Impact of Digitalization on Business Model Innovation

DISSERTATION

Table of Contents
CHAPTER-1 INTRODUCTION.....................................................................................................3
Research Background .................................................................................................................3
Research aim and objectives........................................................................................................3
Research questions.......................................................................................................................3
Overview......................................................................................................................................4
Significance of the Study.............................................................................................................4
Rationale .....................................................................................................................................4
Structure of the thesis...................................................................................................................5
CHAPTER-2 LITERATURE REVIEW .........................................................................................5
Theme: 1 To develop an understanding towards the concept of digitalization (780)..................6
Theme: 2 To examine the impact of digitalization on the business model innovation (780)......8
Theme: 3 To determine the benefits and drawbacks of the digitalization with respect to an
organization .................................................................................................................................9
CHAPTER 3 RESEARCH METHODOLOGY............................................................................11
Research Type-..........................................................................................................................11
Research Design-.......................................................................................................................12
Research approach:....................................................................................................................13
Research philosophy:.................................................................................................................13
Data collection:..........................................................................................................................14
Data analysis:.............................................................................................................................15
Ethical consideration:.................................................................................................................16
CHAPTER 4 DATA ANALYSIS AND DISCUSSION...............................................................16
CHAPTER:5 RECOMMENDATIONS.........................................................................................24
CHAPTER-6: CONCLUSION .....................................................................................................26
REFERENCES..............................................................................................................................28

CHAPTER-1 INTRODUCTION
Research Background
In the recent era, it has been identified that the advancement of technology is taking place
rapidly across the globe. The use of technology is increasing day by day and is becoming an
essential part of each and every department within an organization. The use of technology in
different sectors and within different organizations has made the working of the employees
comparatively easy as compared to the time when each and every task within an organization
was done manually without use machines (Cijan, and et.al 2019). But, now, with the
advancement of technology across the globe, the organizations have been adapting to new
technologies within their organizations in order to automate a number of operations within the
business enterprise. The use of technology is also allowing the organizations to provide their
customers with innovative products within the market in order to enhance the customer
experience with the product offerings of an enterprise. Also, helps them in reducing their cost of
acquiring labour within the enterprise. Similarly, the present research will study the concept of
digitalization and its impact on the business model innovation within a business enterprise. The
present research will make effective use of the research tools and techniques in order to analyse
the data collected for the purpose of conducting the research.
Research aim and objectives
Aim : "A study on digitalization and its influence on business model innovation"
Research objectives
 To understand the concept of digitalization.
 To identify the impact of digitalization which influences on business model innovation.
 To determine the significance and the drawbacks associated with the concept of the
digitalization within a business enterprise.
 To recommend strategies to bring innovation within an organization.
Research questions
Q.1 What do you mean by digitalization?
Q.2 What are the advantages and disadvantages of digitalization?
Q.3 What is the impact of the digitalization on the business model innovation?

Overview
The present research aims to study the concept of digitalization and how it influences the
business model innovation within a business organization. Digitalization can be described as the
utilization of the digital technologies within a company in order to change the business model
and allow the company to increase their revenue and sales by grabbing the valuable
opportunities. The automation of various tasks within the business processes is a type of
innovation which has helped the business sector in reducing their cost associated with acquisition
of skilled as well as unskilled labour (Jovanović, Dlačić, and Okanović, 2018). This is so,
because, earlier, the organizations used to hire employees for the purpose of carrying out each
and every activity within the company. However, the technological advancement has allowed the
companies to automate their operations by implementing the use of technology and eliminate
those employees from the company whose work can be easily done with the help of software.
Therefore, the present research will aim to determine the impact of the digitalization on the
business model innovation.
Significance of the Study
The present research will be helpful for different types of business organizations within
different industry in determining the need of digitalization. The findings of the research will
include both the negative and the positive aspects of the research with respect to the
digitalization (Rachinger, and et.al 2018). This will allow different organizations to determine
their own decision, i.e., whether they want to opt for digitalization within their companies or not.
The findings of the research can form a basis for the companies while deciding their course of
action in context of digitalization and the role it has on the business model innovation.
The present research will also be of great help for the research scholars who wants to
further research in a subject that is similar to the current topic of the research that is specifically
based on the concept of digitalization. Similarly, the present research will also help the
employees in enhancing their skill sets by identifying the areas which are increasingly
automating within the companies and therefore, develop certain skills within them which could
them in gaining a good position within their respective professions.
Rationale
The digitalization is adopted by a range of business organizations all over the world,
some has been greatly befitted with the use of technology within their enterprises while

employees of company might have felt discouraged with the use of technology. This is so,
because, bringing automation within the company creates problems for several employees
because now the organization do not have any requirement of those employees in the company.
Therefore, the major reason behind conducting the study is to determine how digitalization and
innovation has multiple meanings associated with its use within a business enterprise.
Structure of the thesis
The present research has six chapters. The first chapter is introduction which includes the
aim, objectives, research questions with respect to the study. It also provides a research
background, the significance and rationale behind conducting the research. The second chapter
will be based on the Literature review. In this chapter, certain themes are formed on the basis of
the subject of the study and information collected through secondary sources is used. The third
chapter id the research methodology (Parida, Sjödin, and Reim, 2019). It includes all the relevant
methodology associated with conducting the research. This chapter states the type of research,
the techniques that will be used to analyse the data, approach and philosophy to research, the
way in which the data will be collected, the ethical considerations associated with the study and
various other such important aspect of the study. The fourth chapter is based on the data analysis.
In this chapter all the data collected using secondary sources will be taken into consideration and
will be analysed in order to form relevant conclusions. The fifth chapter is the recommendation
and conclusion in which the recommendations with respect to the subject of the study will be
provided and a conclusion will present that includes all the key aspects of the study.
CHAPTER-2 LITERATURE REVIEW
Literature review can be referred to as an overview of major writings and other relevant
sources of information with respect to the subject to the study. The literature review section of
research includes the writings from different types of sources such as journals, authors, books,
websites, articles, government reports etc. Similarly, in the present research, the literature review
will include evaluation of each source from where the data has been gathered with respect to the
concept of digitalization and the ways in which the digitalization affects the business innovation
model within an enterprise. The literature review helps the research scholars in determining
different types of inconsistencies with respect to the subject of the research. The inconsistencies
include the gap in the research conducted previously, identify the conflicts within the previously
conducted studies, determine the questions that left unanswered from other studies. The current

literature review will also help the research scholars in determining the additional needs in order
to conduct a research.
Theme: 1 To develop an understanding towards the concept of digitalization (780)
According to Parida, Sjödin, and Reim, (2019), digitalization can be defined as the
utilization of technologies within a business enterprise for the purpose of changing a business
model and enhance the sales and revenue of the company. The use of digital technologies within
an enterprise has made the working and operations of the workforce easier than compared to the
times when there was a need for them to work manually and still accomplish each and every task
on time. The use of technology has made it easier for the organizations to accomplish their
routine tasks and meet the deadlines by efficiently carrying out the required responsibilities
within associated time frame.
As investigated by Blštáková, Jand et.al (2020), the technological advancement is taking
place within different fields, organizations and industries. The use of technologies within these
sectors have increased the productivity of each sector and also helped all the sectors with their
growth and development. The different types of technologies within different sectors plays
different roles and have different impacts on the performance of the company. The organizations
falling under the category of retail industry makes effective of digital tools such as inventory
management software that helps an organization in managing the stock and help them in
managing the orders within the enterprise and track their prices accordingly. The use of
digitalization within the retail sector has also provided the customers with online website with
respect to a specific business enterprise that allows the customers to buy and purchase anything
and everything while sitting at their homes. This has led to an increase in the satisfaction of the
customers with respect to a specific organization.
Author presented that technology is also effectively used within the hospitality sector in
order to provide its customers with enhanced experience. The hospitality industry makes use of
Internet of things technology within their hotels and offer their guests with innovative features
and technologies within their hotels. According the views presented by author, the hotels within
the hospitality industry makes use of digital technology in several ways. It includes contactless
payment solutions, website chatbots, mobile check in, keyless entry systems, wifi infrastructure,
voice control, virtual augmented reality, automated property management systems, face
recognitions, robotics and energy saving technology within their hotels in order to provide their

customers with innovative features which helps them in engaging them with the hotels and
enhancing the customer experience within the industry. It has been identified that due to the
outbreak of Covid 19, the hotels all over the world have implemented the use of keyless door
entry within their hotels in order to ensure the health, safety and hygiene of the customers. The
hotels provides the customers to open their doors by using their mobile phones and make use of
face recognition tools in order to open the doors. Therefore, opening doors of the hotels by using
cards will soon become a thing of the past. Similarly, now the hotels provides their customers
with their own website through which customers can book their stays within the hotel, reserve
their tables for a dine in experience, check the availability of the rooms on the date on which the
customer wants to visit the hotel and stay. All of these things can easily be done by the
customers with the comfort of their homes. The specific websites of each hotel or any other
accommodation facility also provides their customers with chatbots facilities. The chatbots are
automated tools on the website which communicates with the customers, takes their feedbacks,
identifies issues if there are any that needs to be addressed by the hotel. These chatbots also helps
the hospitality industry in determining the issues faced by the clients and then taking relevant
steps in order to mitigate the impact of such issue and also implement strategies in order to
eliminate the same from the hospitality industry.
Parida, (2018) investigates that the health care sector has also implemented certain
technologies within their health care facilities in order to automate a number of operations within
the hospitals and increase the efficiency of the health care facilities provided to the patients. In
today's times, there are various medical technologies such as 3-D printing, artificial organs,
virtual reality, health wearables, robotic surgery and many more which has made several
functions easy for the health care professionals and also helped the patients in increasing the
level of satisfaction with respect to receiving the respective treatments. Even though, the
technology has provided different sectors with a varied number of benefits. Caputo, and et.al
(2021) argues that there are negative consequences of digitalization with respect to a business
enterprise. The excessive use of digital tools within a business enterprise has led to a lack f
interpersonal communication between the business the client.

Theme: 2 To examine the impact of digitalization on the business model innovation (780)
As presented by Caputo, and et.al (2021), it has been determined that the business model
innovation refers to the evolution of new, incomparable and innovative concepts that helps a
business enterprise in enhancing their financial feasibility. The business model innovation
includes the missions, values, and other important and innovative concepts within the
organization in order to enhance the operations and functioning of the business organization.
As per the views of Burchardt, and Maisch, (2019), it has been identified that it is
essential for the business enterprise to effectively determine the needs and wants of customers
within the market that are associated with their industry. Also, the organizations should be able
to determine the needs and wants of the customers and use them as an opportunity to increase
their customer base. The organizations should make effective use of technology within
organizations and use the same in order to address the problems of the customers by bring the
use of technology within the same. If an organization lacks the ability to bring innovative ideas
and concepts to its customers, then there might other companies who will cater to the needs of
the customers within the market and attract them towards the business of the company. Similarly,
the organizations such as Amazon and Netflix are now in a position from where they are unable
to bring innovation within their apps. But, there is a possibility that the new business
organizations come up with new technology within the market which provides the customers
with innovative features that caters to their needs.
According to Velinov, and et.al (2020), the digitalization in today's world in impacting
each and every aspect of a business enterprise, not only the way in which companies bring
innovation to the table. Most of the innovations that are provided to the customers within the
market, are a result of digitalization across the globe. According to Ungureanu (2021), it has
been determined that the digitalization affects the innovations in the following ways. As the
organizations come up with innovative products and services within the market, the number of
digital components with those products also increases. For instance, the innovation may allow
the customers to control a product even from remote places with the use of technology. The
customers might be able to track the product, determine its delivery status. Similarly, an example
of the process of innovation within a process might include working in a team for the purpose of
innovating something new and unique within the market while working from different places.
These aspects allow the business and companies to adopt the use of technology within their