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THREE TYPES OF VALUE DRIVE PERFORMANCE IN DIGITAL BUSINESS

Hear about three types of value that companies can create—value from operations, customers, and ecosystems—and how they impact company performance in this audio podcast of the March 2021 research briefing.
By Ina M. Sebastian, Peter Weill, and Stephanie L. Woerner

LISTEN TO THE RESEARCH

Companies can create new types of value in the digital era. In our research, we identified three types of value from digital business: value from operations, value from customers, and value from ecosystems. All three types of value were significant predictors of company performance, although their relative impacts varied. In this briefing, we describe the three types of value and show how they are captured in company performance. We then illustrate how two companies, Kaiser Permanente and Maersk, designed digital initiatives to create value from ecosystems—a new type of value for many large, traditional companies.

See the print version of the briefing.

The March 2021 research briefing is read by co-author Ina Sebastian.

DOWNLOAD THE TRANSCRIPT

Follow the research briefing podcast series on SoundCloud.

About the Authors

MIT SLOAN CENTER FOR INFORMATION SYSTEMS RESEARCH 

Founded in 1974 and grounded in the MIT tradition of rigorous field-based research, MIT CISR helps executives meet the challenge of leading dynamic, global, and information-intensive organizations. Through research, teaching, and events, the center stimulates interaction among scholars, students, and practitioners. More than seventy-five firms sponsor our work and participate in our consortium. 

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BlueScope Steel (Australia)
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Caterpillar, Inc.
CEMEX (Mexico)
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CIBC (Canada)
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Commonwealth Superannuation Corp. (Australia)
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CVS Health
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Henkel AG & Co. (Germany)
Hitachi, Ltd. (Japan)
Johnson & Johnson (J&J)
Kaiser Permanente
King & Wood Mallesons (Australia)
Koç Holding (Turkey)
Mercer
National Australia Bank Ltd.
Nomura Holdings, Inc. (Japan)
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Pacific Life Insurance Company
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