Innovation in business models and strategic change in the face of digital disruption: The example of professional services business models based on data

Abstract

Digital innovation is causing major disruptions to the majority of organisations and sectors. The 
growth of data-driven business models in the professional services sector is the main topic of our 
conversation. Artificial intelligence, big data, and sophisticated analytics are now permeating 
several sectors. The knowledge-intensive nature of professional services companies may give 
rise to particular problems with artificial intelligence and data analytics. Additionally, new start
ups' digital innovation poses a significant risk of disruption to established companies. Two 
significant problems must be taken into account when attempting to comprehend how these 
changes will affect the professional services sector. First off, new business models are often 
produced as a consequence of digital innovation. This begs the issue of whether these models are 
exclusive to the professional services sector or more general (digital), exhibiting strong industry
wide commonalities. Additionally, there are concerns about whether well-established incumbents 
or fresh, digital start-ups are the ones driving business model innovation. Second, we need a more 
sophisticated understanding of the strategic transformation processes in connection to the nature 
of professional services and technological innovation when an incumbent is forced to change as 
a result of digital disruption. Two significant additions to the literature are made by our study. In 
the context of professional services companies, it first critically examines data-driven business 
models. Second, it presents a number of research hypotheses on the obstacles to and facilitators 
of digital disruption that incumbents and startups must contend with.