Software-Defined Business
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DISCUSSION
Software-Defined Business Implications for IT Management Rainer Alt • Jan Marco Leimeister • Thomas Priemuth • Stephan Sachse Nils Urbach • Nico Wunderlich
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The Author(s) 2020
1 Introduction Rainer Alt In August 2011 the Wall Street Journal published an essay by Netscape co-founder Marc Andreessen titled ‘‘Why software is eating the world’’. He argues that ‘‘more and more major businesses and industries are being run on software and delivered as online services—from movies to agriculture to national defense. Many of the winners are Silicon Valley-style entrepreneurial technology companies
R. Alt (&) Leipzig University, Leipzig, Germany e-mail: [email protected] J. M. Leimeister University of St. Gallen, St. Gallen, Switzerland e-mail: [email protected] J. M. Leimeister Universita¨t Kassel, Kassel, Germany T. Priemuth Head Production System, BMW Group Plant Leipzig, Leipzig, Germany e-mail: [email protected] S. Sachse Manager Digitalization, VNG AG, Leipzig, Germany e-mail: [email protected] N. Urbach Frankfurt University of Applied Sciences and Fraunhofer FIT, Frankfurt, Germany e-mail: [email protected] N. Wunderlich IT University of Copenhagen, Copenhagen, Denmark e-mail: [email protected]
that are invading and overturning established industry structures. […] Companies in every industry need to assume that a software revolution is coming.’’ (Andreessen 2011). By pointing at examples in various industries from automotive and banking to defense, healthcare, music, retailing, and telecommunications, he illustrates the transformational power of information technology (IT) and software in particular. The discussion is not new and dates back to the early 2000s. For example, Power and Jerjian (2001, p. 99) mention for Heathrow airport that ‘‘software is the thing that runs the airport’’ and in a biological analogy they consider software to be the nervous system. Meanwhile, the large ‘‘big tech’’ software companies (e.g., GAFAM, BATX)1 have impressively confirmed this development: their digital platforms have spread over many industries with an impact on processes (e.g., interaction and transaction), on products (e.g., app stores and services) as well as on business models (e.g., streaming and as-a-service models). The recent tech-portmanteaus (e.g., Fintech, Insurtech, Regtech) also reflect the attitude of these startup businesses, which perceive themselves rather as IT (tech) companies than as representatives of the industry they are aiming to transform (Meijer and Kapoor 2014). In the same vein, the high valuation of Tesla Motors since early 2020 spurred an intense debate of whether the company is in the automotive or the tech business (e.g., Klebnikov 2020). Obviously, these developments have numerous implications for the field of IT management, which were discussed during a panel at the 82nd Annual German Business Researcher Conference on March 18, 2020. The panel builds on prior discussions regarding the impact of 1
Abbreviations for Google, Amazon, Facebook, Apple, Mi
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