The Future of Digital Business Innovation (eBook)

Vincenzo Morabito, PhD, is Associate Professor at the Management & Technology Department, Università Commerciale Luigi Bocconi (Bocconi University), Milan, Italy. He gained his doctorate from the Università Commerciale Luigi Bocconi and was a Research Scholar at both the Center for Information System Research, MIT Sloan School of Management (2006) and the Decision and Information Science Department, University of Florida (2005/2006). Vincenzo Morabito is in charge of the course on Business Organization, Management of Information Systems, and Information Management for the various degree programs of Bocconi University. He has participated in a variety of research projects, many financed by the Italian Ministry of University and Scientific Research (Ministero dell'Università e della Ricerca Scientifica e Tecnologica).

Foreword 6
Preface 8
Outline of the Book 9
References 9
Acknowledgments 10
Contents 16
Acronyms 22
Part I: Digital Systems Trends 23
1: Machine Intelligence 24
1.1 Introduction 24
1.2 Intelligent and Expert Systems 25
1.3 Machine Learning and Deep Learning 26
1.4 Data Mining and Pattern Recognition 27
1.4.1 Knowledge Discovery in Database (KDD) 28
1.4.2 Sample, Explore, Modify, Model and Assess (SEMMA) 30
1.4.3 Cross-Industry Standard Process for Data Mining (CRISP-DM) 30
1.5 Applications of Machine Intelligence in Industry 32
1.5.1 Artificial Intelligence (AI) in Healthcare 32
1.5.1.1 Smart Wearables and Healthcare 33
1.5.1.2 Intelligent Robotics in Healthcare 33
1.5.1.3 Data Mining in Healthcare 34
1.5.2 Artificial Intelligence (AI) in Manufacturing 34
1.5.2.1 AI in Oil Production Management 34
1.5.2.2 AI for the Reconfigurable Manufacturing Systems (RMS) 35
1.5.2.3 Hybrid AI System to Control Temperature in Steel Industry 35
1.5.2.4 Machine Intelligence Enhanced Robots in Manufacturing 36
1.6 Machine Intelligence for Smarter Industries 36
1.7 Challenges for Machine Intelligence 37
1.8 Case Studies 37
Point of Attention 38
Point of Attention 39
1.9 Summary 39
References 40
2: Wearable Technologies 43
2.1 Introduction 43
2.2 Market Size and Outlook 44
2.3 Trends for Wearable Adoption 47
2.4 Applications 49
2.4.1 Entertainment 49
2.4.1.1 Wearable Headsets 49
2.4.1.2 Smartwatches 49
2.4.1.3 Fitness Devices 49
2.4.2 Healthcare 50
2.5 Wearable Technology and Big Data 51
2.6 Challenges of Wearable Technology 52
2.6.1 Design Constraints 54
2.6.2 High Power Consumption 55
2.6.3 High Initial Cost and Usage Restrictions 55
2.6.4 Lack of Data Privacy and Security 55
2.6.4.1 Vulnerability of Google Glass on Public Wi-Fi 56
2.6.4.2 Denial-of-Service Attacks May Affect Doctors´ Tools 57
2.6.4.3 Privacy Is at Risk as Wearables Collect Data 57
2.6.4.4 Digital Pickpocketing Is Likely to Rise 57
2.6.4.5 Smartphone Connections Could Be Exploited 57
2.7 Case Studies 58
Point of Attention 58
Point of Attention 59
2.8 Summary 59
References 60
3: Digital Currencies and Distributed Ledgers 63
3.1 Introduction 63
3.2 Understanding Digital Currencies 64
3.2.1 Litecoin 68
3.2.2 BBQCoin 68
3.2.3 Chinacoin 68
3.2.4 Devcoin 68
3.2.5 Feathercoin 69
3.2.6 PPCoin 69
3.2.7 Novacoin 70
3.2.8 Groupcoin 70
3.2.9 Ixcoin 70
3.2.10 Namecoin 70
3.2.11 Terracoin 71
3.2.12 Ven 71
3.2.13 Zen 72
3.3 Digital Currencies Versus Distributed Ledger 72
3.4 Digital Currencies Advantages, Limitations, and Risks 73
3.5 Case Studies 75
Point of Attention 76
Point of Attention 77
3.6 Summary 78
References 78
4: Data Visualization 81
4.1 Introduction 81
4.2 The Power of Data Visualization 82
4.2.1 Interactive Data Visualization 83
4.3 Data Visualization: The State of the Art 84
4.4 Visualization Techniques 85
4.4.1 Radial and Hyperbolic Tree 86
4.4.2 Treemaps 86
4.4.3 Geo-spatial Visualization 87
4.4.4 Animated Data Visualization 88
4.4.5 Networks Visualization 88
4.5 Applications of Data Visualization in Industry 89
4.5.1 Data Visualization in Bioinformatics 91
4.5.2 Data Visualization in Social Sciences 94
4.5.2.1 Social Node-Link Visualization 94
4.5.2.2 Geographic Based Social Networks Visualization 95
4.5.2.3 Geo-temporal Based Social Networks Visualization 96
4.6 Key Factors for Good Visualization 96
4.7 Challenges Facing Data Visualization Software Development 97
4.8 Review of Data Visualization Tools 98
4.8.1 Tableau 98
4.8.2 JMP (SAS) 99
4.8.3 Qlik 99
4.8.4 IBM Cognos 99
4.8.5 Tibco Spotfire 100
4.9 Case Studies 100
Point of Attention 101
Point of Attention 101
4.10 Summary 101
References 102
5: Digital Security 104
5.1 Introduction 104
5.2 Digital Security Challenges Facing Business Organizations 105
5.3 The Rise of Malware Attacks 106
5.4 Digital Security Challenges Facing Business Organizations 107
5.5 Threat Implications on Business Organizations 108
5.5.1 Revenue Loss 108
5.5.2 Brand Damage 111
5.5.3 Data Loss 111
5.5.4 Recovery Costs 112
5.6 Existing Techniques for Disaster Recovery 113
5.6.1 Configuration Management 114
5.7 Case Studies 115
Point of Attention 117
Point of Attention 117
5.8 Summary 118
References 119
Part II: Digital Management Trends 122
6: NeuroIS 123
6.1 Introduction 123
6.2 Neurophysiological Tools: An Overview 124
6.2.1 Electroencephalogram Tools (Brain Imaging Tools) 124
6.2.2 Functional Magnetic Resonance Imaging (Brain Imaging Tools) 125
6.2.3 Electro Dermal Activity (Psychophysiological Tools) 126
6.3 Challenges of Neurophysiological Tools 126
6.3.1 Slow Information Transfer Rate 126
6.3.2 High Fault Rate 127
6.3.3 Autonomy 128
6.3.4 Varied Cognitive Load 128
6.4 Business Application of NeuroIS: Neuromarketing 128
6.4.1 The Barriers of Neuromarketing 130
6.4.2 Benefits of Neuromarketing 131
6.5 Challenges of Adopting Neuromarketing 132
6.6 Case Studies 132
Point of Attention 133
Point of Attention 134
Point of Attention 135
Point of Attention 135
6.7 Summary 136
References 137
7: Digital Transformation and IT Ambidexterity 139
7.1 Introduction 139
7.2 Organizational Transformation as Loss and Gain 142
7.2.1 IT Innovations as Disruptive IT Events 144
7.2.2 Types of IT Events 145
7.3 The Challenges of IT-Induced Changes for System Users 146
7.3.1 Employees´ Emotions 146
7.3.2 Users´ Psychological Stress 147
7.4 User Adaptation to Disruptive IT Events 148
7.4.1 Coping to IT-Related Organizational Changes 148
7.5 IT Ambidexterity and Organizational Agility 149
7.6 Case Studies 153
Point of Attention 153
Point of Attention 154
7.7 Summary 154
References 154
8: Digital Business Strategy and IT Alignment 159
8.1 Introduction 159
8.2 IT and Business Strategy 160
8.3 Digital Business Strategy 162
8.3.1 Scope of Digital Business Strategy 162
8.3.2 Scale of Digital Business Strategy 164
8.3.3 Speed of Digital Business Strategy 164
8.3.4 Value Creation and Capture 165
8.4 Getting Digitally Engaged 166
8.5 Think Data Think Bigger 168
8.5.1 Volume 170
8.5.2 Velocity 170
8.5.3 Variety 171
8.6 Case Studies 172
Point of Attention 173
Point of Attention 174
8.7 Summary 175
References 176
Part III: Digital Innovation Practices 178
9: Innovation Practices 179
9.1 Introduction 179
9.2 Skytree 180
9.2.1 Developer 180
9.2.2 Applications 181
9.3 DataHero 182
9.3.1 Developer 182
9.3.2 Applications 183
9.4 Ripjar 184
9.4.1 Developer 184
9.4.2 Applications 184
9.5 Oculus 185
9.5.1 Developers 185
9.5.2 Applications 186
9.6 Ginger.io 187
9.6.1 Developer 187
9.6.2 Applications 188
9.7 iMotions 188
9.7.1 Developer 189
9.7.2 Applications 190
9.8 Abatis 191
9.8.1 Developer 191
9.8.2 Applications 192
9.9 Dataloop 193
9.9.1 Developers 193
9.9.2 Applications 194
9.10 Summary 195
References 195
10: Conclusion 197
10.1 Digital Business Innovation: A Toolbox for a Future Agenda 197
References 198
Index 199