Azadeh Shomali

Composition of the Jury

Abstract

Among the most recent digital technologies are the Internet of Things (IoT) and cloud computing. These have given rise to a variety of new business models that have reshaped the business paradigm: product usage has become central, at the expense of ownership. These changes have prompted manufacturing companies to renew their value proposition. Thus, digital technologies have not only become a means of increasing operational efficiency but also a central element of the value offered to customers. Consequently, in many sectors, manufacturing companies are undergoing a complete transformation. There is a lack of knowledge in the literature regarding the changes that would enable an organization to successfully implement digital product and/or service innovations: what is the scope of the necessary changes and how do organizations acquire the necessary capabilities? This thesis aims to address this empirical phenomenon. We focus our research on the process of developing digital services in large manufacturing companies. The scale of the changes required for this process leads us to the concept of business model innovation (BMI). Therefore, we draw upon this body of literature to best define our two research questions. Our literature review revealed that the innovation process of a business model (BM) in large, established companies—that is, how they initiate processes and generate new capabilities—remains to be fully understood. Consequently, we formulate the following research questions: How does the BM innovation process unfold in a large, established company? What organizational capabilities enable BM innovation in such companies? To answer these questions, we conducted exploratory case studies in two manufacturing companies. At a descriptive level, our case studies revealed the nature of the challenges companies face in their digital transformation journey. In this sense, our research can contribute to the literature on digital transformation and digital innovation. At a more theoretical level, our research breaks down the BM innovation process and the associated organizational capabilities, thus contributing to the literature on BM innovation and dynamic capabilities.