Page 265 - 34-3

NTU Management Review Vol. 34 No. 3 Dec. 2024

4.2 Stage 2: Enterprise-Wide Transformation
This stage involves many actors with different skills and knowledge working in
collaboration. Consequently, ESL starts evolving into a connected label solution, as shown
by the different opacity levels of the ESL (please refer to Figure 5). In addition, there is a

change in the role of ESL technology suppliers, who shift their business models into ESL
system integrators. They not only supply hardware, but also contribute to an integrated
ESL solution that encompasses also certain supporting third-party platforms and devices.

4.2.1 Actor Interactions
The earlier stage shows that ESL benefits retailers in managing product information
through digitization. The advantage of implementing ESL is that it attracts other retailers
to implement the same devices, catching up with the existing technological trend. ESL

functionalities are escalated in collaboration among actors established in the earlier stage.
The partnership goes beyond transactional relationships and is governed by rules and
institutional arrangements to provide novel features for enhancing ESL capabilities and

functionalities. ESL innovations should be able to fit with the existing retail business
model. Hence, retailers offer some knowledge of retail business models and processes.
At the same time, ESL technology suppliers provide ESL technical specifications. In the
earlier stage, ESL is projected to transform from an electronic device into a connected
labeling solution, helping retailers overcome existing omnichannel strategies with different

information mechanisms. ESL can help strengthen connections between online and offline
retail environments (Auchan Retail International S.A., 2019; Solum Co., Ltd., 2019).
Moreover, retailers and ESL technology suppliers in a collaborative network are

insufficient to provide clear guidance on developing a connected labeling solution from
ESL. They find challenges in facilitating the innovation of ESL. First, how can we advance
connectivity between head office and branch integration to extend existing back-office and
front-office integration? Furthermore, they also tried to explore how ESL can be integrated
with other technologies, such as artificial intelligence and machine learning, to have a

successful dynamic pricing strategy.
To answer the challenge of connecting ESL with other advanced technology, digital
service providers offer a solution with their technical knowledge, technology infrastructure,

third-party boundary resources (e.g., API), and web and mobile application platforms.

255