Digital Transformation for Business Model Innovation in Higher Education: Overcoming the Tensions

Abstract

The higher education sector is in the eye of the hurricane of the digital revolution, immersed as it is in an ongoing digital transformation (DT) process that is expected to result in significant changes in the current business model. Despite the relevance of this transformation, little remains known about how the business model is innovated (BMI), due to the impact of digital transformation in the context of higher education institutions (HEI). This research explores the impact of DT on the HEI business model, through analyzing the case of a traditional university, conceived non-digitally. The results present the HEI understanding of DT, the main tensions arising from the DT process for each of the business model dimensions, and the anticipated solutions for solving these tensions. Additionally, the results uncover the existence of an emergent (non-formalized) envisioned business model, which is a visualization of how the current business model is expected to be innovated, due to the impact of DT. The main originality of this paper is in addressing a research gap at the intersection of DT and BMI in the HEI context