Page - 187 - in Digital Entrepreneurship - Impact on Business and Society

Though businessmodel studies have gained importance, some scholars (Zott et al. 2011) observe that: (i) the definition of a business model is not clear, (ii) the researchers are interested in business models for e-business/digital business and howbusinessmodels are creating competitive advantages, and (iii) researchers are considering a business model as a new unit of analysis and partners play an important role. For industrial businesses, firmsmust develop value creation capa- bilities (such as offering service-based business models, freemium-based sub- scription models) and business models must include contributions from partners. Though industrial businesses are going through technological innovation, they do not guarantee business success; the new product development efforts should be coupledwithanewbusinessmodel tocapturevalue for its customers (Teece2010). Digital technologies have led to the disruption of existing business models (Weill andWoerner2015).Corporatedigital entrepreneurs in innovativecompanies take advantage of new business opportunities and enhance or disrupt the existing businessmodels (e.g., Instagram,aFacebookcompany,disruptedKodak’sbusiness model of capturing, sharing, and storing photography, Lucas and Goh 2009). Similarly, a big retailer, Ikea is implementing digital technologies (augmented reality AR, virtual reality VR, big data analysis, etc.) and developing new customer-centric businessmodels (Milne 2018). Ibarra et al. (2017) suggested four different ways in which digital entrepreneurs in existing companies are trans- forming their business models by leveraging digital technologies: internal and external process optimization by applying digital technologies in existing busi- nesses; improving customer interfaces with digital technologies and offering new business models; developing new ecosystems and value networks by integrating Table 1 Value creation/capture analysis Value models Factors for value creation/capture Traditional businessmodel IoT and technology-based businessmodel Value creation Customerneeds To solve existing problems (reactive) To address the current and future needs proactively Offerings Tomarket products with service contracts Tomarket products as-a-service Role of data Tomaintain customers by collecting data periodically for future product enhancements To enhance customer satisfaction by continuous monitoring of customers Value capture Path to profit To develop andmaintain sales capabilities for one-time sale of the product and service Toenhance sales capabilities for recurring pay-per-use revenue Control points To protect using IP protection, brand values, and customer support To protect using personalization and network effects Capability development To leverage core competencies and existing resources and capabilities Toworkwith alliance partners to develop products andfill the gapswith customers SourceHui (2014) 192 S. Ghosh et al.