The effect of digital transformation on the business models of solutions providers: A perspective on South African firms
Date
2023-08
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Witwatersrand, Johannesburg
Abstract
In this interdisciplinary study, we examine the global shift of commercial models from ownership to as-a-service in technology, which forms the foundation for the solutions provider product and service capabilities. The democratisation of digital technology access paves the way for new players and diverse competitors in their landscape. Investigating deeper, we uncover four dimensions—servitisation, entrepreneurship, sustainability, and open innovation—that exert significant influence on the business models of South African the solutions provider. The research problem gains meaning through the lens of the dynamic capabilities framework. Rooted in social constructivism, the researcher explores interactions and connections that foster the creation of knowledge and meaning. To understand the solutions provider category comprehensively, the researcher conducted one-on-one interviews with various industry experts, including vendors, systems integrators, telecommunications operators, resellers, independent software vendors, and enterprise customers. This process unveils that a pivotal element in achieving successful digital transformation lies in adopting an alternative business model that facilitates continuous adaptability. This study showcases how organisational ambidexterity lenses equip these companies with the ability to create, deliver, and capture value. Internally, servitisation and entrepreneurship empower the solutions provider to redefine their intellectual property and leadership strategies. Externally, sustainability and open innovation emerge as levers they employ to ground responsible transformation and elevate value propositions. The research emphasises that these providers must focus on developing intellectual property as their core offering. This involves leadership cultivating the adaptive skills necessary to facilitate effective collaboration. Furthermore, giving precedence to digital sustainability emerges as an enabler in shaping the persona of the solutions provider as an innovative company. Ultimately, this study establishes the fundamental role of the solutions provider as a catalyst for enterprise digital transformation, enriching our theoretical understanding of this category.
Description
A research report submitted to the Faculty of Humanities, University of the Witwatersrand, Johannesburg, in complete fulfilment of the requirements for the degree of Master of Arts by Research Interdisciplinary Digital Knowledge Economy Studies, in 2023.
Keywords
Business model, Digital transformation, Dynamic capabilities, Entrepreneurship, Open innovation, Servisation, Solutions provider, Sustainability, UCTD
Citation
The effect of digital transformation on the business models of solutions providers: A perspective on South African firms. [Master's dissertation, University of the Johannesburg]. WIReDSpace. https://hdl.handle.net/10539/38990