Now showing 1 - 10 of 551
  • Publication
    Generativity and Profitability on B2B Innovation Platforms: A Simulation-based Theory Development
    ( 2024-06)
    Kazem Haki
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    Hüseyi̇n Tanriverdi̇
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    Dorsa Safaei
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    Firms generate innovations to profit from market opportunities, which are newly identified customer needs not yet being met in the market. The rising complexity of market opportunities requires collaboration among multiple partner firms. However, this multipartner collaboration increases transaction and production costs when generating innovations. To address these challenges, incumbents build B2B innovation platforms with mechanisms to reduce partners’ transaction and production costs. We do not yet know if and when partners would choose to use the incumbent’s traditional service innovation model or the B2B innovation platform and how this choice would affect the generativity and profitability of innovations for the incumbent and the partners. We used agent-based modeling and simulation to develop a theory to address these questions. We found that the complexity of market opportunities interacts with the B2B innovation platform’s transaction and production mechanisms to jointly affect whether partners use the platform and when the incumbent and partners achieve generativity and profitability. When the complexity of market opportunities is low, partners use the traditional service innovation model. As complexity increases to medium or high levels, partners begin to use the B2B innovation platform mechanisms to address the transaction and production challenges presented by the complexity of market opportunities. However, there are limits to how much the platform mechanisms can address these challenges. The complexity of market opportunities inhibits the emergence of network effects on B2B innovation platforms and limits the generativity and profitability of platform partners. There are diminishing benefits of investing in the platform’s transaction and production mechanisms, and complexity affects whether the platform owner or the partners profit from innovations generated on the platform.
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    Scopus© Citations 2
  • Publication
    Digital Transformation Designer: Towards a Comprehensive, Collaborative and Easy-to-Use Modeling Support for Enterprise-level Change Endeavors
    ( 2024-02-08)
    Tobias Kautz
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    Established companies intending to leverage digital technologies are required to innovate their ‘legacy’ business models through organizational transformations. Existing modeling support often leaves a ‘white space’ between informal canvas-style models used in the early phases and (semi-)formal aspect models used in the later phases of transformation endeavors. Adopting a Design Science Research approach, this paper presents a semi-formal model that is intended to fill this gap, i. e., to provide easy-to-use support for the heterogeneous stakeholders that participate in early phases of digital transformation endeavors.Being based on the traditional Business Engineering set of models and methods, this comprehensive and collaborative approach was validated together with the digital transformation program manager of a large, international corporation. For supporting analysis, reflection and design tasks that involve a broad range from canvas-style models to enterprise architecture models, four requirements were identified to be central: (remote) collaboration support, a holistic and integrative perspective, an enterprise-level view, and a focus on change. The actual model is comprised of over 20 partial models including popular canvases depicting the transformation program’s content on the strategy-to-IT layers, the enterprise and local level, and in the as-is and to-be state. Demonstration and evaluation were done with practitioners and students of an Executive Master program focusing on digital transformation. Both confirmed the utility of the underlying method and recognized its distinctive features, while capability and IT landscape models were found especially relevant. The method is expected to be applicable for digital transformations beyond the case and also to be projectable to smaller-scaled digital business innovations.
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  • Publication
    Dealing with Complexity in Design Science Research: A Methodology Using Design Echelons
    ( 2024-06)
    Tuure Tuunanen
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    Jan Vom Brocke
    Design science research (DSR) aims to generate knowledge about innovative solutions to real-world problems. Consequently, DSR needs to deal with the complexity related to problem and solution spaces involving socio-technical phenomena that people perceive differently and are subject to constant change. This complexity poses challenges to sequential, process-based approaches—specifically, the existing DSR methodology. We designed a DSR methodology that extends existing approaches by adding a complementary organizing logic to address complexity. Based on the theory of hierarchical, multilevel systems, we suggest organizing DSR based on the concept of “echelon”—meaning to decompose DSR projects into smaller logically coherent self-contained parts—and suggest a set of five design echelons that imply a hierarchical organizing logic for DSR projects. The echeloned DSR (eDSR) methodology was developed in five iterations, involving seven design and evaluation episodes.
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  • Publication
    The impact of enterprise architecture management on information systems architecture complexity
    Significant investments in information systems (IS) over the past decades have led to increasingly complex IS architectures in organisations, which are difficult to understand, operate, and maintain. We investigate this development and associated challenges through a conceptual model that distinguishes four constituent elements of IS architecture complexity by differentiating technological from organisational aspects and structural from dynamic aspects. Building on this conceptualisation, we hypothesise relations between these four IS architecture complexity constructs and investigate their impact on architectural outcomes (i.e., efficiency, flexibility, transparency, and predictability). Using survey data from 249 IS managers, we test our model through a partial least squares (PLS) approach to structural equation modelling (SEM). We find that organisational complexity drives technological complexity and that structural complexity drives dynamic complexity. We also demonstrate that increasing IS architecture complexity has a significant negative impact on efficiency, flexibility, transparency, and predictability. Finally, we show that enterprise architecture management (EAM) helps to offset these negative effects by acting as a moderator in the relation between organisational and technological IS architecture complexity. Thus, organisations without adequate EAM are likely to face large increases in technological complexity due to increasing organisational complexity, whereas organisations with adequate EAM exhibit no such relation.
    Scopus© Citations 7
  • Publication
    Strategic alignment of enterprise architecture management – how portfolios of control mechanisms track a decade of enterprise transformation at Commerzbank
    Enterprise architecture management (EAM) is commonly employed by large organizations to coordinate local information system development efforts in line with organization-wide strategic objectives while simultaneously avoiding redundancies and inconsistencies. Even though EAM tools and processes have become increasingly mature over the past decade, many organizations still struggle to generate impact from their EAM initiatives. To this end, we describe how enterprise architects at Commerzbank, a major international bank, employed a control mechanism portfolio perspective to more effectively anchor EAM within the organization. This approach allows to purposefully combine a wide range of different formal and informal EAM control mechanisms, thereby going beyond the formal, topdown driven mechanisms predominantly discussed in EAM literature. Furthermore, such EAM control mechanism portfolios provide an effective means to purposefully realign EAM in reaction to major strategic shifts. The application of this perspective is demonstrated by tracing the evolution of EAM at Commerzbank for more than a decade (2008 to 2018) through a turbulent and challenging competitive environment, resulting in several major strategic realignments that required corresponding adjustments in EAM. We believe that such consciously designed and diversified EAM control mechanism portfolios also provide a useful means for other large organizations to more effectively conduct EAM.
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    Scopus© Citations 8
  • Publication
    Dynamic Capabilities for Transitioning from Product Platform Ecosystem to Innovation Platform Ecosystem
    (Palgrave Macmillan, 2023) ; ; ; ;
    Tilson, David
    Over recent decades, many platform-native start-ups and firms were founded and some are now among the world’s most valuable. This study, however, focuses on an incumbent firm transitioning from a long established product platform ecosystem to an innovation platform ecosystem in response to the platform-natives’ threats of disruption. We specifically investigate the dynamic capabilities needed by the incumbent firm in an enterprise software ecosystem in the transition phase. Our analysis builds on multi-perspective empirical data covering the viewpoints of all the actor types in the ecosystem, i.e., plat-form owner, platform partners, and end-user firms. The results imply the necessity of four dynamic capabilities: resource curation, ecosystem preservation, resource reconfiguration, and ecosystem diversification. With this study, we contribute to the emerging literature on the incumbent firms’ transition to a new ecosystem organising logic, and extend the study of dynamic capabilities specifically for the case of transitioning to innovation platform ecosystems.
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    Scopus© Citations 11
  • Publication
    Governance Mechanisms in Digital Platform Ecosystems: Addressing the Generativity-Control Tension
    Digital platform owners repeatedly face paradoxical design decisions with regard to their platforms’ generativity and control, requiring them to facilitate co-innovation whilst simultaneously retaining control over third-party complementors. To address this challenge, platform owners deploy a variety of governance mechanisms. However, researchers and practitioners currently lack a coherent understanding of what major governance mechanisms platform owners rely on to simultaneously foster generativity and control. Conducting a structured literature review, we connect the fragmented academic discourse on governance mechanisms with each aspect of the generativity-control tension. Next to providing avenues for prospective digital platform research, we elaborate on the double-sidedness of governance mechanisms in fostering both generativity and control.
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