Dominik Dellermann

Innovation risk in digital business models: the German energy sector

Purpose Past research demonstrated that novel IT-based business models generate tremendous returns for innovators. However, the risks associated with these innovations remain under-explored. This paper aims to address this critical gap analyzing risks and offering important insights particularly for practitioners. Design/methodology/approach The authors adopted an exploratory multiple-case study research design. It draws on 22 semi-structured interviews with managers from leading energy utilities, as well as leading providers of virtual power plants technology within the German energy industry. Findings The research reveals that main risks in new digital business models in the energy sector are associated with three forms of interdependence between innovation actors: the regulatory, the technological and the collaborative. To deal with these interdependencies, the authors propose an original multi-step risk management framework. This framework considers the outreach as a critical dimension for risk assessment and offers a new risk response matrix to draw individual and collective mitigation activities for specific types of risks. Practical implications This paper offers a framework for the management of interdependence risks that are fundamental for business model innovations based on IT. Thus, it is applicable in companies both inside the energy sector and beyond. Originality/value This paper analyzes an important digital business model innovation that has not yet been explored in management literature – the virtual power plant (VPP). It is based on original and current empirical work and proposes a novel risk management framework for business organizations.

Finding the Unicorn: Predicting Early Stage Startup Success Through a Hybrid Intelligence Method

Artificial intelligence is an emerging topic and will soon be able to perform decisions better than humans. In more complex and creative contexts such as innovation, however, the question remains whether machines are superior to humans. Machines fail in two kinds of situations: processing and interpreting “soft” information (information that cannot be quantified) and making predictions in “unknowable risk” situations of extreme uncertainty. In such situations, the machine does not have representative information for a certain outcome. Thereby, humans are still the “gold standard” for assessing “soft” signals and make use intuition. To predict the success of startups, we, thus, combine the complementary capabilities of humans and machines in a Hybrid Intelligence method. To reach our aim, we follow a design science research approach to develop a Hybrid Intelligence method that combines the strength of both machine and collective intelligence to demonstrate its utility for predictions under extreme uncertainty.

Developing Design Principles for a Crowd-Based Business Model Validation System

The high uncertainty of creating business models demands entrepreneurs to re-evaluate and continuously adapt them. Therefore, incubators offer validation services. However, systematic, and scalable information systems to enable interaction with a crowd of potential customers, investors, or other stakeholders and entrepreneurs do not exist. Our aim is thus to develop tentative design principles for crowd-based business model validation (CBMV) systems. Such systems should support entrepreneurs to reduce the uncertainty about the validity of their business model. Thus, we apply a theory-driven design approach based on knowledge drawn from literature and complemented by empirical insights. For developing such information systems, we combine the concept of crowdsourcing with findings from research on decision support systems to propose theory-grounded design principles for a CBMV system. The identified design principles describe a potential solution to a problem that previous research proved as viable.

Einführung von Crowd-Based Support Dienstleistungen zur Verbesserung der Softwareeinführung

Fur Bottom-up initiierte Software existieren nicht ausreichend Support-Strukturen, da traditionelle Support-Strukturen, zum Beispiel Trainings oder online-Portale, oftmals das notige Domanenwissen der Organisation nicht mitbringen. Fur diese Art von Nutzerinnovation schlagen wir ein Crowd-Based Support vor, das zusatzlich zu den traditionellen IT-Support-Strukturen eingefuhrt wird. Ferner stellen wir in diesem Beitrag das begleitende Crowd-Based Support System (CBSS) vor, das die drei grundlegenden Kerndienstleistungen unterstutzt: der Losungssuche, dem Self-Service und dem Erstellen von nutzergenerierter Lernmaterialien. Theoretisch berufen wir uns auf die Interaktionstheorie und diskutieren die Rolle der Lernmaterialienerstellungsdynamik fur das CBSS. Das CBSS ermoglicht den Aufbau von dezentralen Supportstrukturen im Unternehmen, der traditionelle IT-Support wird um wichtige Lernmaterialien bereichert und durch strukturierte Interaktion zwischen den Mitarbeitern unterstutzt. Somit adressiert das CBSS langfristig die wenigen Lerninhalte, entlastet dadurch die Power-User und bereichert das Unternehmen mit einer weiteren IT-Support Struktur auch fur zukunftige Softwareeinfuhrungen.

The Antecedents of Transaction Costs in Digital Ecosystems: A Configurational View on the Interplay of App Architecture and Platform Governance

The locus of value creation and innovation in the software industry is shifting more and more to platform ecosystems on which numerous developers create extensions with additional functionalities based on the platforms core architecture. While such complementors may strongly profit from platforms, there are considerable costs. Recent studies therefore examined the costs of fitting apps to the specifications of certain platforms; however, these works largely neglect costs arising from the transactional relationship between platform and complementor. In order to shed light on this, our work examines how design choices of platform governance and app architecture impact the emergence of four types of cost-inducing hazards within the transactional context of the ecosystem. By using a configurational approach based on fuzzy-set qualitative comparative analysis (FsQCA), we display complex interactional effects of the causal conditions on complementors’ perception of hazardous environments and thus provide valuable insights for both practice and theory on platform ecosystems.

Minimizing Complementors’ Risk in Third-Party Innovation: A Qualitative Comparative Analysis (QCA) of Digital Platform Configurations

The emergence of platforms is shifting the locus of digital innovation to ecosystems on which numerous developers create extensions with additional functionalities. Despite all the potential benefits for complementors, however, this new organizing logic of digital innovation also introduced essential new risks. Recent studies in IS focused on risk of IT projects from a contingency perspective neglecting the complexity of ecosystems. In order to shed light on this, our work examines how app architecture as a complementor´s control mechanism and four types of ecosystem hazards shape the likelihood and impact of the risk of failure in third-party innovation. By using a configurational approach based on fuzzy-set qualitative comparative analysis (FsQCA), we display complex interactional effects of the causal conditions on complementors’ perception of hazardous environments and thus provide valuable insights for both practice and theory on platform ecosystems.

Going East: a framework for reverse innovation in SMEs

Purpose Past research demonstrated that reverse innovation initiatives generate tremendous returns for innovators. However, the focus is on multinational corporations (MNCs). This paper aims to provide a framework how Western small and medium-sized enterprises (SMEs) can drive reverse innovation success. Design/methodology/approach The author adopted an exploratory single case study research design. It draws on the findings from a German SME operating in the healthcare industry. Findings The research reveals that SME can use emerging markets growth opportunities by leveraging open business networks and a clear strategic focus on emerging economies as well as reverse commercialization. The findings provide a framework for managers of SMEs. Originality/value This paper analyses an important way for SMEs to enter emerging markets that has not been explored yet in the management literature and business practice. It offers deep insights of a unique case.