DIGITAL TRANSFORMATION AND VALUE CREATION
The digital transformation of our economic and societal systems is fully underway. The changes are massive and long-lasting. Going digital reduces the costs of administering social and commercial transactions, allows for globally networked interactions, and is characterized by real-time, vast datasets that let us observe behavior at a societal scale at with unprecedented detail.
The research initiative wants to contribute to our understanding of how the digital transformation advances value creation commercially (customers and firms) and overall welfare for individuals and society.
Among the most pressing questions are:
- When and how can customers benefit from the digital transformation?
- When and how can firms benefit from the digital transformation?
- When and how can individuals within society and society at large benefit from the digital transformation?
Companies around the world are facing major changes in the customer and media environment due to the rise of the Internet, new communication technologies, and the digitization of fundamental economic and social processes. In detail, major changes include for example
- the increasing levels of transparency in information search and commercial transactions,
- the increasingly active role that customers play in value chains,
- the need to measure and to manage resource allocation decisions in such digital environments (global scope, high velocity, multiplex cause-effect mechanisms), and
- the increasing need to demonstrate how management decisions enhance the firm’s value in such environments.
Associated research questions cover important topics such as
- the impact of new Internet technologies on customers,
- the mechanisms by which customers co-create innovative products and services,
- the allocation of and return from resources in digital and other media environments,
- the role and evolution of brands in digital environments, or
- the ability to better manage the marketing mix and its impact on firm valuation by capital markets.