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    • Ability to capture the value depends on the perceived bargaining power
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    • Companies should set their boundaries to optimize cost of owning a resource vs transaction costs
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    • Competitive system can be disturbed by disruptive innovation that happens at the bottom of the market
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    • Complements in consumption relate to each other in generic, unique, or supermodular ways
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    • Customers select products that offer the best value for money
    • Digitalization decreases transaction costs reshaping the boundaries of companies allowing to operate with little ownership, be more focused, and access high quality resources
    • Digitalization will require companies to develop the capability to coordinate across functions and companies
    • Dynamic capabilities adjust resources by integration, reconfiguration, and gain and release
    • Ecosystem bottlenecks constrain the growth and performance of the ecosystem
    • Good business model is aligned with company goals, self-reinforcing, and robust
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    • In a business ecosystem, a company may pursue system, component, or bottleneck strategy
    • In business ecosystems, the success of actor A and B depends on success of actor B and C
    • In digital transformation, companies need to address limitations on true coordination and circular causality
    • In digitalization, companies should design products to gather context-aware data, develop analytics for such data, and manage digital ecosystem beyond their industry
    • Interplay between complements' relationships across consumption and production dimensions determines ecosystem complexity
    • Organization's resources & capabilities, processes, structure & systems, and culture must be aligned to its strategy
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    • The first wave of digitalization was about improving products with digital technology and gathering analytics on product usage
    • The reaction to the competitive pressure depends on entry costs
    • The second wave of digitalization was about designing organizational boundaries and structures to digital technology and exchanging usage data with other companies to develop products across company boundaries
    • The usage of the dynamic capabilities depends on managers, who are responsible for sensing opportunities and threats, and exploiting & renewing resources
    • The velocity of competitors' reaction depends on how the company frames competitive behaviour in announcements
    • Value can also be created through the architecture of transactions
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Business Strategy

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Digitalization will require companies to develop the capability to coordinate across functions and companies

Digitalization will require companies to develop the capability to coordinate across functions and companies

Because Digitalization decreases transaction costs reshaping the boundaries of companies allowing to operate with little ownership, be more focused, and access high quality resources, the companies will narrow their boundaries which will result in more:

  • Contracture relationships
  • Physical dispersion
  • Decentralized decision-making

Hence, companies will need to develop significant coordination capabilities to link processes across functions and companies.


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  • Business Strategy Map of Content

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