Digital Transformation of Business Model: The Case of Israeli HealthTech

Exceptional developments in digital technologies have made some of the old theories outdated; hence, there is a need to explore digital transformation through a holistic lens and within various industries and countries. Consequently, we introduced the case of digital transformation of business models as it takes shape in the Israeli HealthTech. We conducted 10 semi-structured expert interviews and complemented these with digital archival data for triangulation. External (e.g. shortage of workforce) and internal (e.g. low digital capabilities) challenges have highlighted the need for digital transformation of business models in healthcare. Thus, we introduce these challenges and the potential value creation in the industry. We also present how Israeli HealthTech start-ups solve challenges and create value in the process. In this way, we contribute to the business model innovation and digital transformation literature. Specifically, in healthcare, we show how value-based healthcare takes place in practice.