Challenge of steering business model innovation

IN THE modern era of digital disruption, companies are still exploring the full potential of the Internet even as they seek to transform their businesses by capitalising on the commercial benefits of cloud computing, artificial intelligence, social media and a slew of other technologies.

A company's true digital transformation does not, however, come solely from the use of such disruptive technologies. Rather, it is based on how these technologies combine with innovative business models so that the business transformation produces a disruptive power that disproportionately affects the value of goods and services.

In other words, it is the innovative quality of the business model that makes the difference. That, for example, is how the sharing economy has emerged led…