Zeitschrift für internationale Wirtschaftsforschung

1544-0230

Abstrakt

A Review on Digitalization is Transforming Business Models

David Kiwebe

Through the use of Internet of Things (IoT) technologies, extensive data interchange, and predictive analytics, digitalization is transforming how business is performed within industrial value chains. However, technology innovation is insufficient to profit from digitalization; business model innovation, such as the transition to advanced service business models, is required. However, there are major study gaps in understanding how industrial organisations might use digitization to improve their business models for long-term sustainability. Challenges relating to value creation, value delivery, and value capture components of business model innovation, as well as how alignment of these components drives sustainable industry initiatives need to be better understood. A digital business model is a way of creating value by employing digital technologies to produce customer benefits. The goal of the digital solution is to provide a substantial benefit for which clients are prepared to pay a premium. The development of new, distinctive concepts supporting an organization's financial viability, including its mission, as well as the mechanisms for bringing such concepts to fruition, is known as business model innovation. Because of the digital disruption, business model lifecycles have been reduced, and innovation has become critical to financial success.

: