Journal of the Association for Information Systems (2026)
Affordance-Based Pathway Model of Social Inclusion: A Case Study of Virtual Worlds and People With Lifelong Disability
Karen Stendal, Maung K. Sein, Devinder Thapa
This study explores how individuals with lifelong disabilities (PWLD) use virtual worlds, specifically Second Life, to achieve social inclusion. Using a qualitative approach with in-depth interviews and participant observation, the researchers analyzed how PWLD experience the platform's features. The goal was to develop a model explaining the process through which technology facilitates greater community participation and interpersonal connection for this marginalized group.
Problem
People with lifelong disabilities often face significant social isolation and exclusion due to physical, mental, or sensory impairments that hinder their full participation in society. This lack of social connection can negatively impact their psychological and emotional well-being. This research addresses the gap in understanding the specific mechanisms by which technology, like virtual worlds, can help this population move from isolation to inclusion.
Outcome
- Virtual worlds offer five key 'affordances' (action possibilities) that empower people with lifelong disabilities (PWLD). - Three 'functional' affordances were identified: Communicability (interacting without barriers like hearing loss), Mobility (moving freely without physical limitations), and Personalizability (controlling one's digital appearance and whether to disclose a disability). - These functional capabilities enable two 'social' affordances: Engageability (the ability to join in social activities) and Self-Actualizability (the ability to realize one's potential and help others). - The study proposes an 'Affordance-Based Pathway Model' which shows how using these features helps PWLD build interpersonal relationships and participate in communities, leading to social inclusion.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers, and with me today is our expert analyst, Alex Ian Sutherland. Host: Alex, today we're diving into a fascinating study from the Journal of the Association for Information Systems titled, "Affordance-Based Pathway Model of Social Inclusion: A Case Study of Virtual Worlds and People With Lifelong Disability". Host: In short, it explores how people with lifelong disabilities use virtual worlds, like the platform Second Life, to achieve social inclusion and build community. Host: So, Alex, before we get into the virtual world, let's talk about the real world. What is the core problem this study is trying to address? Expert: Anna, it addresses a significant challenge. People with lifelong disabilities often face profound social isolation. Physical, mental, or sensory barriers can prevent them from fully participating in society, which in turn impacts their psychological and emotional well-being. Expert: While we know technology can help, there’s been a gap in understanding the specific mechanisms—the 'how'—technology can create a pathway from isolation to inclusion for this group. Host: It sounds like a complex challenge to study. So how did the researchers approach this? Expert: They took a very human-centered approach. They went directly into the virtual world of Second Life and conducted in-depth interviews and participant observations with 18 people with lifelong disabilities. This allowed them to understand the lived experiences of both new and experienced users. Host: And what did they find? What is it about these virtual worlds that makes such a difference? Expert: They discovered that the platform offers five key 'affordances'—which is simply a term for the action possibilities or opportunities that the technology makes possible for these users. They grouped them into two categories: functional and social. Host: Okay, five key opportunities. Can you break down the first category, the functional ones, for us? Expert: Absolutely. The first three are foundational. There’s 'Communicability'—the ability to interact without barriers. One participant with hearing loss noted that text chat made it easier to interact because they didn't need sign language. Expert: Second is 'Mobility'. This is about moving freely without physical limitations. A participant who uses a wheelchair in real life shared this powerful thought: "In real life I can't dance; here I can dance with the stars." Expert: The third is 'Personalizability'. This is the user's ability to control their digital appearance through an avatar, and importantly, to choose whether or not to disclose their disability. It puts them in control of their identity. Host: So those three—Communicability, Mobility, and Personalizability—are the functional building blocks. How do they lead to actual social connection? Expert: They directly enable the two 'social' affordances. The first is 'Engageability'—the ability to actually join in social activities and be part of a group. Expert: This then leads to the final and perhaps most profound affordance: 'Self-Actualizability'. This is the ability to realize one's potential and contribute to the well-being of others. For example, a retired teacher in the study found new purpose in helping new users get started on the platform. Host: This is incredibly powerful on a human level. But Alex, this is a business and technology podcast. What are the practical takeaways here for business leaders? Expert: This is where it gets very relevant. First, for any company building in the metaverse or developing collaborative digital platforms, this study is a roadmap for truly inclusive design. It shows that you need to intentionally design for features that enhance communication, freedom of movement, and user personalization. Host: So it's a model for product development in these new digital spaces. Expert: Exactly. And it also highlights an often-overlooked user base. Designing for inclusivity isn't just a social good; it opens up your product to a massive global market. Businesses can also apply these principles internally to create more inclusive remote work environments, ensuring employees with disabilities can fully participate in digital collaboration and company culture. Host: That’s a fantastic point about corporate applications. Is there anything else? Expert: Yes, and this is a critical takeaway. The study emphasizes that technology alone is not a magic bullet. The users succeeded because of what the researchers call 'facilitating conditions'—things like peer support, user training, and community helpers. Expert: For businesses, the lesson is clear: you can't just launch a product. You need to build and foster the support ecosystem and the community around it to ensure users can truly unlock its value. Host: Let’s recap then. Virtual worlds can be a powerful tool for social inclusion by providing five key opportunities: three functional ones that enable two social ones. Host: And for businesses, the key takeaways are to design intentionally for inclusivity, recognize this valuable user base, and remember to build the support system, not just the technology itself. Host: Alex Ian Sutherland, thank you for breaking this down for us. It’s a powerful reminder that technology is ultimately about people. Host: And thank you to our audience for tuning into A.I.S. Insights — powered by Living Knowledge.
Social Inclusion, Virtual Worlds (VW), People With Lifelong Disability (PWLD), Affordances, Second Life, Assistive Technology, Qualitative Study
Journal of the Association for Information Systems (2026)
Algorithmic Management Resource Model and Crowdworking Outcomes: A Mixed Methods Approach to Computational and Configurational Analysis
Mohammad Soltani Delgosha, Nastaran Hajiheydari
This study investigates how management by algorithms on platforms like Uber and Lyft affects gig workers' well-being. Using a mixed-methods approach, the researchers first analyzed millions of online forum posts from crowdworkers to identify positive and negative aspects of algorithmic management. They then used survey data to examine how different combinations of these factors lead to worker engagement or burnout.
Problem
As the gig economy grows, millions of workers are managed by automated algorithms instead of human bosses, leading to varied outcomes. While this is efficient for companies, its impact on workers is unclear, with some reporting high satisfaction and others experiencing significant stress and burnout. This study addresses the lack of understanding about why these experiences differ and which specific algorithmic practices support or harm worker well-being.
Outcome
- Algorithmic management creates both resource gains for workers (e.g., work flexibility, performance feedback, rewards) and resource losses (e.g., unclear rules, unfair pay, constant monitoring). - Perceived unfairness in compensation, punishment, or workload is the most significant driver of crowdworker burnout. - The negative impacts of resource losses, like unfairness and poor communication, generally outweigh the positive impacts of resource gains, such as flexibility. - Strong algorithmic support (providing clear information and fair rewards) is critical for fostering worker engagement and can help mitigate the stress of constant monitoring. - Work flexibility alone is not enough to prevent burnout; workers also need to feel they are treated fairly and are adequately supported by the platform.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge, the podcast where we bridge the gap between academic research and business reality. I’m your host, Anna Ivy Summers. Host: Today, we’re diving into a topic that affects millions of people in the gig economy: being managed by an algorithm. We’re looking at a fascinating study titled "Algorithmic Management Resource Model and Crowdworking Outcomes: A Mixed Methods Approach to Computational and Configurational Analysis." Host: In short, this study investigates how management by algorithms on platforms like Uber and Lyft affects gig workers' well-being, and why some workers feel engaged while others burn out. To help us understand this is our expert analyst, Alex Ian Sutherland. Alex, welcome. Expert: Great to be here, Anna. Host: Alex, let's start with the big picture. We all use these services, but what is the core business problem this study is trying to solve? Expert: The problem is a massive and growing one. As the gig economy expands, millions of workers are now managed by automated algorithms, not human bosses. For companies, this is incredibly efficient. But for the workers, the experience is all over the map. Host: You mean some people love it and some people hate it? Expert: Exactly. Some report high satisfaction, but others experience intense stress and burnout. This leads to very high turnover rates for the platforms, which is a huge business cost. The study mentions attrition rates as high as 12.5% per month. The central question for these companies is: why the drastic difference? What specific algorithmic practices are helping workers, and which ones are harming them? Host: That’s a critical question. So how did the researchers get to the bottom of it? It sounds incredibly complex to measure. Expert: It is, and they used a really smart two-phase approach. First, they went straight to the source: online forums where thousands of gig workers share their real, unfiltered experiences. They used A.I. to analyze millions of these posts to identify the common themes—the good, the bad, and the ugly of being managed by an app. Host: So they started with what workers were actually talking about. What was the second step? Expert: Based on those real-world themes, they developed a survey and analyzed the responses from hundreds of workers. This allowed them to see not just what factors mattered, but how different *combinations* of these factors led to a worker feeling either engaged and motivated, or completely burned out. Host: A perfect example of mixed methods. Let's get to the findings. What did they discover? Expert: They found that algorithmic management creates both "resource gains" and "resource losses" for workers. Host: Gains and losses... can you give us some examples? Expert: Certainly. The gains are what you'd expect: things like work flexibility, getting useful performance feedback, and financial rewards. The losses, however, were more potent. These included unclear or constantly changing rules, a feeling of unfair pay, and the stress of constant, invasive monitoring by the app. Host: So what was the single biggest factor that pushed workers toward burnout? Expert: Unquestionably, it was the perception of unfairness. Whether it was about compensation, punishment like being deactivated for a reason they didn't understand, or the workload they were assigned, a sense of injustice was the most powerful driver of burnout. Host: That’s interesting. Because the big selling point of gig work is always flexibility. Didn't that help offset the negatives? Expert: This is one of the study's most important conclusions. Flexibility alone is not enough to prevent burnout. The researchers found that the negative impact of resource losses, like feeling treated unfairly, generally outweighs the positive impact of resource gains, like having a flexible schedule. Host: So the bad is stronger than the good. Expert: Precisely. The study confirms a principle known as the "primacy of resource loss." The negative feelings from unfairness or poor communication are far more powerful in driving workers away than the positive feeling of flexibility is in keeping them. Host: This is all fascinating, Alex. Let's pivot to the most important question for our listeners: why does this matter for business? What are the key takeaways for companies building or using these platforms? Expert: There are three clear takeaways. First, prioritize fairness and transparency. The algorithm can't be a "black box." Businesses need to clearly communicate how tasks are allocated, how performance is measured, and how pay is calculated. Perceived unfairness is the fastest route to a demoralized and shrinking workforce. Host: Okay, fairness first. What’s number two? Expert: Support is not optional; it's essential. The study showed that strong algorithmic support—providing clear information, fair rewards, and useful feedback—was critical for keeping workers engaged. It can even help them cope with the stress of being monitored. It builds trust. Host: So, a supportive algorithm is key. And the third takeaway? Expert: Don't rely on flexibility as a silver bullet. You can't offer freedom with one hand while the other hand operates a system that feels arbitrary, uncommunicative, and unfair. To reduce burnout and build a stable, engaged workforce, you need to combine that flexibility with a system that workers genuinely feel is on their side. Host: So to recap: algorithmic management is a powerful tool, but it's a double-edged sword. The perception of unfairness is the biggest driver of burnout, and it outweighs the benefits of flexibility. For businesses, the path to an engaged gig workforce isn't just about technology, but about building systems that are transparent, supportive, and fundamentally fair. Host: Alex Ian Sutherland, thank you for making this complex study so clear and actionable for us. Expert: It was my pleasure, Anna. Host: And thank you for tuning in to A.I.S. Insights — powered by Living Knowledge. Join us next time as we uncover more insights from the world of research.
Assessing Incumbents' Risk of Digital Platform Disruption
Carmelo Cennamo, Lorenzo Diaferia, Aasha Gaur, Gianluca Salviotti
This study identifies three key market characteristics that make established businesses (incumbents) vulnerable to disruption by digital platforms. Using a qualitative research design examining multiple industries, the authors developed a practical tool for managers to assess their company's specific risk of being disrupted by these new market entrants.
Problem
Traditional companies often struggle to understand the unique threat posed by digital platforms, which disrupt entire market structures rather than just introducing new products. This research addresses the need for a systematic way for incumbent firms to identify their specific vulnerabilities and understand how digital platform disruption unfolds in their industry.
Outcome
- Digital platforms successfully disrupt markets by exploiting three key characteristics: information inefficiencies (asymmetry, fragmentation, complexity), the modular nature of product/service offerings, and unaddressed diverse customer preferences. - Disruption occurs in two primary ways: by creating new, more efficient marketplace infrastructures that replace incumbents' marketing channels, and by introducing alternative marketplaces with entirely new offerings that substitute incumbents' core services. - The paper provides a risk-assessment tool for managers to systematically evaluate their market's exposure to platform disruption based on a detailed set of factors related to information, product modularity, and customer preferences.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. In a world where companies like Airbnb and Uber can reshape entire industries seemingly overnight, established businesses are constantly looking over their shoulders. Today, we're asking: how can you know if your company is next? We’re diving into a fascinating study from the MIS Quarterly Executive titled, "Assessing Incumbents' Risk of Digital Platform Disruption."
Host: It identifies three key market characteristics that make established businesses vulnerable and, most importantly, provides a tool for managers to assess their company's risk. Here to unpack it all is our analyst, Alex Ian Sutherland. Alex, welcome.
Expert: Glad to be here, Anna.
Host: So, let's start with the big problem. We all know disruption is a threat, but the study suggests that the threat from digital platforms is different, and that traditional companies often misunderstand it. Why is that?
Expert: That's the core issue. Businesses are used to competing on products. Someone builds a better mousetrap, you build an even better one. But digital platforms don't just sell a new product; they fundamentally re-architect the entire market. They change the rules of the game.
Expert: Think about Craigslist's impact on newspapers. Craigslist didn't create a better classifieds section; it created a whole new, more efficient marketplace that made the newspaper's classifieds channel almost irrelevant. It disrupted the *relationships* between buyers, sellers, and the newspaper itself.
Host: So it's about changing the structure, not just the product. How did the researchers identify the warning signs for this kind of structural shift? What was their approach?
Expert: They conducted a deep, qualitative study. They didn't just look at numbers; they examined real-world platform cases across multiple industries—from energy and IT services to banking and insurance. They also conducted in-depth interviews with the key people actually designing, launching, and managing these platforms to understand the common patterns behind their success.
Host: And what were those key patterns? What are the big findings that business leaders need to know?
Expert: The study found that platforms successfully exploit three specific market characteristics. First, they thrive on what the researchers call 'information inefficiencies'. This is when information is lopsided, scattered, or just too complex for customers to easily understand. Platforms fix this by centralizing everything and making it transparent.
Host: Can you give me an example?
Expert: Absolutely. Think of booking a hotel before and after a platform like Booking.com. Information was fragmented across different hotel websites and travel agents. Platforms brought it all into one place, with user reviews to solve the problem of lopsided information—where the hotel knows more about its quality than you do.
Host: Okay, so inefficient information is the first vulnerability. What's the second?
Expert: The second is the modular nature of products or services. If what you sell is really a 'bundle' of smaller parts, a platform can come in, unbundle it, and let customers pick and choose only the pieces they want.
Expert: The study points to the insurance industry. A traditional policy is a bundle. A platform like 'Yolo' allows users to buy "micro-insurance" on-demand—just for a ski trip, for example—by breaking apart the traditional, monolithic insurance package.
Host: That makes perfect sense. Unbundling. And the third characteristic?
Expert: The third is the existence of unaddressed, diverse customer preferences. Large incumbents often focus on the biggest part of the market with a standardized offering. Platforms excel at serving the niches. They aggregate all that diverse demand, making it profitable to cater to very specific tastes, like Apple Podcasts does for every hobby imaginable.
Host: This is incredibly insightful. So, Alex, we come to the most important question. I’m a business leader listening to this. How do I apply these findings? What does this mean for my business today?
Expert: This is the most practical part of the study. It provides a risk-assessment tool, which boils down to asking yourself a few tough questions. First, how severe is the information asymmetry in your market? Do your customers struggle with uncertainty?
Expert: Second, how fragmented is the knowledge? Do customers have to hunt for information across many different sources to make a decision? If so, you're vulnerable.
Host: Okay, what else should I be asking?
Expert: You need to ask, how modular could my product be? Could a competitor break it apart and sell the pieces? And finally, are there groups of customers whose specific needs are not being fully met by your standard offering?
Host: So by going through that checklist, you can essentially diagnose your own company’s risk of disruption.
Expert: Exactly. It’s a proactive health check for your market. Answering "yes" to those questions doesn't mean you're doomed, but it does mean there are cracks in your market's foundation. And those cracks are precisely where a digital platform will try to gain a foothold.
Host: So, to summarize for our listeners: digital platforms don't just introduce new products, they rewire entire markets. They do this by exploiting three main vulnerabilities: information that is inefficient, products that can be unbundled, and diverse customer needs that are being ignored.
Host: The key takeaway is to use these insights as a lens to critically examine your own industry and identify your specific risks before someone else does. Alex, this has been an incredibly clear and actionable breakdown. Thank you so much for joining us.
Expert: My pleasure, Anna.
Host: And thanks to all of you for tuning in to A.I.S. Insights, powered by Living Knowledge. We'll see you next time.
digital platforms, disruption, incumbent firms, market architecture, risk assessment, information asymmetry, modularity
MIS Quarterly Executive (2022)
Using Lessons from the COVID-19 Crisis to Move from Traditional to Adaptive IT Governance
Heiko Gewald, Heinz-Theo Wagner
This study analyzes how IT governance structures in nine international companies, particularly in regulated industries, were adapted during the COVID-19 crisis. It investigates the shift from rigid, formal governance to more flexible, relational models that enabled rapid decision-making. The paper provides recommendations on how to integrate these crisis-mode efficiencies to create a more adaptive IT governance system for post-crisis operations.
Problem
Traditional IT governance systems are often slow, bureaucratic, and focused on control and risk avoidance, which makes them ineffective during a crisis requiring speed and flexibility. The COVID-19 pandemic exposed this weakness, as companies found their existing processes were too rigid to handle the sudden need for digital transformation and remote work. The study addresses how organizations can evolve their governance to be more agile without sacrificing regulatory compliance.
Outcome
- Companies successfully adapted during the crisis by adopting leaner decision-making structures with fewer participants. - The influence of IT experts in decision-making increased significantly, shifting the focus from risk-avoidance to finding the best functional solutions. - Formal controls were complemented or replaced by relational governance based on social interaction, trust, and collaboration, which proved to be more efficient. - The paper recommends permanently adopting these changes to create an 'adaptive IT governance' system that balances flexibility with compliance, ultimately delivering more business value.
Host: Welcome to A.I.S. Insights, the podcast at the intersection of business and technology, powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: Today, we're looking at a fascinating question that emerged from the chaos of the recent global crisis: How did companies manage to pivot so fast, and what can we learn from it? Host: We’re diving into a study from MIS Quarterly Executive titled, "Using Lessons from the COVID-19 Crisis to Move from Traditional to Adaptive IT Governance." With me is our expert analyst, Alex Ian Sutherland. Alex, welcome. Expert: Great to be here, Anna. Host: To start, this study analyzed how major international companies, especially in regulated fields, adapted their IT governance during the pandemic. It’s about moving from rigid rules to more flexible, relationship-based models that allowed them to act fast. Host: So Alex, let's set the stage. What was the big problem with IT governance that the pandemic put under a microscope? Expert: The core problem was that traditional IT governance had become slow, bureaucratic, and obsessed with avoiding risk. Think of huge committees, endless meetings, and layers of approvals for even minor IT decisions. Host: A process designed for stability, not speed. Expert: Exactly. One CIO from a global bank in the study said, “We are way too slow in making decisions, specifically when it comes to IT decisions.” These systems were built to satisfy regulators and protect managers from liability, not to create business value or respond to a crisis. Host: And then a crisis hit that demanded exactly that: speed and flexibility. Expert: Right. Suddenly, the entire workforce needed to go remote, which was a massive IT challenge. The old, slow governance models were a roadblock. The study found that another CIO sarcastically described his pre-crisis committees as having "ten lawyers for every IT member." That kind of structure just couldn't work. Host: So how did the researchers get inside these companies to understand what changed? Expert: They conducted in-depth interviews with CIOs and business managers from nine large international companies in sectors like banking, auditing, and insurance. They did this at two key moments: once in mid-2020, in the thick of the crisis, and again at the end of 2021 as things were returning to a new normal. Host: That gives a great before-and-after picture. So, what were the key findings? What actually happened inside these organizations? Expert: Three big things stood out. First, companies created leaner decision-making structures. The slow, multi-layered committees were replaced by small, empowered crisis teams, often called Disaster Response Groups or DRGs. Host: Fewer cooks in the kitchen. Expert: Precisely. One bank restricted its DRG to a core team of just five managers. They adopted what the CIO called a "'one meeting per decision' routine." This allowed them to make critical choices about things like video conferencing and VPN technology in hours, not months. Host: A radical change. What was the second key finding? Expert: The influence of IT experts shot up. In the old model, their voices were often diluted. During the crisis, IT leaders were central to the decision-making groups. The focus shifted from "what is the least risky option?" to "what is the best functional solution to keep the business running?" Host: So the people who actually understood the technology were empowered to solve the problem. Expert: Yes. As one CIO from an auditing firm put it, "It was classic business/IT alignment. The business described the problem and we, the IT department, provided the best solution." Host: And the third major finding? Expert: This is perhaps the most interesting. Formal controls were replaced by what the study calls 'relational governance'. Instead of relying on thick binders of rules, teams started relying on social interaction, trust, and collaboration. Host: It became more about people and relationships. Expert: Exactly. A CIO from a financial services firm said, “We do not exchange lengthy documents anymore; instead, we actually talk to each other.” This trust-based approach proved to be far more efficient and flexible than the rigid, control-focused systems they had before. Host: This is the crucial part for our listeners, Alex. How can businesses apply these crisis-mode lessons now, without a crisis forcing their hand? What’s the big takeaway? Expert: The main takeaway is that companies shouldn't just go back to the old way of doing things. They have a golden opportunity to build what the study calls an 'adaptive IT governance' system. Host: And what does that look like in practice? Expert: First, make those lean decision-making structures permanent. Keep committees small, focused, and empowered. Strive for that "one meeting per decision" mindset. Second, permanently increase the influence of your IT experts. Ensure they are at the table and have real decision-making power, not just an advisory role. Host: So it’s about institutionalizing the speed and expertise you discovered during the crisis. Expert: Right. And finally, it's about striking a new balance between formal rules and relational trust. You still need rules, especially in regulated industries, but you can reduce them to a necessary minimum and complement them with governance based on collaboration and mutual trust. It’s less about top-down control and more about shared goals. Host: So it’s not about throwing out the rulebook, but about creating a smarter, more flexible one that allows you to be agile while still being compliant. Expert: That's the core message. The crisis proved that this approach delivers better results, faster. Now is the time to make it the new standard. Host: A powerful lesson indeed. To summarize for our audience: the pandemic forced companies to abandon slow, risk-averse IT governance. The keys to their success were leaner decision-making, empowering IT experts, and shifting from rigid rules to trust-based collaboration. The challenge now is to make those changes permanent to create a more adaptive and value-driven organization. Host: Alex Ian Sutherland, thank you so much for breaking this down for us. Expert: My pleasure, Anna. Host: And thank you for listening to A.I.S. Insights, powered by Living Knowledge. Join us next time as we continue to explore the ideas shaping the future of business.
Key Lessons from Bosch for Incumbent Firms Entering the Platform Economy
Daniel Hodapp, Florian Hawlitschek, Felix Wortmann, Marco Lang, Oliver Gassmann
This study analyzes eight platform projects within the Bosch Group, a major German engineering and technology company, to understand the challenges established firms face when entering the platform economy. The research identifies common barriers related to business logic, value proposition, and organizational structure. Based on the lessons learned at Bosch, the paper provides actionable recommendations for managers at other incumbent firms.
Problem
Established, non-digital native companies (incumbents) often struggle to transition from traditional, linear business models to platform-based models. Their existing structures, processes, and business logic are optimized for internal efficiency and product sales, creating significant barriers when trying to build and scale platforms that rely on external ecosystems and network effects.
Outcome
- Incumbent firms face three primary barriers when entering the platform economy: 1) learning the new business logic of platforms, 2) proving the platform's value to internal stakeholders, and 3) building an organization that supports external collaboration. - To overcome the learning barrier, firms should use personal communication and illustrative analogies of successful platforms to create a common understanding across the organization. - To prove value, teams should build a minimal viable platform (MVP) early on to demonstrate potential and use key metrics that reflect user engagement, not just registration numbers. - To build a suitable organization, firms can structure platform initiatives as separate innovation projects or even independent companies to provide the autonomy and external focus needed to build an ecosystem.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. Today, we're diving into a challenge that many established companies face: making the leap into the platform economy. We're looking at a study titled "Key Lessons from Bosch for Incumbent Firms Entering the Platform Economy."
Host: It analyzes eight different platform projects within the technology giant Bosch to understand the common barriers that traditional companies face and, more importantly, provides actionable recommendations for managers. With me is our analyst, Alex Ian Sutherland. Alex, welcome.
Expert: Great to be here, Anna.
Host: So, Alex, let's start with the big picture. We see these massive, successful companies, experts in manufacturing and engineering for decades. Why do they struggle so much when trying to build a platform, like a marketplace or an app ecosystem?
Expert: That’s the core of the problem. These firms, often called incumbents, are brilliant at running linear businesses. They design a product, make it, and sell it. Their entire organization—from supply chains to sales—is optimized for that internal efficiency.
Expert: A platform business is the opposite. It doesn't create value internally; it facilitates value creation between external users. Think of drivers and riders on Uber, or developers and users in an app store. This requires a completely different mindset focused on ecosystems and network effects, which often clashes with the company's traditional DNA.
Host: So how did the researchers get inside this problem to understand it better?
Expert: They conducted an in-depth case study of the Bosch Group. They didn't just theorize; they examined eight real-world platform projects inside the company—projects in areas like IoT, connected mobility, and smart devices. They interviewed the executives and project leaders to find out what hurdles they actually faced on the ground.
Host: And after looking at all eight projects, what were the common hurdles? What were the key findings?
Expert: The study boiled it down to three primary barriers. The first was simply learning the new business logic of platforms.
Host: What does that mean in practice, 'new business logic'?
Expert: It's the shift from thinking about product margins to thinking about network effects, where the platform becomes more valuable as more people use it. A manager in the study noted that for many colleagues, it just wasn't clear why a platform was even needed. Their instinct was to build a product, not an ecosystem.
Host: So how did the successful projects at Bosch overcome that learning curve?
Expert: Through communication and analogy. One project team held company-wide town halls to openly discuss their new business model. Another team, building a platform for smart cameras, constantly used the analogy of the early smartphone ecosystem. That simple comparison helped stakeholders understand the goal was to create a common standard that everyone could build on.
Host: Okay, so first you have to learn the new rules. What was the second major barrier?
Expert: Proving the platform's value, especially to internal stakeholders who hold the purse strings. A traditional business can forecast sales and calculate a clear return on investment for a new factory. But how do you calculate the ROI of an ecosystem that doesn't exist yet?
Host: That sounds like a tough sell. What worked at Bosch?
Expert: Two things stood out. First, building a Minimal Viable Platform, or MVP, as early as possible. One project that aimed to detect traffic hazards built a simple mobile app to demonstrate how it could work. Seeing a demo, no matter how basic, makes the value tangible.
Expert: Second, using the right metrics. One transportation platform was excited about its high number of user registrations, but the study found that very few people were actually booking recurring trips. They learned that engagement is a far more important metric than sign-ups for proving a platform's health.
Host: That makes sense. Learn the logic, prove the value. What was the final barrier?
Expert: Building an organization that can actually support a platform. Corporate structures are designed for internal control and optimization. But platforms thrive on external collaboration with partners, developers, and users. There's often a fundamental mismatch.
Host: So you're fighting the company's own structure. How do you solve that?
Expert: The study found that successful platform teams were given autonomy. Some were set up as distinct "innovation projects," which gave them freedom from standard corporate rules and let them focus on building external partnerships. In one case, for an automotive data platform, they went a step further and created an entirely separate company with Bosch and other automakers as shareholders, ensuring an external focus from day one.
Host: Alex, this is fascinating. For the business leaders and managers listening, what are the most important takeaways? What should they be doing if they want to venture into the platform world?
Expert: The study provides a clear roadmap. First, don't assume everyone gets it. Establish what the researchers call "Platform Learning Facilitators." This could be a dedicated team or a community of practice that coaches projects and spreads knowledge across the organization. Bosch did this by creating a business model innovation department.
Host: So, institutionalize the learning process. What's next?
Expert: Clearly and consistently communicate the strategy. Use simple frameworks and a common language to explain how the platform will work and create value. This builds confidence among decision-makers who have to approve these complex, and often expensive, initiatives.
Host: And the final piece of advice?
Expert: It's about structure. You have to strike a balance between autonomy and integration. Give your platform teams the freedom to operate like a startup, to be fast and externally focused. But also build mechanisms, like an advisory board, to keep them connected to the core business so they can leverage its strengths, like its customer base or brand recognition.
Host: Fantastic. So, for established firms, building a platform is far more than a technology project. It's a fundamental challenge to your business logic, your measurement of value, and your organizational structure.
Host: The lessons from Bosch show that overcoming these hurdles requires deliberate action: fostering a new mindset through clear communication, proving value with early prototypes and the right metrics, and creating autonomous teams that can build the external ecosystems needed to succeed.
Host: Alex Ian Sutherland, thank you for breaking that down for us.
Expert: My pleasure, Anna.
Host: And thanks to all our listeners for tuning into A.I.S. Insights. Join us next time as we explore the intersection of business, technology, and Living Knowledge.
platform economy, incumbent firms, digital transformation, business model innovation, case study, Bosch, ecosystem strategy
MIS Quarterly Executive (2022)
How Instacart Leveraged Digital Resources for Strategic Advantage
Ting Li, Yolande E. Chan, Nadège Levallet
This study analyzes the grocery delivery service Instacart to demonstrate how companies can strategically manage digital resources to gain a competitive edge in a turbulent market. It uses the Instacart case to develop a framework that explains how to navigate the evolving business landscape, create value, and overcome challenges to capturing that value. The paper concludes with five practical recommendations for managers aiming to thrive in the digital world.
Problem
In today's digital economy, businesses have access to powerful and versatile digital resources, but many executives struggle to leverage them effectively. Companies often face difficulties in balancing the creation of value for their entire ecosystem (partners, customers) with capturing sufficient value for their own firm. This study addresses the challenge of how to orchestrate digital resources to achieve sustained strategic advantage amidst fast-emerging competitors and complex partnership dynamics.
Outcome
- Instacart's success is attributed to four key achievements: simultaneously evolving its digital infrastructure and business model, maintaining 'technology ambidexterity' by both exploiting existing tech and exploring new innovations, dynamically managing knowledge flows from its vast data, and building a flexible relationship portfolio with customers, shoppers, and retail partners. - Based on the case, the study offers five key actions for managers: 1) Take bold risks, as there are no predefined limits in the digital world; 2) Build resilience by viewing failures as learning experiments; 3) Leverage third-party services to fill internal knowledge and infrastructure gaps; 4) View rivals and partners as a continuum, as these relationships can change quickly; 5) Create future opportunities by making strategic investments in new ventures.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: In today’s rapidly changing digital world, how can a business not just survive, but thrive? We’re looking at that question through the lens of a fascinating study from MIS Quarterly Executive, titled "How Instacart Leveraged Digital Resources for Strategic Advantage". Host: The study analyzes the grocery delivery giant to create a framework for how any company can gain a competitive edge in a turbulent market. And to help us unpack it, we have our expert analyst, Alex Ian Sutherland. Welcome, Alex. Expert: Great to be here, Anna. Host: Alex, let’s start with the big picture. What’s the core problem this study tackles? It seems like every company has access to digital tools, but not everyone is a winner. Expert: That’s exactly it. The problem isn’t a lack of technology; it’s the struggle to use it effectively. Many executives find themselves in a tough spot. They need to create value for their entire ecosystem—customers, partners, suppliers—but they also need to capture enough of that value to make their own business profitable and sustainable. Expert: It’s a delicate balancing act. The study points out that in the digital economy, you face fast-emerging competitors and complex partnerships, so getting that balance right is critical for survival. Host: So it's not just about having a great app, it's about the whole strategy behind it. How did the researchers approach this? How did they get inside a company like Instacart to understand its strategy? Expert: They essentially became business detectives. The research was a deep-dive case study of Instacart. The authors analyzed press releases, public interviews with executives, and existing case materials. They mapped out the company's journey and strategic decisions, and to ensure accuracy, they even consulted with an academic researcher who was actively working with Instacart on analytics projects. Host: That’s quite thorough. So after all that digging, what did they find? What are the key ingredients to Instacart's success? Expert: The study boils it down to four key achievements. First, they didn't just build a business model and then add technology to it. Their digital infrastructure and their business model grew up together, co-evolving. Host: What does that look like in practice? Expert: Well, by outsourcing the physical assets—the warehouses and inventory—to local grocers, Instacart could focus all its energy on building a superior digital platform. The tech and the business model were perfectly in sync from day one. Host: Okay, that makes sense. What was the second achievement? Expert: They call it 'technology ambidexterity'. It's a fantastic term. It means they were skilled at doing two things at once: exploiting their existing tech to make it better and more efficient, while also exploring brand new, innovative technologies. Expert: So, they were constantly tweaking the app for a smoother user experience, but they also made big moves like acquiring other platform companies to offer new services to their retail partners. It’s about perfecting the present while building the future. Host: And the last two? I imagine data plays a big role. Expert: Absolutely. The third achievement was managing dynamic knowledge flows. Instacart uses its vast stream of data on orders, deliveries, and customer habits to optimize its logistics engine and predict shopping trends. This knowledge is a core competitive asset. Expert: And finally, they built a dynamic relationship portfolio. They understand that in the digital world, a partner today might be a rival tomorrow. When Amazon, an early partner, bought Whole Foods, Instacart didn't panic. They quickly established a new partnership with Walmart to counter the threat. It's about being strategically agile. Host: This is all a brilliant analysis of Instacart, but let's get to the bottom line for our listeners. Why does this matter for a business leader in, say, manufacturing or finance? What are the practical takeaways? Expert: This is the most important part. The study offers five clear, actionable recommendations for any manager. First, take bold risks. The digital world doesn't have the same physical constraints, so don't box in your thinking. Expert: Second, build resilience by viewing failures as experiments. Not every initiative will succeed, but every failure provides data and a lesson. Instacart constantly experimented to find what worked. Host: So it’s a culture of learning, not a fear of failure. What else? Expert: Third, leverage third-party services to fill gaps. Instacart didn’t build its own massive server farms; it used Amazon Web Services to scale quickly. You don’t have to do everything in-house. Expert: Fourth, view rivals and partners as a continuum. The lines are blurry and can change overnight. And finally, create future opportunities by making small, strategic investments in new ventures, whether that's acquiring a small startup or even just its talented team. Host: So, if I were to summarize, it’s not just about having the right digital tools. It's about orchestrating them—making your technology, your business model, your data, and your partnerships work together as a single, agile system. Expert: That's the perfect summary, Anna. It’s about orchestration, not just implementation. Host: Alex, thank you for making this complex study so clear and actionable for us. Expert: My pleasure. Host: And thanks to all of you for tuning in to A.I.S. Insights. We’ll see you next time.
Instacart, digital resources, strategic advantage, platform strategy, value creation, value capture, digital transformation
MIS Quarterly Executive (2021)
How an Incumbent Telecoms Operator Became an IoT Ecosystem Orchestrator
Christian Marheine, Christian Engel, Andrea Back
This paper presents a case study on how a large, established European telecommunications company, referred to as "TelcoCorp," successfully transitioned into a central role in the Internet of Things (IoT) market. It analyzes the company's journey and strategic decisions in developing its IoT platform and managing a network of partners. The study provides actionable recommendations for other established companies looking to make a similar shift.
Problem
Established companies often struggle to adapt their traditional business models to compete in the fast-growing Internet of Things (IoT) landscape, which is dominated by digital platform models. These incumbents face significant challenges in building the right technology, creating a collaborative ecosystem of partners, and co-creating new value for customers. This study addresses the lack of clear guidance on how such companies can overcome these hurdles to become successful IoT leaders or "orchestrators."
Outcome
- Established firms can successfully enter the IoT market by acting as an 'ecosystem orchestrator' that manages a network of customers and third-party technology providers. - A key strategy is to license an existing IoT platform (a 'white-label' approach) rather than building one from scratch, which shortens time-to-market and reduces upfront investment. - To solve the 'chicken-and-egg' problem of attracting users and developers, incumbents should first leverage their existing customer base to create demand for IoT solutions. - Successfully moving from a simple technology provider to an orchestrator requires actively coordinating projects, co-financing promising use cases, and establishing clear governance rules for partners. - A hybrid growth strategy that balances creating custom, industry-specific solutions with developing scalable, generic components proves most effective for long-term growth.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. I'm your host, Anna Ivy Summers. Host: In today's fast-paced digital world, many established companies are trying to pivot into new arenas like the Internet of Things, or IoT. But it's a difficult transition. Host: We're going to explore a study that provides a roadmap for success, titled "How an Incumbent Telecoms Operator Became an IoT Ecosystem Orchestrator." It's a fantastic case study on how a large telecoms company successfully moved into the IoT space. Host: And to help us break it down, we have our expert analyst, Alex Ian Sutherland. Welcome, Alex. Expert: Great to be here, Anna. Host: So, Alex, let's start with the big picture. Why is this such a challenge for established companies? They have resources, customers... why do they struggle with something like IoT? Expert: It's a great question. The study points out that the IoT landscape is dominated by a different business model—the digital platform. Think Google or Amazon. Established firms are often built to sell products or services in a linear way, not to manage a complex network of partners and customers. Expert: They face huge hurdles in building the right technology, creating a collaborative ecosystem, and figuring out how to co-create new value. The study even quotes an industry source saying that up to 80% of IoT projects fail, often because companies simply can't connect their devices to get the data they need. Host: Eighty percent is a staggering number. So how did the researchers in this study figure out what makes a company succeed where so many others fail? Expert: They did a deep dive. It's a case study that followed one large European company, which they call "TelcoCorp," over a five-year period, from 2015 to 2020. They interviewed executives, partners, and customers to get a complete picture of the journey. Host: A five-year journey. That must have yielded some incredible insights. What was the most important thing TelcoCorp did right? Expert: The absolute key was a shift in mindset. They decided not to be just another technology provider. Instead, they aimed to become an "ecosystem orchestrator." Host: Orchestrator. That sounds powerful, but what does it actually mean in a business context? Expert: It means they became the central hub that connects everyone. They managed the platform, brought in third-party technology providers, and worked directly with customers to develop solutions. They weren't just selling a product; they were enabling a network of companies to create value together. Host: Okay, so to be an orchestrator, you need a central platform. Did TelcoCorp spend a fortune and years building one from scratch? Expert: That's the second crucial finding. No, they didn't. They licensed an existing IoT platform from a technology provider—what's known as a "white-label" approach. This dramatically shortened their time-to-market and saved them from a massive upfront investment. Host: That’s a very pragmatic move. But a platform is useless without people using it. How did they solve that classic "chicken-and-egg" problem of attracting both users and developers? Expert: They focused on the "chickens" they already had: their massive existing base of business customers. Instead of trying to attract a new audience, they went to their current clients and showed them how IoT could solve their problems—moving them from just buying mobile connectivity to connecting all their industrial assets. This created immediate demand, which then made the platform very attractive to third-party developers and hardware partners. Host: And I imagine once you have customers and partners, the next challenge is getting them to work together effectively. Expert: Exactly. And that’s the final piece of the puzzle. TelcoCorp took an active role. They established clear rules for governance, created new roles like "ecosystem managers" to coordinate projects, and even co-financed promising but risky use cases to get them off the ground. Expert: They also used a hybrid strategy, balancing deep, custom solutions for specific industries with creating scalable, generic components that could be reused across different projects. Host: This is a fantastic roadmap. Alex, let’s get to the bottom line. For the business leaders listening, what are the key takeaways from TelcoCorp's success? Expert: I think there are three main lessons. First, you don't have to build everything yourself. Licensing a white-label platform can be a brilliant strategic shortcut that lets you focus on your customers. Expert: Second, your existing customer base is your most powerful asset. Start there. Solve their problems and use that momentum to build out your ecosystem. Expert: And finally, change your mindset. Don't think like a traditional seller. Think like an orchestrator. Your job is to create the environment, the rules, and the connections that allow your partners and customers to build the future together. Host: So the core message is to leverage your strengths, partner smartly, and shift from being a simple provider to the central orchestrator of your ecosystem. A powerful lesson for any incumbent company looking to innovate. Host: Alex, thank you so much for clarifying this for us. Expert: My pleasure, Anna. Host: And thank you to our audience for tuning in to A.I.S. Insights — powered by Living Knowledge. Join us next time as we decode another key study shaping the future of business and technology.
Internet of Things (IoT), Ecosystem Orchestrator, Telecoms Operator, Industry Incumbents, Platform Strategy, Value Co-creation, Case Study
MIS Quarterly Executive (2021)
Acquisition of Complementors as a Strategy for Evolving Digital Platform Ecosystems
Nicola Staub, Kazem Haki, Stephan Aier, Robert Winter, Adolfo Magan
This study examines how digital platform owners can accelerate growth by acquiring 'complementors'—third-party firms that create add-on products and services. Using Salesforce as a prime case study, the research analyzes its successful acquisition strategy to offer practical recommendations for other platform companies on integrating new capabilities and maintaining a coherent ecosystem.
Problem
In the fast-paced, 'winner-take-all' world of digital platforms, relying solely on internal innovation is often too slow to maintain a competitive edge. Platform owners face the challenge of rapidly evolving their technology and functionality to meet customer demands. This study addresses how to strategically use acquisitions to incorporate external innovations without creating confusion for customers or disrupting the existing ecosystem.
Outcome
- Make acquisitions across all strategic directions of the platform's evolution: extending core technology, expanding functional scope, and widening industry-specific specialization. - Use acquisitions as a mechanism to either boost existing proprietary products or to initiate the development of entirely new ones. - Prevent acquisitions from confusing customers by presenting all offerings in a single, comprehensive overview (like Salesforce's 'Customer 360') and actively communicating changes and benefits. - Adopt a flexible, case-by-case approach to integrating acquired companies, tailoring the technical, branding, and licensing strategies to each specific situation.
Host: Welcome to A.I.S. Insights, the podcast where we connect Living Knowledge with business strategy. I’m your host, Anna Ivy Summers. Host: Today, we’re diving into a fascinating study titled "Acquisition of Complementors as a Strategy for Evolving Digital Platform Ecosystems." Host: With me is our expert analyst, Alex Ian Sutherland. Alex, welcome. Expert: Great to be here, Anna. Host: So, in simple terms, this study is about how digital platforms, like Salesforce, can grow faster and smarter by buying other companies that build products for their ecosystem. Is that right? Expert: Exactly. It's about using acquisitions as a strategic tool for evolution, not just expansion. Host: Let’s start with the big problem. Why is this such a critical issue for platform companies today? Expert: Well, we're in a 'winner-take-all' digital world. If you're running a platform, you're in a race. Relying only on your own team to build new features is often too slow. Your competitors are moving fast, and customer demands change in a heartbeat. Host: So, you risk falling behind. Expert: Precisely. The challenge is, how do you quickly bring in new technologies and services by acquiring other companies, without creating a messy, confusing product portfolio for your customers? Host: A very real challenge. How did the researchers go about studying this? Expert: They conducted an in-depth case study on one of the most successful companies at this: Salesforce. They didn't just look at public data; they conducted 19 detailed interviews with senior people at Salesforce, as well as with their partners and major clients. Host: So they got the full picture from every angle. Expert: That's right. It allowed them to understand not just what Salesforce did, but why they did it and how it impacted the entire ecosystem. Host: Let's get to the findings. What was the first key insight from the study? Expert: The first is that successful acquisitions aren't random. Salesforce made them across three distinct strategic directions. First, extending their core technology—like buying MuleSoft to handle data integration. Expert: Second, expanding their functional scope—like acquiring Demandware to launch a full e-commerce solution, which they called Commerce Cloud. And third, widening their industry specialization, which they did by buying Vlocity to get deeper into specific sectors like communications and healthcare. Host: So it's about being very deliberate in how you grow. What was the next major finding? Expert: The study found that acquisitions were used in two main ways: either to boost an existing product or to create a brand-new one. Host: Can you give us an example? Expert: Of course. To boost an existing product, they bought ExactTarget to supercharge their Marketing Cloud. But to create a whole new capability, like that e-commerce platform I mentioned, they bought Demandware and used it as the foundation for their new Commerce Cloud. It's a dual strategy for innovation. Host: Now, you mentioned the risk of confusing customers. How did the study say Salesforce managed that? Expert: This is critical. As they acquired more companies, functionalities started to overlap, and customers were getting confused. To solve this, Salesforce created what they call the 'Customer 360' overview. Host: A single source of truth? Expert: Exactly. It's a unified dashboard that presents all their services, including the newly acquired ones, in one coherent package. It creates the feeling of a one-stop shop, even if the technologies behind the scenes are from different companies. Host: And the final key finding? Expert: That there is no one-size-fits-all approach to integration. Salesforce adopted a very flexible, case-by-case strategy. Host: What does that mean in practice? Expert: It means they looked at each acquired company individually. For some, like Demandware, they absorbed the company completely and the brand disappeared. For others with huge brand recognition, like Tableau and Slack, they kept the original brand. They tailored the technical, branding, and even the licensing models to what made the most sense. Host: This is incredibly practical. So, Alex, let’s boil it down. What is the number one takeaway for a business leader listening right now who is thinking about their own acquisition strategy? Expert: The biggest takeaway is to think of acquisitions as a portfolio. Don't just buy what's hot. Deliberately invest in companies that strengthen your core tech, add broad new features, and give you industry-specific depth. Host: And what about after the deal is signed? Expert: The work is just beginning. You must have a plan to communicate a simple, unified value proposition to your customers. If you don't, you risk confusing them and destroying the value you just bought. Host: And be flexible in how you integrate. Expert: Yes. That flexibility is key. What worked for one acquisition may not work for the next. You need to adapt your integration strategy for branding, technology, and licensing each time. Host: So, a smart acquisition strategy is about more than just buying growth. It’s a deliberate process of evolving your platform, integrating new pieces thoughtfully, and always, always communicating clearly with your customers. Host: Alex, thank you for breaking down this complex topic into such clear, actionable insights. Expert: My pleasure, Anna. Host: And thank you to our listeners for tuning in to A.I.S. Insights, powered by Living Knowledge. Join us next time as we explore the latest research shaping the future of business.
digital platforms, platform ecosystems, acquisitions, complementors, Salesforce, business strategy, ecosystem evolution
MIS Quarterly Executive (2021)
How Spotify Balanced Trade-Offs in Pursuing Digital Platform Growth
Daniel A. Skog, Johan Sandberg, Henrik Wimelius
This study analyzes the growth strategy of Spotify, a digital service platform, to understand how it successfully scaled its business. The research identifies three key strategic objectives that service platforms must pursue and examines the specific tactics Spotify used to manage the inherent trade-offs associated with each objective, providing a framework for other similar companies.
Problem
Digital service platforms, like Spotify, are software applications that rely on external hardware devices (e.g., smartphones, smart speakers) to reach customers. This dependency creates significant challenges, as they must navigate relationships with device platform owners (like Apple and Google) who can be both partners and competitors, all while trying to achieve rapid growth and fend off imitation.
Outcome
- To achieve rapid user growth, Spotify balanced 'diffusion' (making the service cheap and widely available) with 'control' (managing growth through invite systems and technical solutions to reduce costs). - To expand its features and services, Spotify shifted from 'inbound interfacing' (an internal app store) to 'outbound interfacing' (APIs and tools like Spotify Connect) to ensure compatibility across a growing number of devices. - To establish a strong market position, Spotify managed its dependency on device makers by using a dual tactic of 'partnering' (deep collaborations with companies like Samsung and Facebook) and 'liberating' (actions to increase autonomy, such as producing exclusive podcasts and forming industry coalitions).
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. In today's hyper-competitive digital world, how does a software company become a global giant? We're exploring that question by looking at a true market leader: Spotify.
Host: We're diving into a fascinating study from MIS Quarterly Executive titled "How Spotify Balanced Trade-Offs in Pursuing Digital Platform Growth." It analyzes Spotify's strategy to provide a blueprint for other digital service companies aiming to scale successfully.
Host: And to help us unpack this, we have our expert analyst, Alex Ian Sutherland. Alex, welcome to the show.
Expert: Thanks for having me, Anna. It’s a great study that really gets under the hood of Spotify's success.
Host: So, let's start with the big picture. What is the fundamental problem that companies like Spotify face, which this research addresses?
Expert: The core problem is dependency. Spotify is a digital service platform, which is a fancy way of saying it’s an app. It doesn't make its own phones or smart speakers. It has to live on hardware and operating systems owned by other companies—like Apple, Google, and Samsung.
Host: And I imagine that can be a tricky position to be in.
Expert: Exactly. The study calls it a "double-edged" relationship. These device platform owners are your partners; they give you access to millions of customers through their app stores. But they can also be your direct competitors. Apple can promote its own Apple Music service right next to yours, and they set the rules and fees for being on their platform.
Host: So the challenge is how to grow massively while being dependent on potential rivals. How did the researchers figure out Spotify's secret sauce?
Expert: They conducted what's called a longitudinal case study. Essentially, they performed a deep dive into Spotify's entire history, from its founding in 2006 through 2020, analyzing thousands of documents, company reports, and news articles to map out every key strategic decision.
Host: Let's get to those findings. The first hurdle for any platform is getting users, and fast. How did Spotify manage explosive growth without blowing up its own infrastructure or bank account?
Expert: This is one of the most brilliant parts of their strategy. They had to balance the need for rapid growth with the need for durability. To do this, they used two opposing tactics at the same time: 'diffusion' and 'control'.
Host: Diffusion and control. Tell us more.
Expert: 'Diffusion' was about making Spotify incredibly easy and cheap to access. They launched a 'freemium' model, so anyone could listen for free. And they worked relentlessly to be available on every device imaginable—not just phones, but cars, TVs, and speakers. They wanted to be everywhere.
Host: And what about the 'control' part? How did they manage the costs of all those free users?
Expert: In the early days, they used an invite-only system for free accounts. This allowed them to control the rate of growth so their servers wouldn't overload. They also cleverly used peer-to-peer, or P2P, technology. This meant that for free users on desktops, a lot of the music was streamed from other users' computers, not directly from Spotify's servers, which dramatically cut their costs.
Host: That's incredibly smart. So once they had the users, they faced the next problem: being copied. How did Spotify innovate and add new features to stay ahead?
Expert: Here, they had to balance adding new features with making sure the service worked seamlessly everywhere. They actually made a big pivot. Initially, they tried 'inbound interfacing'—they launched an internal app store where developers could build apps that worked *inside* Spotify.
Host: I remember that. It seemed like a good idea.
Expert: It was, but it made it difficult to maintain a consistent experience, especially as mobile became dominant. So they shifted to 'outbound interfacing'. They released APIs and tools like Spotify Connect, which let other companies build Spotify's functionality *into their own* products. Think of a smart speaker that plays Spotify natively. This expanded their reach and features without cluttering the core app.
Host: Which brings us to the third and biggest challenge: managing those relationships with the device giants. How did they partner with them without giving away all their power?
Expert: Again, a dual tactic: 'partnering' and 'liberating'. 'Partnering' involved deep, strategic collaborations. They didn't just put their app on Samsung phones; they became Samsung's default music player. They integrated deeply with Facebook to power social sharing and music discovery.
Host: And the 'liberating' tactic? That sounds like fighting back.
Expert: It's about creating independence. Spotify did this primarily by investing in unique, exclusive content—most notably, podcasts. By buying studios like Gimlet and signing exclusive deals with figures like Joe Rogan, they gave users a powerful reason to come directly to Spotify, bypassing competitors. They also co-founded the Coalition for App Fairness to publicly challenge what they see as unfair App Store rules.
Host: Alex, this is a masterclass in strategy. For the business leaders listening, what are the key, practical takeaways from Spotify's playbook?
Expert: There are three big ones. First, rapid growth must be balanced with control. Don't be afraid to use things like invite systems or usage limits to ensure your growth is sustainable. Growth at all costs is a myth.
Expert: Second, think outside your own app. An 'outbound' strategy, using APIs to let other companies integrate your service, builds a powerful ecosystem that is much harder for a competitor to replicate. It makes you part of the plumbing.
Expert: And finally, actively manage your dependency on big platforms. Partner where you can, but always have a 'liberating' strategy. Develop something—exclusive content, a unique feature—that makes you a destination in your own right. You have to build your own gravity.
Host: Balance growth with control, build an ecosystem, and create your own gravity. Powerful advice. Alex, thank you so much for breaking down this incredible business journey for us.
Expert: My pleasure, Anna.
Host: That's all the time we have for today. Thank you for listening to A.I.S. Insights — powered by Living Knowledge.
Spotify, digital platform, platform growth, strategic trade-offs, network effects, platform strategy, digital service
MIS Quarterly Executive (2021)
Unexpected Benefits from a Shadow Environmental Management Information System
Johann Kranz, Marina Fiedler, Anna Seidler, Kim Strunk, Anne Ixmeier
This study analyzes a German chemical company where a single employee, outside of the formal IT department, developed an Environmental Management Information System (EMIS). The paper examines how this grassroots 'shadow IT' project was successfully adopted company-wide, producing both planned and unexpected benefits. The findings are used to provide recommendations for business leaders on how to effectively implement information systems that drive both eco-sustainability and business value.
Problem
Many companies struggle to effectively improve their environmental sustainability because critical information is often inaccessible, fragmented across different departments, or simply doesn't exist. This information gap prevents decision-makers from getting a unified view of their products' environmental impact, making it difficult to turn sustainability goals into concrete actions and strategic advantages.
Outcome
- Greater Product Transparency: The system made it easy for employees to assess the environmental impact of materials and products. - Improved Environmental Footprint: The company improved its energy and water efficiency, reduced carbon emissions, and increased waste productivity. - Strategic Differentiation: The system provided a competitive advantage by enabling the company to meet growing customer demand for verified sustainable products, leading to increased sales and market share. - Increased Profitability: Sustainable products became surprisingly profitable, contributing to higher turnover and outperforming competitors. - More Robust Sourcing: The system helped identify supply chain risks, such as the scarcity of key raw materials, prompting proactive strategies to ensure resource availability. - Empowered Employees: The tool spurred an increase in bottom-up, employee-driven sustainability initiatives beyond core business operations.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: Today, we're diving into a fascinating study titled "Unexpected Benefits from a Shadow Environmental Management Information System." Host: It explores how a grassroots 'shadow IT' project, developed by a single employee at a German chemical company, was successfully adopted company-wide, producing some truly surprising benefits for both sustainability and the bottom line. Host: With me is our expert analyst, Alex Ian Sutherland. Alex, welcome. Expert: Great to be here, Anna. Host: So, let's start with the big picture. Many companies talk about sustainability, but struggle to put it into practice. What's the core problem this study addresses? Expert: The core problem is an information gap. The study highlights that in most companies, critical environmental data is scattered across different departments, siloed in various systems, or just doesn't exist in a usable format. Host: Meaning decision-makers are flying blind? Expert: Exactly. Without a unified view of a product’s entire lifecycle—from raw materials to finished goods—it's incredibly difficult to turn sustainability goals into concrete actions. You can't improve what you can't measure. Host: So how did the researchers in this study approach this problem? Expert: They conducted an in-depth case study of a major German chemical company, which they call 'ChemCo'. Over a 13-year period, they interviewed employees, managers, and even competitors. Expert: They traced the journey of an Environmental Management Information System, or EMIS, that was created not by the IT department, but by one motivated manager in supply chain management during his own time. Host: A classic 'shadow IT' project, then. What were the key findings from this bottom-up approach? Expert: Well, there were the planned benefits, and then the unexpected ones, which are really powerful. The first, as you’d expect, was greater product transparency. Host: So, employees could finally see the environmental impact of different materials. Expert: Right. And that led directly to an improved environmental footprint. The data showed the company was able to improve energy and water efficiency and reduce waste. For instance, they found a way to turn 6,000 tons of onion processing waste into renewable biogas energy. Host: That’s a great tangible outcome. But you mentioned unexpected benefits? Expert: This is where it gets interesting for business leaders. The first was strategic differentiation. Armed with this data, ChemCo could prove its sustainability claims to customers. This became a massive competitive advantage. Host: Which I imagine translated directly into sales. Expert: It did, and that was the second surprise: a significant increase in profitability. Sustainable products, which are often seen as a cost center, became highly profitable. The study shows ChemCo’s sales and profit growth actually outperformed its three main competitors over a decade. Host: So doing good was also good for business. What else? Expert: Two more big things. The system helped them identify supply chain risks, like the growing scarcity of a key material like sandalwood, which prompted them to find sustainable alternatives years before their rivals. And finally, it empowered employees, sparking a wave of bottom-up sustainability initiatives across the company. Host: This is a powerful story. For the business professionals listening, what is the most important lesson here? Why does this study matter? Expert: The biggest takeaway is about innovation. This whole transformation wasn't driven by a big, top-down corporate mandate. It was driven by a passionate employee who built a simple tool to solve a problem he saw. Host: But 'shadow IT' is often seen as a risk by leadership. Expert: It can be. But this study urges leaders to see these initiatives as opportunities. They often highlight an unmet business need. The lesson is not to shut them down, but to nurture them. Host: So the advice is to find those innovators within your own ranks and empower them? Expert: Precisely. And the second key lesson is to keep it simple. This revolutionary system started as a spreadsheet. Its simplicity and accessibility were crucial. Anyone could use it and contribute information, which broke down those data silos we talked about earlier. Host: It sounds like the value was in democratizing the data, making sustainability everyone’s job. Expert: That's the perfect way to put it. It created a shared language and a shared mission that ultimately changed the company’s culture and strategy. Host: So, to summarize: a grassroots, employee-driven IT project not only improved a company's environmental footprint but also drove profitability, uncovered supply chain risks, and created a lasting competitive advantage. Host: The key for business leaders is to embrace these bottom-up innovations and understand that sometimes the simplest tools can have the most transformative impact. Host: Alex, thank you for breaking this down for us. It’s a powerful reminder that the next big idea might just be brewing in a spreadsheet on an employee's laptop. Expert: My pleasure, Anna. Host: And thank you to our audience for tuning into A.I.S. Insights. Join us next time as we uncover more valuable knowledge for your business.
Environmental Management Information System (EMIS), Shadow IT, Corporate Sustainability, Eco-sustainability, Case Study, Strategic Value, Supply Chain Transparency
MIS Quarterly Executive (2021)
How Digital Platforms Compete Against Diverse Rivals
Kalina Staykova, Jan Damsgaard
This study analyzes the competitive strategies of digital platforms by examining the case of MobilePay, a major digital payment platform in Denmark. The authors develop the Digital Platform Competition Grid, a framework outlining four competitive approaches platform owners can use against rivals with varying characteristics. The research details how platforms can mix and match offensive and defensive actions across different competitive fronts.
Problem
Digital platforms operate in a highly dynamic and unpredictable environment, often competing simultaneously against diverse rivals across multiple markets or 'battlefronts'. This hypercompetitive landscape requires a flexible and adaptive strategic approach, as traditional long-term strategies are often ineffective. The study addresses the critical need for a structured framework to help platform owners understand and counter competitors with different origins and technological focuses.
Outcome
- The study introduces the 'Digital Platform Competition Grid', a framework to guide competitive strategy against diverse rivals based on two dimensions: the rival's industry origin (native vs. non-native) and their IT innovation focus (streamlined vs. complex). - It identifies four distinct competitive approaches: 'Seize the Middle' (against native, streamlined rivals), 'Two-Front War' (native, complex), 'Fool's Mate' (non-native, complex), and 'Armageddon Game' (non-native, streamlined). - The paper offers a 'playbook' of specific offensive and defensive actions, such as preemptive market entry, platform functionality releases, and interoperability tactics, for each competitive scenario. - Key recommendations include leveraging existing IT for speed-to-market initially but later building robust, independent systems, and strategically identifying which user group (e.g., consumers vs. merchants) will ultimately determine market dominance.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. In today's hyper-connected world, digital platforms are the new titans of industry. But how do they fight and win when their competitors can be anyone from a tiny startup to a global tech giant?
Host: We're diving into a fascinating study called "How Digital Platforms Compete Against Diverse Rivals." It analyzes the strategies of a major digital payment platform to create a practical playbook for business leaders. Here to break it down for us is our analyst, Alex Ian Sutherland. Welcome, Alex.
Expert: Great to be here, Anna.
Host: Alex, let's start with the big picture. What is the core problem that platform businesses face that this study addresses?
Expert: The core problem is that digital platforms operate in a hypercompetitive and unpredictable world. They often have to compete on several fronts at once, what the study calls 'battlefronts'. Think of Uber starting with ride-sharing, then suddenly competing with Grubhub in food delivery.
Expert: Or Apple, a tech company, launching Apple Pay and instantly becoming a rival to established financial players like Visa and MasterCard. Traditional long-term strategies just don't work when your next major competitor can come from a completely different industry.
Host: So it’s about needing a more dynamic way to think about strategy. How did the researchers go about building a solution for this?
Expert: They took a very practical approach. They did an in-depth case study on a successful Danish payment platform called MobilePay, tracking its journey from its launch in 2012 all the way to 2020. They analyzed 32 specific competitive actions MobilePay took to fend off a whole range of different rivals.
Host: So by watching a real-world battle unfold, they could extract a framework. What were the key findings?
Expert: The central finding is a brilliant tool called the 'Digital Platform Competition Grid'. It’s essentially a strategic map that helps a platform owner decide how to compete. It classifies rivals along two key dimensions.
Host: And what are those dimensions?
Expert: First is 'industry indigeneity'—basically, is your rival 'native' to your industry, like another bank in MobilePay's case? Or are they 'non-native', like a big tech firm? The second dimension is their 'IT innovation focus'—do they have a 'streamlined' focus on user experience, or a 'complex' one, trying to build a technologically superior system from the ground up?
Host: So depending on where a competitor lands on that grid, you use a different playbook.
Expert: Exactly. The study outlines four distinct competitive approaches. For example, against a 'native' rival with a similar 'streamlined' focus, the strategy is 'Seize the Middle'—you encircle them by entering all the key markets first. But against a 'non-native' tech giant like Apple Pay, it’s an 'Armageddon Game' where you concentrate your forces and collaborate with others to fortify your position.
Host: This is the critical part for our audience, Alex. What are the practical, actionable takeaways for a business leader running a platform today?
Expert: There are two that really stand out. First, you need a two-stage approach to technology. Initially, the study recommends leveraging your existing IT systems to get to market as fast as possible. Speed is everything to build those early network effects.
Host: But that can create dependencies and inefficiencies down the line.
Expert: Precisely. So, stage two is crucial: once you've established a foothold, you must invest in building more robust, independent systems. MobilePay had to do this to untangle itself from a partner that later became a competitor. You use synergies to get started, but you have to plan to abandon them to truly own your territory.
Host: That’s a powerful lesson. What was the second key takeaway?
Expert: It’s about identifying who really holds the power in your ecosystem. MobilePay’s rivals, like a bank consortium called Swipp, focused heavily on winning over commercial users—the merchants. They believed merchants would bring the private users.
Expert: But the study showed this was a mistake. It was the private, everyday users who were the ultimate 'kingmakers'. Because MobilePay had won them over first with a simple, easy-to-use app, the merchants eventually had to follow. So the takeaway is: you must correctly identify and prioritize the user group that will ultimately decide the winner of the competitive battle.
Host: Let's do a quick recap. Digital platforms need a flexible playbook, not a fixed long-term plan. The Digital Platform Competition Grid provides a framework to tailor your strategy based on your rival’s characteristics.
Host: And the key lessons for business are to prioritize speed-to-market first by leveraging existing tech, but then build resilient, independent systems later. And most importantly, figure out which user group is the true center of gravity and win them over first.
Host: Alex Ian Sutherland, thank you for making this complex topic so clear and actionable.
Expert: It was my pleasure, Anna.
Host: And a big thank you to our audience for listening to A.I.S. Insights. We'll see you next time.
digital platforms, platform competition, competitive strategy, MobilePay, FinTech, network effects, Digital Platform Competition Grid
MIS Quarterly Executive (2022)
How to Harness Open Technologies for Digital Platform Advantage
Hervé Legenvre, Erkko Autio, Ari-Pekka Hameri
This study analyzes how businesses can strategically leverage open technologies, such as open-source software and hardware, to gain a competitive advantage in the digital economy. It investigates the motivations behind corporate participation in these shared technology ecosystems, referred to as the "digital commons game," and presents a five-level strategic roadmap for companies to master it.
Problem
As businesses increasingly rely on digital platforms, the underlying infrastructure is often built with shared open technologies. However, many companies lack a strategic framework for engaging with these 'technology commons,' failing to understand how to influence them to reduce costs, accelerate innovation, and outmaneuver competitors in a game played 'beneath the surface' of their user-facing products.
Outcome
- Businesses are driven to participate in open technology ecosystems by three types of motivations: Operational (e.g., reducing costs, attracting talent), Community-level (e.g., removing technical bottlenecks, growing the user base), and Strategic (e.g., undermining competitors, blocking new threats). - The research identifies four key strategic maneuvers companies use: 'Sponsoring' to grow the ecosystem, 'Supporting' through direct contributions, 'Safeguarding' to protect the community from self-interested actors, and 'Siphoning' to extract value without contributing back. - The paper provides a five-level strategic roadmap for companies to increase their mastery: 1) Adopting, 2) Contributing, 3) Steering, 4) Mobilizing, and 5) Projecting, moving from a passive user to a strategic leader. - Engaging in this 'game' is crucial for influencing industry standards, reducing vendor lock-in, and building a sustainable competitive advantage.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. In a world driven by digital platforms, the technology that runs underneath them is more important than ever. But what if there was a strategic game being played in that hidden space that could determine your company’s success?
Host: Today, we’re diving into a fascinating study titled "How to Harness Open Technologies for Digital Platform Advantage". It analyzes how businesses can strategically use open technologies, like open-source software, to gain a real competitive edge. With me to unpack this is our analyst, Alex Ian Sutherland. Alex, welcome.
Expert: Glad to be here, Anna.
Host: So, let’s start with the big problem. Businesses everywhere use open-source software, but the study suggests most are missing a huge opportunity. What's the issue here?
Expert: The issue is a lack of strategy. Companies build their digital platforms on this shared infrastructure of open technologies, what the study calls the 'digital commons.' But they treat it like a free resource, not a competitive arena. They fail to see the game being played 'beneath the surface' of their products.
Host: A game 'beneath the surface'? What does that look like in the real world?
Expert: A classic example is Google's Android. Before Android, Nokia dominated the mobile phone market with its proprietary operating system. Google released Android as an open-source project. This shifted the entire basis of competition away from the handset to applications and data, where Google was strong. It completely undermined Nokia's position, and they never recovered. That’s the power of playing this game well.
Host: That’s a powerful illustration. So how did the researchers get this inside view on the strategies of these tech giants?
Expert: They conducted a comprehensive study of the open source activities of major players like Facebook and Google. They looked at specific, influential projects across the entire technology stack—from user-interface software like Facebook’s React, to A.I. frameworks like Google's TensorFlow, and even open-source hardware for data centers.
Host: And what did they find? Why are these companies so invested in playing this 'digital commons' game?
Expert: The study identified three core types of motivation. First, there are 'Operational' benefits, which are the most obvious: reducing costs, speeding up innovation, and attracting top engineering talent who want to work on influential open projects.
Host: Okay, that makes sense. But it goes deeper than that?
Expert: Absolutely. The second level is 'Community' motivations. This is about growing the entire ecosystem around a technology. By making a project like Google's Kubernetes the industry standard for managing applications, they ensure a bigger pool of users, tools, and developers that they can also benefit from.
Host: And the final motivation is the most aggressive, I assume?
Expert: Yes, the third is 'Strategic'. This is where it gets really interesting. It’s about actively undermining a competitor’s advantage, like the Android example, or blocking new threats by establishing an open standard before a competitor can create a closed, proprietary one.
Host: So, if those are the motivations, how do companies actually make these moves? The study mentions four strategic maneuvers?
Expert: That's right, what they call the "4-S maneuvers." 'Sponsoring' and 'Supporting' are constructive moves. You're contributing code, funding foundations, and helping grow the pie for everyone, which builds your reputation and influence. 'Safeguarding' is about protecting the community from actors who might try to exploit it.
Host: And the last one sounds less collaborative.
Expert: It is. 'Siphoning' is when a company tries to extract value from the open community without contributing back, for example by using restrictive licensing. This can backfire, as users and developers value reciprocity and can push back publicly.
Host: This brings us to the most important question for our listeners, Alex. How can a business leader who isn’t running a tech giant apply these insights?
Expert: The study provides a fantastic five-level strategic roadmap for this. It’s about assessing your company’s maturity and ambition. Level one is simply 'Adopting' open technologies to save money, where most companies are.
Host: And how do they level up?
Expert: Level two is 'Contributing'—letting your developers contribute back to projects, which builds skills and attracts talent. Level three is 'Steering,' where you start actively trying to influence projects. At level four, 'Mobilizing,' you use open platforms to strategically challenge competitors. And level five, 'Projecting,' is the grandmaster level—shaping entire industries, not just single projects.
Host: So there’s a clear path for companies to follow, from being passive users to becoming strategic leaders.
Expert: Exactly. The key takeaway is that you can’t afford to ignore this game. You need to understand where you are on that roadmap and make a conscious decision about how you want to play.
Host: So, to summarize: the open technologies that power our digital world are not just free tools, but a competitive landscape. By understanding the motivations, using the right maneuvers, and following a clear roadmap, businesses can turn these shared resources into a powerful strategic advantage.
Expert: That's it perfectly, Anna. It’s about moving from being a consumer to being a player.
Host: Alex Ian Sutherland, thank you for making such a complex topic so clear. And thank you to our listeners for joining us on A.I.S. Insights.
digital platforms, open source, technology commons, ecosystem strategy, competitive advantage, platform competition, strategic roadmap
MIS Quarterly Executive (2022)
Different Strategy Playbooks for Digital Platform Complementors
Philipp Hukal, Irfan Kanat, Hakan Ozalp
This study examines the strategies that third-party developers and creators (complementors) use to succeed on digital platforms like app stores and video game marketplaces. Based on observations from the video game industry, the research identifies three core strategies and explains how they combine into different 'playbooks' for major corporations versus smaller, independent creators.
Problem
Third-party creators and developers on digital platforms face intense competition in a crowded market, often described as a 'long tail' distribution where a few major players dominate. To survive and thrive, these complementors need effective business strategies, but the optimal approach differs significantly between large, well-resourced firms (major complementors) and small, independent developers (minor complementors).
Outcome
- The study identifies three key strategies for complementors: Content Discoverability (gaining visibility), Selective Modularization (using platform technical features), and Asset Fortification (building unique, protected resources like intellectual property). - Major complementors succeed by using their strong assets (like established brands) as a foundation, combined with large-scale marketing for discoverability and adopting all available platform features to maintain a competitive edge. - Minor complementors must make strategic trade-offs due to limited resources. Their playbook involves grassroots efforts for discoverability, carefully selecting platform features that offer the most value, and fortifying unique assets to dominate a specific niche market. - The success of any complementor depends on combining these strategies into a synergistic playbook that matches their resources and market position (major vs. minor).
Host: Welcome to A.I.S. Insights, powered by Living Knowledge, where we translate complex research into actionable business strategy. I’m your host, Anna Ivy Summers. Host: Today, we're diving into the hyper-competitive world of digital platforms. Think app stores, video game marketplaces, even streaming services. How do creators and businesses actually succeed there? Host: We'll be unpacking a fascinating study from the MIS Quarterly Executive titled "Different Strategy Playbooks for Digital Platform Complementors." It examines the strategies that third-party developers, or 'complementors', use to thrive, and finds that it’s not a one-size-fits-all approach. Host: To help us understand this, we have our expert analyst, Alex Ian Sutherland. Alex, welcome. Expert: Great to be here, Anna. Host: So, Alex, let's start with the big picture. Why is this topic so critical for businesses today? What's the core problem this study addresses? Expert: The problem is visibility and survival. Any business that has launched an app or product on a platform like the Apple App Store or Steam knows the feeling. You're competing against millions of others in what's often called a 'long tail' market. Host: And that means a few huge blockbusters get all the attention, while everyone else fights for scraps in that long tail. Expert: Exactly. A massive company like a major game publisher has vast resources, marketing budgets, and established brands. But a small, independent developer has none of that. The study highlights that these two groups—what it calls 'major' and 'minor' complementors—simply cannot use the same strategy to win. Host: It makes sense they'd need different approaches. How did the researchers go about figuring out what those successful approaches are? Expert: They did a deep dive into the video game industry. It's a perfect laboratory for this because it has both multi-billion-dollar franchises and tiny, one-person indie studios competing on the same platforms, like Steam. By observing what worked for both, they were able to identify universal strategic pillars. Host: And what are those pillars? What are the key findings? Expert: The study identified three core strategies that everyone needs to think about. The first is **Content Discoverability**—basically, how do you get seen? The second is **Selective Modularization**, which is about how you use the technical features and tools the platform gives you. Host: Like achievements on a gaming platform or integrating with Apple's specific iOS features? Expert: Precisely. And the third, which is crucial, is **Asset Fortification**. This means building and protecting your unique resources—things like your brand, intellectual property, a unique art style, or a powerful algorithm. Host: So everyone uses these three strategies, but the magic is in *how* they combine them into a 'playbook' that fits their size and resources. Expert: That's the key insight. For major players, like the publisher of a huge game like Call of Duty, their playbook starts with Asset Fortification. They leverage their massive, pre-existing brand. Then they pour hundreds of millions into marketing for Discoverability and use *all* the platform's technical features to meet user expectations and stay ahead. Host: It's a strategy of scale and dominance. What about the little guy, the minor complementor? Expert: They have to be much more strategic. Their playbook is about making smart trade-offs. For Discoverability, they can't afford Super Bowl ads, so they rely on grassroots efforts—building a community on social media, getting influencers to notice them. Host: And for the technical features? Expert: They are selective. They only integrate the platform features that offer the most value for their niche, rather than trying to do everything. And their Asset Fortification isn't a global brand; it's about creating something so unique for a specific niche that it's hard to copy, defending their small piece of the market. Host: This brings us to the most important question for our audience: why does this matter for my business? What are the practical takeaways? Expert: The biggest takeaway is that you can’t succeed with random tactics. You need a coherent playbook where all three strategies—discoverability, modularization, and assets—work together synergistically. And that playbook must be honest about your resources. Host: So if I'm a small business owner launching an app, what's my first step? Expert: First, define your defensible asset. What makes you unique and hard to copy? Is it a novel feature, a specific design, a connection to a niche community? Fortify that first. Then, build your discoverability strategy around that niche. Engage with that community directly. Don't try to be everything to everyone. And finally, be very picky about the complex technical features you add; only choose those that directly enhance your unique asset. Host: So it's about focus, not firepower. And for larger companies? Expert: For major companies, the lesson is not to become complacent. Your primary asset is your brand and existing user base. You must continuously invest in both large-scale marketing and the latest platform technologies, because your users expect it. Your playbook is about reinforcing your market leadership at every turn. Host: It’s fundamentally about knowing who you are in the market—a major player or a niche challenger—and executing a playbook that fits that identity. Expert: Exactly. A small developer trying to act like a huge corporation will burn through their cash and disappear. It’s about playing your own game. Host: Fantastic. So to summarize for our listeners: Success on crowded digital platforms isn't about luck, it's about having the right strategic playbook. Host: That playbook must combine three key elements: getting seen (Discoverability), using the platform's tech (Modularization), and protecting what makes you unique (Asset Fortification). Host: And the right combination depends entirely on whether you're a major player leveraging scale or a minor player dominating a niche through clever trade-offs. Host: Alex, thank you for breaking this down for us with such clarity. Expert: My pleasure, Anna. Host: And thank you for tuning into A.I.S. Insights, powered by Living Knowledge. Join us next time as we uncover more research that can reshape your business.
digital platforms, platform strategy, complementors, strategy playbooks, video games industry, long tail
Proceedings of the 59th Hawaii International Conference on System Sciences (2026)
Discovering the Impact of Regulation Changes on Processes: Findings from a Process Science Study in Finance
Antonia Wurzer, Sophie Hartl, Sandro Franzoi, Jan vom Brocke
This study investigates how regulatory changes, once embedded in a company's information systems, affect the dynamics of business processes. Using digital trace data from a European financial institution's trade order process combined with qualitative interviews, the researchers identified patterns between the implementation of new regulations and changes in process performance indicators.
Problem
In highly regulated industries like finance, organizations must constantly adapt their operations to evolving external regulations. However, there is little understanding of the dynamic, real-world effects that implementing these regulatory changes within IT systems has on the execution and performance of business processes over time.
Outcome
- Implementing regulatory changes in IT systems dynamically affects business processes, causing performance indicators to shift immediately or with a time delay. - Contextual factors, such as employee experience and the quality of training, significantly shape how processes adapt; insufficient training after a change can lead to more errors, process loops, and violations. - Different types of regulations (e.g., content-based vs. function-based) produce distinct impacts, with some streamlining processes and others increasing rework and complexity for employees. - The study highlights the need for businesses to move beyond a static view of compliance and proactively manage the dynamic interplay between regulation, system design, and user behavior.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers. Today, we're diving into a fascinating study titled "Discovering the Impact of Regulation Changes on Processes: Findings from a Process Science Study in Finance." Host: In short, it explores what really happens to a company's day-to-day operations after a new regulation is coded into its IT systems. With me to break it down is our analyst, Alex Ian Sutherland. Alex, welcome. Expert: Great to be here, Anna. Host: So, let's start with the big picture. Businesses in fields like finance are constantly dealing with new rules. What's the specific problem this study decided to tackle? Expert: The problem is that most companies treat compliance as a finish line. A new regulation comes out, they update their software, and they consider the job done. But they have very little visibility into what happens next. How does that change *actually* affect employees? Does it make their work smoother or more complicated? Does it create hidden risks or inefficiencies? Expert: This study addresses that gap. It looks at the dynamic, real-world ripple effects that these system changes have on business processes over time, which is something organizations have struggled to understand. Host: So it’s about the unintended consequences. How did the researchers go about measuring these ripples? Expert: They used a really clever dual approach. First, they analyzed what's called digital trace data. Think of it as the digital footprint employees leave behind when doing their jobs. They analyzed nearly 17,000 trade order processes from a European financial institution over six months. Expert: But data alone doesn't tell the whole story. So, they combined that quantitative data with qualitative insights—talking to the actual employees, the process owners and business analysts, to understand the context behind the numbers. This let them see not just *what* was happening, but *why*. Host: That combination of data and human insight sounds powerful. What were some of the key findings? Expert: There were three big ones. First, the impact of a change isn't always immediate. Sometimes a system update causes a sudden spike in problems, but other times the negative effects are delayed and pop up weeks later. It's not a simple cause-and-effect. Host: And the second finding? Expert: This one is crucial: the human factor matters immensely. The study found that things like employee experience and, most importantly, the quality of training had a huge impact on how processes adapted. Host: Can you give us an example? Expert: Absolutely. After one regulatory change related to ESG reporting was implemented, the data showed a sharp increase in the number of steps employees took to complete a task, and more process violations. The interviews revealed why: there was no structured training for the change. Employees were confused by a subtly altered interface, which led them to make more errors, repeat steps, and get frustrated. Host: So a small system update, without proper support, can actually hurt productivity. What was the final key finding? Expert: That not all regulatory changes are created equal. The study found that different types of regulations create very different outcomes. A change that automated the generation of a required document actually streamlined the process, making it leaner with fewer reworks. Expert: But in contrast, a change that added new manual tick-boxes for users to fill out increased complexity and rework, because employees found themselves having to go back and complete the new fields repeatedly. Host: This is incredibly practical. Let's move to the most important question for our listeners: why does this matter for their business? What are the key takeaways? Expert: The number one takeaway is to move beyond a static view of compliance. Implementing a change in your IT system isn't the end of the process; it's the beginning. Leaders need to proactively monitor how these changes are affecting workflows on the ground, and this study shows they can use their own system data to do it. Host: So, use your data to see the real impact. What's the next takeaway? Expert: Invest in change management, especially training. You can spend millions on a compliant system, but if you don't prepare your people, you could actually lower efficiency and increase errors. The study provides clear evidence that a lack of training directly leads to process loops and mistakes. A simple, proactive training plan is not a cost—it's an investment against future risk and inefficiency. Host: That’s a powerful point. And the final piece of advice? Expert: Understand the nature of the change before you implement it. Ask your teams: is this update automating a task for our employees, or is it adding a new manual burden? Answering that simple question can help you predict whether the change will be a helpful streamline or a frustrating new bottleneck, and you can plan your support and training accordingly. Host: Fantastic insights. So, to summarize for our listeners: compliance is a dynamic, ongoing process, not a one-time fix. The human factor, especially training, is absolutely critical to success. And finally, understanding the type of regulatory change can help you predict its true impact on your business. Host: Alex Ian Sutherland, thank you for making this complex study so clear and actionable for us. Expert: My pleasure, Anna. Host: And thank you for listening to A.I.S. Insights — powered by Living Knowledge. Join us next time as we uncover more valuable research for your business.
Process Science, Regulation, Change, Business Processes, Digital Trace Data, Dynamics
International Conference on Wirtschaftsinformatik (2025)
The Double-Edged Sword: Empowerment and Risks of Platform-Based Work for Women
Tatjana Hödl and Irina Boboschko
This conceptual paper explores how platform-based work, which offers flexible arrangements, can empower women, particularly those with caregiving responsibilities. Using case examples like mum bloggers, OnlyFans creators, and crowd workers, the study examines both the benefits and the inherent risks of this type of employment, highlighting its dual nature.
Problem
Traditional employment structures are often too rigid for women, who disproportionately handle unpaid caregiving and domestic tasks, creating significant barriers to career advancement and financial independence. While platform-based work presents a flexible alternative, it is crucial to understand whether this model truly empowers women or introduces new forms of precariousness that reinforce existing gender inequalities.
Outcome
- Platform-based work empowers women by offering financial independence, skill development, and the flexibility to manage caregiving responsibilities. - This form of work is a 'double-edged sword,' as the benefits are accompanied by significant risks, including job insecurity, lack of social protections, and unpredictable income. - Women in platform-based work face substantial mental health risks from online harassment and financial instability due to reliance on opaque platform algorithms and online reputations. - Rather than dismantling unequal power structures, platform-based work can reinforce traditional gender roles, confine women to the domestic sphere, and perpetuate financial dependency.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: Today, we’re looking at a fascinating study called "The Double-Edged Sword: Empowerment and Risks of Platform-Based Work for Women." Host: It explores how platforms offering flexible work can empower women, especially those with caregiving duties, but also how this work carries inherent risks. To help us unpack this, we have our expert analyst, Alex Ian Sutherland. Welcome, Alex. Expert: Great to be here, Anna. Host: Alex, let's start with the big picture. What is the core problem this study is addressing? Expert: The problem is a persistent one. Traditional 9-to-5 jobs are often too rigid for women, who still shoulder the majority of unpaid care and domestic work globally. Expert: In fact, the study notes that women spend, on average, 2.8 more hours per day on these tasks than men. This creates huge barriers to career advancement and financial independence. Host: So platform work—things like content creation, ride-sharing, or online freelance tasks—seems like a perfect solution, offering that much-needed flexibility. Expert: Exactly. But the big question the researchers wanted to answer was: does this model truly empower women, or does it just create new problems and reinforce old inequalities? Host: A crucial question indeed. So, how did the researchers go about studying this? Expert: This was a conceptual study. So, instead of a direct survey or experiment, the researchers analyzed existing theories on empowerment and work. Expert: They then applied this framework to three distinct, real-world examples of platform work popular among women: mum bloggers, OnlyFans creators, and online crowd workers who complete small digital tasks. Host: That’s a really interesting mix. Let's get to the findings. The title calls it a "double-edged sword." Let's start with the positive edge—how does this work empower women? Expert: The primary benefit is empowerment through flexibility. It allows women to earn an income, often from home, fitting work around caregiving responsibilities. This provides a degree of financial independence they might not otherwise have. Expert: It also offers opportunities for skill development. Think of a mum blogger learning about content marketing, video editing, and community management. These are valuable, transferable skills. Host: Okay, so that's the clear upside. Now for the other edge of the sword. What are the major risks? Expert: The risks are significant. First, there's a lack of a safety net. Most platform workers are independent contractors, meaning no health insurance, no pension contributions, and no job security. Expert: Income is also highly unpredictable. For content creators, success often depends on opaque platform algorithms that can change without notice, making it incredibly difficult to build a stable financial foundation. Host: The study also mentioned significant mental health challenges. Expert: Yes, this was a key finding. Because this work is so public, it exposes women to a high risk of online harassment, trolling, and stalking, which creates enormous stress and anxiety. Expert: There’s also the immense pressure to perform for the algorithm and maintain an online reputation, which can be emotionally and mentally draining. Host: One of the most striking findings was that this supposedly modern way of working can actually reinforce old, traditional gender roles. How so? Expert: By enabling work from home, it can inadvertently confine women more to the domestic sphere, making their work invisible and perpetuating the idea that childcare is solely their responsibility. Expert: For example, a mum blogger's content, while empowering, might also project an image of a mother who handles everything, reinforcing societal expectations. It's a very subtle but powerful effect. Host: This is such a critical conversation. So, Alex, let's get to the bottom line. Why does this matter for the business leaders and professionals listening to us right now? Expert: It matters for a few reasons. For companies running these platforms, this is a clear signal that the long-term sustainability of their model depends on worker well-being. They need to think about providing better support systems, more transparent algorithms, and tools to combat harassment. Expert: For traditional employers, this is a massive wake-up call. The reason so many talented women turn to this precarious work is the lack of genuine flexibility in the corporate world. If you want to attract and retain female talent, you have to offer more than just a remote work option; you need to build a culture that supports caregivers. Expert: And finally, for any business that hires freelancers or gig workers, it's a reminder to consider their corporate social responsibility. They are part of this ecosystem and should be aware of the precarious conditions these workers often face. Host: So, it’s about creating better systems everywhere, not just on the platforms. Expert: Precisely. The demand for flexibility isn't going away. The challenge is to meet that demand in a way that is equitable, stable, and truly empowering. Host: A perfect summary. Platform-based work truly is a double-edged sword, offering women vital flexibility and financial opportunities but at the cost of stability, security, and mental well-being. Host: The key takeaway for all businesses is the urgent need to create genuinely flexible and supportive environments, or risk losing valuable talent to a system that offers both promise and peril. Host: Alex, thank you so much for breaking this down for us. Expert: My pleasure, Anna. Host: And thank you for tuning in to A.I.S. Insights. Join us next time as we continue to connect you with Living Knowledge.
International Conference on Wirtschaftsinformatik (2025)
Education and Migration of Entrepreneurial and Technical Skill Profiles of German University Graduates
David Blomeyer and Sebastian Köffer
This study examines the supply of entrepreneurial and technical talent from German universities and analyzes their migration patterns after graduation. Using LinkedIn alumni data for 43 universities, the research identifies key locations for talent production and evaluates how effectively different cities and federal states retain or attract these skilled workers.
Problem
Amidst a growing demand for skilled workers, particularly for startups, companies and policymakers lack clear data on talent distribution and mobility in Germany. This information gap makes it difficult to devise effective recruitment strategies, choose business locations, and create policies that foster regional talent retention and economic growth.
Outcome
- Universities in major cities, especially TU München and LMU München, produce the highest number of graduates with entrepreneurial and technical skills. - Talent retention varies significantly by location; universities in major metropolitan areas like Berlin, Munich, and Hamburg are most successful at keeping their graduates locally, with FU Berlin retaining 68.8% of its entrepreneurial alumni. - The tech hotspots of North Rhine-Westphalia (NRW), Bavaria, and Berlin retain an above-average number of their own graduates while also attracting a large share of talent from other regions. - Bavaria is strong in both educating and attracting talent, whereas NRW, the largest producer of talent, also loses a significant number of graduates to other hotspots. - The analysis reveals that hotspot regions are generally better at retaining entrepreneurial profiles than technical profiles, highlighting the influence of local startup ecosystems on talent mobility.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. In today's competitive landscape, finding the right talent can make or break a business. But where do you find them? Today, we're diving into a fascinating study titled "Education and Migration of Entrepreneurial and Technical Skill Profiles of German University Graduates." Host: In short, it examines where Germany's top entrepreneurial and tech talent comes from, and more importantly, where it goes after graduation. With me to break it all down is our analyst, Alex Ian Sutherland. Welcome, Alex. Expert: Great to be here, Anna. Host: So, Alex, let's start with the big picture. What's the real-world problem this study is trying to solve? Expert: The problem is a significant information gap. Germany has a huge demand for skilled workers, especially in STEM fields—we're talking a gap of over 300,000 specialists. Startups, in particular, need this talent to scale. But companies and even regional governments don't have clear data on where these graduates are concentrated and how they move around the country. Host: So they’re flying blind when it comes to recruitment or deciding where to set up a new office? Expert: Exactly. Without this data, it's hard to build effective recruitment strategies or create policies that help a region hold on to the talent it educates. This study gives us a map of Germany's brain circulation for the first time. Host: How did the researchers create this map? What was their approach? Expert: It was quite innovative. They used a massive and publicly available dataset: LinkedIn alumni pages. They analyzed over 2.4 million alumni profiles from 43 major German universities. Host: And how did they identify the specific talent they were looking for? Expert: They created two key profiles. First, the 'Entrepreneurial Profile,' using keywords like Founder, Startup, or Business Development. Second, the 'Technical Profile,' with keywords like IT, Engineering, or Digital. Then, they tracked the current location of these graduates to see who stays, who leaves, and where they go. Host: A digital breadcrumb trail for talent. So, what were the key findings? Where is the talent coming from? Expert: Unsurprisingly, universities in major cities are the biggest producers. The undisputed leader is Munich. The Technical University of Munich, TU München, produces the highest number of both entrepreneurial and technical graduates in the entire country. Host: So Munich is the top talent factory. But the crucial question is, does the talent stay there? Expert: That's where it gets interesting. The study found that talent retention varies massively. Again, the big metropolitan areas—Berlin, Munich, and Hamburg—are the most successful at keeping their graduates. Freie Universität Berlin, for example, retains nearly 69% of its entrepreneurial alumni right there in the city. That's an incredibly high rate. Host: That is high. And what about the bigger picture, at the state level? Are there specific regions that are winning the war for talent? Expert: Yes, the study identifies three clear hotspots: Bavaria, Berlin, and North Rhine-Westphalia, or NRW. They not only retain a high number of their own graduates, but they also act as magnets, pulling in talent from all over Germany. Host: And are these hotspots all the same? Expert: Not at all. Bavaria is a true powerhouse—it's strong in both educating and attracting talent. NRW is the largest producer of skilled graduates, but it also has a "brain drain" problem, losing a lot of its talent to the other two hotspots. And Berlin is a massive talent magnet, with almost half of its entrepreneurial workforce having migrated there from other states. Host: This is all fascinating, Alex, but let's get to the bottom line. Why does this matter for the business professionals listening to our show? Expert: This is a strategic roadmap for businesses. For recruitment, it means you can move beyond simple university rankings. This data tells you where specific talent pools are geographically concentrated. Need experienced engineers? The data points squarely to Munich. Looking for entrepreneurial thinkers? Berlin is a giant hub of attracted, not just homegrown, talent. Host: So it helps companies focus their hiring efforts. What about for bigger decisions, like choosing a business location? Expert: Absolutely. This study helps you understand the dynamics of a regional talent market. Bavaria offers a stable, locally-grown talent pool. Berlin is incredibly dynamic but relies on its power to attract people, which could be vulnerable to competition. A company in NRW needs to know it’s competing directly with Berlin and Munich for its best people. Host: So it's about understanding the long-term sustainability of the local talent pipeline. Expert: Precisely. It also has huge implications for investors and policymakers. It reveals which regions are getting the best return on their educational investments. It shows where to invest to build up a local startup ecosystem that can actually hold on to the bright minds it helps create. Host: So, to sum it up: we now have a much clearer picture of Germany's talent landscape. Universities in big cities are the incubators, but major hotspots like Berlin and Bavaria are the magnets that ultimately attract and retain them. Expert: That's right. It's not just about who has the best universities, but who has the best ecosystem to keep the graduates those universities produce. Host: A crucial insight for any business looking to grow. Alex, thank you so much for breaking that down for us. Expert: My pleasure, Anna. Host: And thank you for tuning in. Join us next time for more on A.I.S. Insights — powered by Living Knowledge.
International Conference on Wirtschaftsinformatik (2025)
Designing Change Project Monitoring Systems: Insights from the German Manufacturing Industry
Bastian Brechtelsbauer
This study details the design of a system to monitor organizational change projects, using insights from an action design research project with two large German manufacturing companies. The methodology involved developing and evaluating a prototype system, which includes a questionnaire-based survey and an interactive dashboard for data visualization and analysis.
Problem
Effectively managing organizational change is crucial for company survival, yet it is notoriously difficult to track and oversee. There is a significant research gap and lack of practical guidance on how to design information technology systems that can successfully monitor change projects to improve transparency and support decision-making for managers.
Outcome
- Developed a prototype change project monitoring system consisting of surveys and an interactive dashboard to track key indicators like change readiness, acceptance, and implementation. - Identified four key design challenges: balancing user effort vs. insight depth, managing standardization vs. adaptability, creating a realistic understanding of data quantification, and establishing a shared vision for the tool. - Proposed three generalized requirements for change monitoring systems: they must provide information tailored to different user groups, be usable for various types of change projects, and conserve scarce resources during organizational change. - Outlined eight design principles to guide development, focusing on both the system's features (e.g., modularity, intuitive visualizations) and the design process (e.g., involving stakeholders, communicating a clear vision).
Host: Welcome to A.I.S. Insights, the podcast at the intersection of business and technology, powered by Living Knowledge. I’m your host, Anna Ivy Summers.
Host: Today, we’re diving into a fascinating new study titled "Designing Change Project Monitoring Systems: Insights from the German Manufacturing Industry". It explores how to build better tools to keep track of major organizational change. With me today is our expert analyst, Alex Ian Sutherland. Alex, welcome.
Expert: Thanks for having me, Anna.
Host: So, Alex, let’s start with the big picture. We all know companies are constantly changing, but why is monitoring that change such a critical problem to solve right now?
Expert: It's a huge issue. Think about the pressures on a major industry like German manufacturing, which this study focuses on. They're dealing with digital transformation, new sustainability goals, and intense global competition. Thriving, or even just surviving, means constant adaptation.
Host: And that adaptation is managed through change projects.
Expert: Exactly. Projects like restructuring departments, adopting new technologies, or shifting the entire company culture. The problem is, these are incredibly complex and expensive, yet managers often lack a clear, real-time view of what’s actually happening on the ground. They’re trying to navigate a storm without a compass.
Host: So they’re relying on gut feeling rather than data.
Expert: For the most part, yes. There's been a real lack of practical guidance on how to design an IT system that can properly monitor these projects, track employee sentiment, and give leaders the data they need to make better decisions. This study aimed to fill that gap.
Host: How did the researchers approach such a complex problem? What was their method?
Expert: Well, this wasn't a purely theoretical exercise. The researchers took a hands-on approach. They partnered directly with two large German manufacturing companies to co-develop a prototype system from the ground up.
Host: So they built something real and tested it?
Expert: Precisely. They created a system that has two main parts. First, a series of questionnaires to regularly survey employees about the change project—things like their readiness for the change, how well they feel supported, and their overall acceptance. Second, they built an interactive dashboard that visualizes all that survey data, so managers can see trends and drill down into specific areas or departments.
Host: That sounds incredibly useful. What were the key findings after they developed this prototype?
Expert: The first finding is that this type of system can work and provide immense value. But the second, and perhaps more interesting finding, was about the challenges they faced in designing it. It's not as simple as just building a dashboard.
Host: What kind of challenges?
Expert: They identified four main ones. First was balancing user effort against the depth of insight. You want detailed data, but you can’t overwhelm employees with constant, lengthy surveys.
Host: That makes sense. What else?
Expert: Second, managing standardization versus adaptability. For the data to be comparable across the company, you need a standard tool. But every change project is unique and needs some flexibility. Finding that balance is tricky.
Host: So it's a constant trade-off.
Expert: It is. The other two challenges were more human-centric. They had to create a realistic understanding of what the data could actually represent—quantification isn’t a magic wand for complex social processes. And finally, they had to establish a shared vision for what the tool was for, to avoid confusion or resistance from users.
Host: Which brings us to the most important question, Alex. Why does this matter for business leaders listening today? What are the practical takeaways?
Expert: The biggest takeaway is that you can and should move from guesswork to data-informed decision-making in change management. This study provides a practical blueprint for how to do that. You can get a real pulse on your organization during its most critical moments.
Host: And it seems the lesson is that the tool itself is only half the battle.
Expert: Absolutely. The second key takeaway is that the design *process* is crucial. You have to treat the implementation of a monitoring system as a change project in its own right. That means involving stakeholders from all levels, communicating a clear vision for the tool, and being upfront about its limitations.
Host: You mentioned the importance of balance and trade-offs. How should a leader think about that?
Expert: That’s the third takeaway. Leaders must be willing to make conscious trade-offs. There is no perfect, one-size-fits-all solution. You have to decide what matters most for your organization: Is it ease of use, or is it granular data? Is company-wide standardization more important than project-specific flexibility? This study shows that acknowledging and navigating these trade-offs is central to success.
Host: So, Alex, to sum up, it sounds like while change is difficult, we now have a much clearer path to actually measuring and managing it effectively.
Expert: That's right. These new monitoring systems, combining simple surveys with powerful dashboards, can offer the transparency that leaders have been missing. But success hinges on a thoughtful design process that balances technology with the very human elements of change.
Host: A fantastic insight. Thank you so much for breaking that down for us, Alex.
Expert: My pleasure, Anna.
Host: And thank you to our listeners for tuning in. For A.I.S. Insights — powered by Living Knowledge, I’m Anna Ivy Summers.
Change Management, Monitoring, Action Design Research, Design Science, Industry
International Conference on Wirtschaftsinformatik (2025)
To Leave or Not to Leave: A Configurational Approach to Understanding Digital Service Users' Responses to Privacy Violations Through Secondary Use
Christina Wagner, Manuel Trenz, Chee-Wee Tan, and Daniel Veit
This study investigates how users respond when their personal information, collected by a digital service, is used for a secondary purpose by an external party—a practice known as External Secondary Use (ESU). Using a qualitative comparative analysis (QCA), the research identifies specific combinations of user perceptions and emotions that lead to different protective behaviors, such as restricting data collection or ceasing to use the service.
Problem
Digital services frequently reuse user data in ways that consumers don't expect, leading to perceptions of privacy violations. It is unclear what specific factors and emotional responses drive a user to either limit their engagement with a service or abandon it completely. This study addresses this gap by examining the complex interplay of factors that determine a user's reaction to such privacy breaches.
Outcome
- Users are likely to restrict their information sharing but continue using a service when they feel anxiety, believe the data sharing is an ongoing issue, and the violation is related to web ads. - Users are more likely to stop using a service entirely when they feel angry about the privacy violation. - The decision to leave a service is often triggered by more severe incidents, such as receiving unsolicited contact, combined with a strong sense of personal ability to act (self-efficacy) or having their privacy expectations disconfirmed. - The study provides distinct 'recipes' of conditions that lead to specific user actions, helping businesses understand the nuanced triggers behind user responses to their data practices.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. In today's digital world, we trade our personal data for services every day. But what happens when that data is used in ways we never agreed to? Host: Today, we’re diving into a study titled "To Leave or Not to Leave: A Configurational Approach to Understanding Digital Service Users' Responses to Privacy Violations Through Secondary Use". It investigates how users respond when their information, collected by one service, is used for a totally different purpose by an outside company. Host: To help us unpack this, we have our analyst, Alex Ian Sutherland. Alex, welcome. Expert: Great to be here, Anna. Host: So, let's start with the big problem here. We all know companies use our data, but this study looks at something more specific, right? Expert: Exactly. The study calls it External Secondary Use, or ESU. This is when you give your data to Company A for one reason, and they share it with Company B, who then uses it for a completely different reason. Think of signing up for a social media app, and then suddenly getting unsolicited phone calls from a telemarketer who got your number. Host: That sounds unsettling. And the problem for businesses is they don't really know what the final straw is for a user, do they? Expert: Precisely. It’s a black box. What specific mix of factors and emotions pushes a user from being merely annoyed to deleting their account entirely? That's the gap this study addresses. It’s trying to understand the complex recipe that leads to a user’s reaction. Host: So how did the researchers figure this out? It sounds incredibly complex. Expert: They used a fascinating method called Qualitative Comparative Analysis. Instead of looking at single factors in isolation, it looks for combinations of conditions that lead to a specific outcome. Think of it like finding a recipe for a cake. You need the right amount of flour, sugar, *and* eggs in the right combination to get a perfect result. Host: So they were looking for the 'recipes' that cause a user to either restrict their data or leave a service completely? Expert: That's the perfect analogy. They analyzed 57 real-world cases where people felt their privacy was violated and looked for these consistent patterns, these recipes of user perceptions, emotions, and the type of incident that occurred. Host: I love that. So let's talk about the results. What were some of the key recipes they found? Expert: They found some very clear and distinct pathways. First, for the outcome where users restrict their data—like changing privacy settings—but continue using the service. This typically happens when the user feels anxiety, believes the data sharing is an ongoing issue, and the violation itself is just seeing targeted web ads. Host: So, if I see an ad for something I just talked about, I might get a little worried and check my settings, but I'm probably not deleting the app. Expert: Exactly. You feel anxious, but it's not a huge shock. The recipe for leaving a service entirely is very different. The single most important ingredient they found was anger. When anxiety turns into real anger, that's the tipping point. Host: And what triggers that anger? Expert: The study found it's often more severe incidents. It’s not about seeing an ad, but about receiving unsolicited contact—like those spam phone calls or emails. When that happens, and it’s combined with a user who feels they have the power to act, what the study calls 'high self-efficacy', they are very likely to leave. Host: So feeling empowered to delete your account, combined with anger from a serious violation, is the recipe for disaster for a company. Expert: Yes, that or when the user’s basic expectations of privacy were completely shattered. If they truly trusted a service not to share their data in that way, the sense of betrayal, combined with anger, also leads them straight for the exit. Host: This is the most important part for our listeners, Alex. What are the key business takeaways from this? How can leaders apply these insights? Expert: The biggest takeaway is that a one-size-fits-all response to privacy issues is a huge mistake. Businesses need to understand the context. Seeing a weird ad creates anxiety; getting a spam call creates anger. You can't treat them the same. Host: So you need to tailor your response based on the severity and the likely emotion. Expert: Absolutely. My second point would be to recognize that unsolicited contact is a red line. The study makes it clear that sharing data that leads to a user being directly contacted is far more damaging than sharing it for advertising. Businesses must be incredibly careful about who they partner with. Host: That makes sense. What else? Expert: Monitor user emotions. Anger is the key predictor of customer churn. Companies should actively look for expressions of anger in support tickets, app reviews, and on social media when privacy issues arise. Responding to user anxiety with a simple FAQ might work, but responding to anger requires a public apology, a clear change in policy, and direct action. Host: And finally, you mentioned that empowered users are more likely to leave. Expert: Yes, and that’s critical. As people become more aware of privacy laws like GDPR and how to manage their data, companies can no longer rely on users just sticking around out of convenience. The only defense is proactive transparency. Be crystal clear about your data practices upfront to manage expectations *before* a violation ever happens. Host: So, to summarize: it’s not just that a privacy violation happens, but the specific combination of the incident, like web ads versus a phone call, and the user's emotional response—anxiety versus anger—that dictates whether they stay or go. Host: For businesses, this means understanding these different 'recipes' for user behavior is absolutely crucial for building trust and, ultimately, for retaining customers. Host: Alex, this has been incredibly insightful. Thank you for breaking that down for us. Expert: My pleasure, Anna. Host: And thank you for tuning into A.I.S. Insights, powered by Living Knowledge.
Privacy Violation, Secondary Use, Qualitative Comparative Analysis, QCA, User Behavior, Digital Services, Data Privacy