Exploring Business Model Innovation : The Case of Earth Observation Start-Ups

Sammanfattning

Purpose – This study explores how Earth Observation (EO) start-ups with digital services can utilize business model innovation (BMI) to create, deliver, and capture value in the mining industry. Method – The study adopted a qualitative approach with the unit of analysis being two EO service start-ups and the unit of observation being mining companies complemented with other relevant actors. 22 interviews were conducted with mining companies; 2 with mining consultancy companies; 2 with academia; and 2 with the EO case companies. Findings – EO service start-ups can create value in the mining industry by leveraging an artificial intelligence technology value proposition unlocking new values, as well as engaging in trust and relationship building-activities with customers; deliver value by developing customizable delivery plans in line with the heterogenous customer needs, acquiring a specific understanding of customer operations to deliver expected service quality, and addressing customers' different digital maturity; and capture value by developing a flexible revenue model and enable internal and external scaling of service. Theoretical Implications – This study contributes to existing research by examining how digital technologies shape industry-specific phenomena and related BMs, specifically within the novel EO industry by being one of the pioneering studies in this space. It also fills a gap in the literature by examining start-up BMI in general as well as in the EO industry, the intersection of start-ups and digital services, as well as contributing to the broader service innovation literature. It also makes contributions to the specific mechanisms of the BM. Managerial Implications – This study contributes with insights for managers of digital service start-ups, both in general and in the novel EO industry, outlining how these can create, deliver, and capture value in the mining industry as well as other industrial contexts. These can utilize the findings of this study to either redesign their existing BMs or create completely new ones. Limitations and Future Research – One limitation is that the study only collects data from the mining industry which decreases the generalizability of the findings to other industries. Future research could benefit from investigating EO services from an ecosystem or platform perspective including other actors than provider-customer. Finally, future research could also be conducted utilizing a multiple case study including EO service start-ups focusing on multiple industries.