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Unpacking digital options thinking for innovation renewal: a clinical inquiry into car connectivity

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  • Fredrik Svahn
  • Martin Kristensson

Abstract

Options thinking is a powerful approach for managing uncertainty and change in digital environments. It is recognised as a structured process for identifying, developing, and realising options into novel products and services. At Volvo Cars, we have learned it can also become a powerful instrument for innovation renewal, although it can be difficult to apply because it challenges existing firm practices. We elaborate this tension by presenting digital options strategizing as a process of applying options thinking to negotiate capability gaps and configure innovation resources. Our clinical study reveals that this facilitates innovation renewal through emergent processes, practice-oriented design, and opportunity-driven management.

Suggested Citation

  • Fredrik Svahn & Martin Kristensson, 2023. "Unpacking digital options thinking for innovation renewal: a clinical inquiry into car connectivity," European Journal of Information Systems, Taylor & Francis Journals, vol. 32(1), pages 23-34, January.
  • Handle: RePEc:taf:tjisxx:v:32:y:2023:i:1:p:23-34
    DOI: 10.1080/0960085X.2022.2088415
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