In 2022, Apple lost US$1.5 billion in Black Friday sales due to iPhone supply constraints. One in three retail stores across the US and Europe experienced stockouts of the new iPhone 14 Pro. China sales were down more than 30% year on year. Apple's stock had dropped 29% in 2022. China's zero-Covid policy resulted in massive lockdowns that made factory working conditions unbearable. In the second half of 2022, many Chinese workers quit their jobs at Apple's Foxconn facilities. The Russia-Ukraine war that started in February 2022 and the ensuing Western sanctions spurred an unprecedented global energy crisis and double-digit inflation. Now that supply chain disruptions, component shortages and rising geopolitical tensions had become a reality, Apple had to decide on a transformation, knowing that the transition presented difficult trade-offs and would take years to complete: (1) Which elements to change in the company's global value chain? How to approach change without hurting manufacturing continuity, product quality, revenue and profitability? (2) Should Apple further drive its vertical integration in the design of chips, semiconductors, screens and assembly? Or should it adopt the Android phone manufacturers' model and develop a broader base of suppliers?

Case A explores the transformative role of data analytics in the sports industry through the lens of Infosys, an innovative tech company. Infosys aims to showcase its AI and analytics expertise by partnering with the Association of Tennis Professionals (ATP). Recognizing the potential of data to reshape the experience of fans and to advance the business of tennis, Infosys strategically selects tennis as its focus. By becoming the official Digital Innovation Partner for the ATP, Infosys aims to enhance fan engagement, aid players and coaches, and transform tennis through data-driven insights. The ATP, which governs men's professional tennis, operates within a multifaceted business model reliant on data to drive engagement and revenue. In its quest for a technological partner, ATP aligns with Infosys to tap into its expertise. Leveraging ATP's data repository, Infosys revamps the player zone app, creating a versatile hub for players and coaches. The case underscores the power of data-driven decision making and its potential to redefine the sports landscape.

The ATP Leaderboards evolve to provide real-time insights for fans, players and coaches, while the Second Screen capability aids players in refining strategies. Innovations like MatchBeats, Rally Analysis, Stroke Summary and 3D CourtVision enrich fans' understanding of the game.

Infosys collaborated with the International Tennis Hall of Fame (ITHF) to create a metaverse-based digital twin, bridging tradition and innovation. The post-Covid drive for sustainability prompted Infosys to address carbon emissions by developing an ATP carbon tracker app, highlighting its environmental and societal commitment. Enhancing visibility, Infosys revamped content interaction, creating an AI-driven journalism platform that streamlines content sharing. Furthermore, the company augmented existing technologies to provide fans with immersive experiences through augmented reality (AR) and was exploring the potential of gaming as a means of fan engagement.

The invention of antibiotics increased the average lifespan by two decades, though WHO warns that antibiotic resistant will become the most common death by 2050 if the resistance issue cannot be overcome. This paradox is an exemplary dilemma of the society's urgency of creating value, such as developing new antibiotic drugs, although the value creator may not be able to capture this value in a financially profitable way. The traditional business model of pharma is broken and no solution exists yet. Several diverse stakeholders with different interests are required to find a global solution to this complex problem. While no financial model provides a perfect solution for all involved stakeholders, it is important to make progress before the antibiotic resistant bacteria have made the drugs totally ineffective. For each financial model we will describe advantages and disadvantages, provide financial analysis and describe the implications for the ecosystem. Further, the different business model canvas from the view- point of a pharmaceutical company investing in antibiotics R&D. As the business model canvas is limited with providing the multi-dimensional overview of the stakeholders in the eco-system and their interaction, an approach to reflect all stakeholders in one table is provided.

With its mission to "unsmoke the world" and its bold new purpose to replace cigarettes with less harmful tobacco products, Philip Morris International (PMI) was revolutionizing every part of its existing business model and, with it, the tobacco industry. Over a four-year period, PMI had established an entirely new product category for its new heated-tobacco IQOS brand and had become the global market leader in this fastest-growing group of reduced-risk products in the tobacco industry. To stay ahead of the rapidly evolving competition and to respond fast to changing market conditions, PMI fundamentally had to change its business model and the way it worked. Everyone in the organization was encouraged and empowered to participate actively in PMI's transformation journey, and digital had become the disruptive catalyst. Digital innovations in the supply chain were challenging existing processes and unlocked other opportunities that PMI had not thought about before. PMI had a two- to four-year lead on its main competitors and was now in a position to shape its future business model. But how was the business going to develop and what type of supply chain should it create to scale up its business in a volatile market where speed was king? The executive leadership team was under pressure to make this key decision soon, as the final supply chain strategy depended on it. But for a traditional B2B consumer goods company that was transforming into a technological customer-centric organization that operated within the regulatory constraints of the tobacco industry, which business model would work best for PMI?

The case covers real time experiences of the people involved in digital transformation, capture the lessons learned and explain how Faurecia was able to transform its plant into a culture of innovation for the manufacturing processes.

The case describes the various industry 4.0 options which were available to Faurecia for digital transformation and finally illustrate the process of successful implementation of the digital transformation strategy in Abrera' plant by overcoming various challenges, the value proposition, the execution of the plan, and the costly pitfalls along the way.

The case is based on a dynamic real-life story. In this case we have examined how Faurecia decorative division has used digital tools and technology, both hardware and software, to first modernize its interior division in Abrera (Spain) plant in 2015 which eventually transformed the plant into a profitable unit while before it was losing 3 M€ every year from 2003.

This case highlights the differences in the business models of Amazon and Alibaba, respectively. Readers need to analyze the characteristics of India with respect to culture, wealth and income distribution, demographics, economy, infrastructure, digital potential, diversity, and foreign direct investment policy. Based on their assessment, they need to decide which company represents the better strategic fit for success in India. Theoretical models illustrated are Hambrick's strategy diamond, SWOT analysis, customer segmentation, concept of clockspeed by Charles H. Fine (double helix model), and principles of platform business models.

PFA a leading Danish insurance and pension company administrating pension funds for approximately 75 billion Euro and having more than 1,1 Million customers has over that past years started a huge digital transformation journey. For a number of years PFA pursued an aggressive growth strategy and was able to grow more than 10% primarily by taking customers from competitors. Though, the aggressive growth strategy has led to non-profitable business. Too little focus has been given to the internal processes and IT landscape leading to high costs. To turn the development PFA decided to hire a number of experienced senior managers who had been through a digital transformation journey in other Scandinavian service companies. To kick-start the digital transformation journey PFA decided to allocate 42 FTE's to this project during the summer of 2016. The team was moved away from their existing business environment and into an environment integrating various functions. Breaking down silos improving agility to transform processes and systems was core to the success of the transformation. As LEAN had successfully been used in PFA for a number of years the agile business transformation was combined with principles of LEAN. While the first results from the digital business transformation team were positive, the change of this more than 100-year-old company is enormous. Core stakeholders are skeptical about whether the 2 schools; agility and LEAN can be combined or whether the company should continue with only LEAN principles to push the transformation through. Though, one thing is in common - senior management has realized the need for a digital transformation in order for PFA to keep its leading market position - whether digital LEAN or a combination with agility is still to be finally decided.

The case presents the impact of the digital disruption coming from the sharing economy from the perspective of the largest American auto manufacturer, General Motors (GM). ?The car-sharing business led by Uber has been forcing a change to the traditional model by introducing the for-hire transport business especially in densely populated urban settings. At the same time, technology innovation has allowed non-traditional competitors making serious advancements. For GM, despite its history of innovations, these forces represent uncertainty and perhaps even an existential challenge. At the beginning of 2016, GM failed to acquire Lyft, the most promising competitor of Uber and ended up in an investment of $500 million corresponding to only 9% of the company. This investment, together with other two (Maven and Cruise Automation) are the proof that GM and its CEO Mary Barra, realized how difficult would be - for a company of the size and structure like GM - to compete with agile and innovative start-up companies leveraging on data and digital technologies. Despite being the pioneer of the technology of the connected cars with its OnStar® technology, GM finds itself desperately looking for insights and customer data that would allow better understanding the changing preference of the urban customers shifting their consumption behaviour from car-ownership to shared mobility services. With declining market share in the traditional automotive space, Mary Barra is called to make a tough strategic call that should attempt to steer this giant and iconic American company into a new ecosystem where value creation is much more delocalized and where GM should attempt to take a large part in order to avoid the risk of irrelevance that the new competitors and the digitally enabled service-based economy are posing. What should Mary Barra do with Lyft and how should Lyft be integrated in the future offering of General Motors?

Supplement to case IMD976 The "LEGO IN THE AGE OF DIGITIZATION" case is in two parts. Part A provides an opportunity to follow the developments of the LEGO Group in the digital gaming arena. It focuses on the "failure" of LEGO Universe, the LEGO Group's first Massive Multiplayer Online Game (MMOG), versus the success of Minecraft, launched by the start-up Mojang. The LEGO Group followed the traditional waterfall process of sequential phases: design, development, testing and commercialization. The company experienced the issues of partnering with a development studio located in Colorado, far away from the Lego Group's HQ. That caused problems in aligning on the image, branding and safety of the game versus the LEGO Group's values and selling proposition. After years of development, LEGO Universe was finally launched in 2010, but failed to meet the Group's ambition for it to become a second core business. By the end of 2011, a decision had to be made on whether to continue LEGO Universe or to close it. In contrast, Minecraft followed a very different development pattern that could be described as agile, where early users did testing and provided ideas for further development. In addition, the start-up followed a more usual digital pricing scheme of initial low price and add-on purchases. The success of Minecraft is even more in contrast to LEGO Universe because both development projects started around the same time, building on a very similar gaming concept and user experience, but with very different means and development approaches. Part B is an epilogue to Part A. It describes the LEGO Group's decision to close the LEGO Universe game, its learnings on how to embark on digital together with partners, the need to internally develop a unit to manage these partnerships and the conclusion to adopt a "hybrid" approach between waterfall and agile development.

The "LEGO IN THE AGE OF DIGITIZATION" case is in two parts. Part A provides an opportunity to follow the developments of the LEGO Group in the digital gaming arena. It focuses on the "failure" of LEGO Universe, the LEGO Group's first Massive Multiplayer Online Game (MMOG), versus the success of Minecraft, launched by the start-up Mojang. The LEGO Group followed the traditional waterfall process of sequential phases: design, development, testing and commercialization. The company experienced the issues of partnering with a development studio located in Colorado, far away from the Lego Group's HQ. That caused problems in aligning on the image, branding and safety of the game versus the LEGO Group's values and selling proposition. After years of development, LEGO Universe was finally launched in 2010, but failed to meet the Group's ambition for it to become a second core business. By the end of 2011, a decision had to be made on whether to continue LEGO Universe or to close it. In contrast, Minecraft followed a very different development pattern that could be described as agile, where early users did testing and provided ideas for further development. In addition, the start-up followed a more usual digital pricing scheme of initial low price and add-on purchases. The success of Minecraft is even more in contrast to LEGO Universe because both development projects started around the same time, building on a very similar gaming concept and user experience, but with very different means and development approaches. Part B is an epilogue to Part A. It describes the LEGO Group's decision to close the LEGO Universe game, its learnings on how to embark on digital together with partners, the need to internally develop a unit to manage these partnerships and the conclusion to adopt a "hybrid" approach between waterfall and agile development.

Supplement to case IMD820. The case series is based on extensive interviews with key executives at adidas Russia/CIS in charge of implementing the radical IT, supply chain and omnichannel initiatives that transformed adidas Russia/CIS from one of the poorest performers to the new standard within the Group. The initiatives included pioneering the rollout and implementation of key new technologies such as click-and-collect, ship-from-store, endless aisle and RFID - all of this in the face of the massive economic crisis that embroiled Russia. With some 1,200 company-owned stores - the Group's largest direct retail footprint globally - adidas Russia/CIS was critical to the financial success of the Group as a whole. The case provides an opportunity to discuss the key challenges in the rollout and implementation of cutting-edge IT, supply chain and omnichannel initiatives in one of the most challenging retail and logistics environments, i.e. Russia during the latest economic crisis.

The case series is based on extensive interviews with key executives at adidas Russia/CIS in charge of implementing the radical IT, supply chain and omnichannel initiatives that transformed adidas Russia/CIS from one of the poorest performers to the new standard within the Group. The initiatives included pioneering the rollout and implementation of key new technologies such as click-and-collect, ship-from-store, endless aisle and RFID - all of this in the face of the massive economic crisis that embroiled Russia. With some 1,200 company-owned stores - the Group's largest direct retail footprint globally - adidas Russia/CIS was critical to the financial success of the Group as a whole. The case provides an opportunity to discuss the key challenges in the rollout and implementation of cutting-edge IT, supply chain and omnichannel initiatives in one of the most challenging retail and logistics environments, i.e. Russia during the latest economic crisis.

After developing powerful software, young entrepreneurs Raffael Maio and Joël Winteregg, founded NetGuardians in 2007. Their initial idea was to help companies improve security. (i) Over time, the two entrepreneurs improved their technology and decided to focus on defeating and preventing fraud in banking, where there was a gap in the market. In 2014 around $67 billion was lost due to banking fraud, 70% of it committed by employees inside the company. In 2015 the company was named a Gartner Cool Vendor, a worldwide industry recognition for companies that offer technologies or solutions that are innovative, impactful and intriguing. (ii) In the nine years since they had founded their company, Joël and Raffael had raised $6 billion in two rounds of funding. The company employed around 30 people in R&D offices in Kenya, Singapore and Poland. It had customers in Africa, the Middle East and Europe, and was breaking ground in Asia. (iii) Now it was time for NetGuardians to tackle some important strategic decisions: Should the company expand to other markets? Should it expand its product offering? Or should it focus on growing its customer base? (iv) Whatever the decision, it would lead to a change in business model that would have a significant impact on the company.

Luxottica, headquartered in Milan, Italy, was the largest eyewear company in the world with sales surpassing €5 billion in 2008. In June 2009, the CEO of Luxottica, met with his management team to review the company's growth strategy for the next five years. The objective was to take Luxottica to the next growth level. Should he stick to the same business model, or adopt a new one? Should he expand retail brand acquisitions? How should the large portfolio of brands be managed? Where should the geographic focus of the company be? Learning objectives: Global strategy, marketing and supply chain management.

Two years after joining the LEGO Group as their Logistics Manager for Europe and Asia, Egil Møller Nielsen finds himself fighting several battles at different fronts; the most difficult one on his home turf against his own management team. He is half-way implementing a bold plan: close down all existing local and regional logistics operations and consolidate all logistics and distribution activities from a central location in the Czech Republic, managed by an external partner - DHL. Outsourcing logistics services on a scale like this - in East-Europe - had never been done before by any other European company. The stakes are high as LEGO, struggling for survival, is also trying to re-invent itself. Should Nielsen push through his plan - in which he firmly believes - or give in to the mounting pressure from home and relax his efforts? Learning objectives: We observe two new partners, both active on new, unexplored territory in the early stages of their partnership. The relationship is strained; both companies are under tremendous pressure from their corporate headquarters to show results while there is a general distrust in each others capacity and motivation. In this first case we learn that building a relationship that is based only on a contractual agreement can be a painful experience. Cost accounting in general and cost drivers in specific are mentioned to illustrate their importance in key decision making.

Unaxis Data Storage, a branch of a large European high tech company, is facing a difficult choice. Since most of its customer base is in Asia, the management has to come up with a solution to manufacture some of its product in Asia and generate some cost saving. Yet, the company wants to keep control of its supply chain and its intellectual property.