ABSTRACT
Information Technology (IT) use has the potential to enhance firms’ capacity to build and sustain competitive advantages. Though a rich literature notes how IT use continues to change the nature, scale, and scope of service delivery, surprisingly few studies have addressed the digital transformation processes through which the introduction of new IT-enabled online services are introduced in firms and industries. To address this issue, we identify and examine the processes through which IT may create or impair business value in service processes. To theorize these processes, we adopt a service-dominant logic perspective that views the customer as a co-creator of firm value and analyze some observed risks, tensions, and socio-technical challenges associated with the introduction of an online banking service system in India. Drawing on the findings, we present implications for IT strategy research and discuss in particular how firms can avoid unexpected value destruction when they increase customer participation in the delivery of online services to create value.
Website Link
Additional information
Notes on contributors
Dhanalakshmi Arumugam Malar
Dhanalakshmi Arumugam Malar holds a M. Sc. in IT Management from Umeå University. Her research examines how the social context affects and is effected by the development and implementation of digital technology, using a range of managerial theories. In studying these questions, she has examined various topics including user involvement, agile development, mobile IT and the effects of IT within organizational settings. Her empirical work builds primarily on qualitative data, with a strong emphasis on ethnographic observation.
Viktor Arvidsson
Viktor Arvidsson is a postdoctoral fellow in the Digital Disruption Research Group at the University of Sydney Business School. His research focuses on the implications of digital technology on strategy, entrepreneurship, and innovation management. Exploring these issues in organizational settings such as local governments, hospitals, and manufacturing, Arvidsson is currently investigating the meaning and making of time and opportune moments in digital transformation processes. His work is published in outlets such as the Journal of Strategic Information Systems where he also serves on the editorial board.
Jonny Holmstrom
Jonny Holmström is a professor of informatics at Umeå University. Holmström is the director and co-founder of Swedish Center for Digital Innovation. He writes, consults and speaks on topics such as digital innovation, digital transformation, digitalization, and strategies for leveraging value from digital technologies. Holmström uses rigorous research to gain insight into how firms can leverage value from IT use. His work has appeared in journals such as Communications of the AIS, European Journal of Information Systems, Information and Organization, Information Systems Journal, Information Technology and People, Journal of Information Technology, Journal of the AIS, Journal of Strategic Information Systems, Research Policy, and The Information Society.