Resource deployment system implications of migrating the firm into a digital value creation paradigm

ABSTRACT

This article uses the intellectual capital-based view of the firm, to draw conclusions about both the change in relative importance of resources and the change in relative influence of transformations in the firm’s resource transformation system when introducing digital technologies.

The methodology is a synthesis of research conducted on the implications of digital technologies for the firm’s value creation, through a review of the literature, combined with two case studies.

The findings are that when introducing digital technologies, firms will migrate towards a value network logic. There will also be an increasing value creating influence of transformations into and out of the organisational resource category, and there will be an increase in the number of possible revenue streams that can be created.

A clear practical implication for managers from this increased complexity is the need to simulate potential new resource deployment systems to verify their effectiveness before implementing them.

KEYWORDS:

• Intellectual capital
• resource deployment system
• IC Navigator
• digital technologies

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

1. Here used in the meaning that encompasses (in alphabetic order): 5th Generation Mobile Networks (5G), Big Data, Big Data Analytics, Blockchain, Cloud Computing, Internet-of-Things (IoT), Machine Learning, Virtual and Augmented Reality.

2. For a discussion on the relationship between resources and economic behaviour and examples of different resource deployment systems under different value logics, see Roos et al. (2005, p. 19–29, p. 43–47 and p. 169–216).