ifkad articles

The Impact of Digitalization on IT Providers: Business Model Evolution

Stephanie Metzner, María D. De-Juan-Vigaray, Paolo Canonico

In today’s rapidly evolving digital landscape, Managed Service Providers (MSPs) play a crucial role in meeting the intricate Information Technology (IT) needs of organisations. As IT systems become increasingly complex and the demand for specialised expertise grows, MSPs emerge as strategic partners for businesses seeking to streamline operations and drive innovation. However, there remains a significant gap in understanding the precise role of MSPs in catalysing innovation and how their services differ from those of traditional IT service providers. This paper aims to bridge this gap by exploring organisations’ attitudes and perceptions towards MSPs, focusing on their role in driving innovation and ensuring security. Additionally, it investigates the future technologies that organisations aspire to adopt and evaluates whether MSPs are positioned to support these advancements. The study also examines the influence of company size on the inclination to engage with MSPs and highlights the importance of consultative selling in MSPs’ success. Through empirical research based on multiple case studies and a quantitative questionnaire approach, expert, and managerial insights into the business models of MSPs in the DACH region are gathered. The findings reveal that AI and cloud computing are the top two future technologies of interest, with MSPs well-positioned to support their adoption. Company size does not significantly influence the willingness to engage with MSPs, and both small businesses and larger enterprises show interest in innovation and security. The maturity of business processes and concerns about knowledge loss are identified as primary barriers to engaging with MSPs, emphasising the importance of trust-building and collaboration. Consultative selling emerges as crucial for MSPs’ success, enabling them to understand customer needs and tailor solutions accordingly. Summing up, valuable insights are provided into the role of MSPs in driving innovation and ensuring security within organisations. By addressing the hypotheses outlined and synthesising insights from academic literature and consulting studies, it contributes to both academic scholarship and industry practices, facilitating the advancement of the IT industry and knowledge translation efforts.

IN: Proceedings IFKAD 2024 – Translating Knowledge into Innovation Dynamics
PP: 1270-1283