In an era marked by swift technological progress, this research delves into the pivotal role of technology-based innovation in propelling business model transformation. As businesses grapple with the need to stay competitive, traditional models are being reevaluated. Through an exhaustive exploration of case studies, theoretical frameworks, and industry trends, this chapter unravels how technology acts as a potent catalyst for reshaping business models. It dissects strategies and approaches embraced by organizations to seamlessly embed technology-driven innovations into their operational frameworks. The study rigorously assesses the potential advantages and hurdles linked with this integration and offers invaluable insights into the impending terrain of business model innovation within the digital sphere. By critically analyzing these elements, the study contributes to a heightened comprehension of how technology dynamically influences business models, charting a path for future progress, adaptability, and success in a rapidly evolving technological landscape.
Top1. Introduction
In today's rapidly evolving business landscape, the ability to stay competitive is not just a choice; it's an imperative for organizations. The convergence of digitalization, data analytics, artificial intelligence, and connectivity is profoundly reshaping industries and fundamentally altering the way companies operate (Bresciani, 2021; Chin, 2022). In response to this transformation, businesses must not only adapt reactively but also proactively leverage technology-based innovation to foster growth and maintain competitiveness.
Our research is driven by the critical need to highlight the multifaceted role of technology-based innovation in driving product, process, and business model innovation (Bresciani, 2021). It catalyzes reimagining traditional models and exploring new avenues for value creation and delivery. Elia (2022) underscores how technology, when coupled with knowledge management systems, empowers startups to construct innovative business models. In the fiercely competitive technology startup ecosystem, this synergy becomes a vital component, enabling these startups to disrupt industries.
Moreover, our research underlines that technology-based innovation isn't confined to the inception phase; it plays a pivotal role in ensuring long-term sustainability and competitiveness, as demonstrated by Guo (2022). Sustainable business model innovation, driven by technology and dynamic capabilities, emerges as a potent strategy for businesses to remain relevant while addressing societal and environmental challenges. The financial aspect isn't overlooked either, as emphasized by Johan (2021). Leveraging technology and innovation enhances financial competitiveness. In today's digital-first world, organizations that effectively harness technological advancements gain a competitive edge by creating efficiencies and expanding their market reach.
Particularly in the context of startups, technology takes on a stabilizing role, helping them navigate and prosper amid market uncertainties (Khuan, 2023). Startups often operate in turbulent environments, and technology provides them with the agility to adapt and innovate in response to changing market dynamics.
Mancuso (2023) highlights the transformative impact of digital technologies on agri-food business models post-Covid-19. The pandemic accelerated the adoption of technology, illustrating its role in value creation and capture mechanisms. Businesses in the agri-food sector have had to rapidly adopt technology to optimize processes, reduce waste, and meet changing consumer demands. In the context of Industry 4.0, as highlighted by Pietrewicz (2019), the synergy between technology and business models is unmistakable. In a landscape characterized by advanced automation and data exchange, technology not only improves operations but also becomes a source of competitive advantage. Smart factories, IoT-connected devices, and data-driven decision-making are revolutionizing industries.