Crafting value propositions for an AI-enhanced digital platform

Abstract

Artificial intelligence (AI) has the potential to influence value proposition (VP) development in several ways. This chapter adopts a managerial perspective to describe and analyse the development of VPs in parallel with the development of an AI-enhanced digital platform. The chapter builds upon the literature on VPs and business model innovation and draws empirical insights from a professional services firm that serves as an intermediary between IT experts and organizations looking for a temporary workforce. The chapter identifies and discusses three distinct themes - shifting customer-user roles, data-enabled documentation and value tracking, and new partner-user roles - and several sub-themes that illustrate how AI can change VP development. The chapter highlights that AI not only enhances the speed of VP development but also the content and type of the resulting new VPs. Insights for managers on how they can craft VPs while engaging in platform development are also provided in this chapter.