Technology Innovation and Digital Ecosystems: Case Study Analysis and Proposal of a Lifecycle Model

Digital ecosystems are a logical variant of the business ecosystem, defined as a group of businesses which cooperate for mutual advantage. While there has been much business strategy research concerning the economic innovations created by a functioning digital ecosystem, research which specifically analyzes the technology innovations both preceding and during the life of the digital ecosystem is lacking. Likewise, the lifecycle process which involves the creation, sustainability, and gradual dissolution of the ecosystem is treated as a nebulous activity with scarce mention in existing literature. Notably, no formal model of a digital ecosystem lifecycle has been proposed. A clear delineation of a digital ecosystem lifecycle would provide a framework for examination of the sources and types of innovations which lead to the formation of a digital ecosystem and thus provide the basis for further research in this area which would inform the process of developing and sustaining digital ecosystems. In order to discern the lifecycle of a digital ecosystem, this paper uses a case study approach to examine the history of several prominent digital ecosystems in the time period between 1981 and 2012: the IBM PC, the French Minitel, and the Apple and Android smartphones. The synthesis and analysis of the historical data contained in the case studies is then organized into a proposed digital ecosystem lifecycle model, a framework for further research. Additionally, observational analysis of the case studies provides insights concerning the sources of the technologies used to create the digital ecosystems and ability of those technologies to sustain the ecosystem.