ABSTRACT
The authors argue in this chapter that business model innovations need to be linked to continuous technological innovation. The video games industry is a good example of the intertwining of these aspects over time. External technological advancements can force firms to adjust their business models, but, in some cases, the technology needs to be adapted to fit the current business model innovation. The authors show that business model innovation, related to a digitally transformed industry, mostly involves subscription-based revenue streams linked to cloud-based technologies. The insights from this chapter should help other industries undergoing digital transformation to reformulate their business model innovations in similar ways. The music (Spotify), movie (Netflix) and photography (Instagram) sectors can be considered forerunners in the context of for business model innovation in a digitally transformed era.
