Business model innovation in telecommunications: Insights from Ericsson's evolution
Challenge of adapting to digital innovations: In a world where technology rapidly evolves, companies like Ericsson are challenged to capture value from new innovations. Traditional product-centric business models fall short in an era dominated by AI and 5G. Dr. Pettersson’s dissertation explores Ericsson's transition to service-based and collaborative business models, essential for harnessing new technologies for sustained growth and maintaining a competitive edge.
Exploring Ericsson's transformation: “Charting the Uncharted” adopts a case study approach, closely examining Ericsson's strategic shift. It analyzes the transition from a product-centric to a service-oriented business model, focusing on performance-based and software-as-a-service (SaaS) offerings. The research also investigates Ericsson's move towards collaborative business models, creating innovation ecosystems and expanding market opportunities, critical for success in a technology-driven business environment.
Key research findings:
- Ericsson's shift to service-oriented and collaborative business models effectively harnessed the potential of AI and 5G.
- This transformation enabled new value propositions and revenue streams.
- The business model innovation process strengthened Ericsson's position in a fast-changing technological landscape.
- Building collaborative ecosystems allowed Ericsson to access new markets.
- The change highlighted the need for continuous adaptability and strategic flexibility.
The future of industrial business model innovation: This dissertation indicates a paradigm shift for industrial companies like Ericsson in the face of advancing technologies. It highlights the imperative of ongoing business model innovation, focusing on service-oriented and collaborative approaches for effective value capture. The findings suggest further research on the integration of AI and 5G in diverse business scenarios, providing a rich field for future studies in digital transformation and innovation.