The Potential of AI to Enhance the Value Propositions of New Companies Committed to Scale Early and Rapidly

Stoyan Tanev, Tony Bailetti, Christian Keen and David Hudson

Chapter 10 in Artificial Intelligence and Innovation Management, 2022, pp 185-213 from World Scientific Publishing Co. Pte. Ltd.

Abstract: A newly developed value proposition is the best expression of a company’s innovative capacity — its ability to coordinate the combination of resources to develop new products and services, and shape valuable market offers to address specific customer needs. How a new company can use artificial intelligence to innovate by enhancing its value propositions for customers, investors and other stakeholders is not well known. To address this question, we systematically reviewed the value proposition development, business ecosystems, and the artificial intelligence business value literature streams and used the results to develop 182 assertions — statements about what a new company should do to scale its value early and rapidly. We then applied topic modeling to examine the assertions and produce a framework for value proposition development in the context of a new company that wishes to scale its value early and rapidly. Finally, we made explicit the link between a new company’s resources and capabilities in artificial intelligence and the seven elements of the framework. The results suggest that resources and capabilities in artificial intelligence can be used to enhance stakeholders’ value propositions, improve foreign market entry performance, increase customer base, and continuously improve individuals, operations, and infrastructures of new companies. The chapter provides a guide of the business value that AI can offer a new company committed to scale early and rapidly.

Keywords: Artificial Intelligence; Innovation Management; Knowledge-Based Perspective; Decision Making; Entrepreneurial Opportunity; Ai-Driven Innovation; Automation; Research Process Disruption; Value Proposition; Business Scaling; Fair; Inclusive and Anticipatory Leadership; Social Impact of AI; Living Labs; Public Procurement of AI (search for similar items in EconPapers)
JEL-codes: O3 O31 O36 (search for similar items in EconPapers)
Date: 2022
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