Abstract

Digital transformation has been recognized as the driving force in enhancing business operations and increasing revenue. Relevant studies have mostly focused on the implementation of specific technology and on the effects of that technology on individuals, organizations, and ecosystems. Prior studies fall short of examining the process of how a shift in a business model or a brand-new model can originate with the introduction of a simple device. The current study tries to elaborate on this process from the perspective of actor interactions and information density. Using secondary data from online sources regarding electronic shelf label (ESL)-enabled retail digital transformation, this study highlights actors interacting with other actors to provide some technological advancement. This case study focuses on actor-network interactions in ESL-enabled retail digital transformation. These interactions also trigger changes in information density and impact business operations. We propose three stages of digital transformation: digitization, unbundling and rebundling information, and information outsourcing for a business model shift. A well-designed system can turn a simple labeling device into a connected label solution through collaboration with other actors in the retail ecosystem. Our study provides contributions to understanding digital transformation from information density perspectives and how ecosystem actors co-create technology to leverage its functionalities.  

Keywords

digital transformationelectronic shelf labelinformation densityactor interactionbusiness model shift