Influence of new business models and technology on technology strategy and partnerships

Authored by: Christopher P. Holland

The Routledge Companion to Managing Digital Outsourcing

Print publication date:  July  2020
Online publication date:  July  2020

Print ISBN: 9781138489370
eBook ISBN: 9781351037785
Adobe ISBN:


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There is a revolution occurring across all market sectors evidenced by the emergence of radically new and innovative business models. Digital technology plays a crucial role in defining and enabling the operations and strategic logic of business models, which raises important questions about the management of digital technology in two different business eras: (1) legacy business models and systems; (2) new digital business models that are characterized by market disruption, novel and valuable offers to customers, rapid, evolutionary change based on continuous, iterative developments in digital technology and processes, and market growth facilitated by network economics. Four empirical examples of new business models from the sharing economy, search intermediary, behavioural ecosystems and social media are analysed to identify common patterns in their business models. A technology partnership model is proposed that shows two modes of digital management, legacy systems and new digital business models. The managerial implications of the model are described and future trends outlined.

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