IDEAS home Printed from https://ideas.repec.org/a/cbu/jrnlec/y2023v6p242-250.html
   My bibliography  Save this article

From Tradition To Transformation: The Role Of Digitalization In Advancing Business Model Innovation

Author

Listed:
  • TOHANEAN DRAGOS

    (THE BUCHASREST UNIVERSITY OF ECONOMIC STUDIES)

  • SANGEORZAN LIVIA

    (TRANSILVANIA UNIVERSITY OF BRASOV)

Abstract

This study examines the impact of digitalization on business model innovation within the automotive industry, comparing traditional manufacturer BMW with electric vehicle pioneer Tesla. The research explores how digital technologies catalyze transformation in legacy companies and enable innovation in new entrants. Utilizing a comparative case study methodology, this paper analyzes the strategies employed by both companies to integrate digitalization into their business models. For BMW, the focus is on digital transformation initiatives and their integration with traditional automotive manufacturing. Conversely, Tesla is evaluated on its digital-native approach that disrupts the conventional market landscape. This study employs a mixed-methods approach, collecting both qualitative data from interviews with industry experts and quantitative data from market performance metrics. Findings suggest that digitalization offers diverse pathways to innovation, with BMW capitalizing on efficiency gains and incremental innovation, while Tesla leverages its digital core for radical innovation and market differentiation. The study contributes to the discourse on digital transformation by highlighting the need for a nuanced understanding of how digitalization can be harnessed for business model innovation. This is crucial for traditional companies aiming to remain competitive and for newcomers seeking to disrupt the industry. The implications of this research extend beyond the automotive sector, offering insights into the digitalization processes applicable to a wide range of industries facing similar transformative challenges.

Suggested Citation

  • Tohanean Dragos & Sangeorzan Livia, 2023. "From Tradition To Transformation: The Role Of Digitalization In Advancing Business Model Innovation," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 242-250, December.
    • Handle: RePEc:cbu:jrnlec:y:2023:v:6:p:242-250
    as

    Download full text from publisher

    File URL: https://www.utgjiu.ro/revista/ec/pdf/2023-06/26_tohanean.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dragoș Tohănean & Loredana Nicoleta Zainea, 2019. "Entrepreneurial Challenges through Innovative Business Models – A Sigma Approach," Journal of Emerging Trends in Marketing and Management, The Bucharest University of Economic Studies, vol. 1(1), pages 172-181, November.
    2. Sorin George Toma, 2008. "SOCIAL RESPONSIBILITY AND CORPORATE CITIZENSHIP IN THE 21th CENTURY," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 10(23), pages 80-85, February.
    3. Sorin George Toma, 2006. "From quality to the corporate social responsibility," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 8(20), pages 145-149, June.
    4. Sorin-George Toma & Shinji Naruo, 2009. "Quality Assurance in the Japanese Universities," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 11(26), pages 574-584, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sorin-George TOMA, 2023. "Enzo Ferrari, A Successful Industrialist And Entrepreneur," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 8(2), pages 125-131.
    2. Toma Sorin-George & Gradinaru Catalin & Modreanu Andra, 2023. "The Evolution Of The Digital Economy In Romania In The Period 2019-2022," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 205-210, December.
    3. Gabriela ANDRISAN & Andra MODREANU, 2023. "The Role Of Innovation In A Sustainable Business Model: The Case Of Allegorie," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 8(1), pages 6-13.
    4. Sorin-George TOMA, 2023. "Whisky, A Tasty Business," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 8(3), pages 28-34.
    5. Sorin-George Toma, 2024. "The Largest Global Retailers in the COVID-19 Pandemic Period 2020-2021," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 542-548, August.
    6. Andra MODREANU & Gabriela ANDRISAN & Magdalena PLATIS, 2023. "Corporate Social Responsibility Leadership," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 8(2), pages 25-36.
    7. Toma Sorin George, 2023. "Corporate Strategy And Business Strategy," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 82-88, June.
    8. Gabriela-Nicoleta Andrisan & Andra Modreanu, 2024. "Sustainability in Business Models: The Case of MUD Jeans," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 370-377, August.
    9. Sorin-George Toma, 2024. "America’s Most Innovative Corporations in the Period 2022-2023," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 549-554, August.
    10. Toma Sorin-George, 2023. "How The World'S Most Innovative Countries Evolved In The Period 2020-2022," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 138-143, June.
    11. Sorin-George Toma, 2023. "The Evolution of the World Motor Vehicle Production in the Period 2018-2022," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 175-179, December.
    12. Gabriela-Nicoleta Andrisan & Andra Modreanu, 2024. "Advantages of Industry 4.0: Case of Pashion Footwear," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 378-383, August.
    13. Sorin-George Toma, 2023. "The Age of Agile Enterprises," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 822-828, August.
    14. Modreanu Andra & Toma Sorin-George & Gradinaru Catalin, 2023. "A Different Approach Towards Social Media: Chinese Young Consumers Behaviour Insights," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 227-233, December.
    15. Cornelia Nistor & Radu Herman, 2020. "Sustainable tourism as an essential factor of economic growth and local development in the sustainable economy," Manager Journal, Faculty of Business and Administration, University of Bucharest, vol. 32(1), pages 60-77, December.
    16. Gabriela Andrisan & Andra Modreanu, 2022. "Achieving Business Success in the Fourth Industrial Revolution: The Case of Procter & Gamble," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 482-490, September.
    17. Andra Modreanu & Sorin-George Toma, 2023. "A Brief Analysis Of Social Media Brand Content And Strategy During The Covid-19 Pandemic," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 234-239, February.
    18. Andra Modreanu & Gabriela Nicoleta Andrisan & Maria-Alexandra Sarbu, 2021. "Corporate Social Responsability: An Overview," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 359-368, August.
    19. Sorin-George Toma & Andra Modreanu, 2022. "Competing for Dominance in Global Banking," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 227-233, Decembrie.
    20. Stefan-Alexandru Catana & Sorin-George Toma & Catalin Gradinaru, 2022. "The Product Life Cycle And The Boston Consulting Group’S Growth- Share Matrix In Marketing Simulations," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 319-324, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbu:jrnlec:y:2023:v:6:p:242-250. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ecobici Nicolae (email available below). General contact details of provider: https://edirc.repec.org/data/fetgjro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.