Post on 15-Jul-2015
MeltFrom the visual
strategy book
stepM i i k k a L e i n o n e n ’ s
5#melt
guide to Digitalization
What is digitalization?LET’S TAKE A SHORT VISUALIZED TOUR
USING THE MELT FRAMEWORK
This isthe material
worlde.g. objects and actions
e.g. emotions, competences and
knowledge
This isthe immaterial
world
Technology has created
new ways for them tomelt
ServitizationSharing
economy
Social media
meltInternet
This ‘melt’ has many names:
Data networks
Industrial Internet
Home
automation
AI Internet of
things
Collaborative economy
elements have features from both material
and immaterial worlds.
In melt,
DIGITALIZATION A process of converting material actions and objects into intangible elements with the aid of computers.
DEFINITION
What makesdigitalizationSUCH A POWERFUL
FORCE?
As material elements are freed up…
As material elements are freed upthis shapes the remaining material world.
A company develops a digital service to replace a physical product. New intangible offering creates a new earnings logic. This forces competitors to change their business models accordingly.
EXAMPLE
Digitalization also amplifies the immaterial world.It creates new ways for immaterial elements to become shareable. This amplifies knowledge and competences.
Digitalizationguide to5Step
WHAT CAN YOU FREE UP?
Free1
What intangible can you extract from a material element?
What intangible can you bundle it with to make it more immaterial?
With what intangible can you replace a material element?
A B C 1
WHAT CAN YOU FREE UP?
Free1
1EXAMPLE: Personal data, data, data, data…
HOW DO YOU WANT TO SHAPE THE MATERIAL WORLD?
Shape2
2CREATE
NEWELIMINATE
OLD
INCREASE DECREASE
HOW DO YOU WANT TO SHAPE THE MATERIAL WORLD?
Shape2
2EXAMPLE: Industrial internet.
3WHAT CAN YOU MAKE TANGIBLE?
Flow3
Which immaterial elements would you like to make more concrete?
Where are immaterial elements flowing to at the moment? Can this flow be channeled?
If an immaterial element were concrete, what would it be?
A B C
3WHAT CAN YOU MAKE TANGIBLE?
Flow3
EXAMPLE: Expressing emotions through social media.
4HOW WILL YOU AMPLIFY THE IMMATERIAL WORLD?
Amplify4
Map out how you already amplify the immaterial world?
Think about what you’d like the immaterial world to generate?
A
B
4HOW WILL YOU AMPLIFY THE IMMATERIAL WORLD?
Amplify4
EXAMPLE: Knowledge sharing.
5
CAN YOU PLAY WITH OTHERS?
Ecosystem5
Is your ecosystem open or tightly controlled?
Do you play the role of host or epiphyte?
An open role is optimal for creating immaterial value. It brings reach and scale. It’s relevant for
services that aim for large user or customer bases.
Ecosystem
5
OPENOPENDO YOU WANT TO OPEN UP THE SERVICE TO
CUSTOMERS, SO THEY FEEL THEY OWN IT?
Ecosystem
5
Theoretically, it’s easier to create financial results with this type of service, as
provision can be controlled.
CONTROLLED
CONTROLLED
DO YOU WANT THE SERVICE TO REMAIN CONTROLLED, SO IT RESEMBLES A MATERIAL PRODUCT?
Ecosystem
5
Your service reaches a large user base, but has an operating environment that’s more
difficult to control.
EPIPHYTEDO YOU WANT YOUR SERVICE TO BE
A PART OF OTHER SERVICES?
Ecosystem5
As a host, your service can develop rapidly as all of the epiphytes it
contains develop.
HOSTDO YOU WANT TO MAKE OTHERS
PART OF YOUR SERVICE?
Ecosystem
5
STAND-ALONEWELL…
THERE ARE VIRTUALLY NO MORE STAND-ALONE MELTING PROCESSES.
SO FORGET THIS OPTION. YOU ARE A HOST OR AN EPIPHYTE OR BOTH.
Ecosystem
5
You can have numerous
ecosystem roles simultaneously.
1 2
3 4
5
So this is how digitalization
works:Technology helps you to free up
elements and shape the material world. At the same time digitalization amplifies
and flows immaterial elements. Choosing the right ecosystem role
is crucial for your success.
FLOW
FREE
AMPLIFY
SHAPE
ECOSYSTEM ROLES
WWW.MIIKKALEINONEN.COM
You are now familiar with digitalization.
Buy Now!
For more information go to…
You may copy, modify and use these ideas as you wish.
Photo copyrights: Franck Boston/Shutterstock, Pakhnyushchy/Shutterstock, LilKar/Shutterstock