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Better growth for companies with Web innovation

Better business and greater innovation with the Web, where more efficiency is created and the risk is spread. Innovation is generated more easily when dialogue in all directions is possible. In industry these concepts have been widespread for some time although not yet fully put into practice, even if in recent years firms have moved increasingly away from the integrated and hierarchical supply chain model in favour of more fragmented inter-organisational networks made up of strategic partnerships with outside units. Examples of this are the many cases in industries such as car, textiles and clothing, food and special production areas such as bathroom fittings, precision mechanics and applied electronics.

However real economics always takes theory by surprise. Some empirical research projects, for example, show how the network approach is now spreading also in contexts in which digital technologies play a central role and which enable business to be carried out while demolishing the traditional time, space and function barriers. Indications are in fact arriving as feedback from these areas, useful to manufacturing companies which were the first to try out certain solutions.

An understanding of the situation is gained from reading Digital Business Strategy and Value Creation: Framing the Dynamic Cycle of Control Points by Margherita Pagani (from the marketing department of the Bocconi University), to be published in MIS Quarterly. Pagani starts from the study, first theoretical and later in field, of the development of the production organisation of the European and US broadcasting industry to reach conclusions which can be of interest to the whole of industry. The case study and empirical data instead succeed in identifying three different clusters of control points, i.e. specific configurations whereby the transactions necessary for the supply of a service are carried out: a vertical one, a network structure and one based on a multilateral platform. Furthermore the research in fact demonstrates how, driven by the market and technology, companies have to learn how to exploit the so-called “breaking elements” in order to survive, elements of innovation, changes in process and direction which break up existing balances in an organisation and can destroy or rebuild it, in addition to learning how to communicate better internally and with one another.

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

Margherita Pagani

MIS Quarterly, 2013

Better business and greater innovation with the Web, where more efficiency is created and the risk is spread. Innovation is generated more easily when dialogue in all directions is possible. In industry these concepts have been widespread for some time although not yet fully put into practice, even if in recent years firms have moved increasingly away from the integrated and hierarchical supply chain model in favour of more fragmented inter-organisational networks made up of strategic partnerships with outside units. Examples of this are the many cases in industries such as car, textiles and clothing, food and special production areas such as bathroom fittings, precision mechanics and applied electronics.

However real economics always takes theory by surprise. Some empirical research projects, for example, show how the network approach is now spreading also in contexts in which digital technologies play a central role and which enable business to be carried out while demolishing the traditional time, space and function barriers. Indications are in fact arriving as feedback from these areas, useful to manufacturing companies which were the first to try out certain solutions.

An understanding of the situation is gained from reading Digital Business Strategy and Value Creation: Framing the Dynamic Cycle of Control Points by Margherita Pagani (from the marketing department of the Bocconi University), to be published in MIS Quarterly. Pagani starts from the study, first theoretical and later in field, of the development of the production organisation of the European and US broadcasting industry to reach conclusions which can be of interest to the whole of industry. The case study and empirical data instead succeed in identifying three different clusters of control points, i.e. specific configurations whereby the transactions necessary for the supply of a service are carried out: a vertical one, a network structure and one based on a multilateral platform. Furthermore the research in fact demonstrates how, driven by the market and technology, companies have to learn how to exploit the so-called “breaking elements” in order to survive, elements of innovation, changes in process and direction which break up existing balances in an organisation and can destroy or rebuild it, in addition to learning how to communicate better internally and with one another.

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

Margherita Pagani

MIS Quarterly, 2013