Tech Innovation and New Age Business Models

Recent technological advancements, such as cloud computing, artificial intelligence (AI), blockchain, and Internet of Things (IoT), have emerged as opportunities for incumbent businesses to innovate and digitally transform their products and processes. Technology innovation is enabling firms to enhance the value that they provide to their customers, irrespective of whether the firm operates in a B2C or B2B context. To capture the enhanced value offered to customers, businesses are modifying their existing business models and adopting new age business models powered by digital technologies. Many firms have switched from a product-based business logic to a service-based business logic owing to the advancements in cloud technology and the concomitant emergence of pay-per-use business models. Further, empowered by cloud technology, digital platforms are emerging as a very prominent form of business model transformation. These digital platforms act as intermediaries, aggregators, and match-makers for provision of products and services in digital markets. Similarly advances in blockchain technology are heralding decentralized business models, based on crypto-tokens and crypto-currencies, which come with the advantage of transparency and provenance. In this chapter, using extant research on technology and business model innovation, and drawing on examples from diverse industries, we discuss these emerging business models in greater detail, and identify their enablers, benefits, and challenges.