PhD Defense | Business model innovation in telecommunications: Insights from Ericsson's evolution

01 februari, 2024

Dr. Mats Pettersson’s newly defended doctoral dissertation from the House of Innovation explores how Ericsson, a telecommunications giant, strategically employs business model innovation to thrive amidst technological advancements like AI and 5G. It emphasizes the shift from product-focused strategies to service-oriented and collaborative business models, crucial for value creation and value capture in the digital era. The research provides a valuable guide for similar firms adapting to technological changes.

Challenge of adapting to digital innovations: In a world where technology rapidly evolves, companies like Ericsson are challenged to capture value from new innovations. Traditional product-centric business models fall short in an era dominated by AI and 5G. Dr. Pettersson’s dissertation explores Ericsson's transition to service-based and collaborative business models, essential for harnessing new technologies for sustained growth and maintaining a competitive edge.

Exploring Ericsson's transformation: “Charting the Uncharted” adopts a case study approach, closely examining Ericsson's strategic shift. It analyzes the transition from a product-centric to a service-oriented business model, focusing on performance-based and software-as-a-service (SaaS) offerings. The research also investigates Ericsson's move towards collaborative business models, creating innovation ecosystems and expanding market opportunities, critical for success in a technology-driven business environment.

Key research findings:

Ericsson's shift to service-oriented and collaborative business models effectively harnessed the potential of AI and 5G.
This transformation enabled new value propositions and revenue streams.
The business model innovation process strengthened Ericsson's position in a fast-changing technological landscape.
Building collaborative ecosystems allowed Ericsson to access new markets.
The change highlighted the need for continuous adaptability and strategic flexibility.

The future of industrial business model innovation: This dissertation indicates a paradigm shift for industrial companies like Ericsson in the face of advancing technologies. It highlights the imperative of ongoing business model innovation, focusing on service-oriented and collaborative approaches for effective value capture. The findings suggest further research on the integration of AI and 5G in diverse business scenarios, providing a rich field for future studies in digital transformation and innovation.

House of Innovation Innovation Dissertation