ABSTRACT
Digitalizing infrastructure poses specific challenges. Digitalization of physical assets structured as a network requires to install sensor and meters to recreate a digital twin in the data layer and transform assets into smart networks. Data becomes the raw material for the algorithms to automate different functions. Digitalization enables cost reductions in the design, construction, maintenance, and operation of the infrastructure. However, it also enables the transformation of traditional infrastructure based markets into multi-sided markets organized by digital platforms, the new players in the data layer. Digital platforms have the ability to create new network effects on top of the traditional physical assets. New players can disrupt traditional infrastructure managers by displacing them in the role of coordinators of the whole industry. This is the dilemma digitalization poses in the network industries.
