Digitization

Digitization is an umbrella term for recent technological and societal developments

caused by the dissemination of information and communication technology (ICT) and

by the Internet [Leimeister 2015, p. 2; Otto/Österle 2015, p. 3].48 Combined, ICT and

the Internet are also called digital technologies. The term digital economy thus denotes today’s economy, which embraces digital technologies in all business operations. TURBAN ET AL. observed that “in this new economy, digital networking (including wireless) and communication infrastructures provide a global platform over which people and organizations devise strategies, interact, communicate, collaborate, and search for information” [Turban et al. 2008, p. 5]

Overall, digitization connects people, organizations, and things globally [cf. Bharadwaj et al. 2013, p. 472]. DIN suggested the terms information world or cyber world as synonyms for the virtually connected world [DIN 2016, p. 7]. Others called it networked economy [Tan et al. 2015, p. 249] and the EU called a closely related vision digital business ecosystem [European Commission 2007, p. 5].<br>

The digital business model is another term frequently used in the same breath as the digital economy. A business model is “a conceptual coherent framework that provides a holistic but abstract understanding of the underlying business logic of an organization” [Al-Debei/Avison 2010, p. 365]. It is an “intermediate layer between business strategy and business processes” [ibid.]. A digital business model is therefore defined here as a business model whose underlying business logic deliberately acknowledges one or more characteristics of digitization and aims to take advantage of them [Bärenfänger/Otto 2015, p. 18]. This can occur in one or all areas of the business model. These main areas are (1) the value propositions and products and service offerings (the value offered to/created for customers), (2) the internal value-adding activities (the way how value is created, also called value creation or value architecture), (3) the used resources and partnerships (the value network), and (4) the way profit is earned from customers (the revenue model or the value finance) [Al-Debei/Avison 2010, p. 367; Osterwalder 2004, p. 43; Peters et al. 2015, p. 81f.; Weiner et al. 2010, p. 23; Zott et al. 2011, p. 1034].

In summary, almost all characteristics of the digital economy somehow affect information management. Either they generate data (mobile devices, IoT, digital platforms, etc.), which needs to be acquired and stored. Or they require data and information to work as intended (individualization, business ecosystems, omnichannel business, real-time business, etc.), which needs data processing and delivery as information services. In most cases, both applies. This proves that information management bears a large responsibility for an enterprise’s success in the digital economy, and for its digital business model. In practice, the typical “digital native” role models like Google, Amazon, Facebook, AirBnB, and Uber also demonstrate that the main value in the digital economy is generated by processing and using data from all possible sources. These companies clearly excel in information (service) management.

REFERENCE<br>

Rieke Bärenfänger, Doctor of Philosophy in Management, Managing Information Services in the Digital Economy