Analyzing Digitalization and its Effects on Business Model Innovation

This dissertation investigates the impact of digitalization on business model innovation. It begins with an introduction to the research background, aims, objectives, and questions, followed by a literature review that develops an understanding of digitalization, examines its impact on business models, and determines its benefits and drawbacks. The research methodology section details the research type, design, approach, philosophy, data collection, and analysis methods, including ethical considerations. The data analysis and discussion chapter presents findings derived from secondary sources. Finally, the dissertation offers recommendations and a conclusion summarizing the key aspects of the study, emphasizing the significance of digitalization in modern business environments and its implications for organizational strategy and innovation. The study highlights both the positive and negative aspects of digitalization, offering valuable insights for businesses considering adopting digital technologies.

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

business enterprise and implement the use of the same in order to innovate something, unique,
new and meaningful within the organization. It allows the business organizations to enhance the
customer experience within a business enterprise and engage themselves with the company.
According to Batubara, Ubacht, and Janssen, (2018), it has been determined the
digitalization is playing a major role in improving the operating conditions as well as the
environment within an organization. The digitalization has allowed various organizations
belonging to different industries in reducing the level of unemployment within the nation where
that specific organization operates. The use of technology within different sectors inculcates the
need of employees within the company that helps the organization in effectively using the
implemented technology. Because of the digitalization, now the employees are required to have a
specific skill set within themselves which could help them in getting an employment within a
reputed organization. The individuals have now the opportunity to develop the new and
innovative skills within themselves which could help them in acquiring a reputed position within
a company.
However, the views of Zhao, and et.al (2019), states that though, digitalization has
provided the individuals with a wide range of opportunities to develop a range of skills
associated with the use of technology and use the same in order to gain employment. But, the
implement and excessive of technology and invention has led to decrease or eliminate of the
existing jobs. This has affected the jobs of those individuals whose work or tasks have been
replaced by the technology with different sectors. Therefore, it can be said that due to
digitalization within the companies, it has become essential for the existing employees to keep
working on their skill development in order to retain within an organization or else the company
might replace with the use of technology within the company.
Theme: 3 To determine the benefits and drawbacks of the digitalization with respect to an
organization
According to Shahid, Rappon, and Berta, (2019), there are various benefits of
implementing the use of digitalization within an organization. One of the leading advantage of
implementing the use of digitalization is the improvement in the efficiency and the productivity
of the employees within an organization. The digitalization has allowed the organization to make
effective use of the ERP systems within the company that has led to a great improvement in the
working efficiency of the workforce within the company. The use of ERP allows the workforce

within the company to communicate easily and transfer the data from one department to another.
Also, ease the process of customer transition within the company. All of these features adds up to
the strength of the organization and helps the same in saving their time, funds and resources in
context of the organization.
As investigated by Shahid, Rappon, and Berta, (2019), it has been identified that the use
of digitalization has also helped the several organizations in increasing the transparency within
the company. For instance, there are a number of companies that have started to use ERP or SAP
systems within the organizations. These are accounting software that helps a company in
automatically recording the transactions that takes place within the business enterprise on the
routine basis. With the use of these software, the accountants or other employees within the
accounting department gets to determine the payments that are due, or the clients who have paid
in advance. This access to this information to the employees allows the employees working
within the department to take relevant steps in order to receive the payments that are due and
should have been received by the company till that date. In this way, the implementation of the
digital technology within the company allows the organization to bring transparency within the
business operations.
As per the views of Mustajab, and et.al (2020), it has been determined that the
digitalization has also helped varied organizations in enhancing their customer service as well as
enhancing the experience within the business enterprise. For instance, what would have
happened if the customers used to the support team of a company in order to constantly check
the processing and the location of their specific order with the company. This would have created
a blunder and might lead to creation of mismanagement within the company. But, fortunately,
the companies have been using technology in order to automate a number of business processes
as well as their operations. The customers of the company have the opportunity to track their
location of their order using the GPS and the links provided by the organization to the customer.
This helps the company in improving the customer experience with the company. Another
advantage to the customers within the retail sector is that while shopping online, the business
websites provides the customers with insight about the product. This means the customers can
easily check whether the specific product is available with the company or not, how many pieces
of a specific product are available for the customers. The access to this information helps the
customers in determining whether the organization has sufficient inventory or not.

According to Allam, (2018), it has been determined that, the increased of technology with
a business enterprise has also lead to certain disadvantages. One of the leading drawback with a
company can be seen as the loss of jobs of existing employees with a business firm, With the
technological advancement, most of the existing jobs within the business enterprise have been
found to be replaced by the technological inventions within the company. The technological
within the business organizations is constantly evolving within the business environment and is
automating a number of business operations that are carried out manually within the company.
This has led to a threat of the employment of the existing employees and as their jobs are being
replaced by the technology. Therefore, it has become essential for the workforce to keep learning
new skills on the basis of key trends within market in order retain their positions within the
business enterprise.
As per the views of Golosova, and Romanovs, (2018), another major setback of
technology within the business enterprise is the threat of cybersecurity and data privacy within
the companies. The increasing use of technology within a business enterprise has created the
threat of cybersecurity as many hackers can make use of certain software and may hack the
sensitive data that holds importance with respect to an organization.
CHAPTER 3 RESEARCH METHODOLOGY
The research methodology can be defined as the practical process of the particular research
study. Basically this is the practice which is used by the researcher to systematically design the
entire research study for ensuring the meaningful and reliable outcomes which helps in achieving
the objectives of the research study. The overall research methodology chapter justifies the
choices of the design which is shown by method which are been chosen by the researcher
according to the aims and objectives of the research study.
Research Type-
Research type is the different method which is used by the researcher for conducting the
research study. The researcher chooses the type of the research on the basis of the aims and
objectives of research study. There are two types of the research such as qualitative as well as the
quantitative research type. Qualitative research is the method which mainly focus on the
interpretative and the naturalistic approach conducting the specific research study. This type of
research involves the collection, analysing of the non-numerical data such as video, text and
many more for understanding the deep concepts, experiences as well as the opinions for better

outcomes. The quantitative research is the process which involves collection and analysing the
data which is in numerical form. This type of the research is used for finding the patterns as well
as the averages, making the predictions and bringing the effective outcomes for the large
population. The research type which has been used in this research study is qualitative research
method. Using this type of research, it helped in saving the money, enables the researcher to
understand the attitudes and behaviour of the people regarding the specific and relevant topic.
The qualitative research method has helped in effectively understanding the views of the people
regarding the topic fore which the research study is conducted, qualitative is important type for
the completion of the study, here researcher has focused on thematic data which is collected with
the help of observation of viewpoint of participant or people chosen in the study, qualitative
focus on careful observation of the viewpoint of each individual and provide final result
accordingly.
Research Design-
Research design can be described as the strategy which the researcher uses for combining and
integrating the various elements of the research study in the logical as well as coherent manner.
This enables the researcher to conduct the overall research study of the unknown topic but in the
systematic approach and structure. Research design is basically the simple structural framework
including very research methods and techniques which is chosen by the researcher. There are
three types of research design such as exploratory, descriptive as well as case study. The
exploratory research design is conducted for the research problem that is the situation when the
researcher does not have the past data for conducting the research study. Descriptive research
design is the type of the design whose main purpose is to acquire the information for
systematically defining the phenomenon condition as well as the situation. Case study is the type
of the research design which can be defined as the approach which is used by the researcher to
conduct the deep understanding of complex context. For the completion of the study, researcher
has considered descriptive research design allowing researcher to consider in depth details and
proper analysis of the study, descriptive research design simply means researcher will consider
going into in depth detail of situations using research material, here researcher carefully collect
data, analyse those particular data and provide final presentation in effective manner.