Digital innovations-driven business model regeneration: A process model

Abstract

The traditional ways of doing business have changed dramatically with the emergence of new digital technologies. Firms can stay competitive using the benefits of digital technologies, such as the Internet of Things, social computing, Cloud computing, cyber-physical systems, big data and analytics, wireless networks, artificial intelligence, robotics, simulation, etc. The spread of the coronavirus disease in 2019 (COVID-19) all over the world has created a better understanding of the importance of organizations’ ability to keep up with digital innovations. Therefore, the regeneration of business models is becoming an increasingly crucial factor for survival in the digital age. This study develops a process model for digital innovations-driven business model regeneration based on the design science research approach. For this purpose, the existing models and cases in the business model innovation (BMI) literature are examined and the empirical data are collected using semi-structured interviews to complement and validate this knowledge. The collected data are then analyzed and a digital innovations-driven business model regeneration method is developed. The proposed model is demonstrated with a real case. This study extends the BMI literature. The proposed process model can be used by strategic managers to analyze the impacts of potential digital innovations on their current business models and regenerate their business model. Therefore, it can help companies to be able to gain a competitive advantage over their competitors or sustain their business against technological developments.