Digital Economy 'New Economic Models' Network+

The business press is alive with considerations of how the 'Big 4' tech giants, Apple, Google, Facebook and Amazon are challenging to become the single biggest provider of digital services. In business services there is intense competition between IBM, SAP and Oracle to provide 'knowledge solutions' and in B2G there are the challenges of 'assisted living', privatisation of education and healthcare and the Big Society' agenda. Looking to the near future the development of the 'internet of things' will increasingly provide information on objects and their location, their physical properties, how long they have been there, what they are being used for etc. This data, increasingly available on global platforms, enables individuals, social enterprises, public and private sector organisations to 'interact, communicate, collaborate and share information' in novel and progressive ways. (RCUK 2012). These platforms also have the potential to disrupt current economic structures radically, threatening established players and providing many opportunities for new entrants and new economic models (RCUK 2012).
This new environment raises a number of questions, eg to what extent will the digital revolution transform the whole economy, or will it be primarily limited to specific sectors for example information services and in what ways does the Internet enable or hinder trust between parties. Other challenges include the development of 'off the shelf' business models that are appropriate for different contexts eg start-ups. Perhaps most important of all given the potential for widespread availability of data on individuals and things, we will consider what is the balance between enabling customised and bespoke services and the issues of privacy and confidentiality, data integrity and security?

The objective of this grant is the development of an internationally leading network of academics and practitioners who will engage with those questions through the production of evidence based research. This knowledge will inform multiple groups including
Private sector organisations. These organisations need to be aware of the opportunities and threats emerging from the digital economy and need to be capable of reconfiguring their organisations to meet the strategic challenges.
Consultancy organisations. These organisations need to engage in the long term challenges to their client base faced by the development of multiple platforms. This includes the development of enhanced analytics.
Public sector and local government. This sector needs to engage in the opportunities offered by new economic models of partnering with private sector organisations, social enterprises and the customisation and personalisation required by customers.

Our vision is that at the end of 3 years we will have established an internationally leading community which has addressed these big research questions and challenges. It will have worked closely with both private and public sectors and engaged with policymakers to help enable an environment where organisations are better placed to take the opportunities offered by the digital economy.

The emergence of the digital economy has profoundly influenced the way organisations design and deliver products and services. Companies such as Google and Facebook have successfully introduced innovative business models that leverage technology enabled interconnectivity. Our research will identify the next generation of economic models and forms of enterprise made possible by such technologies. The proposed research will also identify opportunities for existing businesses in sectors such as
. Private Sector organisations. The investigator team already have strong links with organisations such as Vodafone, Aviva, RBS, EDF, Virgin Media.
. Consultants. We will focus our efforts on the technology consultancy organisations. .
. Public sector. We will focus on various government agencies and have begun discussions with colleagues from the Rural Payments Agency (RPA).
. Local government. We have held preliminary discussions with Sutton Council, who are a Big Society pilot.
. Policy makers, eg RCUK.
. Industry Bodies. We have begun discussion with the communications management association who act as an industry body for Telcos.

In the commercial organisations in particular, there is a considerable drive to utilize new technology to improve their productivity, reduce risk, access new markets and accelerate their product and service development lifecycles. In an increasingly global market, the identification of new business models and opportunities for effective technology exploitation are essential to the future economic prosperity of the UK.

Identifying the economic implications of the digital economy is also important to public organisations in areas such as health provision, maintaining law and order and education. The research will develop theories and tools in respect of system configurations and dynamics which will help providers to reduce operating costs and enhance the quality of service provision.

National, regional and local policy making and management will benefit from a better understanding of the economic impact of new forms of social and economic interactions. For example, the emergence of virtual communities may impact the relevance and operation of institutions designed to operate in a purely physical environment.

Finally, the research will benefit academic groups particularly in technology departments eg computing and engineering and business schools. We will adopt an interdisciplinary approach to knowledge creation and dissemination in this field and ensuring rapid dissemination of knowledge through the use of innovative communication processes eg twitter, podcasts, briefing notes and white papers. This will be in addition to the formal academic publications in leading international journals. The participation of managers from public and commercial organisations in network events and workshops will also facilitate the rapid adoption of new knowledge.