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Digitalization and Innovation

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  • Yoo, Youngjin

Abstract

Developments in digital technology offer new opportunities to design new products and services. However, creating such digitalized products and services often creates new problems and challenges to firms that are trying to innovate. In this essay, we analyze the impact of digitalization of products and services on innovations. In particular, we argue that digitalization of products will lead to an emergence of new layered product architecture. The layered architecture is characterized by its generative design rules that connect loosely coupled heterogeneous layers. It is pregnant with the potential of unbounded innovations. The new product architecture will require organizations to adopt a new organizing logic of innovation that we dubbed as doubly distributed innovation network. Based on this analysis, we propose five key issues that future researchers need to explore.

Suggested Citation

  • Yoo, Youngjin, 2010. "Digitalization and Innovation," IIR Working Paper 10-09, Institute of Innovation Research, Hitotsubashi University.
    • Handle: RePEc:hit:iirwps:10-09
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    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/18789/070iirWP10_09.pdf
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    Cited by:

    1. Thierry ISCKIA & Denis LESCOP, 2015. "Strategizing in Platform-based ecosystems: Leveraging Core Processes for Continuous Innovation," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(99), pages 91-111, 3rd quart.
    2. Panourgias, Nikiforos S. & Nandhakumar, Joe & Scarbrough, Harry, 2014. "Entanglements of creative agency and digital technology: A sociomaterial study of computer game development," Technological Forecasting and Social Change, Elsevier, vol. 83(C), pages 111-126.
    3. Thierry Isckia & Mark de Reuver & Denis Lescop, 2020. "Orchestrating platform ecosystems : the interplay of innovation and business development subsystems," Post-Print hal-02548106, HAL.
    4. Xiaoxia Chen & Mélanie Despeisse & Björn Johansson, 2020. "Environmental Sustainability of Digitalization in Manufacturing: A Review," Sustainability, MDPI, vol. 12(24), pages 1-31, December.

    More about this item

    Keywords

    innovation; innovation; product architecture; design rules;
    All these keywords.

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