MG486      Half Unit
Digital-first Strategy in the Generative Economy

This information is for the 2025/26 session.

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This course explores the digital-first strategy within the historical context of socio-technical systems, focusing on how advancements in contemporary digital technology enable new organizational logic and value creation strategies. In particular, students will learn how digital platforms can create and capture value in different ways. Students will begin by examining historical technology regimes, transitioning from industrial-era physical machines to internet-era smart machines, and ultimately to contemporary platform-era generative machines, such as AI-driven platforms and blockchain technologies. The course investigates how these generative platforms fundamentally alter value propositions, organizational designs, and economic frameworks.

The course begins by establishing foundational knowledge in the economic and organizational analysis of technology, highlighting the materiality and sociality of technological systems. It progresses to cover essential historical contexts from industrialization with physical machines to infomating and modularity with smart machines. Students will then explore the emergence of digital platform ecosystems with generative machines through digital flip, digital value loop, generativity and procrastinated binding.

The subsequent weeks will deeply explore experiential computing, digital-first ontological reversal, user experience design, digital value loops, and value premium concepts. The economics of platform strategies will be examined, including economic analyses from narrative to numerical assessments. Additionally, students will critically analyse different control mechanisms, value creation and capture within digital platform firms, unbundling organizations through APIs and distributed architectures, as well as regulatory frameworks and ethical considerations in platform governance. The course concludes by contemplating strategic foresight for future developments in digital-first organizations.

20 hours of lectures and 10 hours of seminars in the Winter Term.

This course has a reading week in Week 6 of Winter Term.

In its Ethics Code, LSE upholds a commitment to intellectual freedom. This means we will protect the freedom of expression of our students and staff and the right to engage in healthy debate in the classroom.

Classes are based around reading and discussing select journal articles and case studies. Formative feedback is provided on class participation. In addition, formative assessments on individual research essay include:

• An initial proposal for the research paper (500 words).

• Baldwin, C. Y. (2024). Design Rules, Volume 2: How Technology Shapes Organizations. MIT Press.
• Fishman, S., and McLarty, M. 2024. Unbundling the Enterprise: APIs, Optionality, and the Science of Happy Accidents, IT Revolution.
• Parker, G. G., Van Alstyne, M. W., & Choudary, S. P. (2016). Platform Revolution. WW Norton & Company.
• Yoo, Y., Henfridsson, O., & Lyytinen, K. (2010). “Research Commentary—The New Organizing Logic of Digital Innovation: An Agenda for Information Systems Research,” Information Systems Research, 21(4), 724–735.
• Baskerville, R. L., Myers, M. D., and Yoo, Y. 2020. “Digital First: The Ontological Reversal and New Challenges for Information Systems Research,” MIS Quarterly (44:2), pp. 509–523. (https://doi.org/10.25300/MISQ/2020/14418).
• Eaton, B., Elaluf-Calderwood, S., Sørensen, C., and Yoo, Y. 2015. “Distributed Tuning of Boundary Resources: The Case of Apple’s iOS Service System,” MIS Quarterly (39:1), pp. 217–243. (https://doi.org/10.25300/MISQ/2015/39.1.10).
• Lehmann, J., Recker, J., Youngjin Yoo, and Rosenkranz, C. 2022. “Designing Digital Market Offerings: How Digital Ventures Navigate the Tension Between Generative Digital Technology and the Current Environment,” MIS Quarterly (46:3), MIS Quarterly, pp. 1453–1482. (https://doi.org/10.25300/MISQ/2022/16026).
• Um, S., Zhang, B., Wattal, S., and Yoo, Y. 2023. “Software Components and Product Variety in a Platform Ecosystem: A Dynamic Network Analysis of WordPress,” Information Systems Research (34:4), pp. 1339–1374. (https://doi.org/10/gsdqwh).
• Wang, G., Henfridsson, O., Nandhakumar, J., and Yoo, Y. 2022. “Product Meaning in Digital Product Innovation,” MIS Quarterly (46:2), MIS Quarterly, pp. 947–976. (https://doi.org/10.25300/MISQ/2022/15252).
• Yoo. 2010. “Computing in Everyday Life: A Call for Research on Experiential Computing,” MIS Quarterly (34:2), p. 213. (https://doi.org/10.2307/20721425).
• Yoo, Y., and Euchner, J. 2020. “Digital First Thinking for Industrial Companies: An Interview with Youngjin Yoo,” Research-Technology Management (63:3), pp. 12–18. (https://doi.org/10/gtgd3w).
• Yoo, Y., Henfridsson, O., Kallinikos, J., Gregory, R., Burtch, G., Chatterjee, S., and Sarker, S. 2024. “The Next Frontiers of Digital Innovation Research,” Information Systems Research, v35.n4. (https://doi.org/10.1287/isre.2024.editorial.v35.n4).
• Zhang, Z., Yoo, Y., Lyytinen, K., and Lindberg, A. 2021. “The Unknowability of Autonomous Tools and the Liminal Experience of Their Use,” Information Systems Research. (https://doi.org/10.1287/isre.2021.1022).
• Faulkner, P., & Runde, J. (2019). “Theorizing the Digital Object,” MIS Quarterly, 43(4), 1279–1302.
• Alaimo, C., & Kallinikos, J. (2024). Data Rules: Reinventing the Market Economy. MIT Press.

Course participation (10%)

Research paper (40%)

Project (50%)

This component of assessment includes an element of group work.

Group Project (50%): Students will collaborate in groups to analyse a contemporary generative platform or technology, evaluating its organizational impacts, economic implications, and ethical considerations. The final presentation and report will be delivered in the last week of the course.

Class participation (10%): Students are expected to have read the material thoroughly to participate in class discussions.

Individual Research Paper (40%): A 3,000-word research paper due at the end of the term that explores a self-chosen topic related to digital-first strategies, the platform economy, or generative technologies. Students will submit a proposal in week 4 and an outline by week 7, receiving formative feedback to guide their research and writing process.

For detailed assessment information, including all deadlines and timings, please see the relevant course Moodle page. Assessment timings will be available at the start of each term.