Digital transformation is rethinking the source of value creation, and the structure of the organization’s business model. In this new economy, more times than not value creation comes from outside the firm from external partners rather than internal employees. Marshall Van Alstyne, Questrom Professor of Management in Information Systems, co-authored an article in the Harvard Business Review that calls this new production model an “inverted firm”. This organizational structure change affects the technology but also the managerial governance that attends it. Organizational leaders must understand and undertake partner relationship management, partner data management, partner product management, platform governance, and platform strategy.
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