Technological innovation mediated by business model innovation: app developers moving into health Online publication date: Tue, 08-Aug-2017
by Janna Rose; Yi Jiang; Vincent Mangematin
International Journal of Technology Management (IJTM), Vol. 75, No. 1/2/3/4, 2017
Abstract: Numerous technology firms are moving into health, and with their entry they bring innovation in technologies and in business models. The impact of both types of innovation in the health industry is still emerging. To investigate innovation in business models, we held technological innovation relatively constant by drawing data from one technology - the most downloaded apps in iTunes' health and fitness category - and coding the business model dimensions of the firms that developed them. This study examines the differences between incumbents and newcomers in health in four business model dimensions: identifying customers, engaging with customers, monetisation processes, and logistics and governance of the firms. When compared to incumbents, newcomers to health are more often displayed innovation in business model dimensions. Our data suggest that newcomers bring new strategies for customer engagement, customer identity, and monetisation of services, which ultimately lead to altered relationships among actors in health.
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