In this essay, we argue that pervasive digitization gives birth to a new type of product architecture: the layered modular architecture. The layered modular architecture extends the modular architecture of physical products by incorporating four loosely coupled layers of devices, networks, services, and contents created by digital technology. We posit that this new architecture instigates profound changes in the ways that firms organize for innovation in the future. We develop (1) a conceptual framework to describe the emerging organizing logic of digital innovation and (2) an information systems research agenda for digital strategy and the creation and management of corporate information technology infrastructures.
Our era is one of increasingly pervasive digital technologies, which penetrate deeply into the very core of the products, services, and operations of many organizations and radically change the nature of product and service innovations. The fundamental properties of digital technology are reprogrammability and data homogenization. Together, they provide an environment of open and flexible affordances that are used in creating innovations characterized by convergence and generativity. An analysis of convergence and generativity observed in innovations with pervasive digital technologies reveals three traits: (1) the importance of digital technology platforms, (2) the emergence of distributed innovations, and (3) the prevalence of combinatorial innovation. Each of the six articles in this special issue relates to one or more of these three traits. In this essay, we explore the organizational research implications of these three digital innovation traits and identify research opportunities for organization science scholars. Examples from the articles in this special issue on organizing for innovation in the digitized world are used to demonstrate the kind of organizational scholarship that can faithfully reflect and inform innovation in a world of pervasive digital technologies.
The digital age has seen the rise of service systems involving highly distributed, heterogeneous, and resourceintegrating actors whose relationships are governed by shared institutional logics, standards, and digital technology. The cocreation of service within these service systems takes place in the context of a paradoxical tension between the logic of generative and democratic innovations and the logic of infrastructural control. Boundary resources play a critical role in managing the tension as a firm that owns the infrastructure cansecure its control over the service system while independent firms can participate in the service system. In this study, we explore the evolution of boundary resources. Drawing on Pickering's (1993) and Barrett et al.'s (2012) conceptualizations of tuning, the paper seeks to forward our understanding of how heterogeneous actors engage in the tuning of boundary resources within Apple's iOS service system. We conduct an embedded case study of Apple's iOS service system with an in-depth analysis of 4,664 blog articles concerned with 30 boundary resources covering 6 distinct themes. Our analysis reveals that boundary resources of service systems enabled by digital technology are shaped and reshaped through distributed tuning, which involves cascading actions of accommodations and rejections of a network of heterogeneous actors and artifacts. Our study also shows the dualistic role of power in the distributed tuning process.Keywords: Service system innovation, mobile platform, ecosystem, digital infrastructure, boundary resource dynamics, tuning, sociomateriality, iOS Introduction 1Service is increasingly recognized as the foundation of activities and value creation in the global economy (Pine and Gilmore 1999;Vargo and Lusch 2004; Zuboff and Maxmin 2002). In combination with digital technology, we are witnessing fundamental shifts in business models, collaboration, and work practices in all levels of economic activity (Barrett and Davidson 2008). We define service broadly as "the application of specialized knowledge skills through deeds, processes, and performances for the benefit of customers" (Vargo and Lusch 2004, p. 2). In the service economy, value is cocreated by customers who appropriate service provided by the firm, integrating it with other resources, some of which are provided through market and others provided privately or publicly (Vargo and Lusch 2010). Therefore, service is 1 Michael Barrett, Elizabeth Davidson, Jaideep Prabhu, and Stephen L. Vargo were the accepting senior editors for this paper. The authors are listed in alphabetical order only.The appendix for this paper is located in the "Online Supplements" section of the MIS Quarterly's website (http://www.misq.org). Vargo et al. 2008). The notion of service system offers a general view of economic activities that can explain all types of economic transactions, ranging from the simple barter system of labor among individuals to a complex set of transactions in the global financial market (Vargo et al. 2008).S...
The information systems field emerged as a new discipline of artificial science as a result of intellectual efforts to understand the nature and consequences of computer and communication technology in modern organizations. As the rapid development of digital technology continues to make computers and computing a part of everyday experiences, we are once again in need of a new discipline of the artificial. In this essay, I argue that the IS community must expand its intellectual boundaries by embracing experiential computing as an emerging field of inquiry in order to fill this growing intellectual void. Experiential computing involves digitally mediated embodied experiences in everyday activities through everyday artifacts that have embedded computing capabilities. Experiential computing is enabled by the mediation of four dimensions of human experiences (time, space, actors, and artifacts) through digital technology. Drawing on a research framework that encompasses both behavioral and design sciences, six research opportunities that the IS research community can explore are suggested. Ultimately, 1 Carol Saunders was the accepting senior editor for this paper. I propose that the IS field return to its roots, the science of the artificial, by decisively expanding the scope of its inquiry and establishing a new domain of research on computing in everyday life experiences.
Changes in the technologies of representation in a heterogeneous, distributed sociotechnical system, such as a large construction project, can instigate a complex pattern of innovations in technologies, practices, structures, and strategies. We studied the adoption of digital three-dimensional (3-D) representations in the building projects of the architect Frank O. Gehry, and observed that multiple, heterogeneous firms in those projects produced diverse innovations, each of which created a wake of innovation. Together, these multiple wakes of innovation produce a complex landscape of innovations with unpredictable peaks and valleys. Gehry’s adoption of digital 3-D representations disturbed the ecology of interactions and stimulated innovations in his project networks by: providing path-creating innovation trajectories in separate communities of practice, creating trading zones where communities could create knowledge about diverse innovations, and offering a means for intercalating innovations across heterogeneous communities. Our study suggests that changes in digital representations that are central to the functioning of a distributed system can engender multiple innovations in technologies, work practices, and knowledge across multiple communities, each of which is following its own distinctive tempo and trajectory.
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