Digital Business Strategy and Value Creation: Framing the Dynamic Cycle of Control Points

Margherita Pagani

Margherita Pagani (Dipartimento di Marketing) ha scritto Digital Business Strategy and Value Creation: Framing the Dynamic Cycle of Control Points.

Abstract: Within changing value networks the profits and competitive advantages of participation reside dynamically within the chains, accumulating at the positions of greatest value and/or power (control points). The enterprises that hold these positions have a great deal of control over how the network operates and how the benefits are redistributed and this influences the execution of a digital business strategy. This study provides preliminary, yet promising empirical evidence to shed 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. Specifically in this article piece we illustrate how incremental innovations may shift value networks from static, vertically integrated networks, to more loosely coupled networks, and how cross-boundary industry disruptions may in turn shift them to two-sided markets.