Value creation and capture with cloud computing: A theoretical framework

This paper describes research-in-progress that explores the applicability and implications of cloud computing in the creation and subsequent capture of value. The quest for the silver bullet of the attainment of sustained competitive advantage has long featured in business strategy. While cloud computing capabilities have been much lionized, its value implications are still under-recognised in organisations. The cloud computing paradigm may offer a new architecture for fostering new business value propositions. In this research we propose a new 5-4-3-2-1 theoretical framework which is based on a review of the literature on cloud computing, value creation, value capture, value networks and competitive advantage. Taking the framework layer by layer, this paper describes the potential across components capable of offering value for organisations. The main contribution of this paper lies in proposing a framework that seeks to identify best route(s) to value creation and the capture of that value thus providing a visual mapping to enable organisations determine which cloud computing components, implementations, solutions and innovation approach is most suitable for the creation and capture of value.This work was supported, in part, by Science Foundation Ireland grant 10/CE/I1855.peer-reviewe