One of the main implications of the digitalization for firms are digital innovation platforms. At the core of digital platforms is a software-based infrastructure ("platform"), which is operated by one or several firms (“platform owner”). The platform owner allows third-party firms (“complementors”) to develop and commercialize products based on the platform. A well-known example is the iPh-one: Apple allows other firms to provide complementary products in the form of "apps". Apple benefits from a constant stream of new apps; app developers gain access to a large installed base of users. Today, many complementors, especially Startups build their business on digital platforms.

A significant business risk for complementors is platform owners’ entry into their market space. Platform firms such as Apple, Microsoft and SAP regularly enter markets complementary to their platforms with own complements. For example, in 2018 Apple surprisingly announced an app called ScreenTime, which gave users an overview of the time they spent on their iPhone. Several firms had been offering apps with similar functionality before and were now confronted with hav-ing to compete with Apple. For affected complementors, entries by the platform owner can be consequential, eventually leading to them going out of business.Extant research provides little insight into the risk of market entries by the platform owner. Previ-ous research predominantly studied the consequences of entries on complementors. However, these studies provide little insight into the factors that explain market entries. Understanding the systematics behind platform owners’ entries would help improve complementors’ decision-making regarding what market niches to join and what complements to offer.

The aim of the research project is to address this gap by studying the factors that explain market entries by the platform owner. The goal is to examine the relationship between the characteristics of individual ecosystem niches (e.g. the quality of the complements, the innovation performance) and the market entry by the platform owner. In order to achieve this goal, a quantitative-empirical study will be conducted in the context of the mobile app platforms Apple iOS and Google An-droid. The iOS and Android ecosystems will be divided into market niches in a systematic proce-dure. A comprehensive data set on market entries will be built up for the period 2008 to 2020.

Further information: 

• Funded by DFG (German Research Foundation)
• Volume: 187.000 EUR
• TUM MGT News
• GEPRIS

This research project seeks to understand the challenges faced by Mittelstand firms in the Heilbronn-Franken region regarding the digital transformation, as well as their strategies to overcome them.

For this purpose, a survey was conducted among more than 500 firms of the region. The scientific analysis of the data provides unique insights into the status quo, and permits identifying recommendations for decision-makers in Mittelstand firms.

The primary questions of interest are:
 

• How do firms manage the digital transformation and ensure progress?
• Who is responsible for the digital transformation?
• Which digital technologies are of particular interest?
• Which internal and external challenges hinder the successful implementation of the digital transformation?

Are you curious about the results? The survey results will be published in early 2023.

Further information:

• Cooperation with the IHK Heilbronn-Franken
• Project website

This industry project investigated the status quo of the digital maturity (Digitale Reife) of medium-sized and large firms in Germany and the United States. The project was conducted together with the Boston Consulting Group and relied on their so-called Digital Acceleration Index. In total, 1,876 executives were surveyed about the digital transformation of their firms.

The key findings of the project are as follows:

• The digital maturity of a company is closely related to its success, in particular its cost efficiency, time to market and competitive advantage.
• 36% of the German companies surveyed fall into the lowest maturity category, so-called  "digital laggards"; 20% of German companies are classified in the highest maturity category "digital pioneers".
• Digital pioneers differ from digital laggards in three areas: They spend more than 5% of their operating expenditures (OPEX) on digital transformation along the entire value chain (digital expenditures), more than 10% of tasks in the company have a direct or indirect digital focus (digital expertise), and the responsibility for digital transformation initiatives is embedded in the operational business units (digitally integrated organization).

Further Information:

• Industry cooperation with The Boston Consulting Group
• For project results see here: Digitale Reife und Unternehmenserfolg: Eine industrie- und länderübergreifende Bestandsaufnahme