%0 Journal Article
%T Value Creation within AI
%A Udo Milkau
%J Journal of Creating Value
%@ 2454-213X
%D 2019
%R 10.1177/2394964318803244
%X Abstract With digitalization, new type of firms¡ªthe so-called business platforms¡ªemerged as a central hub in two-sided markets. As business platforms do not ¡®produce¡¯ products or services, they represent a new model of value creation that raises the question about the core nature of a firm in the twenty-first century, when ¡®data is the new oil¡¯. At the end of the twentieth century, the concept of ¡®value chains, value shops and value networks¡¯ represented the latest development about internal value creation in a firm, but lacked any discussion about information technology (IT) or even ¡®data as raw material¡¯. This digital approach to monetarize aggregated data sets as internal core function of a firm needs more clarification, as value creation ¡®without production¡¯ is a shift of paradigm. This article starts with the concept of ¡®value chains, value shops and value networks¡¯, extends this to current IT and includes business platforms within an integrated framework of internal value creation in a firm. Based on this framework and the current development of leading-edge artificial intelligence (AI), this framework is applied to forecast the development towards ¡®AI-enabled data platforms¡¯, which are not covered by traditional economic theories. This article calls for more research to clarify the impact of such data-based business models compared to production-based models
%K Value creation
%K value chain
%K platform economy
%K knowledge platforms
%K artificial intelligence
%U https://journals.sagepub.com/doi/full/10.1177/2394964318803244