Business Modeling for Internal IT - A Comparison of Astra Zeneca IT and Business Model Typologies

Abstract: Problem Many companies suffer from complexity in their IT activities due to the rapid growth and investments in this area. The business model concept can be used as a strategic tool to handle such complexities and has been growing in popularity the last decades. However, there is a dispersed view of what elements the business model entails and what archetypes and typologies of business models are available. Furthermore, business models have not been studied in relation to internal organizations to a larger extent. Purpose The purpose of this thesis is to use business models to describe internal IT and analyze what lessons can be drawn by applying business model typologies to handle complexity in an internal IT organization. Method First, an analysis framework is developed based on the four business model typologies of Weill et al. (2005) combined with the nine business model dimensions of Osterwalder and Pigneur (2010). This framework is as a tool to direct data collection and analysis in this study. The study is then approached with a case study design with a qualitative data collection process based on interviews at AstraZeneca IT in Gothenburg, Sweden. Conclusions The case study of AstraZeneca IT has shown that the business model can be a useful tool for analyzing complexity, as it has resulted in a suggestion to re-evaluate the current business model at AstraZeneca IT. The business model in general has shown to be a good communication tool in describing roles and relationships of a business and further helps in addressing problems in terms of gaps and overlaps in how a business operates. Further Studies It would be interesting to study how performance can be measured in internal organizations, as they are not profit-driven. On the other hand, it would be interesting to study the implications of opening up the business model of internal organizations to expose it to competition. Finally, it is considered interesting to conduct further research in the area of business model typologies and their characteristics.