Using Systems Thinking to Illustrate Digital Business Model Innovation

Abstract

Digital business model innovation is discussed by bringing together systemic innovation and digital innovation. Applying the Rich Picture technique, the complexity transpiring in the digital innovation of the business models is illustrated. Further, a real world example is presented and discussed in relation to systemic innovation and digital innovation. This study further contributes by shedding light on the added complexity brought by digital innovation but also the need for a combined and mixed systems thinking approach.

An Intelligent Digital Media Asset Management Model Based on Business Ecosystem

“…Digital media asset management refers to the use of computer technology, network technologies, database technology, mass data storage, and so forth, using scientific theories and methods through the planning, organization, storage, control, development, and utilization activities of digital media assets and the life cycle process of management and utilization activities to improve the use efficiency of assets and maximize asset value. Kurti et al [10] applied the communities of practice approach to establish a knowledge management system and explored the methods of constructing, sharing, and using tacit and explicit knowledge in the community of practice. Lee et al [11] proposed a cultural creativity driving industry collaborative innovation and coevolution framework, discussed how the business ecosystem is based on collaborative innovation through cooperation to achieve cooperative coevolution of different structures and directions to build the generalized innovation process at the ecosystem level, analyzed the process of cooperation in the system, and carried out exploratory research on the OTT platform.…”

Netflix's Strategies, Innovations, and Challenges in Shaping the Future of Television Media

“…Netflix has innovated its business model in order to dominate in the future. According to Kurti et al [4], the first shift was from DVD rental services to content streaming and then to original content production. These shifts brought about changes in all aspects of the business model, including content, governance and structure.…”

“…These shifts brought about changes in all aspects of the business model, including content, governance and structure. Secondly, Kurti et al [4] also pointed out that Netflix's innovations were driven by digital technologies.Netflix has used a wide range of digital technologies in its business model, including online transactions, streaming, and data analytics. Digital technologies have not only changed the way content is delivered, but also influenced the user experience, market demand, and competitive landscape.…”

“…Digital technologies have not only changed the way content is delivered, but also influenced the user experience, market demand, and competitive landscape. In addition, Kurti et al [4] emphasised Netflix's innovative approach to create value for its users.Netflix offers unique content, provides user-friendly interface and convenient subscription model to satisfy users' needs. In addition, they create value by bundling complementarities between different content, distribution channels and users.…”

How Transformative Business Model Renewal Leads to Sustained Exploratory Business Model Innovation in Incumbents: Insights from a System Dynamics Analysis of Case Studies

“…BMs are broadly defined as complex systems [43,[80][81][82], and there is wide recognition that innovations or changes in specific parts of a BM require systemic alignment in others [3,29,83]. However, despite the theoretical recognition, few studies have deliberately deployed a systems thinking analytical lens to understand BMI [84,85]. Nevertheless, the emerging literature has made advancements by proposing tools to help uncover the dynamics behind BMI, suggesting the application of causal loop diagrams, time delays, and stocks and flows [86].…”