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理论化数字业务创新:生态系统中的平台和功能-研究论文
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2021-05-20
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本文重点介绍信息和技术如何在业务生态系统中推动数字业务创新,在该生态系统中,多个共同贡献者共同努力,创新了新的业务模型。 具体来说,我们基于两个新概念开发了一个框架-(1)数字业务创新(DBI)平台; (2)生态系统层面的数字业务创新能力分析。 首先,我们通过三个属性(规模,范围和速度)来描述DBI平台。 其次,我们使用三个维度来描述DBI生态系统的能力-运营,动态和即兴能力。 DBI平台和功能共同带来了在生态系统级别创建并由各个共同贡献者共享的业务价值。 通过引入信息和技术作为生态系统中创造价值和获取价值的驱动力的作用,我们产生了一系列理论命题。 现有的有关IT和创新的研究集中于个人,组织,很少关注组织间的分析,但本文却指出了创新生态系统的重要性,这些创新生态系统是复杂,相互依存且不断发展的。 我们以汽车行业正在进行的数字技术创新数字业务创新为例,为我们的概念框架和主张提供支持。 最后,我们提出了一系列关键问题,这些问题是关于DBI平台和生态系统功能的理论的进一步发展的结果,这些理论正在颠覆并改变公司,行业和市场。 我们的信念是,信息系统研究可以通过阐述信息和技术(单独和串联)如何在生态系统中共同创造并由生态系统中的各个共同贡献者共享的商业价值,为更广泛的创新文献做出重要贡献。 因此,我们希望本文能够吸引IS研究人员重新思考生态系统层面的数字业务创新。
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Theorizing Digital Business Innovation
Theorizing Digital Business Innovation: Platforms and Capabilities in Ecosystems
RESEARCH NOTE
Abstract
This paper focuses on how information and technology drive digital business innovation in ecosystems
where multiple co-contributors work together to innovate business models. Specifically, we develop a
framework based on two novel concepts — (1) digital business innovation (DBI) platforms; and (2)
digital business innovation capability—at the ecosystem level of analysis. First, we describe DBI
platform through three properties: scale, scope and speed. Second, we describe DBI ecosystem capability
using three dimensions: operational, dynamic and improvisational capabilities. The DBI platform and
DBI capability together give rise to delivered business value, created at the level of the ecosystem and
shared by the various co-contributors. We generate a set of theoretical propositions by bringing forth the
role of information and technology as twin drivers of value creation and value capture in ecosystems.
While extant research on IT and innovation has focused on the individual, organizational, and rarely at the
interorganizational levels of analysis, we argue for the importance of innovation ecosystems, which are
complex, interdependent, and dynamic. We support our conceptual framework and propositions with a
case example of digital business innovations underway in the automotive sector. We conclude with a set
of critical issues for further development of theory on DBI platforms and DBI ecosystem capabilities that
are disrupting and transforming firms, industries, and markets. Our belief is that IS research could make
major contributions to the broader innovation literature by explicating how information and technology—
both separately and in tandem—give rise to business value co-created and captured in ecosystems.
Keywords: Digital business innovation, ecosystems, capability, platforms, innovation, value-co-creation.
Venkatraman, V., (venkat@bu.edu
), Department of Management Information Systems Boston University; El Sawy,
O. (elsawy@marshall.usc.edu), Marshall School of Business, University of Southern California, Pavlou, P.
(pavlou@temple.edu), Fox School of Business, Temple University, & Bharadwaj, A. (ab@bus.emory.edu),
Goizueta Business School, Emory University.
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Theorizing Digital Business Innovation
1. Introduction
Digital innovation as a field of inquiry can trace its roots to the role and impact of information
technology on business processes—termed process innovation (Davenport 1993)—and recently on product
innovations where digitization is integrated with physical products, such as books, thermostats, watches, and
automobiles (Porter and Heppelmann 2014). The impressive increase in the power of computerization and
connectivity requires rethinking product innovations, since enhanced digitization makes physical products
and services programmable, addressable, sensible, communicable, memorable, traceable, and associable
(Yoo 2010). Indeed, the emergence of layered modular architecture (Baldwin and Clark 2000) in digital
products and services impacts the organizing logic of innovation (Yoo et al. 2010) with distributed,
collaborative and combinatorial digital platforms (Yoo et al. 2012). Within this research stream, we examine
how information and technology drive digital business innovation in ecosystems where many co-
contributors simultaneously compete and collaborate to create new business models.
The call for this Special Issue (Nambisan et al. 2014) underscored that innovation processes in a digital
world have become more collaborative, involving global networks of stakeholders and a necessary
recognition of the duality of information and technology as both operand and operant drivers of innovation.
While there is a general understanding of digital innovations through popular writings on digital products
(e.g., smartphones or e-books) and processes (e.g., recommendation systems), there has been a glaring lack
of conceptual frameworks on digital business innovations that give rise to new business models. We focus
on the shift in the locus of innovation from single firms to business ecosystems, where firms interconnect
their business processes and interlink their product modules to architect new digital business models. Thus,
we propose ecosystem as the level of analysis for digital business innovations, extending prior research on
innovation that mostly focused on the organizational—and rarely on interorganizational—level of analysis.
We recognize the early stages of conceptualization and theory building in digital business innovations
and offer some foundational theoretical building blocks to help move towards a more formally articulated
and testable theory. We conceive digital business innovations not as intraorganizational process, but as
multiorganizational platforms driven by interoperable technologies, intelligent data, and inputs from
multiple firms in the ecosystem. Subsequently, we argue that value realization by the various co-contributing
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Theorizing Digital Business Innovation
firms within ecosystems is based on a set of capabilities, which are also conceptualized at the ecosystem
level. We discuss the inherent dynamics in digital business model innovations through a learning loop that
iterates to recognize and respond to system-level changes. We develop a set of propositions on how
information and technology as twin drivers of innovation affect the ecosystem’s platforms and capabilities.
We use examples to support our propositions and illustrate the internal consistency of our propositions using
examples of digital business innovations in the automotive sector over the last decade (Online Appendix A).
Finally, we conclude with outlines of a research agenda and a path forward for IS research and practice.
2. Digital Business Innovation Platform
We define digital business innovation platforms as “actions of a network of companies with
complementary competencies to co-innovate new business models that are intrinsically based on
information and technology functionality.”
First, we conceptualize innovation as platform beyond the conventional framing of innovation as
process. Innovation platforms allow for business model innovations driven and supported by information
technology. We follow Amit and Zott (2001) in defining a business model as “a bundle of specific
activities that are conducted to satisfy the perceived needs of the market, including specification of the
parties that conduct these activities and how these activities are linked to each other.” Business model
innovations through information and technology go beyond prior work on the traditional role of IT in the
design of innovative products (e.g., software; Internet of Things) or business process innovations
(Davenport 1993) and service delivery (Brynjolfsson and Saunders 2009).
Second, digital innovations are not created by autonomous firms but by a network of firms in a
business ecosystem pooling their complementary skills. Accordingly, Android or iOS are not digital
innovations from Google and Apple, respectively. They are business ecosystems involving
complementary hardware, applications, and services orchestrated by Google and Apple and involving
several firms that compete and cooperate in dynamic networks (Iansiti and Levien 2004). Empirically,
small, independent software vendors often improve their business performance by participating in
enterprise software ecosystems (Ceccagnoli, Forman, Huang, and Wu 2012).
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Theorizing Digital Business Innovation
Third, we bring attention to both information and technology in the design, development, and
deployment of business model innovations. While the literature on innovation may have mostly ‘black-
boxed’ technology features and functionality, we formally focus on the increasing role of data and
information (big data and data-driven insights) as well as the technology (shaping digital product
architecture and firm-customer interactions) underlying innovative business models.
In sum, our definition of digital business innovation platform at the ecosystem level of analysis is
consistent with Powell, Koput, and Smith-Doerr (1996), who argued that “when the knowledge base of an
industry is both complex and expanding and the sources of expertise are widely distributed, the locus of
innovation will be found in networks of learning, rather than in individual firms” (emphasis added; p.116).
2.1 Properties of Digital Business Innovation Platforms
Our conceptualization of digital business platforms is consistent with the general assertion that
platforms succeed due to combination of direct and indirect network effects. A DBI platform has high
direct network effects when it attracts high number of customers for its innovation (customer network
effects). At the same time, DBI platforms become attractive to customers if they have a high degree of
complements that support the innovation (complementor network effects). We now know that several
platforms have succeeded due to the interplay between these two types of effects in settings such as
games (Venkatraman and Lee, 2004) and software platforms (Evans, Hagiu, and Schmalensee 2006).
Our conceptualization of DBI platforms extends insights from studies on platforms at the level of
product innovations such as Microsoft Windows, Adobe PDF, Xbox, PS/2 and others involving two-
sided markets (Parker and Van Alstyne 2005; Rochet and Tirole 2006) to broader innovation platforms at
the level of ecosystems that include a set of actors who contribute key capabilities for the creation and
capture of value from new innovations. We conceptualize digital business innovation platforms through
three important properties—(1) scale, (2) scope and (3) speed—and how they give rise to potential value.
2.1.1 Scale of Digital Business Innovation Platform
Our first assertion is that DBI platform has high degree of scale when it has both high potential
adopters (customer network effects) and a large number of potential co-creators (complementary network
effects). This assertion is based on theoretical proofs, case based insights and empirical studies on
4
Theorizing Digital Business Innovation
platforms involving settings as diverse as Amazon Kindle digital publishing ecosystem, mobile operating
systems (Android and iOS), videogame consoles and games, Uber in transportation, media and
entertainment with YouTube, Netflix and HBO, Apple Pay in mobile payments and others.
Innovation scale moves by firms involve choices pertaining to technology architecture and
information-based insights. Modular architecture is a key driver of innovation scale. Amazon Kindle
explored both hardware and software as options for its customer base to access digital content, which
increased the customer adoption scale and enhanced its attractiveness to digital content providers. Rapid
acceptance of Netflix has been due to their focus on making every screen (mobile, tablet, PC, monitors)
capable of receiving its content through multiple different set-top boxes and their variants. In videogames,
Microsoft introduced XNA middleware in 2004 to enable Windows PC game developers to port their
games to Microsoft’s Xbox, thereby increasing the number of available titles for its platform. Apple’s
newly announced Apple Pay, as an innovation, has potential value through the installed base of over 800
million iTunes users, but the platform needs complementor scale in terms of acceptance and adoption of
this functionality by banks, merchants and global credit card networks. Thus, we propose:
P1a: Digital business innovation platforms that leverage customer scale and complementor
scale together create greater potential value from innovations than comparable platforms
that leverage one without the other.
Information exchanged within the platform plays an important role in providing insights for the various
participants within the ecosystem to deliver their part of the value. Proprietary recommendation engines
based on detailed data from search queries (e.g., Amazon or YouTube) or social interactions and influences
(e.g., Netflix linked to Facebook) have contributed significantly to sales and engagement. These innovation
platforms formally apply analytics to detailed data attributes on various key trends to make recommendations
to create stickiness within specific innovation platforms. Such stickiness creates value for both customers
and complementors—thereby further reinforcing the virtuousness of customer and complementor scale.
Beyond recommendation engines, platforms use timeliness of data to enhance value to customers and
complementors. Uber has leveraged detailed information on demand patterns to introduce dynamic
pricing, with additional premium fees shared with the drivers that are integral within the ecosystem.
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