Business Models Transformation in Light Industry in the Context of Digitalization

Abstract

Business models research is attracting the interest of both academics and practitioners due to digitalization changing the socio-economic landscape. The digitalization generates many new risks for traditional business models. At the same time, it provides new opportunities for value creation and thus contributes to changes in the enterprises business models. The object of our study is business models in light industry in the context of digitalization. Research works of scientists-economists, data of the research reports carried out by the authors were used to write this article. General scientific methods, system approach, institutional approach was applied during the research. We found that the business model transformation under the influence of digitalization is a process of irreversible essence changes in the mechanism of reproduction of the use value. These changes are due to the introduction of digital technologies and tools in production and business processes, in systems of interaction with other participants in the value chain and consumers as well as in the goods or services. We found that new sources of use value in light industry are emerging under the influence of digitalization as a result of an increase in the speed of design, production and distribution of goods; customization; value chains transformation and dynamic organization of production; the home country reputational capital use; attracting highly qualified personnel to the industry; redistribution of capitalization between individual value creation processes; transition to hybrid value creation models combining virtual and real processes; the domino principle in the digitalization of an enterprise and industry.KeywordsBusiness modelsDigitalizationLight industryFashion industryValue chainDigital technologiesDigital business-models