Reciprocating Business Model Innovation – How Client and Supplier Models Interact

Abstract

Purpose. The purpose of this article is to show the relationship between changes of industry business model on the supplier side and changes in business model on the client side, using the information technology industry as an example. This is the first paper to investigate supplier-side industry-wide business models and identify their consequences for client-side industry-wide business models.Methodology. The methodology is a review of academic and gray literature and conceptual analysis, applied particularly to three client-side industry case studies – financial services, airlines and online video streaming servicesFindings. Changes in the business model on the client side may be contingent on the products and services that emerge from the information and communications technology industry as it changes its business models.Practical implications. Client-side companies formulating their business strategies in industries which are highly dependent on successful information management should factor developments in the information and communications technology industry business models into account in their planning. They should also consider how they can influence business model change on the supplier side by changes they make to their information management strategies and processes.Research implications. The implications for research are that researching investigating changes in business models, particularly in relation to clients of the IT industry, should consider whether there have been changes in business models on the supplier or client side, and whether and how they have interacted.

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