A Framework for Organisational Readiness Assessment in Digital

Business Ecosystems Engagement

Ruimian Li and Kecheng Liu

Informatics Research Centre, Henley Business School, University of Reading, U.K.

Keywords: Digital Business Ecosystems, Organisational Semiotic, Readiness Assessment.

Abstract: Worldwide competition is forcing companies to collaborate in digital business ecosystems (DBEs) in order to

leverage resources and survive in the global market. However, the engagement of companies in DBEs is

confronted by a number of practical issues. This research has as its objective the discovery of the critical

factors and the framework that enable organisations to assess their readiness in engaging in DBEs to cooperate

with their peers. To accomplish the objective, this research has explained the related concepts and theories

and developed a research framework grounded on a theoretical and literature review background. The

assessment results help identify specific key weakness for the companies to improve themselves to implement

DBE engagement in the future.

1 INTRODUCTION

With the rise of digital business ecosystems (DBEs),

the business world is turning into an era of extreme

competition where the only way for enterprises to

succeed is to engage in DBEs and the benefits are

magnificent. For many organisations, DBE is an

innovative approach and interconnected networks to

collaborate, leverage resources and drive innovation,

efficiency and competitiveness (Senyo et al., 2019).

By participating in DBEs, businesses can cooperate

with diverse participants with varying expertise, share

resources and infrastructure which may lead to cost

savings. The vast amount of data shared in DBEs

allow businesses to inform strategic decisions and

thereafter improve customer satisfaction. More

importantly, entities can gain competitive advantages

to mitigate the impact of diversification spread in

DBEs if other businesses face challenges (Koch &

Windsperger, 2017; Suuronen et al., 2022).

The impact of DBEs on enterprises have been well

established in previous studies, yet there still remains

a gap explaining exactly what methodology

organisations can adopt to implement a holistic

readiness assessment at organisational level prior to

DBE engagement. The remaining parts of the paper

are organised as follows: Section 2 reviews prior

relevant research papers in the literature. A readiness

assessment framework is proposed and discussed in

Sections 3. Section 4 presents ORAM as the

methodological solution to evaluate and test the

proposed framework. A case study was conducted to

illustrate and test the usefulness of the proposed

readiness assessment framework. The readiness

framework was applied to the BMW (China). The

choice of this case is based on the following reasons.

First, the BMW (China) involves interaction between

different entities to collectively co-create values,

thus, a good example of DBE. Second, vehicle DBE

is one of the dominant and a major revenue earner.

Hence it presents a unique domain to apply ORAM to

obtain results that are useful to improve DBE

engagement. Third, the case study of BMW China

offers an opportunity to introduce contrasting insights

into DBE literature. Research findings and

implications are discussed in the following section.

The last section are limitations and future research

directions.

2 THEORETICAL AND

PRACTICAL FOUNDATION

In order to explore the method for assessing

organisational readiness in DBE engagement from

organisational semiotic perspective, the concepts of

organisational semiotic, digital business ecosystems

and readiness assessment models will be introduced.

258

Li, R. and Liu, K.

A Framewor k for Organisational Readiness Assessment in Digital Business Ecosystems Engagement.

DOI: 10.5220/0012620900003690

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 26th International Conference on Enterprise Information Systems (ICEIS 2024) - Volume 1, pages 258-264

ISBN: 978-989-758-692-7; ISSN: 2184-4992

This section will discuss the background and previous

research in each of these areas.

2.1 Organisational Semiotic

This paper argues that the well-developed

organisational semiotics (OS) perspective has

concepts that are highly relevant to the study of DBEs

and especially when the range and depth of

innovations lead to organisational architecture

changes. Organisational semiosis theory emphasizes

that organisations can be seen as an information

system with informal, formal and automated levels

(Liu & Li, 2015).

By emphasizing the three aspects of organising, OS

theory has developed a particular approach to

understanding changes and innovation within

organisations, which could also be applied in DBE

analysis. There are three aspects in this approach: one

is to understand the homogeneity as well as

heterogeneity about the vision, mission and values

amongst organisations and see how they make strategic

alignment. Another aspect is to analyse the activities

and actions occurred in business process alignment and

see how exact strategies, data management, business

process can be implemented in distinct development

stages. The last aspect is to investigate the digital

infrastructure, IT systems/ apps, and the usage of

digital solutions and see how cooperators can realise

interoperability and achieve “win-win” outcomes.

These three aspects produce a richness and a

complexity to understanding DBEs at the new

products, services and process, but also, and more

importantly, an emphasis on social-cultural issues

which has great impact on participating DBEs at the

start point. Therefore, OS will provide a framework as

a scientific tool for this study to exploit the framework

of the readiness assessment in DBE engagement.

2.2 Digital Business Ecosystems

The progress in digital technology has resulted in the

enhancement and evolution of new collaborative

networks, like Digital Business Ecosystems (DBE).

DBE is a collaborative environment facilitated by

information and communication technology (ICT),

comprising organizations and individuals working

together to generate value (Nachira et al., 2007). With

the advent of DBE, an increasing number of

businesses are adopting it as a strategic approach,

aiming to align with its partners for the joint creation

of value. Consequently, this contemporary

interpretation of DBE enables companies to enhance

their competitive edge (Suuronen et al., 2022).

Digital business ecosystem engagement refers to

various activities, strategies and automated

infrastructures established by organizations aimed at

building and leveraging these relationships to achieve

specific goals within a digital ecosystem (Li & Liu,

2023). Engagement within a digital business

ecosystem involves the interactions, collaborations,

and relationships facilitated by digital platforms,

software, and data-sharing mechanisms.

2.3 Readiness Assessment Models

Despite the significant impact of DBE engagement on

organisations to compete and gain vast advantages, so

far only a few systematic and thorough studies have

been undertaken on the subject to comprehensively

integrate overall factors related to the successful

implementation of DBE engagement.

Readiness models have been adopted as an

instrument to conceptualize and measure the starting-

point and allow for initializing the development

process (Nedbal et al., 2013). To review the readiness

of an organisation for participating in DBE, we

understand readiness of an enterprise as the state of

the starting point of internal conditions that support

organisational DBE engagement. The goal of

readiness model is to capture the readiness of an

organisation or process regarding some specific target

state. In the digital business ecosystem domain recent

readiness models have been proposed in platform

analysis, utility management, and digital

transformation (Romero et al., 2009).

The factors and elements in previous

investigations were compiled with the methods,

frameworks and checklist for the implementation of

organisational readiness evaluation being identified.

From previous works, concepts relevant to the

structures of readiness models were derived, e.g., the

readiness levels, the dimensions (readiness assessed

in 4 to 16 dimensions), the validation of assessment

and the visualisation of readiness assessment (Huang

et al, 2004; Shareef et al., 2011). With the help of

concept mapping techniques, the characteristics of

existing readiness framework can be extracted and

evaluated for their applicability in this research.

3 ORAM: AN ORGANISATIONAL

READINESS ASSESSMENT

MODEL

To facilitate the formulation of a method for

evaluating organisational readiness in DBEs, this

A Framework for Organisational Readiness Assessment in Digital Business Ecosystems Engagement

259

research has devised a prototype framework as an

initial model. This prototype framework serves as a

schematic representation illustrating the structure and

constituents of the eventual method. Recognising the

dynamic and evolving nature of DBEs, the design of

the prototype framework underwent iterations to

accommodate emerging changes. The incorporation

of this prototype framework streamlines the

developmental phase of the method. Drawing insights

from literature on DBEs, organisational engagement,

value co-creation, and Organisational Semiotics

theory, the prototype framework, delineated in Figure

1, consists of three principal components: context

articulation, readiness analysis, and readiness

improvement.

Figure 1: Framework for organisational readiness

assessment.

3.1 Articulation of DBE Engagement

The first stage is context articulation including the

identification of DBE engagement. To delineate the

DBE environment, the prototype framework proposes

the context articulation concept. The engagement

articulation supports the identification of engagement

within DBEs. Engagement analysis enables better

understanding of the modes by which value co-

creation is achieved through interaction between DBE

entities. For each organisational engagement, the

engagement modes pertaining to informational,

physical and financial flows are derived. The

outcomes from the engagement identification

component helps to obtain a better understanding of

an engagement structure and underlying issues driving

the organisational readiness assessment in engaging in

DBEs. As the first component of the prototype

framework, the outcomes from the DBE environment

supports the readiness analysis in the next step.

This research suggests a formal notation for

representing DBE engagement. This notation offers a

more detailed view of DBE engagement, making it

simpler to distinguish various categories of these

engagement (Nuutinen et al., 2020). Additionally, this

notation ensures the consistency by establishing a

universal foundation for classifying all types of DBE

engagement. By using this notation, it becomes more

straightforward to grasp the underlying mechanisms

of DBE engagement refer to Li &Liu (2013).

In digital business ecosystems, industry

collaborators engage in the sharing of three key

resource types: information, finance, and physical

resources. Their aim is to achieve their business

objectives and collectively create value (Tan, 2020).

These three elements serve as the primary categories

for classifying various engagement practices and

activities within the ecosystem. This classification

framework offers insights into the diverse dimensions

of engagement. Below are some typical categories of

DBE engagement based on the sharing of these three

resource types: information flow, finance flow, and

physical resource flow, refers to (Li and Liu, 2023).

3.2 Dimensions and Metrics of

Readiness Assessment

The second stage is readiness analysis which offers

the opportunity to distil more information on the

organisational readiness during the engagement

identified in the DBE environment. The main concept

under this component is readiness measurement and

readiness level alignment.

Based on the existing research and practice, DBEs

are mainly composed of three main entities:

automated part such as digital infrastructures, formal

part such as business process and informal part such

as visions, strategies (Li &Liu ,2013; Liu &Li, 2015)

which has been further elaborated into dimensions,

factors and aspects as shown below (Li &Liu ,2013).

 The Informal part includes four factors:

vision/mission/strategy, values, leadership,

culture & mindset.

 The Formal part consists of three factors:

organisational structure, business process, data

generation & management.

 The Automated part has three factors: digital

infrastructure, IT systems/ apps, use of digital

solutions.

Each dimension includes several factors. Each

factor consists of several indicators that are

specifically used to assess the readiness of an

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organisation’s engagement in DBEs. The proposed

readiness framework contains 47 indicators.

The first dimension for organisations in their DBE

engagement is the interoperability with its

technological facets. In this dimension, technological

challenges and barriers refers to the incompatibility

of information technologies (Curry, 2012), for

example, the digital infrastructure, the IT

systems/apps, the usage of digital solution. To be

more specific: 1) the standards to present, store,

exchange and transfer data and information should be

clearly established (Curtis et al., 2011); 2) the digital

systems, interfaces, ways and rules for data exchange

should be developed; 3) the data usage, analysis and

the way to be processed should be developed. In

addition, it is basic prerequisites for personnels to

acquire the innovation and relevant novel knowledge

originated from computer science and information

accordingly.

In addition to the technological facet, there are

structural dimension in organisations. Participating

firms in DBEs have different structures and therefore

follow different organising systems in terms of

decision-making, responsibilities and autonomy

(Barykin et al., 2020). Based on the interview, one

expert in the interview argues that coherency can be

a main prerequisite for evolvability of DBEs.

Meanwhile, the coherency is crucial to achieve a

balanced exchanges relationship and trust

construction between autonomous partners in the

ecosystems (Centobelli et al., 2022). To achieve this

goal, the following key concerns in DBE engagement

should be resolved: 1) the standardised articulation

of the rules, regulations; 2) the semantic consistency

of business procedures and produces &services

strategies should be identified.

On the cultural level, the attitude, behaviour and

competence of the individual level as well as the

mission and vision on the collective level constitute

the prerequisites for participating in the new

platforms of DBEs. One of the interviewed experts

highlights the vision and mission of stakeholders,

executives, managers, and creativity, connectivity,

collaboration and community are vital competences

of partners. On the one hand, the keystone entities

within DBEs take the dominant role and have a

comparatively strong coordinating function and

responsibility for the information flow, finance flow

and physical resources flow in certain situations,

while dependent complementary partners have a

subordinated function in niches. In this aspect, the

keystones will establish the standards to enhance

interoperability (Korpela, 2014). On the other hand,

the participating partners have complementary roles

to coordinate and interact which emphasis the

competences of all participants (Jacobides et al.,

2018). To foster the interoperability, the companies

should: 1) adjust the cognition and cultures of the

employees which is crucial to cope with the

opportunities and heterogeneity; 2) enhance

competences and reshape styles of communication to

meet the dynamics and complexity in the

organisational readiness assessment to achieve

successful outcomes.

In the next step, every indicator is scored

anchored on a 4-point Likert scale. The scores

obtained are matched onto a readiness level score

rating guide to determine their readiness level (Huang

et al., 2004). Specifically, this step show whether an

organisational has achieved extensive, moderate,

little or no readiness in DBE engagement.

The readiness level alignment concept determines

the significant effect of an organisational readiness in

value co-creation based on the three metrics. This

concept matches the readiness scores to determine if

it has either low, medium or high readiness levels on

value co-creation. The concept proposes a benchmark

with inherent decisions that serve as

recommendations to reorganised engagement in

DBEs to achieve improved performance.

Table 1: Readiness score rating guide.

Readiness level Ratin

score

no 0

little 1

moderate 2

extensive 3

As presented in Table 1, the readiness score 3

indicates extensive readiness level, and score 2

indicates a moderate readiness level. Lastly, score

1and score 0 corresponds to little and no readiness

respectively.

The last stage of the framework is the readiness

improvement. The readiness improvement concept

proposes series of steps designed to execute the

recommendations derived from the assessment of

readiness during this stage. This component serves as

a strategic guide for implementing measures aimed at

enhancing organisational preparedness.

The assessment framework can also provide

specific suggestions to a company regarding areas

that need improvement, enabling the company to

formulate a plan for the future. Subsequently, the

company has taken steps to implement the

recommendations outlined in the to-do list presented

in the assessment report as a preliminary measure

before executing its business strategy.

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261

4 CASE STUDY

As DBE engagement is adopted as a useful tool for

organisations to achieve value co-creation, hereby we

further identify the key organisational engagement

categories existed in the DBE and elaborate an

approach for organisations to cope with these

challenges and fulfil the organisational readiness in

engaging with DBEs.

4.1 Background to the Case Study

The scenario of the case study is conducted in the

BMW (China), an organisation that already is

engaged in the automotive ecosystem. The choice of

this case is based on the following reasons. First, the

BMW (China) involves interaction between different

entities to collectively co-create values, thus, a good

example of DBE. Second, vehicle DBE is one of the

dominant and a major revenue earner. Hence it

presents a unique domain to obtain results that are

useful to analysis DBE engagement and facilitate the

construction of the architecture of the prototype

framework. Third, the case study of BMW China

offers an opportunity to introduce contrasting insights

into DBE literature.

BMW, which stands for Bayerische Motoren

Werke AG in German (translated as Bavarian Motor

Works in English), is a renowned and prestigious

German automobile manufacture. Founded in 1916,

the company has its headquarters in Munich,

Germany, and has established itself as one of the

world’s leading premium automobile manufacturers.

As a global company, the BMW Group has more than

30 production sites worldwide; The sales network

covers more than 140 countries and regions. In 1994,

BMW Group set up BMW Beijing Representative

Office in China, marking the official entry of BMW

Group into the Greater China market. In 2005, BMW

(China) Automotive Trading Co., Ltd. was

established. In 2003, BMW Brilliance Automotive

Co., Ltd. was established as a joint venture between

BMW Group and Brilliance Automotive Group

Holding Co., LTD. BMW (China) continues to

maintain solid growth momentum in the Chinese

mainland market, and thereafter a typical DBE

chosen for this case study.

Our readiness assessment project received the full

support from BMW (China). With the assistance of

BMW (China)’s Business Senior Consultant, we

were granted access to the essential company

resources required for the assessment. We extended

invitations to personnel at three organisational levels

within the company - senior management, middle

management (department managers), and front-line

employees to participate in evaluating DBE

engagement readiness. This project integrated the

assessment results of the three levels to work out final

assessment scores.

4.2 Data Source and Data Analysis

In this study, the combination of primary and

secondary data will be incorporated into the empirical

research. The data collected were grouped in thematic

categories and analysed. Interview helps investigate

the physical setting, key participants and their actions,

with specific focuses on events, sequence, processes

and emotions. Therefore, interview was conducted

with each participant for understanding the role of

readiness and exploration during the engagement in

DBEs. In this case study, the secondary data will be

incorporated for the main purposes of mapping and

structuring stakeholders’ demands into the model

design. The documentations collected is listed in the

following.

Qualitative analysis technique of interview script

is applied in the case study. Other than quantitative

analysis which merely deals with numerical data,

conducting qualitative analysis obtains information

of demands, intentions, and social norm from users’

feedback. Capturing users’ feedback and analysing it

is based on the dimensions of socio-technical design

(e.g., technical fitness; semantic interpretability;

pragmatic fulfilment; and awareness of social norm).

In complementary, document analysis is utilised

to extract data by reviewing the reports published by

the platforms. This process consists of categorising

data based on their semantic meanings (the business

domain knowledge from previous research will be

incorporated). dimensioning data based on users’

requirements and intentions and presenting data

representations to users and collecting feedback for

further improvement.

The project presented an assessment report to the

readiness of BMW (China) engagement in DBEs. In

general, BMW (China) was found to be not prepared

for engagement in DBEs with an all-encompassing

strategy across the entire organization immediately.

Instead, it was shown that the company adopted a

phased approach. The initial phase could involve

developing a business strategy plan and business

processes that leverage IT infrastructure, aligning

them with the unique characteristics of its products

and services, and soliciting customer feedback. The

management's stance was largely in alignment with

the assessment findings. This study demonstrated the

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practicality of the proposed readiness assessment

framework in the business context.

The assessment framework can also provide

specific suggestions to a company regarding areas

that need improvement, enabling the company to

formulate a plan for the future. For example, we

observed that, despite being one of the largest

automobile companies, BMW (China) had not

established a robust and efficient internal control

system. Our readiness assessment framework

pinpointed this weakness and suggested that BMW

(China) work out an effective internal auditing and

control system before engaging with new business

cooperators. Subsequently, the company has taken

steps to implement the recommendations outlined in

the to-do list presented in the assessment report as a

preliminary measure before executing its business

strategy.

Table 2: The assessment scores and suggestions.

Indicator Score Su

estions after assessment

IN1-1:

Long-term goals

2 Further improve feedback

receving and decision-making

strategies; work out the data and

information standard for

implementing customer

personalization strategy.

IN2-1:

Strategy

FO1-2:

Organisational

structure

2 Enhance the existing payment

system through the development

of a more efficient and transparent

motivation and rewards structure.

FO2-3: Business

process

FO3-3:

Data management

2 Enhance employees’ knowledge

of information technology

AU2-2:

Digital

management

2 Awareness and understanding of

infrastructure change for

enterprise employees

AU1-1:

IT infrastructure

2 integration and difussion of

automated applications

Table 2 illustrates examples of specific weakness

identified and recommendations that were provided

to BMW (China), based on the findings of the

readiness assessment. The effective utilization of the

assessment framework with BMW (China) also

enabled the authors to refine the framework, making

it easier for practitioners to learn and understand.

5 CONCLUSION AND

DISCUSSION

This study proposes a readiness assessment

framework specifically from the perspective of

organisational semiotic to assess organisational

readiness in DBE engagement. Further, a case study

was conducted to demonstrate and test the usefulness

of the proposed assessment framework.

Some limitations are worth noting. First, the

current study is limited to a single case study, BMW

(China) in the mainland China, which may have

limited generalizability. As a result, this sample may

not be adequate to represent China’s automotive

industry, and multi-case study approach is needed to

address this limitation. Second, this research was

conducted within the specific industry and in one

country. However, organisations may differ in

various contexts and application in other contexts

would increase confidence of the research

framework. Further research may also be undertaken

in a cross-industrial setting to test the applicability of

the scale items in a different context, and broader

practical implications for other organizations

considering DBE engagement could be more

thoroughly explored.

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APPENDIX

BMW Readiness Assessment with the ORAM Framework (partial results).

Dimensions Factors Code Indicators

Informal

Part

(IN)

Long-term

goals

(IN1)

IN1-1

The goal of organisational engagement in DBEs is to achieve real-time

control

IN1-2

The goal of organisational engagement in DBEs is to achieve standardized

management

IN1-3

The goal of organisational engagement in DBEs is to achieve transparent

operation

… …

Strategy

(IN2)

IN2-1 The enterprise is very close to the end consumers

IN2-2 The enterprise is clearly positioned in the DBEs

… …

Leadership

(IN3)

IN3-1

Chief executives are involved in organisational engagement strategy

lanning

IN3-2

Financial/account executives are involved in organisational engagement

strate

lannin

… …

Formal part

(FO)

Organisational

structure (FO1)

FO1-1 Standard purchasing procedures

… …

Business

process (FO2)

FO2-1

The enterprise has built clear incentive mechanism across all the whole

enterprise

… …

Data

management

(FO3)

FO3-1 The transaction data can be well documented and analysed

… …

Automated

Part (AU)

infrastructure

(AU1)

AU1-1 The adoption and diffusion of information technology in organization

… …

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