A journey towards a digital platform business model: A case study in a global tech-company

Digital platforms force established companies to align their existing, traditional business models with the new digital business environments resulting in business model transformations and digital innovation. We explore the dynamics of business model transformations in established companies by studying a real-life business case at a global-tech company that transforms a traditional business model to a cloud-based digital IoT platform as a multi-sided, industry-wide platform business. We develop a theoretical framework with two compartments; one for observing the changes in core business model components and the other one for identifying the resisting, enabling, and driving factors affecting the transformation process. The interviews with the key informants in the business unit of the company revealed several changes that have occurred in the core business model components. The new subscription-based pricing and sales models significantly changed the way the company creates and captures value. The development and operations of the platform required new know-how and new skills, implying the importance of running the new one as a separate business model. Among other implications, our findings also highlight transformational leadership as a significant driver of business model transformation, which can be supported by establishing a business level market intelligence body undertaking the strategic management up to date in established companies.