Overcoming Barriers of Systemic Innovations in a Business Network

Abstract

Systemic innovations expand the scope of development from certain products and services to complex solutions where complementary innovations are needed to occur at the same time. Intelligent technologies that build upon digitisation and enable remote monitoring and control and related services are an example of systemic innovations transforming manufacturing firms' business logics and requiring the involvement of the business network. The progress and success of such innovations may face various barriers, not only concerning the technology being developed but also the value creation and capture processes of the entire system. This paper explores intelligent technologies as a systemic innovation, identifies transformation-related barriers toward the open systemic innovation and characterises ways to overcome the barriers in a business network. A single-case study with a manufacturing firm and its business network involved the front end of a systemic innovation concerning the creation and development of intelligent materials and related business solutions. The results reveal barriers concerning the market, industry, solution and investments and propose ways to overcome them during the front end, and in anticipation of the back end, of the systemic innovation. The chapter shows novel empirical evidence on intelligent technologies as systemic innovations from a special case. It offers ideas for preparing the network-level changes at the front end of systemic innovations.