Table Of ContentDEFRAMING
STRATEGY
How Digital Technologies
are Transforming Businesses
and Organizations, and
How We Can Cope with It
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DEFRAMING
STRATEGY
How Digital Technologies
are Transforming Businesses
and Organizations, and
How We Can Cope with It
Soichiro Takagi
University of Tokyo, Japan
NEW JERSEY • LONDON • SINGAPORE • BEIJING • SHANGHAI • HONG KONG • TAIPEI • CHENNAI • TOKYO
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Published by
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Library of Congress Cataloging-in-Publication Data
Names: Takagi, Soichiro, author.
Title: Deframing strategy : how digital technologies are transforming businesses and organizations,
and how we can cope with it / Soichiro Takagi, University of Tokyo, Japan.
Description: New Jersey : World Scientific, [2022] | Includes bibliographical references and index.
Identifiers: LCCN 2021034617 | ISBN 9789811243691 (hardcover) |
ISBN 9789811243707 (ebook) | ISBN 9789811243714 (ebook other)
Subjects: LCSH: Business--Technological innovations. | Organizational change--Management. |
Technological innovation--Economic aspects. | Disruptive technologies.
Classification: LCC HD45 .T349 2022 | DDC 658.4/062--dc23
LC record available at https://lccn.loc.gov/2021034617
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Copyright © 2022 by World Scientific Publishing Co. Pte. Ltd.
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About the Author
Soichiro Takagi is an Associate Professor at
Interfaculty Initiative in Information Studies at The
University of Tokyo. He also serves as a fellow at
the Art Center of The University of Tokyo and a
senior research fellow at Center for Global
Communications (GLOCOM) at International
University of Japan (IUJ). Through his career, he
served as a Professor and the Director of Blockchain
Economic Research Lab at GLOCOM, and an Asia
Program Fellow at Harvard Kennedy School, etc.
His major field is information economics and digital economy, focus-
ing on the relationship among information technology, organizations, and
the economy. He has examined a variety of topics including offshore
outsourcing, cloud computing, open data, sharing economy, digital cur-
rency, blockchain, and digital platforms. He has authored many books and
articles, including Reweaving the Economy: How IT Affects the Borders of
Country and Organization (University of Tokyo Press) and Blockchain
Economics: Implications of Distributed Ledgers (World Scientific, co-
authored). He received the KDDI Foundation Award in 2019. He received
a Ph.D. in information studies from The University of Tokyo.
v
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Acknowledgments
The author thanks all the following experts for inspiring discussions in the
course of writing this book. I obtained precious knowledge on the develop-
ment of platform businesses and the strategies of the software industry
from Professor Marshall Van Alstyne at Boston University, and Professor
Michael A. Cusumano at the Massachusetts Institute of Technology.
I gained knowledge on the latest development of IT business in China from
Associate Professor Asei Ito at The University of Tokyo, and Mr. Takeshi
Yamaya, an IT journalist covering Asia, as well as Ms. Weilin Zhao, a
senior researcher at the Itochu Research Institute. I owe my knowledge on
the development of technological architecture to Mr. Takuya Oikawa, CEO
of Tably, Co., and great insights on value creation and circulation in local
communities to Professor Hideyuki Tanaka at The University of Tokyo and
Chief Digital Officer Yasushi Fujii at Nishiaizu Town. I also thank Ms.
Mayumi Morinaga at Hakuhodo DY Media Partners for their valuable
comments on influencer marketing. I acknowledge that members of
GLOCOM at the International University of Japan contributed to the con-
tents not only by providing information but also by giving me valuable
comments on the contents of the book. I thank Mr. Yasuo Kyobe at
Shoeisha for his acceptance of the publication as well as valuable com-
ments on the contents for the original Japanese version. My sincere grati-
tude goes to Ms. Amirova Nargiza, Ms. Venkatesh Sandya, and Mr.
Balamurugan Rajendran of World Scientific group for the decision of
publication and editorial works for the English version. A part of the book
is based on research supported by JSPS Kakenhi JP15K00460. I thank all
the people involved for their s upport and cooperation.
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Contents
About the Author v
Acknowledgments vii
Introduction xiii
Part I Introduction of Deframing 1
Chapter 1 The End of “Economies of Scale” 3
Definition of Deframing and Its Three Factors 4
Dissolving and Reintegrating Elements Beyond Frames 6
Scaling Specific-Optimization 8
Individualizing Industrial Structure 10
Efficient Resource Allocation as a Fundamental Force 12
Chapter 2 Deframing Mechanism 15
Beginning of the End of Hierarchical Organizations 15
Why Were Corporate Organizations Required? 16
Transaction Cost Theory Defining Organizational Form 18
Companies as Mutual Aid Organizations 20
Disadvantages of Mature Organizations 23
Drastic Reduction in Transaction Costs Through
Technological Evolution 24
Empowerment of Individuals by the Internet 25
ix
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