Was jetzt zu tun ist, Roland Berger Strategy Consultants and BDI, Munich, Berlin, February. The final sample consisted of n= 10 companies and n= 12 interviews, of which six were from the automotive industry and six from the media industry. The units of analysis were defined according to the research questions, to identify relevant statements on the influence of digitalization on a firm’s BM and how the firms handled the influence of digitalization on their BM and its respective building blocks. Although research on entrepreneurial intention and business models is gaining attention, there is still a large knowledge gap on both fields. Visit emeraldpublishing.com/platformupdate to discover the latest news and updates, Answers to the most commonly asked questions here. Interview respondents A2 and A6 reported that new partners had been acquired due to digitalization. (2005), Qualitative Sozialforschung, Eine Einführung, Rowohlts, Reinbeck bei Hamburg. “I love creating customer value by combining business … Porter, M.E. All automotive industry interview respondents perceived the influence of digitalization on the BM. Digitalization … Teddlie, C. and Yu, F. (2007), “Mixed methods sampling. Recent theoretical approaches were applied to explore digitalization and BMI. Was sie bedeutet. While digitization describes the process of the conversion of analogue and noisy information into digital data (Brennen and Kreiss, 2016), digitalization is used to describe any changes in the organization and the organization’s BM due to their increasing use of digital technologies to improve both the performance and the scope of the business (Westerman et al., 2011). The opportunities and challenges companies perceive when changing their BMs, for example, by using digital technologies was discussed. Data analysis: after the coding, the data were analyzed by aligning the empirical results with the theoretical considerations. Interview respondents frequently pointed out challenges in the area of employee recruitment and qualification. 0000005854 00000 n After the first step in the selection process had been taken, the available information on the relevant companies was collected. Digital transformation is requiring companies to rethink and innovate their business models (BMs). Arnold, C., Kiel, D. and Voigt, K.-I. The effects of digitalization were anticipated for a company’s value chain (A6, A4) and for the value network (A6). A contingency framework of business model dynamics; environmental change and dynamic capability, Business Model Innovation: The Organizational Dimension, Oxford University Press, Department of Strategy and Management, Toward a theory of business model innovation within incumbent firms, INSEAD Working Paper Collection, INSEAD, Northeastern University, Business model innovation in business-to-business markets − procedure and examples, Knowledge transfer and R&D in pharmaceutical companies: a case study, Journal of Engineering and Technology Management, Business model innovation and business concept innovation as the context of incremental innovation and radical innovation, Business model innovation − state of the art and future challenges for the field, Mastering the digital innovation challenge, Mixed methods sampling. 16-24. This implies that technologies and BMI are complementary (Chesbrough, 2010). 70 No. 0000002810 00000 n However, in contrast to the automotive industry, respondents thought that digitalization had a strong effect on value proposition and value capture aspects of the BM. Teece, D.J. How Organisations Must Adapt to Changing Customer Behaviour, Ernst & Young LLP, London, July. Mezger (2014) revealed that the businesses’ sensing capabilities are important for detecting technological and market developments, while analyzing BMs in other industries helps to learn about the problems and challenges to be faced. New technology and the advance of digitalization in particular enable us to create innovative technologies, products, services and pioneering business models. These findings echo those of Bouwman et al. Examples that were collected for the generation of additional value through digitalization were the personalization of published content for advertising purposes (M1, M2, M3) and the use of real time data (M3) (e.g. 6, 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). On the one hand, BMI is described as a process (Schallmo and Brecht, 2010; Berglund and Sandström, 2013; Matzler et al., 2013; Foss and Saebi, 2017) for the development of a BM that can be new to the company (Björkdahl and Holmén, 2013; Foss and Saebi, 2017) or an entire industry (Santos et al., 2009; Schallmo and Brecht, 2010; Foss and Saebi, 2017). Was sie bedeutet. Due to the pressure resulting from decreasing profit margins, investments in digital technologies were perceived as attractive (M1). Digital Business Ecosystem as a free, open source and distributed software platform, based on internet technologies, has enabled entrepreneurs specifically the Small and medium entrepreneurs to create, … 11 No. Coupette, J. Furthermore, in the automotive and media industries, the influence of digitalization questions the existing organization, interfaces, infrastructure and capabilities. If the single BM elements and how they change is examined more carefully, the findings of the recent studies have pointed out that the value proposition, internal infrastructure management and customer relationships are mainly influenced by digitalization (Arnold et al., 2016; Kiel et al., 2017). Interview respondent A3 mentioned possibilities to generate revenues by using the experience gained by employees and making use of the generated data. Likewise, Fichman et al. The raising firms’ interest in digitalization is explained by its daily presence and its significant impact on revenue, margin, productivity, and innovation. 102 0 obj <> endobj 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). Digitalization and, later, digital transformation are drivers for changes in the corporate world, because they establish new technologies based on the internet with implications for society as a whole (Unruh and Kiron, 2017). This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Interacting with potential customers today can be like spinning a roulette … 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). personalization of content or real time automatization) particularly requires investments (M1, M6). 58 No. and Afuah, A. These perspectives on digitalization and BMI taken together – in the context of dynamic capabilities – framed the conceptual setting for this empirical study (see Figure 1). 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. An example is internet streaming of media content, which relies on a completely different infrastructure to that of conventional radio and television (M5). cloud technologies, sensors, big data, 3D printing) opens unforeseen possibilities and offers the potential to create radically new products, services and BM (Matzler et al., 2016). 1, pp. A challenge that was identified in that regard was to supply different customer groups with tailored content. Fifteen years of research on business model innovation: how far have we come, and where should we go? 10 No. 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. 0000001662 00000 n During that time, employees were able to adjust to the new circumstances digitalization had initiated. (2017), “The influence of the industrial Internet of things on business models of established manufacturing companies − a business level perspective”, Technovation, Vol. While firms can build a digitization capability, digitalization will happen when there is a significant positive impact in the firm’s business model, otherwise the company has just added costs and lowered its … Was jetzt zu tun ist”, Roland Berger Strategy Consultants and BDI, Munich, Berlin, February. However, according to interview respondent M4, the advantages of digitalization in company processes must be clear in advance in order to implement digital technologies. 30 No. digitalization and business model innovation (BMI) is interesting because the influence of digitalization on the business model (BM) is fuzzy, and the exploitation of technological opportunities – also from a strategic viewpoint – is challenging (Mezger, 2014; Loebbecke and Picot, 2015; Paulus-Rohmer et al., 2016; Bouwman et al., 2017). 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? In total, 10 out of 12 interviews were conducted personally; the rest were conducted via telephone (compare Table I). (2015), “Die digitale Transformation der Industrie. 0000001627 00000 n Findings show that strategy, technology, communication and innovation economics has a favorable influence on a business model and there is a mediation impact of business model practices and the independent variables have a direct effect on management accounting practices. 2, pp. title = "Digitalization and its influence on business model innovation", abstract = "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. (2016), “The impact of the industrial internet of things on established business models”, Proceedings of the International Association for Management of Technology (IAMOT), Orlando, FL, May 15-19, pp. The research was conducted at the firm level; the interviewees, representatives of their respective organizations, formed one unit of analysis (Yin, 2009). requirements regarding content and distribution channel) required heterogeneous teams. Souto, J.E. Journal of Manufacturing Technology Management. 45-52. However, digitalization was described as influencing the execution of these established BMs, acting more as an enabler than a driver (M4, M6). 18 Nos 3/4, pp. 1 INTRODUCTION. Collis, D. (1994), “Research note: how valuable are organizational capabilities?”, Strategic Management Journal, Vol. 102 33 Most of the investigated media companies capture value through approaches like subscription models (M1), advertising and the sale of products (e.g. 43 Nos 2-3, pp. (2015), “How smart, connected products are transforming companies”, Harvard Business Review, Vol. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode. Relationships morph into long-term collaborations to satisfy customer needs. 51 No. Interview respondent M6 stated that the advantage provided by digitalization was the availability of data (e.g. (2013), “Recommendations for implementing the strategic initiative INDUSTRIE 4.0: final report of the Industrie 4.0 Working Group”, Communication Promoters Group of the Industry-Science Research, Frankfurt, April. In this context, the goal of this research was to explore if and how digitalization influences a company’s BM and leads to BMI. (2016) and Berman (2012) also described changes in the offers and, thus, in the value propositions as being the first step taken toward a digital BM. Digitalization is linked in business … In the present explorative study, the companies chosen did not constitute a representative sample but served rather to illustrate the connection between digitalization and BMI in two different industries. Similarly, interview respondent A2 had seen the influence of digital technologies since the early to mid-1990s. 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. 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. For example, one respondent (A1) explicitly mentioned data-driven business as a new aspect for value proposition. 2, pp. The main limitation of this research was the restricted number of informants included in each case study. Hacklin, F., Björkdahl, J. and Wallin, M.W. H��M��0���:z!Q$�������������xG��`9[v{EqȲ��z*3v4���0��5qrYM�QT�'%Ŝ���XP,�*��3�JTm'�(Q���u�T���}���l���p1cD`S���B?�R� The representatives of the investigated companies indicated that they were driven by their media content and showed a tendency to choose content quality over actuality (M1, M3). The importance of digitalization in emerging business ecosystems is increasing day by day. (2015) interpreted the digital transformation as the continuous interconnection of all business sectors and the actor-side adaptation to the requirements of the digital economy, whilst Unruh and Kiron (2017) defined it as the systems-level restructuring of economies, institutions and society that occurs through digital diffusion. Grundlagen und Techniken, Beltz, Weinheim and Basel. Digitalisation and business models 1 2. 1, pp. and Heppelmann, J.E. 40-49. 0000002057 00000 n for online payments), the unfettered functionality of respective technologies needed to be ensured (M1). Bloching, B., Leutiger, P., Oltmanns, T., Rossbach, C., Schlick, T., Remane, G., Quick, P. and Shafranyuk, O. Interview respondent M6 underlined the influence of customer groups. Interview respondents recognized that, by publishing content via digital channels, their companies became more accessible and they potentially created additional value for customers. The ongoing transition of economies, given the increasing embeddedness of digital technologies in general, can be classified as just such a change in terms of technological and markets drivers that influence a company’s BM. A contingency framework of business model dynamics; environmental change and dynamic capability”, in Foss, N.J. and Saebi, T. (Eds), Business Model Innovation: The Organizational Dimension, Oxford University Press, Department of Strategy and Management, Oxford and Bergen, pp. Influences of digitalization on BM elements and their associations with dynamic capabilities. Interview respondents stated that this was because companies need business partners know-how and technologies to develop BMs through digitalization (M1, M2, M3, M4, M5, M6). 22 No. 1, pp. Purpose 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. Chesbrough, H. (2010), “Business model innovation: opportunities and barriers”, Long Range Planning, Vol. However, a major issue mentioned related to the investigated company’s digitalization activities was the handling of the necessary technological solutions (M1). h�b```f``�e`e`��� Ȁ �@16�* &C�-�� % ��ܿp�+1�g�t�r��!��g7���i�����{��=�d$��F����$37y$��wĶE�L� This has also been confirmed frequently: Big Data (new data sources) (Hartmann et al., 2016), automation (changed machine functions), interconnections along the value chain (breakup up of non-transparency) and digital customer interfaces create the foundations for new BMs and potentially restructure the individual sectors (Berman and Bell, 2011; Matzler et al., 2016). Conducted per company except in the digitalization and its influence on business model innovation system were made with that fact implementation level ( Chesbrough, 2010.! Proactive entrepreneurial behavior content ( M5, M6 ) Digitisation of Everything of business. 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