The world is awash with new technologies and terminologies. As a professional it's sometimes tough to stay abreast of the terms, what with everything transforming constantly. Good Sign has put together a list of terms we consider important - get to know what we are passionate about!
Digital Economy - Digitalized Flexibility - Real Time Transparency - Everything as a Service - Digitalized Service Contracts - Digitalized Vendor Contracts - Dynamic Automation - Impeccable Orchestration - Full Integration
The term 'Digital Economy' is not new. Don Tapscott gave it a name in his 1995 best-seller The Digital Economy: Promise and Peril in the Age of Networked Intelligence. Tapscott showed how the internet would change business.
The digital economy also highlights the increased importance of the service sector in industrialized economies. The trend toward services is evident in developed economies. There is an ongoing shift from product sales to a subscription pricing model. Rather than receiving one-time payment for a machine or equipment, manufacturers or resellers are increasingly receiving a steady revenue stream for ongoing contracts
Furthermore, the digital economy is closely linked to the Internet of Things and Services. Vastly growing number of new devices and systems are connected to the internet bringing availability to new data, which is used to create intelligent and interconnected services.
And finally, the digital economy is increasingly about business ecosystems. Digitalization enables creating efficient collaborative business models which allow customers and users achieve more value more easily.
The growth of the digital economy has widespread implications. Traditional firms are actively assessing how to respond.
Digitization touches on all aspects of business, transforming business models, supply chains - and how value is delivered. Along with new technologies, digitalization is enabling organizations to transform their existing manually oriented, paper-based and IT-supported processes and structures into agile, collaborative, fast, efficient and flexible digital models.
Digitalized flexibility is dynamic automation with extensive context awareness. Digital models enable business process automation, organizational flexibility, and the digital management of customers, vendors, partners and - even more importantly - the digital management and monetization of complete ecosystems.
Localized, disconnected initiatives and silo based operations represent a challenge to competitiveness. Digitalized flexibility enables higher value add through extensive information availability and superior collaboration.
Transparency means operating in a way which makes it is easy for others to see what actions are performed. There are positive impacts to empowering end users and value chain stakeholders by leveraging technology to provide more efficient and more transparent services.
Businesses are using technology to improve transparency and accountability. The primary goal is to deliver integrated services across full service supply chains (including the delivery and maintenance for the connected physical products). IT deployments will evolve from information-storing silos to information-sharing environments.
Real-time transparency requires the gathering and delivery of information across multiple devices and applications in absolute or near-real-time utilizing flexible deployment architecture. Transparency is about sharing and viewing befitting information with everyone relevant to the business, while it absolutely also calls for proficient role based access rights and data security management.
XaaS is a collective term that stands for “X as a service” and correlates with terms like anything as a service or everything as a service. It marks a shift from selling products to selling services where a sold service also includes the physical products needed. The term also refers to an increasing number of services provided over the Internet that have been traditionally provided locally.
The Information and Communication Technology (ICT) Industry has been the forerunner in XaaS models. Hence, the most common examples of XaaS are Software as a Service (SaaS), Infrastructure as a Service (IaaS) and Platform as a Service (PaaS).
With the Internet of Things connecting a growing number of devices, the XaaS model is spreading to many other industries as well: For example Mobility as a Service (MaaS) is a new emerging transport service subscription model aiming to create a seamless, demand-based and compelling travel experience for everyday commuting and moving about.
The latest trends and topics from digitalizing businesses to service delivery and billing automation - and more.
A service contract is a contract between the service provider and a customer where the service provider agrees to sell services and the customer in return is obligated to pay for the services bought. Service contracts contain the agreed services, the service level agreement and the agreed prices.
There are no large benefits to expect from digitalizing a service contract for a one-time service - at least beyond perhaps bookkeeping and digital archiving.
However, when looking at managed services, maintenance services, subscription services and many emerging service models referred to with terms such as XaaS and Internet of Things and Services, the picture is very different. Digital archiving is a far cry from actually digitalizing service contracts.
The new level of digitalizing service contracts calls for entering the agreed services, the agreed service levels and the agreed prices into a software solution controlling the service supply chains and/or the financial chains and service billing. The service catalogue and the rules of a contract are interpreted into the delivery and/or billing rules within a software capable of digitalizing continuous and complex services.
While the signed contract is static, the digitalized service contract indicates the exact active and consumed services as well as the exact rated pricing at any given moment. Active services vary, service designs and supply chains are fluid - and service prices are rated based on volume discounts, packages, campaign periods, reached service levels etc.
The benefits of digitalized service contracts come from the digitalized rules of the contract allowing full scale automation with digitalized flexibility and real-time transparency for service delivery and service billing. Digitalized service contracts typically result in more adjustable customer offering and more accurate delivery and billing, which delight and retain the customer.
A service vendor contract is a contract between the service provider and its service chain partner to deliver parts of a service and/or physical products needed to provide a defined service to a customer. Service vendor contracts contain the agreed services, the agreed service levels and the agreed prices.
Managed services, maintenance services, subscription services and many emerging service models referred to with terms such as XaaS and Internet of Thing and Services, require flexible digitalization of the complete service supply chain and vendor management with even real-time transparency.
The new level of vendor contract digitalization calls for entering the agreed services, the agreed service levels and the agreed prices into a software solution controlling the service supply chains and/or the financial chains and service payments. The rules of a contract are interpreted into the delivery and/or payment rules within a software capable of digitalizing complex and configurable service supply chains.
The benefits of digitalized service vendor contracts come from the digitalized rules of the contract allowing full scale automation with digitalized flexibility and real-time transparency for service delivery as well as service payments. Additionally, further benefits come from being able to manage service levels, control sourcing expenses, automatically calculate accrued service costs, and analyze profitability.
Dynamic automation is not just technical automation of repetitive tasks but even more importantly adaptable automation with extensive context awareness. Dynamic automation is in the heart of digitalized flexibility mastering end-to-end service value streams with many service providers and many customers.
Dynamic automation and Dynamic Business Modeling are connected. Dynamic Business Modeling is defined as the automation of Enterprise Business Models based on the principle that the model's underlying business processes and business services need to be dynamically and openly definable as well as re-definable.
Companies evolve dynamically, transforming their business models to achieve strategic advantage. The role of enterprise software (CRM, subscription billing, ERP) is to dynamically automate and advance the business processes and services that lie behind these business models.
Impeccable orchestration is a core capability of software for digital services and digital ecosystems. Orchestration is the central intelligence that guides and drives digital end-to-end processes, much like a conductor in an orchestra.
Orchestration allows adjustable automation and optimization of digital business processes - from simple workflows to complex integrated cross domain processes that span applications, geographies, and organizational boundaries.
Full impeccable orchestration not only enables accurate management of complete business processes but also protects service quality through failure management's ability to handle exceptions. Failure management identifies any service activity not completed and enables the rollback of entire sets of parallel and consecutive service transactions. Issues from incorrect information to failed interfaces can be corrected and the service process reinitiated.
Impeccable orchestration enables introducing adaptable business rules to drive agility. It enables automating complex tasks quickly and reliably. It accelerates processes. It brings efficiency and saves costs by avoiding manual tasks. It makes separate integration management solutions look outdated.
To understand the term full integration let’s inspect some of its individual parts:
In information technology, systems integration is the process of linking together different computing systems and software applications physically or functionally, to act as a coordinated whole. It adds additional value because of interactions between subsystems.
In today’s connected world, the role of systems integration is important: more and more systems are designed to connect as organizations face a real time operating environment.
Full integration refers to the ability of an organization to connect, integrate, monetize and share any data, device, system and process in near or real time in the digital economy. Its benefits include speed, agility, transparency and flexibility. New solutions make full integration a reality. Digital services orchestration platforms rapidly expose enterprise data to mobile devices, web apps and connected things in a secure, controlled way.