Strategic Investments for Platform Launch and Ecosystem Growth: A Dynamic Analysis

2023 | Journal of Management Information Systems | Citations: 0

Authors: Anderson Jr., Edward G.; Parker, Geoffrey G.; Tan, Burcu

Abstract: Multi-sided platforms must make decisions on both pricing and engineering invest ... Expand

Abstract: Multi-sided platforms must make decisions on both pricing and engineering investment and must continually adjust them as the platform scales over its lifecycle. Engineering investments can be allocated to features that improve a platform's standalone value, social features to take advantage of same-side network effects, or integration tools and boundary resources to facilitate third-party content creation. Guidance in the academic or practitioner literature is not granular. Moreover, relevant normative economic models that consider externalities are rarely dynamic. Hence, there is a gap in knowledge about how to best balance tradeoffs between different strategic decisions throughout the entire platform lifecycle. To begin to address this gap, we explore normative strategies for coordinating pricing and engineering investment decisions on a continuous basis under different ecosystem conditions. We build a simulation model informed by economics and marketing theory and perform extensive sensitivity analyses on key parameters in different ecosystem scenarios over a multi-period lifecycle. We find that pricing and investment strategies must continuously change to perform optimally. In particular, strategies that are most effective at launch often differ from those that are most effective during scaling as well as those most effective at maturity. We also find that the optimal strategy depends strongly on the monetization model and market aversion to price changes. Lastly, we specifically examine four different industry segments: mobile platforms, social media, the sharing economy, and business-to-business. The results provide evidence that the trajectory of platform pricing and investment strategies should greatly differ depending on industrial context. Collapse

Topics: price management digital platform social media decision making business-to-business

Methods: simulation sensitivity analysis system dynamics optimization model conjoint analysis

Theories: control theory marketing theory

Consumer Participation in Virtual Product Design: 2D vs 3D Product Configurators

2023 | Americas Conference on Information Systems | Citations: 0

Authors: Armeen, Inaiya; Niswanger, Ross; walden, eric

Abstract: The purpose of the proposed study is to investigate the effect of configurator ... Expand

Abstract: The purpose of the proposed study is to investigate the effect of configurator properties, such as the type of visualization and interaction offered, on the value that consumers attach to co-created products and the satisfaction they derive from the design process. To do this, this study will compare 2D product configurators with 3D product configurators. 2D product configurators use a series of images for product visualization whereas 3D configurators use 3D models that provide consumers with the ability to rotate objects in three dimensions. Drawing from the theory of cognitive dissonance, the theory of effectance motivation and the behavioral decision-making literature, this paper suggests that configurator properties influence perceptions of control and effort expenditure which in turn elicit various processes that influence the perceived value of co-created products and consumers' satisfaction with the design process. Collapse

Topics: decision making new product development participatory design

Methods: design process design methodology laboratory experiment

Theories: endowment effect cognitive dissonance theory

DEVELOPMENT STRATEGY AND MANAGEMENT OF AI-BASED VULNERABILITY DETECTION APPLICATIONS IN ENTERPRISE SOFTWARE ENVIRONMENT

2023 | European Conference On Information Systems | Citations: 0

Authors: Behfar, Stefan

Abstract: Industries are now struggling with high level of security-risk vulnerabilities ... Expand

Abstract: Industries are now struggling with high level of security-risk vulnerabilities in their software environment which mainly originate from open-source dependencies. Industries' percentage of open source in codebases is about 54% whereas ones with high security risks is about 30% (Synopsys 2018).While there are existing solutions for application security analysis, these typically only detect a limited subset of possible errors based on pre-defined rules. With the availability of open-source vulnerability resources, it is now possible to use data-driven techniques to discover vulnerabilities. Although there are a few AI-based solutions available, but there are some associated challenges: 1) use of artificial intelligence for application security (AppSec) towards vulnerability detection has been very limited and definitely not industry oriented, 2) the strategy to develop, use and manage such AppSec products in enterprises have not been investigated; therefore cybersecurity firms do not use even limited existing solutions. In this study, we aim to address these challenges with some strategies to develop such AppSec, their use management and economic values in enterprise environment. Collapse

Topics: artificial intelligence new product development source code open source software metric

Methods: machine learning artificial neural network

Gender Differences in Responses to Competitive Organization? A Field Experiment on Differences Between STEM and Non-STEM Fields from an Internet-of-Things Platform

2023 | Organization Science | Citations: 0

Authors: Boudreau, Kevin J.; Kaushik, Nilam

Abstract: Prior research, primarily based on laboratory experiments of children and studen ... Expand

Abstract: Prior research, primarily based on laboratory experiments of children and students, suggests that women might be more averse to competition than are men; women might, instead, be more inclined toward collaboration. Were these findings to generalize to working-age men and women across the workforce, there could be profound implications for organizational design and personnel management. We report on a field experiment in which 97,678 adults from a wide range of fields of training and career stages were invited to join a product development platform. Individuals were randomly assigned to treatments framing the opportunity as either involving competitive or collaborative interactions with other participants. Among those outside of science, technology, engineering, and math (STEM) fields, we find differences in the willingness of men and women to participate under competition. Thus, patterns in non-STEM fields conform to the usual claims of gender differences. However, among those in STEM fields, we find no statistical gender differences. Results hold under a series of alternative specifications, controls, and stratified analyses of 17 narrowly defined STEM subfields. The results are consistent with sorting into fields on the basis of competitiveness, as suggested by prior research, as well as other explanations we discuss. Overall, heterogeneity among women and heterogeneity among men appear to be at least as important as population-wide gender differences.History: This paper has been accepted for the Organization Science Special Issue on Experiments in Organizational Theory.Funding: This work was supported by Ewing Marion Kauffman Foundation [Grant G00005624].Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.1624. Collapse

Topics: new product development mobile system internet of things accounting electronic mail

Methods: experiment Wald test field experiment laboratory experiment theory development

TOWARDS AN OPEN HARDWARE PROTOTYPE PROCESS MODEL FOR LONG-TERM SUSTAINABILITY

2023 | European Conference On Information Systems | Citations: 0

Authors: Brandenburger, Bonny; Brüsch, Julia; Voigt, Maximilian; Busch, Magnus

Abstract: The rise of open source models for software and hardware development has cataly ... Expand

Abstract: The rise of open source models for software and hardware development has catalyzed the debate regarding sustainable business models. Open Source Software has already become a dominant part in the software industry, whereas Open Source Hardware is still a little-researched phenomenon but has the potential to do the same to manufacturing in a wide range of products. This article addresses this potential by introducing a research design to analyze the prototyping phase of six different Open Source Hardware projects tackling ecological, social, and economical challenges. Using a design science research methodology, a process model is developed to concretise the prototype development steps. The prototype phase is important because it is where fundamental decisions are made that affect the openness of the final product. This paper aims to advance the discourse on open production as a concept that enables companies to apply the aspect of openness towards collaboration-oriented and sustainable business models. Collapse

Topics: participatory design new product development open source computer hardware business model

Methods: business process modeling design artifact design methodology case study literature study

Right Place, Right Time: Configurations of Technology Use for Business Model Innovation

2023 | Americas Conference on Information Systems | Citations: 0

Authors: Böttcher, Timo; Krcmar, Helmut

Abstract: In the rapidly evolving digital era, firms need to innovate their business mode ... Expand

Abstract: In the rapidly evolving digital era, firms need to innovate their business models (BMs) to thrive and benefit from new digital technologies. While digital BM innovation (DBMI) can create competitive advantage through differentiation, firms often struggle to create and extract value from digital technologies. In this paper, we analyze 41 cases of BM change and identify three configurations that lead to DBMI and two configurations that do not. These configurations illustrate the BM elements in which digital technologies are used for DBMI and explain how firms use digital technologies for strategic innovation. Combined with existing research on DBMI, this research provides a missing piece of the puzzle to connect specific technologies in the BM to implement a digital business strategy and undergo a digital transformation. For practical purposes, the findings suggest three alternative strategies for DBMI that identify which elements need to be changed together to achieve DBMI. Collapse

Topics: business model value creation innovation management database system mobile application

Methods: case study survey qualitative content analysis triangulation literature sample

Theories: core competency theory

A platform-based approach to ambidexterity for innovation: An empirical investigation in the public sector

2023 | International Journal of Information Management | Citations: 0

Authors: Cao, Lan; West, Barry; Ramesh, Balasubramaniam; Mohan, Kannan; Sarkar, Sumantra

Abstract: Innovation in the public sector plays an important role in improving the quality ... Expand

Abstract: Innovation in the public sector plays an important role in improving the quality of public services and addressing economic and societal challenges. Most of the previous research on innovations has focused on the private sector. How organizations may achieve ambidexterity for innovations in the public sector characterized by unique constraints has been largely underexplored. Platforms have emerged as key components in organizations’ ap­ proaches to innovation. Using an empirical study in a public sector organization, this study identifies a platformbased approach that can be used to achieve ambidexterity in balancing exploitative and exploratory innovations in the public sector. Organizations facing constraints pertaining to structure, risk, and value may benefit from considering their product/service development, process management, and value formulation through this approach. This study also identifies practices in platform development, appropriation, and control that contributed to the success of the platform-based approach. Collapse

Topics: innovation management organization structure business process innovation organizational culture new product development

Methods: qualitative interview case study triangulation personal interview literature study

Theories: ambidexterity theory

Wisdom in the Wild: Generalization and Adaptive Dynamics

2023 | Organization Science | Citations: 0

Authors: Choi, Jaeho; Levinthal, Daniel

Abstract: Learning from experience is a central mechanism underlying organizational capabi ... Expand

Abstract: Learning from experience is a central mechanism underlying organizational capabilities. However, in examining how organizations learn from past experiences, much of the literature has focused on situations in which actors are facing a repeated event. We direct attention to a relatively underexamined question: when an organization experiences a largely idiosyncratic series of events, at what level of granularity should these events, and the associated actions and outcomes, be encoded? How does generalizing from experience impact the wisdom of future choices and what are the boundary conditions or factors that might mitigate the degree of desired generalization? To address these questions, we develop a computational model that incorporates how characteristics of opportunities (e.g., acquisition candidates, new investments, product development) might be encoded so that experiential learning is possible even when the organization’s experience is a series of unique events. Our results highlight the power of learning through generalization in a world of novelty as well as the features of the problem environment that reduce this “power.” Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.1609. Collapse

Topics: organization learning new product development

Methods: descriptive statistic reinforcement learning robustness check literature study

The relative values of big data analytics versus traditional marketing analytics to firm innovation: An empirical study

2023 | Information & Management | Citations: 0

Authors: Cheng, Colin C.J.; Shiu, Eric C.

Abstract: Although big data analytics (BDA) does enhance innovation performance, it remain ... Expand

Abstract: Although big data analytics (BDA) does enhance innovation performance, it remains unclear whether BDA contributes more or less than traditional marketing analytics (TMA) to firm innovation. This study tests hy­ potheses based on data collected from multiple sources by using four-wave survey and archival data from 201 firms. The results indicate that BDA has a stronger positive effect on new product development (NPD) perfor­ mance than TMA, over time. However, TMA, when coupled with exploitative innovation strategy, has a stronger positive effect on NPD performance than if coupled with exploratory innovation strategy. Conversely, BDA, when coupled with exploratory innovation strategy, has a stronger positive effect on NPD performance than if coupled with exploitative innovation strategy. Collapse

Topics: innovation management analytical information system big data research and development marketing management

Methods: survey archival research partial least squares path modeling conceptual modelling Chow test

Theories: learning theory ambidexterity theory knowledge based theory of the firm

Unexpected Events in IT Projects: A Conceptual Review and Research Agenda

2023 | Communications of the Association for Information Systems | Citations: 0

Authors: Coulon, Thibaut; Paré, Guy; Barki, Henri

Abstract: When unexpected events occur, IT project teams need to react appropriately in o ... Expand

Abstract: When unexpected events occur, IT project teams need to react appropriately in order to limit the potentially negative, and sometimes disastrous consequences of such events. Yet, while past research has identified unexpected events as being an important aspect to consider when managing projects, the existing literature does not provide a clear conceptualization of this concept which limits the development of new theories and thus the ability to guide practitioners. Based on a literature review and to advance our understanding of unexpected events in IT projects and their effective management, and facilitate future theoretical developments on IT project management, the present paper develops a conceptualization that clearly distinguishes this concept from other closely related ones, as well as proposing a research framework that links it to IT project team responses and their consequences. A detailed research agenda, integrating current advances in different fields, is developed to highlight future research avenues. Collapse

Topics: IT project project management IT project team database system sensemaking

Methods: literature sample literature study synthesis literature filtering