Digital transformation strategies for existed firms: from the perspectives of data ownership and key value propositions

ABSTRACT

The diffusion and embeddedness of cyber technology and big data technology is recognized as an opportunity and infrastructure for firms to innovate and transform. But which digital strategies existed firms in manufacturing and other traditional industries can make is still a question under research. The paper pursues to answer this question from the perspectives of data ownership and key value propositions. From the dimension of data ownership and key value propositions, this research proposes a research framework to guide the analyses of digital transformation strategy. The four firms are used to identify five types of digital strategies, namely new product strategy, new value-added service strategy, customized strategy, product embedded in the platform, and platform service / product strategy based on the framework of digital transformation strategy decision. This research suggests that a firm can select the suitable strategy considering his key value proposition and ownership of data which the firm could use. The research contributes to the research and practices on the digitalization strategy and the digital transformation of firms, especially those in emerging economies.

Keywords:

• Digital transformation
• key value propositions
• data ownership
• existed firms
• emerging economies

JEL:

• L19
• L60
• M19
• O39

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes on contributors

Jun Jin received the PhD degree in Economics from the University of St. Gallen, Switzerland, in 2005. She is currently an Associate Professor with the Department of Innovation, Entrepreneurship and Strategy, School of Management, Zhejiang University, China. She is also the visiting professor at the Singapore University of Technology and Design. Her research interests are in the areas of global innovation, catching up strategies, open innovation, and eco-innovation. Her articles have been published in journals such as the Technovation, Journal of Cleaner Production, International Journal of Technology Management, Asian Journal of Technology Innovation, Sustainability, among others.

Lei Ma received the PhD degree in Engineering from the Nanjing University of Science and Technology, China, in 2002. She is currently a professor with the Department of Public Administration, School of Public Affairs, Nanjing University of Science and Technology, China. She is also the head of Centre for Innovation and Development, Nanjing University of Science and Technology, China. Her research interests are in the areas of digital innovation and intellectual property strategy, science and technology management and government policy.

Xinwei Ye is currently a PhD student in Management Science and Engineering, Nanjing University of Science and Technology, China. Her research interests are in the areas of technology innovation, knowledge management and organizational behavior.

ORCID

Jun Jin http://orcid.org/0000-0003-2350-7069

Notes

1 The information can be found at some websites, such as http://scitech.people.com.cn/n/2015/0305/c1007-26644489.html and http://economy.caijing.com.cn/20150305/3832729.shtml

2 The official notice on the Made in China 2025 (in Chinese) is available at http://www.gov.cn/zhengce/content/2015-05/19/content_9784.htm.

3 Since Company T provides logistic service, therefore the product in Company Z is the service of Company Z in fact. In other words, there is no strategy of Company T at the Quadrant A and Quadrant C.

4 Drivers of online chauffeur-driven car company of Company G are recruited by the chauffeur-driven company. Thus, we argue that the data from these drivers are data owned by Company G.

5 Manager F is the person who is in charge of the whole digital strategy of Company X.

Additional information

Funding

This work was supported by National Natural Science Foundation of China [grant number 71672172, U1509221].