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The Whole is Greater than the Sum of its Parts – Synergies between Non-Digital and Digital Business Models within Companies

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Title:The Whole is Greater than the Sum of its Parts – Synergies between Non-Digital and Digital Business Models within Companies
Authors:Toutaoui, Jonas
Benlian, Alexander
Keywords:Practice-based IS Research
business model
digital business model
digital transformation
synergy
Date Issued:07 Jan 2020
Abstract:Digital transformation is increasingly becoming a major concern for established companies. Part of the digital transformation is often the creation of new business models based on digital technologies, which do not replace the established business model but act as additional source of revenue. Two concurrent business models within one company creates the opportunity of synergies between these business models. However, knowledge on interactions between two business models, specifically digital and non-digital, remains in an embryonic stage. This multi-case study, based on companies from various industries and size, addresses this shortcoming. Following the business model canvas and the theories of resource relatedness and complementarity, we show how both business models can propel each other thanks to value and cost synergies between them. Finally, we offer rich insights for practitioners on what type of synergies they can benefit from and present guidelines they can use to identify and unlock these synergies.
Pages/Duration:10 pages
URI:http://hdl.handle.net/10125/64452
ISBN:978-0-9981331-3-3
DOI:10.24251/HICSS.2020.710
Rights:Attribution-NonCommercial-NoDerivatives 4.0 International
https://creativecommons.org/licenses/by-nc-nd/4.0/
Appears in Collections: Practice-based IS Research


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