The impact of digitalization on business models and innovation

Abstract

Objectives The main objectives of this study were to explore the key components of implementing digitalization into a business model, as well as to analyze the impact has on business model innovation.

Summary This qualitative research applies case study approach using semi-structured interviews and descriptive approach. Five participants were chosen with a management role in the case company, and the participants were chosen by the means of purposive sampling from an internationally operated electronics manufacturing services provider. The data was collected by using in-depth interviews, which were audio recorded.

Conclusions The study suggests that in order for the implementation of digitalized innovations into a business model of a firm to be successful, a coherent and clear strategy should be in place. Additionally, it was found that for the implementation to be successful it is crucial to identify the potential threats and challenges that the organization might face due to the implementation of digitalized practices. The data also shows that the key impacts the implementation of digitalized practices into a company’s business model include increased productivity and performance.