Information technology (IT) has become an integral part of the business model of many firms. According to a recent article in Forbes, IT has completely changed the structure of modern corporations . IT has enabled corporations to move more of their operations into the digital space, and most have turned to a handful of big companies that provide IT solutions .
Innovation in business models is key to staying competitive in today’s digital age. A recent article in OpenMind discusses how hyper-connected, digital high-density world is opening up to innovation in business models . The article catalogs possible emerging business models, which are concentrated in several groups. The first group has the premise that anything that does not create value for the consumer should be removed. The second group is “platforms” business models that serve two or more markets simultaneously. A third group is the “global business” opening up to rapid international growth .
A recent study of 179 firms that adopted application programming interfaces (APIs) found that APIs allow firms to modularize their systems to facilitate replacement and upgrades . As highlighted by the European Federation of Management Consultancies Associations (FEACO), management consulting firms are supporting organizations in assessing their IT strategies to reach a fit between technology and business strategy .
In conclusion, IT has become an essential part of modern corporations, and innovation in business models is key to staying competitive in today’s digital age.