Business Model Innovation Based on New Product Development in Small and Medium-Sized German IT Service Companies

In recent years, the German economy has been affected by several geopolitical factors. The consequences of the latter, in combination with other macroeconomic and technology-related trends, are having a multilateral impact on German IT services and consulting companies, which are classified as small and medium-sized enterprises (SMEs). The purpose of this thesis was to analyze New Product Development (NPD) based Business Model Innovation (BMI) within this group of companies as one of the approaches to ensure sustainability and resilience in the current market dynamics.Through a literature review, we characterized the market dynamics and NPD-based BMI as a business strategy. Then, using industry-standard frameworks and methodologies, we identified the capabilities that are expected to be developed in the target group of companies to successfully implement this BMI. We conducted ten in-depth interviews with the target SMEs, their customers, and their consultants to validate our theoretical findings with first-hand, real-world market perspectives.Based on the insights gained from these steps, we summarized the key factors to consider when implementing NPD-based BMI in SMEs of the target group and the most important success factors. Finally, we elaborated general suggestions for tailoring the industry-standard frameworks and methodologies to the requirements of NPD-based BMI at German IT service and consulting SMEs to ensure long-term success and achievement of the Sustainable Development Goals (SDGs).