Original title: Digitalization and its influence on business model innovation
Digital tools can help companies create new products and services, work with other companies, and connect with customers and employees in new ways. The researchers interviewed 12 people in media and automotive firms. They found that a company’s current offer and its place in a network of businesses shape which digital changes seem possible. Both industries also face challenges around staff skills and what their organizations can manage.
Imagine a group of shops deciding what new services to offer. A shop that already has certain products and partners cannot easily make every change another shop can. In this paper, each shop’s current offer and place among business partners stand for a company’s value proposition and value network; those shape which digital changes seem possible.
Digitalization can change what companies offer, how they create value, and how they earn from it. The study suggests that media and automotive firms do not face the same options: their existing offers and roles in business networks shape what they can try, while staff skills and organizational capacity remain challenges.
The abstract reports interviews with 12 key informants from two industries, so it does not establish that the findings apply to all industries or companies. It does not describe specific digital tools, detailed examples of business model changes, or measured effects on business performance.
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Digitalization and its influence on business model innovation — Michael Rachinger, Romana Rauter, Christiana Müller et al. — Journal of Manufacturing Technology Management — doi:10.1108/jmtm-01-2018-0020
Abstract licence: CC BY
Explanation generated by Synthesis from the abstract — it is not the original paper.