Emergence of Digital Business Ecosystems: A theoretical framework

This paper seeks to determine what triggers the emergence of Digital Business Ecosystems. To reach this aim, Traditional Business Ecosystems are considered as the initial state from which Digital Business Ecosystems arise. Thus, both of the concepts are defined, stating their characteristics, roles of the actors and stages of formation. Moreover, organizational change theory is adopted in order to explain the cited emergence. Disruptions from the use of ICTs and the digital transformation initiatives prompt the evolution of Digital Business Ecosystems approach and stimulates the adoption of more innovative means of conducting business. Therefore, organizational change theory is suitable to explain the motives behind the potential shift of Business Ecosystems from Traditional to Digital. The inherent triggers can take place within each organization of the ecosystem and thus systems theory is advocated; the emphasis on fixing the appropriate organizational goals that involve innovation is the key to meet change. Transition can also emerge from people’s own will and the desire to evolve along with the new digital environment, or out of a conflictual situation where norms and rules evolve to embrace the new possibilities that digital offers. The results of the conceptual literature review confirm that the potential shift towards Digital Business Ecosystems is a reality that could be tackled by encouraging organizational development and fostering co-creation of value in a constantly changing environment. The findings offer a relevant conceptual contribution to bridge a gap in the DBE existing research regarding the origins of this concept and its driving force.   Keywords: Business Ecosystem, Digital Business Ecosystem, Organizational change theory. JEL Classification: M19 Paper type: Theoretical researchThis paper seeks to determine what triggers the emergence of Digital Business Ecosystems. To reach this aim, Traditional Business Ecosystems are considered as the initial state from which Digital Business Ecosystems arise. Thus, both of the concepts are defined, stating their characteristics, roles of the actors and stages of formation. Moreover, organizational change theory is adopted in order to explain the cited emergence. Disruptions from the use of ICTs and the digital transformation initiatives prompt the evolution of Digital Business Ecosystems approach and stimulates the adoption of more innovative means of conducting business. Therefore, organizational change theory is suitable to explain the motives behind the potential shift of Business Ecosystems from Traditional to Digital. The inherent triggers can take place within each organization of the ecosystem and thus systems theory is advocated; the emphasis on fixing the appropriate organizational goals that involve innovation is the key to meet change. Transition can also emerge from people’s own will and the desire to evolve along with the new digital environment, or out of a conflictual situation where norms and rules evolve to embrace the new possibilities that digital offers. The results of the conceptual literature review confirm that the potential shift towards Digital Business Ecosystems is a reality that could be tackled by encouraging organizational development and fostering co-creation of value in a constantly changing environment. The findings offer a relevant conceptual contribution to bridge a gap in the DBE existing research regarding the origins of this concept and its driving force.   Keywords: Business Ecosystem, Digital Business Ecosystem, Organizational change theory. JEL Classification: M19 Paper type: Theoretical researc

Business model innovation and digital transformation in global management consulting firms

Purpose: This paper contains an exploratory analysis of the business model innovations (BMIs) that management consulting firms (MCFs) undertake to remain competitive during digital transformation. Design/methodology/approach: This paper uses data from a longitudinal multiple case study of the European practices of major global MCFs to provide an overview of how they reconfigure their business model (BM) to gain competitive advantages. It maps BMIs in MCFs through value creation innovation, value proposition innovation and value capturing innovation. Findings: There is a shift in value proposition from solely giving advice or supporting information technology (IT) implementation to providing end-to-end digital solutions. To materialize value propositions, MCFs acquire new knowledge and digital assets through talent scouting, and mergers and acquisitions (M&As). MCFs rely heavily on complementary knowledge and capabilities of actors within ecosystems; thus, they focus on expanding, creating their ecosystems and adopting platforms' configuration and characteristics. Research limitations/implications: Inductively, the authors reached an analytical generalization through six propositions and a theoretical frame that embeds propositions in the previous literature. Future research should test them across the overall management consulting industry. Practical implications: MCFs are recognized as drivers of innovation and BMIs in most client firms. However, MCFs are rarely analyzed with respect to their BMIs. Understanding how MCFs innovate their business models (BMs) to provide digital transformation (DT) consulting services is relevant for delivering management innovation across industries. Originality/value: This is the first exploratory study on BMI inside global MCFs during DT

Activating supply chain business models' value potentials through Systems Engineering

New business opportunities, driven by smart digitalization technology and initiatives such as Industry 4.0, significantly change business models and their innovation rate. The complexity of methodologies developed in recent decades for balancing exploration and exploitation activities of digital transformation has risen. Still, the desired integration levels across organizational levels were often not reached. Systems thinking promises to holistically consider interdisciplinary relationships and objectives of various stakeholders across supply chain ecosystems. Systems theory-based concepts can simultaneously improve value identification and aligned transformation among supply networks' organizational and technical domains. Hence, the study proposes synthesizing management science concepts such as strategic alignment with enterprise architecture concepts and artificial intelligence (AI)-driven business process optimization to increase innovation productivity and master the increasing rate of business dynamics at the same time. Based on a critical review, the study explores concepts for innovation, transformation, and alignment in the context of Industry 4.0. The essence has been compiled into a systems engineering-driven framework for agile value generation on operational processes and high-order capability levels. The approach improves visibility for orchestrating sustainable value flows and transformation activities by considering the ambidexterity of exploring and exploiting activities and the viability of supply chain systems and sub-systems. Finally, the study demonstrates the need to harmonize these concepts into a concise methodology and taxonomy for digital supply chain engineering.OA-hybri

Strategies For Cross-Company Collaboration From An OEM's Perspective In The Context Of Digital Ecosystems

The mechanical engineering industry is facing significant challenges due to digital transformation. Business model innovation, such as service-oriented business models, is required to maintain competitive advantage. These innovative business models require capabilities that traditional manufacturing companies may not possess. These capabilities can be developed through cooperation in ecosystems. This paper examines the development of ecosystems and cross-company cooperation in mechanical engineering. The aim is to develop a strategy for cross-company cooperation within the framework of a practical example, which presents capability development framework for an OEM. A scenario analysis compares different alternatives to the cross-company collaboration strategy. The paper compares the approaches of the platform economy and the federative data space in the context of research projects. The methodology is based on a design science research approach and expert interviews to generate practice-oriented findings, as well as a literature review for theoretical insights

Next Generation Business Ecosystems: Engineering Decentralized Markets, Self-Sovereign Identities and Tokenization

Digital transformation research increasingly shifts from studying information systems within organizations towards adopting an ecosystem perspective, where multiple actors co-create value. While digital platforms have become a ubiquitous phenomenon in consumer-facing industries, organizations remain cautious about fully embracing the ecosystem concept and sharing data with external partners. Concerns about the market power of platform orchestrators and ongoing discussions on privacy, individual empowerment, and digital sovereignty further complicate the widespread adoption of business ecosystems, particularly in the European Union. In this context, technological innovations in Web3, including blockchain and other distributed ledger technologies, have emerged as potential catalysts for disrupting centralized gatekeepers and enabling a strategic shift towards user-centric, privacy-oriented next-generation business ecosystems. However, existing research efforts focus on decentralizing interactions through distributed network topologies and open protocols lack theoretical convergence, resulting in a fragmented and complex landscape that inadequately addresses the challenges organizations face when transitioning to an ecosystem strategy that harnesses the potential of disintermediation. To address these gaps and successfully engineer next-generation business ecosystems, a comprehensive approach is needed that encompasses the technical design, economic models, and socio-technical dynamics. This dissertation aims to contribute to this endeavor by exploring the implications of Web3 technologies on digital innovation and transformation paths. Drawing on a combination of qualitative and quantitative research, it makes three overarching contributions: First, a conceptual perspective on \u27tokenization\u27 in markets clarifies its ambiguity and provides a unified understanding of the role in ecosystems. This perspective includes frameworks on: (a) technological; (b) economic; and (c) governance aspects of tokenization. Second, a design perspective on \u27decentralized marketplaces\u27 highlights the need for an integrated understanding of micro-structures, business structures, and IT infrastructures in blockchain-enabled marketplaces. This perspective includes: (a) an explorative literature review on design factors; (b) case studies and insights from practitioners to develop requirements and design principles; and (c) a design science project with an interface design prototype of blockchain-enabled marketplaces. Third, an economic perspective on \u27self-sovereign identities\u27 (SSI) as micro-structural elements of decentralized markets. This perspective includes: (a) value creation mechanisms and business aspects of strategic alliances governing SSI ecosystems; (b) business model characteristics adopted by organizations leveraging SSI; and (c) business model archetypes and a framework for SSI ecosystem engineering efforts. The dissertation concludes by discussing limitations as well as outlining potential avenues for future research. These include, amongst others, exploring the challenges of ecosystem bootstrapping in the absence of intermediaries, examining the make-or-join decision in ecosystem emergence, addressing the multidimensional complexity of Web3-enabled ecosystems, investigating incentive mechanisms for inter-organizational collaboration, understanding the role of trust in decentralized environments, and exploring varying degrees of decentralization with potential transition pathways

Enabling the Digital Transformation of Small Firms in Sweden: Entrepreneurial Ecosystem Challenge Mapping and Policy Recommendations

Small firms are regarded as the backbone of the Swedish economy, driving the creation of jobs, shaping economic growth, and fostering innovation. However, small firms are challenged by rapidly changing markets and competitive condi­tions where new technologies and digital business models are disrupting the established order. These firms must, therefore, undergo a fundamental transformation and become more efficient, responsive, and agile in order to remain competitive. Digital transformation poses unique challenges to small firms (over and above larger enterpris­es), due to the liability of smallness (e.g., size and access to resources) and the liability of new­ness (e.g., legitimacy in the value chain, bargaining power). This behooves small firms to draw on the support of a wide range of external relationships to exploit the benefits of the new digital economy. However, it has been reported that most small firms fail to gain support from the other actors in their ecosystems. Thus, to ensure successful digital transformation in small firms, there is a need to better understand the various influencing roles in the relationships that comprise the entrepreneurial ecosystem. Our findings focus on four main types of entrepreneurial ecosystem actors who have the greatest influence on the digital transformation of small firms in Sweden. Funding organizations, large firms, intermediaries, and universities are highlighted as the key actors providing small firms with the necessary resources, knowledge, technological capabilities, legitimacy, and business contacts. Key relation-specific challenges are identified, pointing to the needs and expectations of small firms to gain support from each of these actors. To conclude, recommendations are provided on how policy and industry decision-makers can act to mitigate such challenges. As a result, our contribution seeks to support and accelerate small Swedish firms in their endeavors to undertake digital transformation that is both sustainable and competitive

A Model-Based Approach Towards the Conceptualization of Digital Twins: The Case of the EU-Project COGITO

In agile business ecosystems, digitalization is a key enabler for agility and flexibility. However, digital transformation is often challenging for instance due to unclear definitions and a lack of problem understanding. In this work this complexity is addressed with a model-based approach for conceptualizing digitalization and related meta modelling activities to enable the conceptual integration of diverse concepts. Existing modelling approaches – BPMN and ArchiMate – are leveraged with domain specific considerations that are relevant for the digitalization. The construction use case from the European project COGITO serves as a foundation for ideation and first requirements engineering. Physical experiments in the OMiLAB Innovation Environment are used as an experimental method towards identifying relevant digital twinning concepts, while modelling methods can be seen as an integration platform for physical and digital elements. Key digitalization aspects towards digital twinning are discussed and conceptualized in a meta model

A revolutionary journey: Business development through digitalization

The paper examines how digitalization has significantly impacted contemporary businesses. The incorporation of digital technologies has transformed conventional business models in an era of quick technological progress. This transformation covers a range of topics, including improving operational effectiveness, extending market reach, and promoting innovation. The paper starts off by defining digitalization and tracing its history to show how it has evolved into a crucial component of modern business strategy. It emphasizes how important digitalization has been in reshaping conventional business models, with subscription-based business models and e-commerce serving as prime examples of its disruptive potential. With a focus on how automation and data-driven decision-making optimize business operations, efficiency emerges as a key theme. The importance of personalization, global market expansion, and digital marketing as tools for sustainable growth is emphasized in the paper. The paper also explores how agile development and collaborative ecosystems can promote innovation while acknowledging the difficulties and factors related to data security and the digital divide. The paper concludes by highlighting the transformative power of digitalization in forming contemporary business landscapes and highlighting its potential to boost innovation, scalability, and efficiency while navigating difficulties to promote sustainable development

The Dynamics of Transformation in the Development of Digital Services

Service providers are increasingly depending and using digital infrastructure and tools provided by digital platforms to transform their services and develop digital ones that meet the needs of heterogeneous end users. However, while there is an emerging literature of developing digital services, little is known about the dynamics of transformation. Using multiple cases of firms that develop digital services, the digital service taxonomy was synthesized to understand the dynamics of transformation in developing digital services. This study identifies five main dynamics: the services experience, the service process, the service capabilities, the service environment and the service delivery.  Each of those dynamics and their associated factors is explored under the objectives of business, interaction and technology. This enables us to extend the existing literature on digital service development in particular and contributes to the research of digital innovation in general

Legal Education: A New Growth Vision: Part III—The Path Forward: Being Both Human and Digital

In the decades ahead, innovative and status quo–breaking law schools will leverage and combine multidisciplinary, multigenerational human expertise with digital platform and artificial intelligence (AI) technologies to create vibrant legal education ecosystems. These combinations will deliver market-valued knowledge and skill transfer and development services that are high-quality, cost-effective, omnichannel, pedagogically sound, data-validated, personalized, on-demand or just-in-time, and multiformat (e.g., hybrid, HyFlex, digitalfirst, digital-live, etc.). Modern business models (e.g., platform and open) will provide these future-focused law schools with solid foundations for reimagining legal education. These agile, shape-shifting programs are also likely to discover diverse revenue opportunities by offering complementary services to adjacent markets. Growth opportunities for inventive law schools abound, so long as entrepreneurial program leaders embrace a human-AI integrated future. Simply put, digital and business model innovations represent the only firewalls to obsolescence. I. Introduction: Platforms Are Eating the World II. Path Forward: Being Both Human and Digital ... A. Envisioning Innovation Mission Trajectories … B. Aligning Action with Innovation Mission Trajectories ... 1. Step 1: Build Multidisciplinary Digital Innovation Teams ... 2. Step 2: Foster Conditions Where Innovation Can Thrive III. Designing Education for the Future ... A. Platform-Based Education ... 1. From Pipeline to Platforms: Business Model ... 2. From Pipeline to Platforms: Teaching and Learning ... 3. Platform Potential: Enhance Program Visibility and Increase Market Share ... 4. Platform Design: Open versus Closed ... B. Data and Metrics ... 1. Data and Learning Metrics: Students and Teachers ... 2. Data and Innovation Metrics: Program and Platforms ... C. Pricing Models, Strategic Cannibalization, and Cost Containment ... 1. Pricing Models and Strategic Cannibalization … 2. Cost Containment and Process Efficiencies ... D. Current Offerings and Room for Growth ... 1. MOOCs: Minimum Viable Products (MVPs) with Promise ... 2. Future of Education: Human Expertise United with Omnichannel Platforms and AI IV. Planning and Moving Forward ... A. Innovation Frameworks ... 1. 70/20/10 ... 2. Three Horizons ... B. Moving Forward ... 1. Day 1 Mindset Shift ... 2. Organizational Shift: Being Both Human and Digital ... 3. OKRs: A Brief Introduction to an Effective and Coherent Transformation Management System … C. Sample Plans V. Conclusions Appendix I: T-Shaped Skills for Knowledge Professionals Appendix II: Multimedia Resources Appendix III: Glossary of Key Term