2, pp. 5, pp. 0000003560 00000 n At the same time digitalisation is an intensive subject for entrepreneurs, social partners and politicians. While the latter embraces changes on all societal levels, digitalization by means of combining different technologies (e.g. A6 added that digitalization leads to new business relations. (2016) and Kiel et al. Yin, R.K. (2009), Case Study Research: Design and Methods, Sage, Thousand Oaks, CA. The findings of the study show that, whilst digitalization is generally considered to be important, the value proposition itself as also the position in the value network determine the perceived available options for business model innovation (BMI) by digitalization. This is where multi-business model innovation with its business model ecosystem could have a potential positive impact and we conduct a walkthrough of a digital multi-business model innovation tools … 102 0 obj <> endobj Kumar, N., Stern, L.W. Digitalization in sales and distribution was perceived to be of high importance (M4). 0000096927 00000 n Increased digitalization has influenced various business activities including companies’ business models (BMs) by enabling various new forms of cooperation between companies and leading to new product and service offerings as well as new forms of company relationships with customers and employees. 51 No. The main issue, according to interview respondent M6, was the interfaces within a company and to the customer. 0000001892 00000 n The results are discussed more generally in Section 5. Digitized approaches in the distribution of media content were considered to hold merits for consumers, advertising partners and the company itself through increased revenues (M1, M2, M3, M4). A1 and A6 saw a potential to generate revenues with digital products or services. xref Several studies have also described three different ways in which digitalization influences and changes companies and their BMs: optimization of the existing BM (e.g. between different systems or value creation processes) was mentioned as a pressing issue in this regard (M1, M2, M6). These innovations could lead to new forms of cooperation between companies or the modification of relationships with customers and employees (Kiel et al., 2016 referring to Kagermann et al., 2013). 69-75. and Afuah, A. 36 No. (2002), “An eBusiness model ontology for modeling eBusiness”, 15th Bled Electronic Commerce Conference eReality: Constructing the eEconomy, Bled, June 17-19, available at: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.557.8131&rep=rep1&type=pdf (accessed January 2, 2018). Inductive coding of the data gathered: all interviews were coded according to the previously developed coding scheme. Technological innovations … The gap between aspiration and achievement is widening for enterprises attempting digital business … dynamic pricing or pay-by-usage) but, due to customer resistance, few changes are currently taking place (Arnold et al., 2016; Kiel et al., 2017). “Scalability” refers to a SME’s ability to grow quickly without being hindered by constraints imposed upon its business model structure (Lund & Nielsen, The raising firms’ interest in digitalization is explained by its daily presence and its significant impact on revenue, margin, productivity, and innovation. Digital Transformation of Businesses: Driving Digitization and its Influence on Business Model Innovation. The opportunities and challenges companies perceive when changing their BMs, for example, by using digital technologies was discussed. McKinsey Global Survey (2014), “The digital tipping point: McKinsey Global Survey results”, McKinsey Global Survey, NJ, available at: www.mckinsey.com/business-functions/digital-mckinsey/our-insights/the-digital-tipping-point-mckinsey-global-survey-results (accessed January 6, 2018). 0000005854 00000 n Berman, S.J. Digitalization and its influence on business model innovation. Interview respondent M6 stated that the advantage provided by digitalization was the availability of data (e.g. This article investigates the influence of information and communication technology (ICT) on business transformation. 1, pp. Nevertheless, BMs are helpful concepts that represent elements and relationships in business activities for the purpose of planning, communication or improvement (Massa et al., 2017) as they link strategies with business processes (Osterwalder and Pigneur, 2002). This is a complex topic both from a theoretical and a practical point of view, and one requiring more detailed study. In the meantime, customers can receive pervasive access to information via the internet and have multiple channels to choose from (Linz et al., 2017; Berman and Bell, 2011). The choice of this research design was determined by the current knowledge of digitalization BMI, which implies research questions such as those presented above. “Scalability” refers to a SME’s ability to grow quickly without being hindered by constraints imposed upon its business model … Flick, U. Respondent A4 stated the company’s role as a tier-2 supplier as a reason for this. (2017), Radical Business Model Transformation: Gaining the Competitive Edge in a Disruptive World, Kogan Page, London, Philadelphia, PA and New Delhi. 0000006817 00000 n 44 No. @� DFP�s�B -�:`�(3 ��M@��X�t�i#�T&aFc��=ט�3?g�f>���"���ŕ$�,>QR����a�T���Z�:��e����j�1�“As�bPzzd[s�fpJd������ ��@����k �` @��w Additionally, in the context of understanding business digitalization, research on the impact of new technologies within traditional as well as emerging industry sectors such as digital marketing or Industry 4.0, is highly relevant. 0000002057 00000 n In a third step, Bloching et al. Grundlagen und Techniken, Toward a capability-based conceptualization of business model innovation: insights from an explorative study, The ultimate competitive advantage of continuing business model innovation, Business model change concepts – a literature review, An eBusiness model ontology for modeling eBusiness, Ecosystems, strategy and business models in the age of digitization – how the manufacturing industry is going to change its logic, How smart, connected products are transforming companies, The wider implications of business-model research, Business model evolution, adaption or innovation? Third, this is also associated with the historical development of the embeddedness of digitalization in the two industries which form selection criteria. Digitization (i.e. In a second step, appropriate respondents were selected, all of whom were either working in the top management level and had a strategic perspective on the topic or were responsible for digitalization and/or BM development in the business. Interestingly, one person (A4) perceived only minor to no influence on their core BM, whereas another interview respondent (A6) saw its influence on all areas from value creation to value proposition and value capture. Digital technology has forced entrepreneurs to reconsider their business models (BMs). Respondent A1 also saw that challenges were imposed by short technology cycles. New technology and the advance of digitalization in particular enable us to create innovative technologies, products, services and pioneering business models. Likewise, Fichman et al. Digitalization is not just a way to use data to improve performance. 7, pp. Such changes may include the value chain or the value proposition to the customer or other partners of the company (Wirtz, 2011; Matzler et al., 2013). After the first step in the selection process had been taken, the available information on the relevant companies was collected. Matzler et al. These findings echo those of Bouwman et al. Adapting to technology has proved to be a beneficial factor in the graphs of the businesses. 134 0 obj <>stream All automotive industry interview respondents perceived the influence of digitalization on the BM. Three out of six interview respondents (M1, M3, M6) saw digitalization as a way to simplify company processes, produce media content faster and increase efficiency. 0000015855 00000 n Two major aspects to be considered while selecting technologies are the technology cycles within the industry and the ability of a company to finance technological changes. Saebi (2014) stated that companies need to develop dynamic capabilities to be prepared for changes in their BMs. 8-13. 1640015-1-1640015-25. Furthermore, new revenue models are enabled by Industry 4.0 (e.g. This has led to challenging situations in a corporate context: manifold new technological opportunities are perceived, but people are uncertain how to use and implement them simultaneously in terms of product and service offers (Lerch and Gotsch, 2015). Furthermore, in the automotive and media industries, the influence of digitalization questions the existing organization, interfaces, infrastructure and capabilities. Netflix). This result is in line with those of Coupette (2015), Kaufmann (2015), Loebbecke and Picot (2015) and Ernst & Young (2011), who stated that the effect of digitalization can present itself in the form of a reconfiguration or extension of the established BMs. To increase (internal) consistency and explore potential differences between different contexts, the selection was made for the following reasons: first, the companies in the automotive industry operate in B2B-markets, but the companies in the media industry are mostly active in B2C-market. Another further reason is the early influence of digitalization on the media industry and the necessity to deal with that fact. (2011), Business Model Management. 5, pp. Three interview respondents (A3, A4, A6) stated that digitalization had already taken effect in their companies at various times in recent years. 51 No. 0000032595 00000 n Mezger, F. (2014), “Toward a capability-based conceptualization of business model innovation: insights from an explorative study”, R&D Management, Vol. Digitalization has found its way into almost every business today. Foss, N.J. and Saebi, T. (2017), “Fifteen years of research on business model innovation: how far have we come, and where should we go?”, Journal of Management, Vol. Furthermore, digitalization could be seized to support communication and demonstrate added values in products to customers (A5), as well as generally connect customers and sales representatives (A6). 15-21. Dottore, A.G. (2009), “Business model adaption as a dynamic capability: a theoretical lens for observing practitioner behaviour”, Proceeding of the 22nd Bled eConference, eEnablement: Facilitating an Open, Effective and Representative eSociety, Bled, June 14-17, pp. Although digitalization seemed to already be an integrated part of business processes for value creation, one respondent mentioned that his company had not seized all the options and possibilities provided by digitalization (A4). Which are mainly business model innovation ( BMI ) on BMs processes needs to ensured. Et al., 2016 ), digitalization and its influence on business model innovation potential interviewees were contacted revenue and value-producing opportunities of... Data analysis: after the first step in the media industry in Austria and Hungary 2017. Solution packages offered require the modularization of hardware and software, Gabler Verlag, Wiesbaden or analytical processing... 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