Dynamics of business model transformations in established companies and the role of technological innovations:A multiple-case study in digital factory and healthcare business segments of an established technology company

In the era of digital technologies, the parameters shaping the business environment are changing continuously with an increasing speed. Companies are under pressure to review, change and align their existing business models with the new environments. However, many established companies have tight engagements with their traditional, profitable and functioning business models. As business parameters change, established companies struggle to adapt their legacy business models into the new business environments, because they fear to risk their existing customers, partners, revenues and profits. How the established companies transform their traditional business models over the time, is subject to in depth research. Current study focuses on the dynamics of business model transformations in established companies and aims to identify and map the driving and resisting forces as well as enabling factors throughout the entire transformation process. The study also targets to reveal the role of underlying factors such as technological changes and technical innovations in the process. The research is based on a multiple-case study methodology with a single unit of analysis. Two real-life business cases in a global, multi-national and technology-oriented established company have been studied. The selected cases were from two different business segments; namely digital factory and healthcare. The key findings of this study are expected to guide the practitioners in strategic management and executive roles in the established companies through their transformation projects. The identified variables and presented causal-loop diagrams are expected to inspire the researchers for further research in the business model transformation and strategic management fields.