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.

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We outline a Punctuated Socio-Technical Information System Change model. The model recognizes both incremental and punctuated socio-technical change in the context of information systems at multiple levels -the work system level, the building system level, and the organizational environment. It uses sociotechnical event sequences and their properties to explain how a change outcome emerged. The critical events in these sequences correspond to gaps in socio-technical systems. By conceiving information system (IS) change as a multi-level and punctuated sequence of socio-technical events, IS researchers can conceive plausible and accurate process explanations of IS change outcomes, including IS failures. Such explanations are located in the middle range and thus avoid the highly abstract and stylized closed-boxed factor models of change, but go beyond the idiographic open box histories of singular change processes.