How intelligent is Watson? Enabling digital transformation through artificial intelligence

Due to its intrinsic characteristics, artificial intelligence (AI) can be considered a general-purpose technology (GPT) in the digital era. Most studies in the field focus on the ex-post recognition and classification of GPT but in this article, we look at a GPT design ex-ante by reviewing the extreme and inspiring example of IBM’s Watson. Our objective is to shed light on how companies can create value through AI. In particular, our longitudinal case study highlights the strategic decisions IBM took to create value in two dimensions: internal development and external collaborations. We offer relevant implications for practitioners and academics eager to know more about AI in the digital world.     

Changing the game to compete: Innovations in the fashion retail industry from the disruptive business model

Unprecedented competition and emergent technologies have posed a challenge to many traditional retailers in recent years. Yet within this competitive environment, emerging innovative business models have thrived and successfully disrupted the industry. We analyze the nature of disruptive business-model innovations and the ways they disrupt the fashion retail industry. To that end, we examine three disruptors in the industry: born-digital brands, AI-enabled demand forecasting and product design, and collaborative consumption. After introducing the concept of disruptive business-model innovation, we discuss the three disruptors’ effects on the fashion industry. We find that all of these models keenly answer fundamental needs unmet by current business models, such as offering quality products at a competitive price, curated services, and sustainable consumption. At the same time, all three disruptors suggest effective operation models for handling demand uncertainty, inventory management, and timely responses to the market, all of which are inherent issues for current push supply chains and forecast-based, inventory-driven systems. Based on this analysis, we discuss important implications for both academics and industry practitioners.     

The sharing economy: Your business model's friend or foe?

The sharing economy, a rising pattern in consumption behavior that is based on accessing and reusing products to utilize idle capacity, presents both tremendous possibilities and significant threats for emerging as well as incumbent businesses. As of today, it is unclear whether this economy is merely another ephemeral trend in consumption or whether we are experiencing a real shift in how goods are accessed, distributed, and used. Furthermore, little is known about how existing business models are affected by the sharing economy. These two issues represent the central motivation for the development of this article. Consequently, an examination of why the sharing economy has the potential to produce a long-term transformation in consumption behavior is followed by a consideration of how this change might affect companies’ business models. Based on a renowned business model framework and a variety of current illustrative examples, we propose central questions managers must ask themselves in order to be prepared to respond to changes brought about by this new economic trend.     

Differentiation Via Technology: Strategic Positioning of Services Following the Introduction of Disruptive Technology

Introducing a “disruptive” technology into an existing service market provides new opportunities for firms and customers, often altering the nature of the market. Consequently, new technology often destabilizes market equilibrium, forcing firms to consider the role new technology will play in determining the new market structure. In this paper, we focus on understanding how significant new technology forces firms to evaluate and renegotiate their market positions in a service industry newly infused with technology (i.e., brokerage market). Specifically, we examine how firms integrate technology into the service process to create new forms of interaction. We used content analysis and a combination of structuralist methods including multidimensional scaling analysis (MDS), clustering methods, and property-fitting regression techniques (ProFit) to examine how technology changes the service process, and how firms leverage these changes for positioning. Our research demonstrates a strategic approach to positioning that suggests (1) introducing significant technology opens new positioning avenues by providing new service interactions, (2) technology must be leveraged via links to customer value sets, and (3) firms that leverage technology through customer values outperform their competitors.     

Business model risk and uncertainty factors: Toward building and maintaining profitable and sustainable business models

Business models and business model innovation—and particularly their opportunities—have been a popular topic recently, but we find the extant literature on the subject lacking. The risk and uncertainty aspect typical of business models has not been sufficiently addressed. We draw upon the existing literature and triangulate results with an extensive expert group interview to identify 28 risk and uncertainty factor groups, creating a checklist that can be used as the first step in an integrative business model risk management process for existing and new iterations. With an established process for managing and identifying risk in business models, managers can make more conscious and well-informed decisions.     

Fintech: Ecosystem,business models,investment decisions,and challenges

Fintech brings about a new paradigm in which information technology is driving innovation in the financial industry. Fintech is touted as a game changing, disruptive innovation capable of shaking up traditional financial markets. This article introduces a historical view of fintech and discusses the ecosystem of the fintech sector. We then discuss various fintech business models and investment types. This article illustrates the use of real options for fintech investment decisions. Finally, technical and managerial challenges for both fintech startups and traditional financial institutions are discussed.     

Digital maker-entrepreneurs in open design: What activities make up their business model?

The business models of digital maker-entrepreneurs in open design are inextricably linked to the broader open design community. Digital makers share designs on online platforms such as Thingiverse and use digital manufacturing technology such as 3-D printing as a generative mechanism for their entrepreneurial activities. There is a general understanding of how sharing works in that community and the basic design parameters that determine the business models of these digital maker-entrepreneurs, which are based on a portfolio of activities. This study is based on in-depth interviews with 11 digital maker-entrepreneurs from the open design community. We investigate the activities that constitute their business models using activity theory as a lens with which better to understand them. This study provides a perspective on the complexity of the relationships in which these activities are embedded and analyzes the activities related to the production, distribution, and consumption of value. Finally, we examine the exchanges between digital maker-entrepreneurs in the community, shedding light on how digital maker-entrepreneurs share and exchange goods, services, and knowledge as peers.     

Competing in digital ecosystems

Digital technologies are revolutionizing traditional interdependencies among businesses. As a result, managers have begun to recognize their business environments as digital ecosystems. For firms accustomed to framing their business environments as industries, this represents a significant shift in perspective—one that requires an understanding of fresh strategic initiatives necessary to compete in the digital era. In this article, we highlight what is new and different about digital ecosystems for firm strategy. We offer frameworks that explain how digital ecosystems provide firms with new sources of value and new avenues for growth. Two sets of underlying concepts govern these frameworks: (1) production and consumption ecosystems and (2) digital envelopes and product-in-use information. We introduce and elaborate upon these foundational concepts and highlight new strategic options for firms to compete in digital ecosystems.     

Determinants and consequences of service experience toward small retailer platform business model: Stimulus–organism–response perspective

This study attempts to understand the determinants and consequences of service experience toward retailers’ digital transformation by comparing empirical results from entrepreneurs and consumers. For entrepreneurs, the critical antecedents of service experience include entertainment, tangibility, reliability, and empathy. For customers, the critical antecedents include entertainment, interactivity, tangibility, and empathy. Meanwhile, regarding the consequences of service experience, service experience directly affects both continuous use intention and satisfaction. However, satisfaction mediates the relationship between service experience and continuous use intention for entrepreneurs. In addition, no direct effect is found. Overall, service experience has a meditating effect between stimulus and response variables. Meanwhile, entrepreneurs and customers have different perceptions of the proposed topic.     

The virtual reality value chain

Virtual reality (VR) technology is predicted to become indispensable in the business world, as it fundamentally reimagines the ways in which firms interact with customers. This technology has sparked a VR ecosystem, with multiple types of firms and other stakeholders interacting to create value. Firms need to define their roles in this ecosystem in order to capitalize on the opportunities and address the challenges they face when navigating its complexities. This article develops a VR value chain that illustrates how the use of VR technologies adds value to key stakeholders. It also provides an understanding of the current state of the VR ecosystem and serves as a source for strategic managerial decision making and future VR research.     

Viability of Amazon’s driven innovations targeting shoppers’ impulsiveness

The growth of new technological innovations has given rise to a highly digitized retailing world that is re-defining the consumer purchase journey. Innovations, such as Amazon's Alexa, Dash-buttons (physical and virtual), and Spark, have indeed led to the creation of an Omni-channel journey that reshaped the shopping experience. Such tech-disruptions are likely to have a significant bearing on shoppers, brands and retailers, which is expected to vary between the short and the long-term. A quantitative research based on 600 U.S. Amazon customers studied the long-term incremental sales effect of e-retailers' tech innovations when driven by impulsive shopping behavior. The findings show that while retailers' tech-driven solutions would increase shoppers' impulsiveness, and hence sales, their continued interaction with such purchasing solutions would decline over time, making the overall innovation cycle much shorter.     

Digital transformation: Five recommendations for the digitally conscious firm

Digital transformation is one of the key challenges facing contemporary businesses. The need to leverage digital technology to develop and implement new business models forces firms to reevaluate existing capabilities, structures, and culture in order to identify what technologies are relevant and how they will be enacted in organizational processes and business offerings. More often than not, these profound changes require firms to revisit old truths as they develop strategies that thread the needle between beneficial innovation and harmful disruption. This article uses the Internet of Things (IoT) as a backdrop to demonstrate the concerns associated with transformative technologies and offers five recommendations as to how firms can develop the strategies needed for digital transformation and become digitally conscious: (1) Start small and build on firsthand benefits; (2) team up and create competitive advantage from brand recognition; (3) engage in standardization efforts; (4) take responsibility for data ownership and ethics; and (5) own the change and ensure organization-wide commitment. As such, this article shows that digital transformation should be a top management priority and a defining trait of corporate business strategy, and that by becoming digitally conscious, firms may get a head start on their transformation journey.     

区域经济发展环境与浙商战略转型:基于IMD对浙江的评价

IMD的国际竞争力评价结果使我们全面认识到浙江区域经济发展环境的现状和变化趋势,它说明了浙江在经济绩效、社会基础和科技基础三大区域环境上的优势,同时也指出浙江在市场化和制度化、人力资源、金融服务环境上的不足。浙商应正视这些环境变化,着力实施从企业内部资源向企业外部社会资本、从老板至上向利益相关者至上、从要素驱动向创新驱动的三大战略转型,尽快实现进一步跨越式发展。