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Digitalization and Innovation

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  • Yoo, Youngjin
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    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.

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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/18789/1/070iirWP10_09.pdf
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    Bibliographic Info

    Paper provided by Institute of Innovation Research, Hitotsubashi University in its series IIR Working Paper with number 10-09.

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    Length: 33 p.
    Date of creation: Dec 2010
    Date of revision:
    Handle: RePEc:hit:iirwps:10-09

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    Keywords: innovation; innovation; product architecture; design rules;

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