In this essay, we argue that pervasive digitization gives birth to a new type of product architecture: the layered modular architecture. The layered modular architecture extends the modular architecture of physical products by incorporating four loosely coupled layers of devices, networks, services, and contents created by digital technology. We posit that this new architecture instigates profound changes in the ways that firms organize for innovation in the future. We develop (1) a conceptual framework to describe the emerging organizing logic of digital innovation and (2) an information systems research agenda for digital strategy and the creation and management of corporate information technology infrastructures.

Rapid and pervasive digitization of innovation processes and outcomes has upended extant theories on

Our era is one of increasingly pervasive digital technologies, which penetrate deeply into the very core of the products, services, and operations of many organizations and radically change the nature of product and service innovations. The fundamental properties of digital technology are reprogrammability and data homogenization. Together, they provide an environment of open and flexible affordances that are used in creating innovations characterized by convergence and generativity. An analysis of convergence and generativity observed in innovations with pervasive digital technologies reveals three traits: (1) the importance of digital technology platforms, (2) the emergence of distributed innovations, and (3) the prevalence of combinatorial innovation. Each of the six articles in this special issue relates to one or more of these three traits. In this essay, we explore the organizational research implications of these three digital innovation traits and identify research opportunities for organization science scholars. Examples from the articles in this special issue on organizing for innovation in the digitized world are used to demonstrate the kind of organizational scholarship that can faithfully reflect and inform innovation in a world of pervasive digital technologies.

S ince the inauguration of information systems research (ISR) two decades ago, the information systems (IS) field's attention has moved beyond administrative systems and individual tools. Millions of users log onto Facebook, download iPhone applications, and use mobile services to create decentralized work organizations. Understanding these new dynamics will necessitate the field paying attention to digital infrastructures as a category of IT artifacts. A state-of-the-art review of the literature reveals a growing interest in digital infrastructures but also confirms that the field has yet to put infrastructure at the centre of its research endeavor. To assist this shift we propose three new directions for IS research: (1) theories of the nature of digital infrastructure as a separate type of IT artifact, sui generis; (2) digital infrastructures as relational constructs shaping all traditional IS research areas; (3) paradoxes of change and control as salient IS phenomena. We conclude with suggestions for how to study longitudinal, large-scale sociotechnical phenomena while striving to remain attentive to the limitations of the traditional categories that have guided IS research.

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Changes in the technologies of representation in a heterogeneous, distributed sociotechnical system, such as a large construction project, can instigate a complex pattern of innovations in technologies, practices, structures, and strategies. We studied the adoption of digital three-dimensional (3-D) representations in the building projects of the architect Frank O. Gehry, and observed that multiple, heterogeneous firms in those projects produced diverse innovations, each of which created a wake of innovation. Together, these multiple wakes of innovation produce a complex landscape of innovations with unpredictable peaks and valleys. Gehry’s adoption of digital 3-D representations disturbed the ecology of interactions and stimulated innovations in his project networks by: providing path-creating innovation trajectories in separate communities of practice, creating trading zones where communities could create knowledge about diverse innovations, and offering a means for intercalating innovations across heterogeneous communities. Our study suggests that changes in digital representations that are central to the functioning of a distributed system can engender multiple innovations in technologies, work practices, and knowledge across multiple communities, each of which is following its own distinctive tempo and trajectory.

The increased digitization of organizational processes and products poses new challenges for understanding product innovation. It also opens new horizons for information systems research. We analyse how ongoing pervasive digitization of product innovation reshapes knowledge creation and sharing in innovation networks. We argue that advances in digital technologies (1) increase innovation network connectivity by reducing communication costs and increasing its reach and scope and (2) increase the speed and scope of digital convergence, which increases network knowledge heterogeneity and need for integration. These developments, in turn, stretch existing innovation networks by redistributing control and increasing the demand for knowledge coordination across time and space presenting novel challenges for knowledge creation, assimilation and integration. Based on this foundation, we distinguish four types of emerging innovation networks supported by digitalization: (1) project innovation networks; (2) clan innovation networks; (3) federated innovation networks; and (4) anarchic innovation networks. Each network involves different cognitive and social translationsor ways of identifying, sharing and assimilating knowledge. We describe the role of five novel properties of digital infrastructures in supporting each type of innovation network: representational flexibility, semantic coherence, temporal and spatial traceability, knowledge brokering and linguistic calibration. We identify several implications for future innovation research. In particular, we focus on the emergence of anarchic network forms that follow full-fledged digital convergence founded on richer innovation ontologies and epistemologies calling to critically re-examine the nature and impact of modularization for innovation.