to overestimating or underestimating our expenses. This is not very efficient. However, we could shift to an OPEX model, where we pay for exactly what we spend. It is important to pay attention to cloud services as well, as improper usage can result in higher costs compared to the capex model.

Deployment Models

1. Traditional Information System: In this model, I purchase the necessary resources and develop the product myself.
2. Public Cloud: Multiple companies use the same cloud infrastructure. While personalization options may be limited, it offers faster deployment compared to other models.
3. Private Cloud: Resources are dedicated solely to my company.
4. Community Cloud: This model is typical for public administration, where small companies lack resources to implement an IT department. An implementing agency purchases services from a public cloud provider and customizes them for small companies.

The more we move towards the public cloud model, the less personalization options we have.

controllo e investimento che dobbiamo fare, più ci avviciniamo al cloud privato, più controllo e investimento dobbiamo fare. - 3 modelli di servizio: ci sono 3 modelli di servizio (e altri 2 che sono gli estremi, ovvero il processo aziendale come servizio, quando affidiamo tutto il lavoro al fornitore, e la situazione on-premise in cui dobbiamo gestire tutto, e le soluzioni sono installate sui computer o sui server dell'azienda). Da destra abbiamo il software come servizio (SAAS), che sono servizi pronti all'uso come Office365, posta elettronica; poi abbiamo la piattaforma come servizio (PAAS), qui abbiamo più vantaggi nell'uso del cloud, non abbiamo un servizio pronto all'uso ma abbiamo alcuni componenti che possono aiutarci a costruire il nostro servizio, ad esempio monitoraggio, integrazione di Big Data, strumenti di migrazione...; nell'infrastruttura come servizio (IAAS) il fornitore si occupa solo di alcuni aspetti ma è altamente specializzato, ad esempio il ripristino di emergenza.

networking....Obviously at the right we have more speed and at the left more customization.

DIFFERENCE BETWEEN ON-PREMISEs AND CLOUD: One of the main differences is how you access these services:

• On-premise solutions - these are solutions installed on each individual user's computer or on an enterprise server;
• Cloud solutions - These types of solutions are services offered by a provider, accessed via the internet through a virtual platform and typically hosted and managed by a third-party provider.

The second major difference is the method of payment for the service. For the cloud, it is generally referred to as an on-demand payment; On-premise services require an initial investment in infrastructure, systems development and implementation.

CHOICES TO CONSIDER: to decide if we want to go on-premise or public we should take into account Strategic choices like Cost Model (CAPEX vs OPEX) Organizational dynamicity ICT Dir., Approach to innovation, Line of Business (LoB) Empowerment and

Operational choices like Cost effectiveness, SLA &security constraints, Customization, Speed, Supply.

IMPLICATION OF CLOUD FOR COMPANIES:

MANAGERIAL SIMPLIFICATION

• Greater focus on the strategic evolution of information systems rather than on operational aspects, because with cloud you don't have to take care for example to maintenance as in IT system so you can focus more on your real needs
• Refocusing of competences on architectural governance: it's very important to understand what to keep inside the company and what to give to the cloud

TRANSPARENCY

• Need to define the architectural roadmap
• Greater awareness about the composition of the company's Information Systems because with cloud you avoid repetition

TECHNOLOGICAL AND FUNCTIONAL STANDARDIZATION

• Lower complexity linked to the need of managing diversified technologies
• Adjustment to more spread and guaranteed technological standards
• Greater re-use of functional

1. Lower functional customization enabling an easier evolutionary maintenance
2. Latest technologies and features without the need for migrating and porting
3. Lower obsolescence risk
4. Greater speed when experimenting or activating new services
5. Incremental substitution of Information System's components
6. Substituting legacy applications with state-of-the-art services
7. Greater business value in light of advanced features

ADVANTAGES OF CLOUD vs ON-PREMISEs:

There are many advantages for Cloud over On-premises solution:

Regarding the Tangible ones:

• Efficiency:
  • Costs become variable; IT operations cost reduction
  • Cost reduction caused by down time
  • Cost optimization of supported business processes
  • Greater employee productivity
  • Greater internal quality (ex. data reliability)
• Effectiveness:
  • Fast provisioning of sophisticated technologies
  • Greater agility to introduce innovations
  • Prompt response to

users’ needs; Access to new business opportunities; Enhancement of existing business models For the Intangible instead: Flexibility and scalability of resources and consequently of businesses; Greater users and customers’ satisfaction; Better visibility and monitoring of systems and processes; Outsourcing of technical vertical competences and insourcing of strategic competences; Access to state-of-the-art working methods TRADITIONAL SYSTEMS vs DIGITAL IT: 1) TRADITIONAL SYSTEMS: On-premises & Waterfall oriented - Management and maintenance of legacy - Technical competences for infrastructure management - Legacy in the innovation of supply chain - Difficult to begin the Cloud Journey - Grants continuity and sets standards - Seen as a cost center and a limit to innovation - Sustainability in the long term - Pursuit of flexibility and innovation because to be competitive they need to innovate 2) DIGITAL IT: Cloud and Agile oriented - New

projects and innovation scouting

• Limited or absent legacy
• Works in an innovative ecosystem
• Cloud Native and DevOps projects
• Greater uncertainty
• Speed seen as a lack of governance
• Creation of know-how and best practices replicable on Cloud and DevOps
• Creation of a Center of Excellence and Cloud Champion

CLOUD TRANSFORMATION: Elimination of the infrastructural constraint; Well-performing and agile development platforms; Innovative, scalable and state of the art technologies. The advantage of Digital IT is the creation of know-how and best practices replicable on Cloud and DevOps. The creation of a centre of excellence and cloud champion.

NEW WORKING METHODS ENBLED BY THE CLOUD: There are also two important concepts: Business and Architecture. We are approaching a new ecosystem called Digital Factory