Strategizing with data: data-based innovations and complementarities

In this chapter, we discuss the challenges digital data pose for strategizing. The nature and volume of available data, together with their modalities of production, circulation, and use, have changed dramatically over the last two decades. Much of digital data originates from fast, heterogeneous, and automated cycles of production that are outside the control of traditional expertise and call for new strategy tools and organizational capabilities. By drawing upon two case studies, we consider three takeaways for strategizing with data. First, we focus on the importance of implementing appropriate data work practices that respond to the novel characteristics of digital data. Second, we illustrate the constitutive role of data in creating and managing new kinds of complementarities in digital ecosystems whose dynamics cannot be explained by recourse to existing definitions. Third, we argue, ideas such as the existence of stable markets or that resources are clearly defined entities situated either outside or inside the boundaries of an organization hold less explanatory power today than they once did. This calls for a substantial reassessment of current approaches to regulation which seem to disregard the potential of data-based innovation and the change of framework it requires.