Innovation in the Age of Digital Disruption: The Case of Siemens

Innovation in the Age of Digital Disruption: The Case of Siemens

Diana Claudia Cozmiuc (West University Timisoara, Romania) and Ioan I. Petrisor (West University Timisoara, Romania)
DOI: 10.4018/978-1-5225-3012-1.ch025
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Digital disruption is a worldwide phenomenon whereby digital technology brings new business models that disrupt existing markets. Business models have become key to digital disruption, as the universal language of innovation from invention. The latest business models shift from pipeline material flow to knowledge creation in platforms. Open innovation is part of platform business models. Business models are now financed directly, which has created the lean start-up movement. Start-ups enter markets with no barriers and force incumbents to race them with the ability to compete based on business models and match start-up agility and creativity. One of the world's top innovators, Siemens, a company where innovation is strategy, uses the latest tools for innovation: open innovation for technology invention, business models to turn invention into innovation, and finances business models. A large company, Siemens has created an inner structure that intends to bring the advantages of the lean start-up movement indoors.
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Innovation In The Digital Disruption Age

Studies (IBM Institute for Business Value analysis, pp. 6) show that the Knowledge Economy is transforming the Industrial Economy in several stages: in the 1990s, the emergence of the Knowledge Economy; in the 2000s, digital distribution and web strategy; since 2010, transformative business models. Studies (Capgemeni, 2016a, 2016e, 2016f, 2016g; The Global Center for Digital Business Transformation, 2015; Westerman, Bonnet & McAfee, 2011, 2014) show that digital technology (Garner, 2017; IDC, 2007) and innovations about everything (World Economic Forum, 2016) are disrupting all industries (Grossman, 2016; The Global Center for Digital Business Transformation, 2015) with new business models (Blank, 2013; Bonchek & Choudary, 2013; Girotra & Netessine, 2014; Van Alstyne, Parker, & Choudary, 2016; Westerman, Bonnet, & McAfee, 2011) that threaten incumbents’ business models.

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