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.

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You may copy, modify and use these ideas as you wish.

Photo copyrights: Franck Boston/Shutterstock, Pakhnyushchy/Shutterstock, LilKar/Shutterstock