AI-Based Business Model Innovation : Case study at Axis Communication

Sammanfattning: Background  AI adoption is increasing, and the highest increase of AI is seen in service functions, followed by product applications. Moreover, the patent filing is rapidly increasing showing high interest in the technology. Product-based firms developing AI technology may need to develop their business model as a result of the introduction of AI. Research aim This thesis aims to explore how product-oriented companies innovate the business model based on AI development. More specifically, how these technological opportunities can, create value, deliver value, and capture value as a result.    Method This thesis follows a qualitative strategy, mainly being explorative. The thesis follows a single case study approach of Axis Communications. Data collection was mainly conducted with semi-structured interviews. Findings The value creation of AI development is described based on functions and the value-added. The value delivery explores key capabilities of the data pipeline, algorithm development and partners. The value capture described the sales model and compares AI-related solutions with competitors. Conclusions The study concludes that AI-based solutions can be an attributing factor for a product-based company to innovate the business model towards a more service and partner-oriented business model. Keywords: Artificial intelligence, Internet of things, Digital servitization, Business model innovation, Business ecosystem