IT-Driven Business Model Innovation: Sources and Ripple Effects

Information technology enables disruptive innovations, causing paradigm shifts in how companies do business. IT allows companies to break with traditional business models and management thinking. This article explores IT-driven business model innovations empirically by examining how 343 Danish companies use IT to innovate their existing businesses. This systematic review of extant literature using the Business Model Canvas as an analytical framework to answer the research question; how does IT drive business model innovation? Through an exploratory factor analysis this article observes the underlying structure of IT-driven business model innovation, identifying three innovation sources: customers, infrastructures, and supply chains. The three sources demonstrate where and how innovation is most likely to occur, and how it may spread to other parts of the business model. This paper presents a framework for understanding the impact of IT on business models, providing researchers and practitioners with empirically based knowledge on how to leverage IT for business model innovation.