IT1x12 BIE Notes

I. What is a Business?

A business is the organized effort of individuals to produce and sell goods and services for a profit to satisfy society’s needs.

Core Characteristics of a Business:

• Profit-Seeking: The primary goal is to generate profit.
• Organized Effort: It involves the collaboration of people and resources toward common goals.
• Satisfying a Need: Businesses exist to provide goods or services that meet consumer needs. For example, a grocery store fulfills the need for food and household supplies.

II. Business Sectors and Relationships

Businesses can be categorized into various sectors, including:

• Financial Services
• Retail Services
• Healthcare Services
• Transportation Services
• Entertainment Services
• Industrial Manufacturing

Business-Customer Relationships:

• B2C (Business-to-Consumer): Selling directly to end-users (e.g., direct consumers).
• B2B (Business-to-Business): Selling products and services to other companies (e.g., wholesalers).
• B2G (Business-to-Government): Providing goods and services to government agencies.
• B2B2C (Business-to-Business-to-Consumer): Selling to a business that then sells to the end consumer (e.g., distributors).

III. Business Models

A business model outlines how an organization creates, delivers, and captures value.

Traditional Business Models:

• Franchise: Using a parent company’s model and brand for a fee (e.g., McDonald’s).
• Direct Sales/Multi-Level Marketing: Leveraging personal networks to sell products (e.g., Tupperware).
• Subscription: Customers pay a recurring fee for access to a product or service (e.g., Singtel).
• Advertising: Selling space on traditional media (e.g., MediaCorp).
• Razor-Razorblade: Selling a low-margin core product and high-margin consumables (e.g., Gillette razors and blades).
• Nickel and Dime: Offering a basic product at a low cost and charging for extras (e.g., budget airlines).

Digital Business Models:

• Bricks-and-Clicks: Integrating online ordering with physical store pickup (e.g., NTUC Fairprice Online).
• Advertising (Digital): Providing online content with banner ads or blog posts (e.g., Google).
• Crowdsourcing + Advertising: Content is created by users who get access to other user-generated content (e.g., YouTube, Facebook).
• Affiliate: Earning a commission by driving customers to other merchants’ websites (e.g., Skyscanner).
• Brokerage: Connecting buyers and sellers and charging a fee (e.g., Grab, Airbnb).
• Freemium: Offering basic services for free and charging for premium features (e.g., Dropbox).
• Subscription (Digital): Paying a monthly fee for access to digital content (e.g., Netflix, Spotify).
• Reverse Razor-Razorblade: The main product is expensive, while companion products are cheaper (e.g., Apple iPod/iPhone).

IV. Digital Transformation

Digital transformation is the fundamental change in how an organization operates to build a competitive advantage by continuously using technology at scale to improve customer experience and lower costs.

I. Introduction to Design Thinking

Design Thinking is a human-centered, intentional process for creating new and relevant solutions that have a positive impact. It is a mindset that fosters creativity and innovation.

Key Principles:

• Human-centric: Emphasizes empathy for users.
• Collaborative: Believes in the power of teamwork.
• Experimental: Encourages an iterative and hands-on approach.
• Optimistic: Assumes that a better solution is always possible.
• Divergent & Convergent Thinking: First, explore many possible solutions (diverge), then refine and select the most fitting one (converge).

The Design Thinking Process (Our Approach):

1. Empathise: Understand the target users and the context of the problem.
2. Define: Articulate the problem to be solved based on learnings from the empathize stage.
3. Ideate: Brainstorm potential solutions.
4. Prototype: Create tangible representations of ideas to test.
5. Test: Engage in a continuous cycle of innovation to refine the design with users.

II. The Empathy Stage

Empathy is the foundation of human-centered design. It involves understanding users’ needs, thoughts, feelings, and motivations.

Methods for Building Empathy:

• Engage: Interact with and interview users.
• Observe: Watch users and their behavior in their natural context.
• Immerse: Experience what your users experience.

Why Observation is Important:

• Interviewees might not know what they truly want or be able to articulate it.
• It helps discover useful insights into how people use or misuse things in their natural environment.

Users vs. Stakeholders:

• Users: Directly interact with a product to complete a task. Their focus is on usability, efficiency, and overall experience.
• Stakeholders: Have an interest in or are affected by the product, even if they don’t use it directly. They are concerned with broader objectives like business goals and ROI.

Tools for Empathy:

• Stakeholder Mapping: A 2x2 grid to categorize stakeholders based on their influence and interest.
• User Persona Development: Creating detailed profiles of typical users.

III. Empathy Map, Persona, and Customer Journey Map

These tools help synthesize research findings from the empathy stage.

• Empathy Map: A collaborative tool to gain a deeper understanding of users. It is divided into quadrants: Says, Thinks, Does, and Feels, with Pains and Gains also considered.
• Persona: A fictional character created to represent a target user group based on research. It includes details like name, age, goals, frustrations, and motivations.
• Customer Journey Map: A visual representation of a user’s experience with a product or service from start to finish. It maps out stages, actions, thoughts, emotions, and opportunities for improvement.

I. The Define Stage

This stage involves synthesizing the findings from the empathy stage into an actionable problem statement, known as a Point of View (POV).

Point of View (POV):

A POV statement should:

• Contain the user insight uncovered during the empathy stage.
• Capture a unique design vision.
• Inspire the design team.

Structure of a POV:

[USER]… needs… [NEED]… because… [SURPRISING INSIGHT].

Problem Framing Techniques (Recap):

• SWOT Analysis: Evaluates Strengths, Weaknesses, Opportunities, and Threats to analyze problems and ideas.
• 5 Whys: A technique to identify the root cause of a problem by repeatedly asking “why.”
• Gap Analysis: Compares the current state with the desired future state to identify gaps and create an action plan.

II. The Ideate Stage

This is the creative stage focused on generating a wide range of ideas and solutions.

Why Ideation Matters:

• Moves beyond obvious solutions.
• Encourages innovation and creativity.
• Harnesses diverse perspectives.
• Optimistic: Assumes that a better solution is always possible.

Ideation Techniques:

• Brainstorming: A group creativity technique to generate many ideas in a short period, emphasizing quantity over quality.
• SCAMPER: A structured method using prompts (Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, Reverse) to enhance existing ideas.
• Journey Mapping: Visualizing the user’s experience to identify pain points and opportunities for improvement.
• Reverse Thinking: Flipping the problem to ask “How can we make it worse?” to uncover unconventional solutions.
• Six Thinking Hats: A method for looking at a problem from six distinct perspectives (Facts, Emotions, Cautions, Benefits, Creativity, Management) to ensure a balanced analysis.

From POV to Ideation:

• How Might We (HMW) Questions: Short questions that launch brainstorms. HMWs are derived from the POV statement to frame the ideation process. They should be broad enough for a wide range of solutions but narrow enough to provide helpful boundaries.

I. The Prototype Stage

Prototyping involves creating simplified, tangible models of a solution to test ideas before full-scale development.

Why Prototype?

• To get ideas out of your head and into the physical world.
• To learn and explore possibilities (“a prototype is worth a thousand pictures”).
• To fail quickly and cheaply, allowing for rapid iteration.

Types of Prototypes (Fidelity):

• Low-fidelity: Quick and simple models made from paper, pens, or through role-playing and storyboarding.
• Mid-fidelity: More detailed representations like wireframes and mock-ups.
• High-fidelity: Highly functional and interactive prototypes like pilots.

Storyboarding:

A graphic representation of a story or narrative, similar to a comic book, that pitches a solution by showing how a persona overcomes a problem using it.

II. The Test Stage

Testing involves observing real users as they interact with a prototype to gather feedback.

Why Test?

• Early Validation: Catch design flaws and confusing features before development.
• User-Centered: Understand real users’ reactions, which may differ from assumptions.
• Save Resources: Paper tests are inexpensive yet can reveal major insights.

The Testing Process:

• Introduce the Scenario: Explain the prototype and the user’s task.
• User Tries the Prototype: The user interacts with the prototype, often “thinking aloud.”
• Observe & Note: Watch for confusion, questions, and errors.
• Gather Quick Feedback: Ask what worked well and what was difficult.

Roles in a Testing Session:

• User (Tester): Acts as a first-time user trying to complete a task.
• Moderator: The prototype’s creator who guides the session and answers questions.
• Observer/Note-Taker: Watches the test and records feedback.

Feedback Grid:

A tool to organize feedback into four quadrants: Likes, Criticisms, Questions, and Ideas.

III. Iteration: Refining and Re-testing

Iteration is the process of making improvements based on user feedback and then re-testing.

Why Iterate?

• Continuous Improvement: Each round of changes is guided by real user insights.
• User-Centric: Ensures the design reflects what users actually need.
• Time & Resource Savings: Spotting flaws early prevents costly fixes later.

Software Development Life Cycle (SDLC)

The Software Development Life Cycle (SDLC), also known as the Software Development Process, is a systematic approach to design, develop, and test high-quality software that meets customer expectations within defined timelines and budgets.

• Stakeholders: Individuals or groups affected by the project (clients, end-users, managers, developers).
• End-Users: Direct users of the final product, whose needs are critical.

Phases of a Typical SDLC:

1. Planning & Requirement Gathering: Define application purpose, target users, and key elements.
2. Requirement Analysis: Analyze gathered requirements for validity, calibrate security protocols, perform risk analysis. Documented in **Software Requirements Specification (SRS)**.
3. Design: Create software's architectural design based on SRS. Documented in **Design Document Specification (DDS)**, shared with stakeholders.
4. Implementation (Coding): Developers write code using chosen languages and tools (compilers, debuggers).
5. Testing: Rigorously test deployed software in various environments to identify and fix defects. Iterative process until stable.
6. Deployment & Maintenance: Release software to users (installation links). Ongoing support, bug fixes, updates, and enhancements for performance.

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Functional vs. Non-Functional Requirements

These define **what** a system does (functional) and **how well** it does it (non-functional).

Requirement Type	What it is	Examples
Functional	Capabilities and features the system **MUST** have.	An application must support placing orders; an ATM shall validate cards.
Non-Functional	Constraints or characteristics the system **MUST MEET** (e.g., performance, security, reliability, usability).	Order saving in <5 seconds; system supports 1000 concurrent users; ATM uses 256-bit encryption.

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Software Development Methodologies: Agile vs. Waterfall

Different frameworks guide the SDLC, each with distinct approaches to project management.

Aspect	Waterfall Model	Agile Model
Approach	Structured, sequential. Each phase must finish before the next.	Iterative, collaborative. Requirements and solutions evolve.
Flexibility	Rigid. Difficult to accommodate changes.	Highly flexible. Welcomes changing requirements.
Delivery	Working software produced late.	Frequent, small, consumable increments (sprints).
Customer Involvement	Low, mainly at start and end.	High, continuous collaboration.
Best for...	Small projects with fixed, well-understood requirements.	Projects with evolving or frequently changing requirements.

The Agile Manifesto

Agile is guided by these core values:

• **Individuals and interactions** over processes and tools
• **Working software** over comprehensive documentation
• **Customer collaboration** over contract negotiation
• **Responding to change** over following a plan

III. Requirement Analysis

Process of defining user expectations for a software system.

• **Importance:** Ensures building the "right product" and managing the project effectively.
• **Techniques for Gathering Requirements:**
  • **Interviews:** In-depth understanding (time-consuming).
  • **Questionnaires:** Efficient for large groups (hard to construct).
  • **Reviewing Documentation:** Preliminary understanding (may be outdated).
  • **Observation:** First-hand experience (can be intrusive).
  • **Prototyping:** Early user feedback (cost-saving).
  • **Researching Vendor Solutions:** Cheaper alternative (may not fully meet specific needs).

I. Effective Communication Skills in Empathy Interviews

• Warm Introduction & Rapport Building: Start with greetings and small talk to create a relaxed environment.
• Effective Questioning:
  • Ask Open-Ended Questions: Avoid ‘yes’ or ‘no’ questions.
  • Encourage Storytelling: Ask about specific instances and explore emotions.
  • Ask Neutral Questions: Avoid leading questions that imply a correct answer.
• Active Listening: Pay attention to both verbal and non-verbal cues. Use techniques like paraphrasing and asking clarifying probing questions.
• Stay Neutral and Open-Minded: Do not judge, challenge, or interrupt.
• Closing: End the interview warmly, summarize key points, and express gratitude.

II. Effective Email Writing

• Components of an Email:
  • Confidentiality Setting (To, Cc, Bcc):
    • To: For recipients who need to act.
    • Cc (Carbon Copy): For those who need to be informed.
    • Bcc (Blind Carbon Copy): To protect the privacy of recipients.
  • Subject Line: Keep it short, informative, and clear. Indicate the purpose if possible (e.g., [For Action]).
  • Greeting/Opening: Always start with a polite greeting.
  • The Body: Have one goal per email, with the essential information in the first paragraph. Use formatting like lists and bolding for readability.
  • Closing: Include a call to action if a response is needed, followed by a courteous sign-off (e.g., “Yours sincerely,” “Best regards”).
• Best Practices:
  • Be concise and use simple language.
  • Avoid slang, jargon, and emojis in formal emails.
  • Emails are “written records” and can be traced.

DBS: Transforming a Banking Leader into a Technology Leader

The Opportunity:

In a rapidly changing digital landscape, DBS Bank aimed to cater to tech-savvy customers by acting more like a technology start-up and less like a traditional bank. Their vision was to “Make banking joyful” by making it effortless and “invisible.”

The Solution:

• Adopting a Tech Giant Mindset: DBS adopted the mnemonic GANDALF (Google, Amazon, Netflix, Apple, LinkedIn, Facebook) to symbolize their aspiration to join the league of iconic tech companies, with the “D” representing DBS.
• Customer-Centric Operating Model: They created 33 platforms aligned with business segments, each led by both a business and an IT leader (“2-in-a-box” model).
• Managing Through Journeys: A program was introduced to address major customer pain points, such as account opening and ATM wait times.
• Data-Driven Innovation: Partnering with McKinsey, DBS transformed its operating model to leverage data and AI. They established a program that reduced AI deployment time from 18 months to less than 5 months.
• Cultural and Talent Transformation: DBS invested in training employees in agile, big data, and journey thinking. They created tech hubs and used AI for HR functions like predicting employee exits.

The Impact:

• Recognized as the “Best Digital Bank in the world” for over 5 years by Global Finance.
• 50% lower cost/income ratio for serving digital customers compared to traditional ones.
• The Return on Equity (ROE) for digital customers was 39%, 15 percentage points higher than for traditional customers.
• Generated S$150 million in additional revenue from AI initiatives.

Lessons Learned:

• Attract and Retain Tech Talent: Adopted tech-friendly recruitment and a digital culture.
• Build Cross-Functional Agile Teams: Eliminated silos between functions by building an operating model around platforms.
• Leverage Data and AI: Embedded AI across the bank, from personalized customer nudges to money laundering surveillance.
• Standardize and Package Assets: Made assets easy to use to “industrialize AI” and enable modularity.

Gartner’s Top Tech Trends for 2025

While not a direct case study of a single company, Gartner’s predictions highlight key areas of digital transformation that will shape businesses.

• Agentic AI: Goal-driven software that can complete tasks without specific human input. It can act as a digital co-worker, automating tasks and improving collaboration. Gartner predicts that by 2028, at least 15% of day-to-day work decisions will be made autonomously by Agentic AI.
• Post-Quantum Cryptography (PQC): New encryption methods designed to withstand attacks from quantum computers. This is crucial for protecting sensitive data in the future, as quantum computing is expected to be able to break current encryption standards.
• Polyfunctional Robots: Robots designed to perform multiple tasks and learn new ones without reprogramming. Gartner predicts that by 2030, 80% of humans will engage with smart robots daily. These robots can bring flexibility and cost efficiencies to industries like warehousing, healthcare, and field service.