Abstract
The article summarizes the factors that affect the company's positive financial results in the changing business environment in the digital age. Upon the qualitative and quantitative analysis of the literature, 33 dominant financial and nonfinancial factors were selected, which the authors emphasized as important for the development of a sustainable, profitable business. To assess the practical impact of the selected factors on the company's profit generation, the data were grouped and interpreted through the prism of the Universal Business Model (BM), applying it either to BM as a whole or to its dimensions - the value proposition dimension, the value creation dimension and the value capture dimension. At the end of the article, empirical examples were considered, specifically, the digital transformation of the business model of two companies under the influence of modern supporting drivers. Both examples indicate that a successful BM transformation can only be achieved by transforming all related components of the BM dimension into their interaction. By collecting and accumulating this information, a profit management model can be developed to support companies in a rapidly changing environment, especially in the small and medium business sector.
Highlights
In a dynamically changing business environment, it is becoming increasingly difficult to identify the factors that affect a company's positive financial performance and, sustainable development
The financial aspect of the value capture dimension determines how the value proposition will be translated into revenue, what the cost structure, and profit generation mechanism will be, while the nonfinancial non-digital aspect offers a set of support drivers that contribute to a company's positive financial performance
The second phase will look at the transformation of Business Model (BM) design influenced by the combination of factors discussed in the previous sections in relation to the dimensions of the business model and their elements, as well as the impact of BM transformation on the company's financial performance
Summary
In a dynamically changing business environment, it is becoming increasingly difficult to identify the factors that affect a company's positive financial performance and, sustainable development. Ecosystem actors form partnerships and alliances by synchronizing both self-created platforms and data from third - party platforms (Dehning, Richardson & Zmud, 2003; Ekundayo, 2019; Nosratabadi, Mosavi & Zavadskas 2019; Seelos & Mair, 2007) collecting and allocating resources in this way, as a result of their effective interaction, the partners increase sales (Dehning, Richardson & Zmud, 2003) as well as social, environmental, and economic benefits at the same time (Dehning, Richardson & Zmud, 2003). As a result of the research, it was concluded that the creation of a viable and profitable BM in the digital age is possible only by the interaction of all BM elements, under the influence of several supporting driving factors. In the concluding part of the article, the results of the study were illustrated with two comparative empirical examples: transformation of business models for companies operating in social entrepreneurship in the Latvian market, related successes, implementation shortcomings and recommendations for future development of companies
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