The Influence of Big Data Implementation towards Business Models in Different Sectors

Abstract

There is nowadays an increased use of data, reaching 2.5 exabytes globally, and is expected to double every two years (Morvan, 2016). An enormous amount of data can now be generated, ranging from smartphones to sensors in machineries. However, most organizations are reported to be able to only create and store data, and creating added value from data is a major challenge for many organizations (Akerkar et al., 2015). Only 4% of companies across industries have the capabilities to create value through Big Data (Bertocco & Padmanabhan, 2014). Organizations might want to look into their business model, as adjusting their business model can facilitate the implementation (Muhtaroğlu, Demir, Obalı, & Girgin, 2013), and can result in more efficient business operations (Loebbecke & Picot, 2015). Organizations also face different circumstances (e.g. problems, challenges, applications), since they are located in different sectors (Vega-Gorgojo, Fjellheim, Roman, Akerkar, & Waaler, 2016). Therefore, this study aims to see more into the relationship between sector characteristics and the impact on business model when implementing Big Data, by means of interviews in the setting of explorative & qualitative study. Oil & gas, manufacturing, and health sector are chosen for the purpose of this study, due to the potential of Big Data implementation in these three sectors. Canvas business model template is chosen to provide the clarity of the impact on business model. From this study, Big Data is seen as a systemic innovation, due to the necessary changes in technological, organizational, and institutional aspects of the existing innovation system in a sector. The study also shows that activities, resources, and value propositions are core in the implementation, where implementing Big Data into the activities will result in improvement of value proposition, and enabled by resources. The changes in those three aspects can lead to changes in other aspects of business model, such as partnership, customer relationship, and financial. Customer segments remain unaffected, due to the specificity of value perceived by a certain segment. However, it might change in the future in the case that a new value is offered. It is found that a certain sector characteristic or combination of sector characteristics influences how organization adjusts their business model, but more importantly, the causes that shapes such characteristics need to be considered well.