2018 International Conference on Computer, Communication and Network Technology (CCNT 2018) ISBN: 978-1-60595-561-2 Building a Digital Value Co-Creation Circle of Service Innovation: The Largest Taxi Fleet in Taiwan Chia-hui YU 1,* , Chia-chang TSAI 2 and Kuei-kuei LAI 1 1 Department of Business Administration, Chaoyang University of Technology, Taiwan 2 Institute of Technology, Innovation & Intellectual Property Management, National, Chengchi University, Taiwan *Corresponding author Keywords: Value Co-Creation, Service innovation, Digital platform. Abstract. IT rises a digital war in the world and effects the revolution of business model in the firms. The firms need to co-create value with customers in the digital platform to enhance performance to face the competitiveness. The main goal of this study is to discuss the value creation circle in the digital platform and explore the crucial reasons about how can the value creation circle can recycle without seldom investment and budget. In this study, we use case study as the research method, and chose the Taiwan Taxi corp. as the main object of our research. Then, we also analyze the data base from Google Analytics to improve the quantifiable evidence. We demonstrate two main conclusions, first of all, to create the network externality by the growth members, and the second one is to continue to enhance service quality to added value in the digital platform. In academic contributions, we first supplement the related research in the digital market studies and renew the content of the value creation. Moreover, we also illustrate a new perspective of the digital value creation circle which is different from the value “chain” concept. It can build up a positive value circulation in the digital platform by network externality and added value. Introduction As the digital information technologies (IT) develop dramatically and change the e-commerce business model. The market will not be bounded by the distance in the internet. The competitors come from the whole world and join into the digital war. The situation brings the evolution of the digital content market in network and digitalization technologies, providing various information and services [5]. Because of the features of these burgeoning technologies, the digital content market grows speedily and traditional content providers need to deal with the service transformation decisions [5]. Therefore, information technology plays the critical role and has the potential power to transform industries through the creation of new digital products and services [6]. The managers have to create their advantage and build up the core value in their firms. The company enhance their entire process to create their products which are changed by information technology and provide to create value for their buyers. The value chain is embedded in value system which is a larger stream of activities in a company [15]. Value chain in a company includes upstream suppliers and downstream clients [17]. They will encourage their customers to become active participants in the design and development of personalized products, services and experiences to co-create value with the firms together, and the cooperation model is an emerging business, marketing and innovation paradigm [10]. Linkages plays a critical role in value chain which connect value activities inside a company and create interdependencies between its value chain and those of its suppliers and channels [15]. IT and Internet are especially playing a relevant role in this area and include radical innovation in their new approach. Therefore, it is a real challenge for traditional industries because of achieving a clear and differentiate product and providing adequate services in order to ensure value and customer fidelity. 311