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1. Background The maritime industry is a global industry and is highly influenced by the situation in the world economy (Stopford, 2009). It is consequently faced with a continuous pressure for realignment in order to survive. Changing trade patterns and world demography has however weakened the link between sea trade and the world economy (Melbye et al., 2016). Combined with stagnating growth, increasing political risks worldwide, technological innovations disrupting the industry and environmental considerations, the pressure for maritime actors to adapt and innovate is continuously increasing (Melbye et al., 2016). The maritime industry is also argued to be highly cyclical and, according to Stopford (2009), goes through several types of cycles; short “business” cycles, long cycles, and seasonal cycles. This further challenges the innovation patterns for the maritime actors. Saxegaard (2016) explains that achieving innovations in the maritime industry is also necessary in order to handle the changes in the oil price and to cope with price competition. Walter Qvam (2016), CEO of Kongsberg Gruppen (Årskonferansen: Walter Qvam og Sturla Henriksen, 2016) stressed that new forms of competence is expected to grow and that firms are going to exit the situation looking different. Business models presented a new perspective of how to exploit business opportunities and how to increase enterprise performance. Business model innovation however goes beyond innovating product/service and processes, Amit and Zott (2012) have argued. To illustrate the advantages of business model innovations, a survey presented by IBM in 2006 revealed that firms focusing on business model innovation exceeded their competitors in operating margin by five percent. The same study revealed that innovating the business model is also a tool used to reduce costs and increase strategic flexibility. Several researchers have also described the importance of a deliberate use of business models and business model innovations to obtain competitive advantages. There is reason to believe that business model innovations can be relevant for maritime firms. According to Melbye et al. (2015), the current economic climate for the industry most likely creates a high pressure for innovation. The theory concerning business models and business model innovation is widely mentioned in literature and they are both popular topics of research. Still, consensus about the exact content of the two concepts has not been identified and there exists diverging insights in literature. According to Zott et al. (2011), the business model concept has also to a large extent been concerned with e-business, start-ups and high-technological firms. Thus, the link to the small firms like small ship management companies and how they can innovate their business models with limited resources available is not explored. Small business owners often cite lack of time, qualified employees and resources for the reasons that they do not innovate and transform their existing business models. While larger companies spend great amounts on innovation departments and external consultants to stay ahead with the latest technological developments within the maritime industry. American Kreitner defines management as – the process of working with and through others to achieve organizational objectives in a changing environment and with the efficient and effective use of limited resources [5, 59]. My research will be based on the above insights, studying the global maritime leading companies in relation to business model innovations and propose business model innovation process adaptation for small ship management companies with limited resources is considered to provide an interesting angle. In addition, I was unable to find existing research that evaluates the link from the fields of business model innovation to traditional businesses of the small companies in the maritime industry. 2a. Aim To propose business model process for a small ship management companies through innovation, unification, collaboration and digital transformation, based on the industry research, which will help them compete with the industry giants. 2b. Objectives - Discover the new trends and practices in the modern shipping environment, the regours, how the world leading ship management companies transform their management practices through digital transformation. - Analyze the standard and outdated management practices of the small ship management companies that are leading to the collapse of their organizational competitive advantage in the changing industry environment. 2c Research Questions Are small companies ready to compete in the current market? What business digital transformation and trends key industry players adopt? What is the cost? Are the owners and managers of small organizations would accept such a unified innovative business module?