Discovering digital business models in traditional industries

Abstract

Purpose: The purpose of this paper is to provide managers from traditional industries with a blueprint to systematically analyze and discover digital business models and, thus, better cope with the digital transformation of their industrial businesses. Design/methodology/approach: The proposed blueprint is built on state-of-the-art research on digital business model innovation and a rigorous taxonomy-building approach. The process is demonstrated through a simplified case study of a passenger transport company. Findings: The process involves three steps: identifying existing products and services, deconstructing business models and discovering new configurations. The managers from the case company very positively evaluated the efficiency and effectiveness of the proposed procedure. Originality/value: The proven methodology relates the generic components of digital business models to a specific firm’s context, listing the solution space for each relevant dimension. The resulting framework aids in better understanding the existing business models and serves as a tool for the systematic discovery of new models.