Operationalizing Business Model Innovation through Big Data Analytics for Sustainable Organizations

Abstract

Business model innovation is considered key for organizations to achieve sustainability. However, there are many problems involving the operationalization of business model innovation. We used a design science methodology to develop an artifact to assist business model innovation efforts. The artifact uses performance measurement indicators of the company’s business model, which are powered by Big Data analytics to endow customer-driven business model innovation. Then, we applied the artifact in a critical case study. The selected company is a fashion ecommerce that proposes a vegan and sustainable value using recycled plastic bottle yarn as raw material, and ensures that no material with animal origin is used. Our findings show that the artifact successfully assists a proactive and continuous effort towards business model innovation. Although based on technical concepts, the artifact is accessible to the context of small businesses, which helps to democratize the practices of business model innovation and Big Data analytics beyond large organizations. We contribute to the business model innovation literature by connecting it to performance management and Big Data and providing paths for its operationalization. Consequently, in practice, the proposed artifact can assist managers dealing with business model as a dynamic element towards a sustainable company.