Abstract: Digital technology drives business model innovation and facilitates the digitalization of business model elements to co-create value. Therefore, it is essential and urgent to depict the digitalization process and governance mechanisms. This paper uses case study method to explore the process of digitalization of business model elements and mechanism of data governance for value co-creation from the perspective of transaction structure and the practice of Beike. The findings are as follows. First, the digitalization process of the “New Living” model’s elements-houses, customers, and agents-exhibits distinct characteristics, namely authenticity and visualization, labeling and identification, professionalism and measurability, respectively. Second, data governance coupled with combined elements reshape the interaction relationship between houses, customers, and agents through different mechanisms to achieve value co-creation. Finally, data are governed through four paths: transactional relationship, informational relationship, interactional relationship, and cooperative relationship. Specifically, transactional relationship co-creates value by meeting customer needs through intelligent recommendations and scenario extensions; informational relationship improves industry efficiency through dynamic matching and resource sharing; interactional relationship enhances the professionalism of service providers through service upgrades and trust-building; and cooperative relationship maximizes resource benefits through standardization and collaborative cooperation.

Key words: business model innovation, digitalization, data governance, value co-creation, mechanism