Bicol University

COLLEGE OF INDUSTRIAL TECHNOLOGY

DEPARTMENT OF TECHNICAL VOCATIONAL TEACHER EDUCATION
East Campus, Legazpi City

DAN REY M. MIÑA BTVTED ELECTRICAL TECHNOLOGY 3C

DIGITALIZATION AND IT’S INFLUENCE ON BUSINESS MODEL INNOVATION

Rachinger, M. , Rauter, R., Muller, C., Vorraber, W., Eva, S.

In this article show on how the digitalization Influence the various business activities in
times of modern generation. Digitalization has become more prevalent in business, affecting a
range of operations, including those of organizations. Models (BMs) by enabling several new kinds
of business collaboration and resulting in new product and service offerings, as well as new ways
for the business to interact with its clients and staff. At the same time, this digitalization has
forced businesses to reassess their existing strategy and investigate early on, systematically, and
in new business opportunities. while studying the context of digitalization BMs is increasingly
receiving more attention, although there is still a research void in this area because the amount
of Little empirical insights exists. By this article help me to understand on how the digitalization
affects the business why it’s come up to the modern business because of the pandemic times
that affected the businesses era for this generation and that they come up for the innovation that
may develop a new business model to influence the generation for the develop business idea to
suit in the digitalization.
Business model innovation has been significantly impacted by the digitalization of business
(BMI). It has changed how businesses run, engage with customers, and engage in market
competition. Businesses are being compelled to reconsider their business strategies and adjust to
the shifting environment as a result of the rising use of digital technologies. The capacity to gather
and analyze data is one of the main ways that digitalization has an impact on BMI. Companies
can collect data using digital technology on consumer behavior, market trends, and operational
efficiency. This information can be leveraged to create fresh value propositions, enhance internal
operations, and find fresh sources of income. Using data analytics tools, businesses may learn
more about the wants, tastes, and behaviors of their customers and adjust their offers to match
those demands.
In the digitalization is have the capability to reach clients through digital channels has an
impact on BMI as well. The growth of social media, smartphone apps, and e-commerce platforms
has given businesses new and creative methods to engage with their customers. Digital channels
give businesses the chance to cater to individual needs, interact with clients in real time, and
expand their network of contacts. For businesses that operate in sectors with high rates of client
attrition, like telecommunications and utilities, this can be very effective. Digitalization has also
made it possible for new business models to arise. One business concept that is exclusively made
possible by digital technologies is the sharing economy. By using digital platforms to link
customers with unused assets, businesses like Airbnb and Uber have challenged traditional
sectors, however, it is impossible to overstate the impact of digitalization on BMI. Businesses
must constantly develop their business strategies to stay ahead of the curve as digital
technologies advance. For businesses to thrive in the digital age, they will need to be able to use
data to their advantage, connect with customers through digital channels, and adopt new
business models.
 Bicol University
COLLEGE OF INDUSTRIAL TECHNOLOGY
DEPARTMENT OF TECHNICAL VOCATIONAL TEACHER EDUCATION
East Campus, Legazpi City

REFERENCE:

Rachinger, M. , Rauter, R., Muller, C., Vorraber, W., Eva, S. (2018). Digitalization and It’s
Influence on Business Model Innovation. Journal of manufacturing Management technology
Management, 30(8). 1143-1160. Retrieved from EMERALD_JMTM_JMTM614850 1143..1160