Jonny Holmström

From value creation to value destruction: A study of Internet technologies and their impact on digital business





This project aims at creating a better understanding of the role Internet technologies plays for businesses offering digital products or services to a market. A new form of digital business, enabled by Internet technologies, is discussed more and more frequently. This is typically depicted as a "bottom-up" movement driven by consumers rather than corporate managers.
Decentralized technologies such as peer-to-peer technology is often described as a threat to established firms, and they are said to have had - and will continue to have - a disruptive impact on commercial actors. Rather than serving as a part of a value creating process Internet technologies can be said to have destructive effects on established firms. All products that can be represented in digital form - film, music and software - can also be distributed in channels outside the reach of these firms. It should be noted, however, that what is destructive to an established firm may very well be value adding for other actors. This project aims at studying the destructive and value adding processes that emerge in relation to new Internet technology.
Grant administrator
Umeå University
Reference number
P2004-0742:1
Amount
SEK 900,000
Funding
RJ Projects
Subject
Business Administration
Year
2004