Creating value with IT - the case of RFID

This research investigates the use of IT for value creation. Significant advances in IT combined with pervasive digitalisation have fundamentally changed how firms organise their activities, develop new products, and create value. Underlying these changes are the use of IT resources that firms rely on the create value. Drawing from Demil and Lecocq (2010) business model framework, this study develops a framework to examine IT and value creation. Using RFID as an exemplar technology, and relying on multi case study research design, we examine (1) how firms use IT to create value and (2) the evolution of IT use for value creation over time. We find that firms use IT to create value both through changing their activities, and through altering their value proposition embodied in products and services. Over time, IT use as an activity enabler dominates, with no noticeable trend towards transformative and/or value directed usages.