An Improved Methodology for Digital Transformation of Business Model1

The purpose of this research was to improve the five steps of Schallmo's methodology for digital transformation of business models, using Schumacher’s digital maturity assessment model, three approaches to business model transformation based on Heikkilä's recommendations and to improve digital innovation approach. The business model changes are based on Stampfl’s recommendations.

This research has a combined methodology which consists of a validity review study method and action research method in a manufacturing SME. This improved methodology has been used in strategic planning for the digital transformation of the business model of one of Iran's manufacturing companies.

After reviewing the various documents of the Schallmo’s five-step framework, it was improved by Schumacher's maturity model for industry 4.0, approaches of business model transformation recommended by Heikkilä et al. and various types of business model innovation as described by Stampfl. Then the improved framework was used to map the target state of company's digital transformation.

Since the proposed model of this research, in addition to improving the Schallmo model, has been implemented in a real company, so it seems that it can be used by Digital transformation planning and digital operating models as well as change managers and consultants.