The Influence of Generativity on Value Creation – a Study of Digitized Products

The advancement of digital technologies is driving traditional product oriented businesses to move from selling product to selling solutions. In order to exploit business potentials from technology, it is important to understand the potential of the technology and how it influences the value creation in a digital environment where it is developed and to be deployed. To understand this changing environment, I have studied remote diagnostics as an example of digital technology within the vehicle industry as a source of new value for business. The findings show that digitized products not only helps to solve existing problems in providing services but also provides potential to generate value for new products and services in the networked environment. An implication from the findings for product oriented firms is that value creation with digitized products requires new business processes. Based on the findings, a discussion is presented about how generativity influences value creation via value in design, governance and networking in a digital ecosystem.