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In 2013, Royal Philips was two years into a daunting transformation. Following declining financial performance, CEO Frans van Houten aimed to turn the Dutch icon into a "high-performing Company" by 2017. This case study examines the challenges of the business-driven IT transformation at Royal Philips, a diversified technology company. The case discusses three crucial issues. First, the case reflects on Philips’ aim at creating value from combining locally relevant products and services while also leveraging its global scale and scope. Rewarded and unrewarded business complexity is analyzed. Second, the case identifies the need to design and align multiple elements of an enterprise (organizational, cultural, technical) to balance local responsiveness with global scale. Third, the case explains the role of IT (as an asset instead of a liability) in Philips’ transformation and discusses the new IT landscape with its digital platforms, and the new practices to create effective business-IT partnerships.
Digital technologies are moving into physical products. Smart cars, connected lightbulbs and data-generating tennis rackets are examples of previously “pure” physical products that turned into “digitized products”. Digitizing products offers many use cases for consumers that will hopefully persuade them to buy these products. Yet, as revenues from selling digitized products will remain small in the near future, digitized product manufacturers have to look for other sources of benefits. Producer-side use cases describe how manufacturers can benefit internally from the digitized products they produce. Our article identifies three categories of such use cases: product-, service-, and process-related ones.
Realizing desired effects from digitized product affordances: a case study of key inhibiting factors
(2024)
Despite the potential of IoT-enriched digitized products, firms struggle to generate desired impact. We investigate the alignment of actualized digitized product potentials (i.e., affordances) with organizational goals, examining how the emergence of critical inhibiting factors affect the generation of desired effects. We conduct an embedded single case study of four actualized digitized product potentials within a professional equipment manufacturer and explore how the emergence of inhibiting factors prevents the generation of desired effects. Using Necessary Condition Analysis (NCA), six key inhibiting factors are identified. Our findings contribute to affordance theory and digital innovation research in three ways: a) we provide an extended affordance-actualization model that theorizes the process by which emerging key inhibiting factors are addressed via the implementation of (re-)actions to generate desired effects that are aligned with the organizational goals of actualized digitized product potentials, (b) we identify six key inhibiting factors that affect the generation of desired effects and that re-examine the role of data with respect to the “technology” element in affordance theory, and (c) we apply NCA to affordance theory for the first time and show how it can contribute to identifying critical factors during the realization of technology potentials.
