Business Model Reinventing on the Basis of Innovations

Abstract

In the context of dynamic changes in the business environment, updating the business model based on innovation is becoming a strategic priority for business leaders. Innovations in the supply chain through digital technologies hold great potential for creating new value, sustainable growth, increasing efficiency and business competitiveness. However, the innovative activity of Russian companies has not yet become a determining factor in ensuring economic growth and the formation of their competitive advantages. The purpose of this paper is to understand the significance of business models updating and explore their connections with business and innovation management. The methodology of research is based on methods case study design, event-structure analysis and also the strategy as practice research program. The paper examines the experience of a successful Russian company in the formation and updating its business model based on innovations in the logistics chain through digital technologies, which led to an increase in efficiency and ensuring the long-term competitiveness of the business. The paper presents the results of the analysis of changes in the business model and business processes based on different types of innovations, which ensured the company's success and maintained its leadership in the building materials market. The paper has a practical focus and contributes to an understanding of business model updating processes and their connections with business and innovations. Its results can be useful for both novice and experienced managers to understand the innovative mechanism of business growth and the formation of strategic competitive advantages. They can also be used in modern business education to develop the strategic thinking skills of managers and entrepreneurs.