the digital in business Understanding
the digital in business Understanding
FROM BIG DATA TO SMALL BITS
Copyright © 2024 by Vigmostad & Bjørke AS
All Rights Reserved
First Edition 2024 / Printing 1 2024
ISBN: 978-82-450-5094-3
Graphic production: John Grieg, Bergen
Cover design created with Midjourney (prompt used: a book cover for a book about digital business with a retro robot wearing a fedora hat and holding a briefcase)
Typeset by John Grieg, Bergen
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FORORD
Dear reader,
In today’s world, technology is no longer just a tool but the very fabric that drives business innovation, growth, and competitiveness. The digital revolution has transformed industries, reshaped business models, and redefined the way organizations engage with customers, employees, and markets. As businesses navigate this fast-evolving landscape, the need to understand, leverage, and stay ahead of digital trends is paramount.
Understanding The Digital In Business is designed to guide readers through the complexities of the digital transformation. Whether you are a seasoned executive, an entrepreneur, a manager, or someone exploring the intersection of technology and business, this book aims to provide clarity and actionable insights on how to harness digital tools, strategies, and mindsets to drive success in today’s competitive environment.
The digital era isn’t just about adopting new technologies — it’s about creating value, building agility, and fostering innovation across every level of an organization. Throughout this book, you will explore how leading companies have adapted, evolved, and thrived in a world shaped by digital disruption. From e-commerce to artificial intelligence, from data analytics to digital marketing, each chapter delves into key areas where digitalization has redefined the business landscape.
This book not only examines the opportunities and challenges presented by digital transformation but also provides a framework for making informed decisions that will future-proof your business. You will find practical examples, case studies, and expert perspectives to help you align your digital strategy with your business goals.
The future belongs to those who are willing to embrace the digital in business, not just as a means of survival but as a pathway to growth and innovation. I hope that Understanding The Digital In Business serves as both a guide and a source of inspiration as you navigate your own digital journey.
Sincerely yours,
Tarjei Alvær Heggernes
Hi! Did the preface on the previous page seem at little “off”? The author didn’t write the preface, the generative AI service ChatGPT did. In the foreword to the previous (3rd, Norwegian) edition, which was published in 2020, AI was mentioned as the biggest change in the digital landscape since the previous edition (2nd edition). By now, most people are familiar with AI through services like ChatGPT and services like Dall-E and Midjourney, creating text and images based on “prompts”. Even in my rather conservative profession, where we try to physically gather students in an auditorium to share our infinite knowledge, the threat of being replaced by machines now feels real. Students let AI answer exam questions; lecturers use AI to create exam papers and examiner guidance. There are also examples of AI grading and providing grading justification.
Full disclosure: The book has been translated from Norwegian to English with the help of AI-based tools DeepL and Grammarly. I still spent hours checking that everything turned out as accurately, but the AI-tools probably saved me days or even weeks of manual translation.
Since the publication of the third edition, I’ve had the pleasure of spending hundreds of hours with nearly a thousand students on teaching and discussing how to create business value with digital technologies. Undergraduate students often bring a fresh perspective to the material, which I appreciate, and students in continuing education courses have given me a unique insight into how the Norwegian business community handles issues within the rather broad concept of digitalization. My first big thank you goes to this group; they have given me even more insight into the subject. In addition, several professionals at universities and colleges across the country have had the confidence to use the book as a curriculum in courses where they teach. I really appreciate this. Feedback and input from these professionals have been important in the preparation of this fourth edition.
When it comes to the “real world”, I would like to thank Brede Lærum from Equinor, Nicolai Høge from FINN.no, Stein Kjølberg from Jotun Paints Inc., Paul Skeie from Enivy, and Paal Runar Larsen, Joakim Svekum and Tord Søfteland from the Terravera Foundation, who have all contributed information to cases used in the book.
From academia, I have greatly enjoyed conversations and collaboration with Jon Iden and Karen Osmundsen from NHH. From HVL, I would like to thank Carsten Helgesen and Terje Kristensen – who have both contributed to the chapter on artificial intelligence – as well as Ole Jakob Bergfjord and Henry Bjånesø for their motivation. From Vestlandsforskning, I would like to thank Svein Ølnes for both good discussions and for reading through the chapter on blockchains. Among my colleagues at BI, I would like to highlight Cecilie Staude – who has really spread the good word about
the book both internally and externally – Ragnvald Sannes for good cooperation and good professional conversations, ERP legend Bo Hjort Christensen and Odd Rydland, the latter has contributed material on PKI in chapter 12. Finally, I would like to thank Arne Selvik, from whom I have learned a lot through working on the book Den Digitale Styreverden (The Digital World Of The Board Of Directors).
I would also like to pay tribute to my former editor, Knut Ebeltoft, for starting this book adventure with me, and its current editor, Andreas Nybø, for taking the work forward with the last two editions.
The biggest thank you goes to my patient and inspiring family: Trym, Aurora and Christina.
Bergen, September 2024
Tarjei Alvær Heggernes
ta BLE OF CON t EN t S
PaRt IV BUSINESS SYStEMS
Understanding The Digital In Business provides the reader with a basic understanding of how digitalization interferes with business operations. Since the first edition was published in Norwegian in 2013, the book has been read by many thousands of students and other readers.
This first English edition of the book corresponds with the fourth Norwegian edition. It has been significantly revised and updated over the years, both to incorporate recent technological developments and to make it work even better as a textbook.
A basic premise of the book is the realization that everything starts with data. An early chapter on understanding data lays the foundation for the rest of the book and there is extensive coverage of generative artificial intelligence (AI). New concepts, such as low/no code, NFT, proof-of-stake, etc., are explained and discussed.
The book is suitable for economics and social science studies, engineering and technology studies and for practitioners who want a better understanding of how digitalization intervenes in everyday work and how it supports a company’s value creation.
ISBN 978-82-450-5094-3