Platformization and Internationalization in the LEGO Group

Abstract

Internationalization, to expand a firms territorial footprint, is an important but difficult strategic act for a growing business. Simultaneously, digital technologies are increasingly shaping businesses worldwide and by implication also their internationalization activities as well as strategies. Using experiences from the LEGO Group, the toymanufacturer well-known for its iconic modular bricks concept, we explain how the transformation of the Information Systems (IS) landscape towards a platform architecture is a key enabler for internationalization. Platformization of the IS landscape contributes to mitigate the issues of psychic distance that needs to be overcome when expanding internationally. Based on the insights gained from the LEGO Group, we provide lessons learned for CIO's when enabling an internationalization strategy.

Analysis of Lego Storytelling Marketing Strategy and Bilateral Relationship Business Model

“…Wh ile the Asia -Pacific region, especially China, saw significant growth, at the same time, LEGO is paying more and more attention to the development of the Chinese market. [1]. First of all, the Ch inese market provides a good business background for LEGO, which is the basis for LEGO's rapid development in China.…”

“…LEGO is an abbreviation of the two Danish words "Leg Godt", meaning "play well", and in Latin "I combine" [1]. In 1932, Danish carpenter Ole Kirk Christ iansen founded the LEGO company in Billund.…”

Incorporating History into Innovation: A Case Study of LEGO

“…Although, as a result, it experienced a double-digit growth, there is a concern of saturation of the market emerged in recent years due to the psychic distance. To break this dilemma, Lego opens its third-largest global factory (in the city of Jiaxing) positioned Lego to supply products not only for the Chinese market, but other Asian markets too, including Japan and South Korea [14]. This is an application of extending concept/ incremental innovation because some cities in China share similarities with other regions (e.g.…”

Digital Transformation through Collaborative Platformization: A Study of Incumbent-Entrepreneur Relations

“…Platformization, as understood by Benlian, et al [19, p. 374] "builds on decoupling and characterizes the process in which an entity (a provider organization) creates access and interaction opportunities centered around a core bundle of services (the platform) within an ecosystem of consumers, complementors, and other stakeholders". Törmer and Henningsson [8] have studied how an industrial company (the Lego group) transformed their existing IT solutions into platforms in order to facilitate more innovations and internationalization [21]. They define platformization as "the sociotechnical process of transforming a large-scale IS towards a platform architecture.…”