Realizing digital transformation through a digital business model design process

Business model is an abstract representation of a business description, and is formed to realize the value potential of a business operation. When companies are hoping to become more digital, creation of new business models may get inhibited by the vast amount of opportunities digitalization can bring and lack of streamlined digital transformation processes. Therefore, a structured and practical approach is presented here as a way to coordinate digital transformation. Best practices from business models, innovation processes, and digital businesses are brought together to establish a methodology on digital business model design. The key characteristics of digital business models derived from applying this process are represented through Digital Business Model Innovation Loops, and are validated by looking at digital initiatives in established companies.