Integrating Digital Innovation Capabilities Towards Value Creation: A Conceptual View

Integrating Digital Innovation Capabilities Towards Value Creation: A Conceptual View

Sampson Abeeku Edu, Mary Agoyi, Divine Quazie Agozie
Copyright: © 2020 |Pages: 14
DOI: 10.4018/IJIIT.2020100103
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Abstract

Towards the view of value creation through digital applications integration and their complementary characteristics, this study proposes a framework using the resource-based view and the capability view to explore the integration of digital capabilities to support value creation in an organization. The paper adopted a systematic review by exploring literature on digital innovations applications such as big data analytics, cloud computing, and internet of things (IoTs). The conceptual model developed suggested that deploying digital innovation capabilities promotes organizations to benefit in the area the of managerial decision making, enhancing information technology infrastructure alignments, operational activities, and overall firm performance. This article further extends the discussions toward the need to integrate digital innovation capabilities such as IoTs, big data analytics, and cloud computing and the range of relationships existing among these innovations to support value creation for firms towards technology deployment in IS literature.
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Introduction

Incessant advancements in technology applications have fashioned out the discussions towards digitization or automation of organization processes for value creation (Fitzgerald, Kruschwitz, Bonnet, & Welch, 2013). This advancement has resulted in the bourgeoning deliberations of digital innovation and digital business ecosystems within IS literature. Gartner (2014) explained that most businesses are gradually transforming the traditional way of operation into an automation process primarily because of innovations with digital technologies. Changes with digital technologies have therefore witnessed several developments of technologies into user-friendly digital computer infrastructure, advanced computer applications, digital mobile application platforms, advance computer analytical platforms, intelligent automated systems, digital supply chain analysis and other digital advancements. Also, the integration of current innovations in digital technologies has influenced organizations' digital environment. Digital Innovation is the reliance on improved information technology capabilities for transforming organizations’ abilities to source new and existing knowledge, skills, desire for customization, new product or service line, value creation, competence and speed of delivery (Hinings et al., 2018; Nambisan et al., 2017; OECD, 2016; Porter & Heppelmann, 2015). Digital innovation is therefore referred to continuous advancements in digital applications and infrastructure such as software and hardware rapidly transforming the digital ecosystems, which have created the interaction between or among applications.

Mostly, the focus of digital innovation applications and platforms are to enable value addition to the existing organization process or creating a new business model for competitive advantage. Deploying and aligning digital technology applications within the business landscape has been argued to provide quick response to real-time delivery of data and information, cost-effectiveness, improve feedback to customers, increase revenue and partnership within or outside organizations (Mithas & Rust, 2016; Lee & Berente, 2012). Similarly, Deloitte (2018) argued that organizations use digital innovation applications to improve and sustain the business process substantially.

Digital innovation technologies such as the Internet of Things (IoTs), Cloud Computing (CC) and Big Data Analytics (BDA) applications and tools have seen continuous efforts by developers and organization to integrate these applications to support data acquisition, data processing and analysis and, data and information storage. This support provides organization in the process of creating value for data and improvement, improving feedback to customers, cost-effectiveness and better decision making. In effect, the opportunities for integrating these platforms have been reported to provide enormous benefits for businesses (Yang et al., 2017; Botta et al., 2014; Porter & Heppelmann, 2015; Abaker et al., 2015; Ardolino et al., 2018; Donovan et al., 2015; Reyna et al., 2018). As such, the challenges faced by one application or tool is improved through the addition or integration of another within the value chain. Yang et al. (2017) observed that the challenges of BDA are addressed by integrating CC virtual unlimited capabilities and accessibilities for substantial data transformation. Similarly, Abaker et al. (2015) opined that CC had provided the ease of transmitting large scales of data generated by different sources for predictive analyses.

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