Digital transformation of enterprise business model

Abstract

Nowadays, it is important to form an awareness of digital transformation as a motivation for positive changes in strategies and behavior of business entities. Therefore, the purpose of this article is to identify and present important implications of digital transformation for the business model of an enterprise. Research in the process of achieving the formed goal is aimed at diagnosing the current situation and the factors contributing to the transformation of the business model. To achieve these objectives dialectic and systemanalytical methods, structural and functional analysis were used. It was suggested to adapt the model to digital changes as a transformation into a new form of business that would be better suited and satisfy the conditions for functioning in the digital economy, building relationships with digital consumers and partners, as well as in connection with the growing use of digital assets. It was determined that the elements of the classical mainstream in the form of a “canvas” in the digital transformation had a weak connection with a small grouping in terms of organization, customer, sales and finance, and no special integration or relationship between the elements was envisaged. The key characteristics on digital transformation of elements of business model in comparison with classical mainstream in today’s conditions were allocated. Each new or updated strategy must include an approach to the digital transformation of business, so it is important to assess the business models of enterprises to ensure that they fit the new paradigm. Factors of change in business models are highlighted, such as the evolution of certain predeveloped concepts within the classical mainstream, mainly due to technological advances, achieving social and consumer acceptance of these concepts, generating economy of scale or snowball effect, as well as destructive and breakthrough innovations. The digital transformation of the business model of an enterprise provides a systematic view of its key domains, which are forming and can serve as a direction for further future-oriented research and are used as a starting point for managerial decisions on digital transformation. To facilitate assessment of digital maturity, the proposed business model domains can be used to diagnose the need to adopt new concepts of digital economy. Digital transformation of the business model can be adapted to the specifics of domestic business operation.