Capturing Business Model Innovation Driven by the Emergence of New Technologies in Established Firms : A Case Study at Siemens Healthineers

Abstract: Background: It is argued that the emergence of new technologies and the digitalization can improve the healthcare, make it more efficient, personalized and available for everyone. The healthcare has already begun to become more digitized and there is no doubt that this trend will continue. Moreover, it is argued that AI will have a major impact on the MedTech and healthcare industry. Problem discussion: To stay competitive it has been concluded that firms must update and rethink their business models constantly thus, to undertake business model innovation. This applies specially to established firms that have been successful with the same business model for a long time. Despite the fact that the existing literature addresses the importance of business model innovation, very little attention has been drawn to how to actually achieve this change. Purpose: The purpose of this study is to explore how business models in established firms within the MedTech industry develops over time due to the emergence of new technologies. More specifically, we focus on how artificial intelligence is influencing and will influence the business models in the MedTech industry. Methodology: This study has been performed through a single case study at Siemens Healthineers. The primary data has been gathered through four meetings with people with expertise in the field of artificial intelligence as well as the MedTech and healthcare industry. Further, through 14 interviews with employees at Siemens Healthineers in Sweden as well as through four verifying interviews with other actors within the MedTech industry. In addition, secondary data from the period 1998-2017 has been gathered through 20 annual reports from Siemens AG, 10 annual reports from Siemens AB, 9 documents found on Siemens Healthineers’s website and 46 different websites. Findings: Several events have been identified which have contributed to business model innovation at Siemens Healthineers. Thus, 19 events have been identified between 1960-2000 and 21 events have been identified between 2000-2018. Further, three business models at Siemens Healthineers from the past, the present and the future is presented to visualize the business model innovation process. The trustworthiness of the findings is ensured by four verifying interviews with other actors within the MedTech and healthcare industry. Conclusion: Business model innovation at Siemens Healthineers has been a process of incremental changes over time. Further, it can be concluded that the firm has used both a planned and an emergent approach of change to achieve business model innovation. Keywords: Business models, business model innovation, process, events, new technologies, established firms, medtech, healthcare