Automotive Aftermarket Business Model Evolution in the era of Digital Transformation

Digital transformation is accelerating and intervening the automotive aftermarket business model. The digital development is breaking down the traditional barriers of the industry, providing more cooperative environments, embracing organizational ambidexterity, improving customer relationship and value offerings. As a consequence, many academics and practitioners are emphasizing the need to rethink the existing business models in the light of digitalization. However, the recent researches are mainly focused on the technological development and less on business models evolution through the integration of new technologies, platforms and innovative digital services. The purpose of this paper is to understand how digitalization affects the business model of automotive aftermarket by applying qualitative case study approach through 26 in-depth interviews within automotive companies. Moreover, the research illustrates the future picture of pillar business model elements which are evolving in the era of digital transformation.