Digital Colonization" of Highly Regulated Industries: An Analysis of Big Tech Platforms' Entry into Healthcare and Education. Sloan Management Review.
Abstract:
Abstract: Digital platforms have disrupted many sectors but not yet visibly transformed highly regulated industries. This study of Big Tech entry in healthcare and education explores how platforms have begun to enter highly regulated industries systematically and effectively. We present a 4-stage process model of platform entry, which we term as “digital colonization”:
- provision of data infrastructure services to regulated incumbents;
- data capture in the highly regulated industry;
- provision of data driven insights;
- design and commercialization of new products and services. We clarify platforms’ sources of competitive advantage in highly regulated industries and conclude with managerial and policy recommendations.
Keywords: Big Tech, Digital Platforms, Digital colonization, Platform entry, Highly Regulated Industries, Healthcare, Education, Artificial Intelligence
Authors: Özalp, H., Ozacan, P., Dinckol, D., Zachariadis, M., Gawer, A. (Forthcoming), Sloan Management Review.