AI Infused Business Model Innovation for Competitive Advantage in the Era of Big Data and Digital Transformation

Authors: Khan M , Sharif MM and Ahmed A

DOI: 10.23880/oajda-16000165

Volume 4, Issue 1

Abstract

The concept of Business Model Innovation (BMI) has become a strategic need to survival and competitiveness in the wake of the calding pace of the digital revolution, as demonstrated by the emergence of Big Data and the ubiquitous Digital Transformation (DT) and has fundamentally challenged the paradigm of traditional business. The greatest disruptive technology of our times is artificial intelligence (AI), and its precise influence on the systematic facilitation and transformation of business models has been ambiguous and understudied. The broad overview paper will serve to address a significant research gap by consolidating the knowledge of AI Infused Business Model Innovation by incorporating post 2020 articles. The approach used in the literature review of this work presupposes the analysis of the interplay between the main elements of business models (value creation, delivery, and capture) and the perceptive, predictive, and prescriptive nature of AI technologies, such as Machine Learning and Deep Learning. The successful implementation of the digital strategy should be supported by a strong big data infrastructure, the digital transformation to the advanced level, and a stratified AI functionality, as the analysis shows, to reach the successful result. In particular, the AI enabled BMI presupposes four major shapes, i.e. improving the value proposition (e.g., hyper personalization), simplification of operations (e.g., automation and efficiency), creation of new revenue streams, and establishment of a high-quality innovation capacity. These findings prove that the implementation of AI is an important change in the organization that requires specific new skills and strategic management roles instead of a technical one. The following paper presents the Conceptual Framework of AI Infused BMI, which elucidates the complex interactions between these technologies by describing these AI powered processes. This work finally confirms the strategic importance of AI as the key to the contemporary competitive digital strategy and provides managers and policymakers with a valuable contribution to this discipline by determining major tendencies, solutions to key challenges (such as data quality and talent deficit), as well as an abundant agenda to further research.

Keywords: Big Data; Business Model Innovation; Transformation

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