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How ESL Devices Transform into Connected Label Solutions: A Perspective of Actor Interaction and
Information Rebundling

core process supported by digital technology features (Yoo et al., 2012). Consequently,
it can provide benefits and change the behavior of particularly affected actors. The
digital transformation and co-evolution of the device require changes in the information
landscape, which can bring changes in the business landscape (Normann, 2001).

Meanwhile, collaborations exist among actors in the ecosystem to enhance
the capabilities of the device. Co-creation between actors happens through resource
integration, where shared resources can provide substantial contributions to achieve the

desired end (Vargo and Akaka, 2012; Vargo et al., 2017). Actors coordinate resource
exchange to shape the ecosystem’s structure by forming relationships with other actors and
determining the optimal value of resources in their respective contexts (Vargo, Maglio,
and Akaka, 2008). Hence, resource integration can help form co-evolution and co-creation
processes.

We extend Bonnet (2022) stages of digital transformation by including how the
changes in the information density landscape happen in those three stages.

5.2.1 Digitization
Digitization is about adopting emerging technology and learning how digital
technology can simplify and digitize existing operations. This stage should not be
undervalued and derided, since this is the beginning of the digital transformation
journey. Focal actors invest in technology infrastructure to adopt the technology. They

buy some hardware to be integrated with their existing operations. At this initial stage,
technology complementors can provide some reasonably quick returns and benefits to
focal actors, fueling more complex digital enhancement. Complex digital enhancement

requires collaborative actions among actors and creates stronger connectivity. Hence,
complementors should be able to share their technical knowledge, while focal actors
contribute to sharing their knowledge of existing business practices. When those two
resources blend, technological advancement can fit the existing ecosystems.
Focal actors should also understand basic technological features and what information

is affected and changed into digital format through dematerialization and digitization.
Once the information becomes digital and free-to-flow, the next step is to form a new
density through unbundling and rebundling other information. Further, focal actors should

learn how digital information might help improve existing business practices.

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