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Unleashing technological opportunity: organizing for demand side value creation

14 March 2019 at 11:30 AM - 1:00 PM

Room 205b, Campus on Viale Romania, 32

Speaker: Charles Baden-Fuller, Cass Business School


"The digital economy is challenging business and academia, new businesses are arriving that upset the traditional order; and in management we firnd that old theories are also being challenged. In this seminar I will unpack the theoretical and practice basis of the digitally-enhanced solutions business model, contrasting it with the dominant product business model paradigm of strategic management. With the product business model, competitive advantage and rents come from superior resources and capabilities. In contrast with the solutions based business models adopted by digitally-oriented firms, value is created and sometimes co-created through interactions between the firm and its customer/consumer; competition faced by firms adopting the solutions business model is significantly muted by information asymmetries concerning demand-side data; and power and profits comes to those that are creative and innovative with respect to customer demand data rather than those who have more resources. These insights indicate that traditional strategy theories need adjustment. I will also explore how the solutions business model fits in with the emerging literature on platform enterprises, and finally I will discuss how these new business models demand new organisation designs."