DIGITAL BUSINESS STRATEGY AND VALUE CREATION: FRAMING THE DYNAMIC CYCLE OF CONTROL POINTS.

Author List: Pagani, Margherita;
MIS Quarterly, 2013, Volume 37, Issue 2, Page 617-632.
Within changing value networks, the profits and competitive advantages of participation reside dynamically at control points that are the positions of greatest value and/or power. The enterprises that hold these positions have a great deal of control over how the network operates, how the benefits are redistributed, and how this influences the execution of a digital business strategy. This article is based on a field study that provides preliminary, yet promising, empirical evidence that sheds light on the dynamic cycle of value creation and value capture points in digitally enabled networks in response to triggers related to technology and business strategy. The context used is that of the European and U.S. broadcasting industry. Specifically, the paper illustrates how incremental innovations may shift value networks from static, vertically integrated networks to more loosely coupled networks, and how cross-boundary industry disruptions may then, in turn, shift those to two-sided markets. Based on the analysis, insights and implications for digital business strategy research and practice are then provided.
Keywords: Control points; digital business strategy; disruptive innovation; incremental innovation; value network
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List of Topics

#212 0.237 business digital strategy value transformation economy technologies paper creation digitization strategies environment focus net-enabled services processes insights challenges key response
#143 0.119 value business benefits technology based economic creation related intangible cocreation assessing financial improved key economics assess question created create understanding
#178 0.106 digital divide use access artifacts internet inequality libraries shift library increasingly everyday societies understand world initiative initiatives embedded community dimensions
#249 0.092 network networks social analysis ties structure p2p exchange externalities individual impact peer-to-peer structural growth centrality participants sharing economic ownership embeddedness
#171 0.089 markets industry market ess middle integrated logistics increased demand components economics suggested emerging preference goods interesting form recent vertically chinese
#220 0.089 research study different context findings types prior results focused studies empirical examine work previous little knowledge sources implications specifically provide
#210 0.055 innovation innovations innovative organizing technological vision disruptive crowdsourcing path implemented explain base opportunities study diversity taking actors practice shape creation