Critical risk factors in business model and IS innovations of a cloud-based gaming company: Case evidence from Scandinavia

Today´s business environment is becoming increasingly dynamic, complex and competitive. Hence, those companies which will react and adjust to the environment as quickly as possible will survive in the competition. The business model allows a company to maximize its profits. The business model is reflected by the organization´s information technology (IT) that must evolve dynamically with business hence IT is seen as a strategic partner to the rest of the business. This study examines a set of critical risk factors that a Scandinavian social gaming cloud software company is currently encountering in innovating its business model and information systems (IS). This study is carried out by reviewing the literature on software and services business models, business model innovation, IS innovation and utilizing a single case study. Through an in-depth empirical investigation, the critical risk factors are categorized according to their order of severity, explained how each of the identified factors created problems to business model and IS innovations, and provided strategies to alleviate such risks. The empirical findings may guide companies to identify the critical risk factors beforehand and take appropriate actions in order to avoid various risks associated with business model and IS innovations. This study also suggests some future research directions.