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Harvard Business Review

Harvard Business Review: Digital Transformation Changes How Companies Create Value

Digital transformation is rethinking the source of value creation, and the structure of the organization’s business model. 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”.

Marshall Van Alstyne

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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.

Marshall Van Alstyne is a Questrom Professor of Management in Information Systems at Boston University Questrom School of Business and is one of the leading experts in network business models. He conducts research on information economics, covering such topics as communications markets, the economics of networks, intellectual property, social effects of technology, and productivity effects of information. As co-developer of the concept of “two-sided networks” he has been a major contributor to the theory of network effects, a set of ideas now taught worldwide. His co-authored article on the subject is a Harvard Business Review top 50 of all time. Awards include two patents, National Science Foundation IOC, SGER, SBIR, iCorp and Career Awards, and eight best paper awards. Articles or commentary have appeared in Science, Nature, Management Science, Harvard Business Review, The New York Times, and The Wall Street Journal.

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