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S P E C I A L I S S U E A R T I C L E Digital innovations, impacts on marketing

S P E C I A L I S S U E A R T I C L E Digital innovations, impacts on marketing, value chain and business models: An introduction Jean‐Michel Sahut1 | Léo‐Paul Dana2 | Michel Laroche3 1IDRAC Business School, France 2Université de Montpellier, France 3Concordia University, Canada Correspondence Jean‐Michel Sahut, IDRAC Business School, France. Email: jmsahut@gmail.com Abstract Digital innovations are changing business models and industries and, in today's world, effective mastery of digital innovations can be greatly advanta- geous, yet digital innovation literature suffers from major lacunae. We contrib- ute to this literature by providing definitions and analysing specificities of this emerging research stream. We then discuss the impact of digital innovation on marketing, value chain, and business models, focusing on tensions and mar- keting challenges, the value chain, and the evolutions of business models. We conclude with suggestions for further research. KEYWORDS business models, digital innovation, marketing, value chain JEL CLASSIFICATION M31; O32 Résumé Les innovations numériques modifient les modèles commerciaux et les indus- tries et, dans le monde d'aujourd'hui, même si une maîtrise efficace des inno- vations numériques peut être très avantageuse, la littérature managériale sur l'innovation numérique souffre de graves lacunes. Nous contribuons à cette littérature en fournissant des définitions et en analysant les spécificités de ce courant de recherche émergent. Nous discutons ensuite de l'impact de l'innova- tion numérique sur le marketing, la chaîne de valeur et les modèles économiques, en nous concentrant sur les tensions et les défis marketing, la chaîne de valeur et l'évolution des modèles économiques. Nous concluons avec des suggestions pour des recherches futures. MOTS CLÉS modèles commerciaux, innovations numérique, marketing, chaîne de valeur DOI: 10.1002/cjas.1558 Can J Adm Sci. 2019;1–7. © 2019 ASAC. Published by John Wiley & Sons, Ltd. wileyonlinelibrary.com/journal/cjas 1 1 | INTRODUCTION Around the world, major corporations are embracing dig- ital transformation and undergoing organizational change. Digital innovations, that is, new combinations of digital and physical components to produce novel products (Yoo, Henfridsson, & Lyytinen, 2010), allow firms to reinforce their competitive advantage by differen- tiating themselves from their competitors. Digitalization implies the implementation of digital technologies and innovative business models in order to create value and improve organizational performance; thus, digital trans- formations change business models, as well as the value chain—and positively influence the company's reputation (Anderson, 2014). The effective mastery of digital innovations can have three advantages: better customer experience; stream- lined operations; and new lines of businesses (Fitzgerald, Kruschwitz, Bonnet, & Welch, 2013). Through automa- tion, companies are having the most success in implementing digital technologies in the area of customer experience and in operations. According to Fitzgerald et al. (2013), digital change can start with customers, and the improvement of the customer experience repre- sents one the main drivers of a digital transformation. The rise of the connected and tech‐savvy customer has changed the expectations that consumers have of compa- nies. From the consumer side, digital innovations have radically transformed the way consumers look for infor- mation, buy, consume, talk about, and share their experi- ence about products and services. From a corporate perspective, digital innovations offer new ways “to reach, inform, engage, sell to, learn about, and provide service to customers” (Lamberton & Stephen, 2016, p. 146). Digital innovations are changing business models and industries (Zott & Amit, 2017). Contactless payments, for instance, have revolutionized banking. Smart, con- nected objects are impacting the insurance sector with the introduction of personalized premiums. Furthermore, thanks to digital innovations, massive amounts of cus- tomer data are collected. This raises privacy concerns, since many innovative products can only fully deploy their value if they rely on consumers' personal informa- tion, and this issue challenges the confidence that con- sumers have in new innovations and revolutionizes marketing practices (Miltgen, Henseler, Gelhard, & Popovič, 2016). Since the adoption of digital innovations is associated with high levels of uncertainty for potential customers, it is particularly critical is to understand how consumers can adopt and accept digital innovation. Kuester, Konya‐Baumbach, and Schuhmacher (2018) suggest that the design of e‐innovation go‐to‐market strategies should primarily signal trustworthiness and usability. Laïfi and Josserand (2016) discuss the innovative business model of a digital library in the field of publishing and show that digital innovations need to be legitimized by the actors of the field in order to be fully accepted and successful. Despite new trends, the digital innovation literature suffers from two major shortcomings: from a theoretical standpoint, the impact of digital innovations on market- ing, value chain, and business models are still largely analyzed through theories and concepts developed before the digital revolution (Elia, Margherita, & Petti, 2016); and from a managerial standpoint, Lamberton and Stephen (2016) identify several points of disconnect between practice and academia. Hence, CJAS invited contributions to help better understand, analyze, and the- orize how digital innovations emerge, create value, improve customer experience, go to market, are adopted by customers, and affect the value chain. 2 | DIGITAL INNOVATIONS: AN EMERGING RESEARCH STREAM 2.1 | Definition and specificities In recent years, the concept of digital innovation has aroused much interest, among academics as well as prac- titioners. With two keywords, Scopus identified 180 rele- vant articles in 2018, up from 10 in 2011. Yet, despite the growing interest in digital innovation, relevant aca- demic research remains rather vague; what we have is an emerging corpus of theory and practice that draws on several social science disciplines. That said, there are widely shared ambitions to progressively achieve theoret- ical and conceptual coherence in digital innovation (Nambisan, Lyytinen, Majchrzak, & Song, 2017) in order to better inform academic research and practice (Nylén & Holmström, 2015). It is therefore necessary to deepen the theorization of digital innovation initiatives and to learn about the more specific processes of this transformation. Referring to McKinsey's definition, digital is less about a process and more about how companies run their businesses (Dörner & Edelman, 2015). From this follows three principles: value creation; the optimization of processes that directly affect customer experience; and the establishment of means to support all initiatives undertaken. Nambisan et al. (2017) specify that digital innovation refers to the use of digital technology during the innova- tion process or the result of innovation. Many innova- tions are based on digital technologies that increase the human capacity to acquire, produce, disseminate, and consume information at an unprecedented level and 2 SAHUT ET AL. value (Pournaras & Lazakidou, 2008); also, value creation for firms is increasingly done through the production of digital information. This numerical value can be strongly or weakly connected to hardware products (Brynjolfsson & McAfee, 2014). In this perspective, Henfridsson, Nandhakumar, Scarbrough, and Panourgias (2018) approach digital innovation as the result of activities by which a set of digital resources are recombined in their design and use through connections between valuable spaces; specifically, they propose the conceptual frame- work of value spaces as a tool to better understand the creation and capture of value in digital innovation. Some firms, including Airbnb, Amazon, Google, or Facebook, have achieved a turnover in billions of dollars, but Svahn, Mathiassen, Lindgren, and Kane (2017) and Westerman and Bonnet (2015) point out that the opportu- nity to innovate by digitalizing products and offering dig- ital services is proving to be a challenge for well‐ established companies that have seen digital start‐ups launching large waves of digital innovation over the past two decades. Thus, relying on theory—as a statement of concepts and their interrelations that shows how and/or why a phenomenon occurs (Corley & Gioia, 2011, p. 12) —will be key to enriching research in digital innovation in years to come. Specifically, we argue that there is a need to develop conceptual models in order to achieve better understanding of specificities of digital innova- tions, their development, and their dynamics; of the com- plexity of the socio‐material interaction for the actors of this type of innovation; of the phenomenon of digital entrepreneurship (Sahut, Landoli, & Teulon, 2019); of production processes, as well as the organizational struc- tures they generate; and of the impacts of digital innova- tions on marketing, the value chain, and business models. 2.2 | The impact of digital innovation on marketing, value chain, and business models 2.2.1 | Tensions and marketing challenges Digital innovations generate the digital transformation of enterprises (Serval, 2018); we must not dilute the impor- tance of this transformation as a strategic imperative that requires accelerating investments within companies in the expertise, ownership, and implementation of digital innovations. The proliferation of mobile devices and the ubiquity of the Internet in everyday life have radically changed the expectations, preferences, and behaviours of customers. In addition, the rise of disruptive technolo- gies, such as artificial intelligence (AI), blockchain, aug- mented reality (AR), and virtual reality (VR), connected objects (IoT), autonomous vehicles, and others. Innova- tions will continue to change human behaviour. Customers go from status quo to evolution. Brandt and Henning (2002) explain that digital trends, in society, have enabled individuals to communicate across bound- aries of time and space, to uploads/Science et Technologie/ sahut2019-pdf.pdf