Disruptive Innovation in Digital Platforms and the Rising Power of Competitors, Consumers and Producers. / Elbanna, Amany.

In: IFIP SELECT for IT Professionals, Vol. 1, No. 1, 02.2019, p. 1-3.

Research output: Contribution to journalArticle

Published

Standard

Disruptive Innovation in Digital Platforms and the Rising Power of Competitors, Consumers and Producers. / Elbanna, Amany.

In: IFIP SELECT for IT Professionals, Vol. 1, No. 1, 02.2019, p. 1-3.

Research output: Contribution to journalArticle

Harvard

APA

Vancouver

Author

BibTeX

@article{6a6dd4e618dc4cef98dcdff324337933,
title = "Disruptive Innovation in Digital Platforms and the Rising Power of Competitors, Consumers and Producers",
abstract = "The classical digital innovation theory was developed through the examination of the manufac-turing sectors and was later extended to include services. Its propositions are: 1) new technolo-gy surprises incumbents, 2) incumbents are slow to take decisions to change their production lines, acquire fundamentally new technologies and change their industrial processes; and 3) new technology is adopted by entrants while incumbents struggle to cope, eventually failing to adopt it and consequently being pushed out of their markets. In Elbanna (2017), I argue that this theo-ry has not considered the role of consumers beyond their gradual adoption of low-cost innova-tion with simpler functionality. It also portrays incumbents as stranded and stifled by their pro-duction lines, their existing technological and labour capability, and their need to attend to exist-ing customers; a view that is consistent with manufacturing but not necessary digital platforms and app-based platforms. Indeed, these assumptions do not hold well in the case of digital plat-forms. Digital platforms attend to two or more sides of the market; mainly end-consumers and producers. Digital platforms act as an intermediary between these sides where all consumers are producers are customers for the digital platform. A digital platform cannot operate without sufficient customers that attract producers and sufficient producers that attract customers. I ar-gue that the nature of this dialectical relationship and the intermediary position of digital plat-forms makes digital platforms vulnerable to both consumes and producers and hence digital platforms need to attend to all sides of their market to ensure their sustainability. ",
keywords = "digital disruption, digital platforms, platform economy",
author = "Amany Elbanna",
year = "2019",
month = feb
language = "English",
volume = "1",
pages = "1--3",
journal = "IFIP SELECT for IT Professionals",
number = "1",

}

RIS

TY - JOUR

T1 - Disruptive Innovation in Digital Platforms and the Rising Power of Competitors, Consumers and Producers

AU - Elbanna, Amany

PY - 2019/2

Y1 - 2019/2

N2 - The classical digital innovation theory was developed through the examination of the manufac-turing sectors and was later extended to include services. Its propositions are: 1) new technolo-gy surprises incumbents, 2) incumbents are slow to take decisions to change their production lines, acquire fundamentally new technologies and change their industrial processes; and 3) new technology is adopted by entrants while incumbents struggle to cope, eventually failing to adopt it and consequently being pushed out of their markets. In Elbanna (2017), I argue that this theo-ry has not considered the role of consumers beyond their gradual adoption of low-cost innova-tion with simpler functionality. It also portrays incumbents as stranded and stifled by their pro-duction lines, their existing technological and labour capability, and their need to attend to exist-ing customers; a view that is consistent with manufacturing but not necessary digital platforms and app-based platforms. Indeed, these assumptions do not hold well in the case of digital plat-forms. Digital platforms attend to two or more sides of the market; mainly end-consumers and producers. Digital platforms act as an intermediary between these sides where all consumers are producers are customers for the digital platform. A digital platform cannot operate without sufficient customers that attract producers and sufficient producers that attract customers. I ar-gue that the nature of this dialectical relationship and the intermediary position of digital plat-forms makes digital platforms vulnerable to both consumes and producers and hence digital platforms need to attend to all sides of their market to ensure their sustainability.

AB - The classical digital innovation theory was developed through the examination of the manufac-turing sectors and was later extended to include services. Its propositions are: 1) new technolo-gy surprises incumbents, 2) incumbents are slow to take decisions to change their production lines, acquire fundamentally new technologies and change their industrial processes; and 3) new technology is adopted by entrants while incumbents struggle to cope, eventually failing to adopt it and consequently being pushed out of their markets. In Elbanna (2017), I argue that this theo-ry has not considered the role of consumers beyond their gradual adoption of low-cost innova-tion with simpler functionality. It also portrays incumbents as stranded and stifled by their pro-duction lines, their existing technological and labour capability, and their need to attend to exist-ing customers; a view that is consistent with manufacturing but not necessary digital platforms and app-based platforms. Indeed, these assumptions do not hold well in the case of digital plat-forms. Digital platforms attend to two or more sides of the market; mainly end-consumers and producers. Digital platforms act as an intermediary between these sides where all consumers are producers are customers for the digital platform. A digital platform cannot operate without sufficient customers that attract producers and sufficient producers that attract customers. I ar-gue that the nature of this dialectical relationship and the intermediary position of digital plat-forms makes digital platforms vulnerable to both consumes and producers and hence digital platforms need to attend to all sides of their market to ensure their sustainability.

KW - digital disruption

KW - digital platforms

KW - platform economy

M3 - Article

VL - 1

SP - 1

EP - 3

JO - IFIP SELECT for IT Professionals

JF - IFIP SELECT for IT Professionals

IS - 1

ER -