Data-Driven Business Models and Professional Services Firms: A Strategic Framework and Transitionary Pathways

Many organizations and industries are undergoing a significant transformation due to digital technologies. In our research, we study digital business model innovation in relation to Professional Services Firms (PSFs). In this conceptual paper, we contrast the traditional, human-centered, knowledge-intensive business model of PSFs with the new, computer-centered, data-driven business model that is developing due to the rise of big data, advanced data analytics and artificial intelligence. To better understand if, when and how data-driven business models may disrupt PSFs, we provide a strategic framework for identifying and analyzing the options for PSFs in relation to the nature and scope of their value proposition. We suggest several possible transitionary pathways using digital technology for augmentation or automation and the need so scale across services and industries. As such this paper provides valuable insights to academics and practitioners into how PSFs might develop new business models given the nature of their service offerings and industry positions.

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