Innovation and evolution of business models in chemical industry

This study explores the development process of brand companies through literature analysis and analysis methods integrated with data collection, and analyzes the theoretical structure of the “customer value proposition-key resources-key processes-profit formula” of the business model, in order to understand individual companies from the start-up business model development, strategy selection, and future development trends during the innovation period to the expansion period. First, this study found that the case company was driven by key resources and processes to drive the development of its business model during the start-up period; secondly, during the innovation period, it created and maintained high profits through rapid profit-oriented planning, rapid growth, and innovation. Nowadays, in the expansion period, individual companies place the most emphasis on customer value proposition, and through the integration of factories, move forward with the goals of cost comanagement and profit sharing.

In recent years, Internet finance has become a trend in the future devel-opment of the financial industry due to its high efficiency and high coverage. The integration of green finance and the Internet makes resource allocation more reasonable and solves some difficulties in the development of green finance, but at the same time it puts forward higher requirements for the business models. As one of the main products of “Internet Green Finance” practice, Ant Forest fully demonstrates the innovation of the business model derived from “Internet Green Finance”. This study explores the feasibility of this business model by analyzing the business model of ant forest from four aspects: customer value proposition, profit model, key resources and key processes, and then provides a reference for the innovation of other business models under “Internet Green Finance”.

Altering and enhancing existing business models through business model innovation has emerged as a powerful competitive strategy that can provide advantage over extended periods of time. Business model innovation also presents a fundamental counterpart for technological, product and organisational innovations. Success stories of unconventional firms disrupting markets and sustaining financial rewards over competitors through business model innovation can be found in virtually any industry. A key success factor for long-term competitiveness lies in the implementation of multiple, rather than punctual, business model innovations over time, although achieving change through successive iterations is a challenge driven by market and technological dynamics and disruption. However, the lack of empirical investigation on the dynamics of business model change over extended periods of time limits our understanding of how established firms can mimic successful innovators and reconfigure their business models over time. This thesis responds to this gap by exploring the dynamic mechanisms enabling business model development in successful, high-performing firms. It defines and examines the distinctive properties of business model development to understand what determines success in extended business model change processes. The theoretical model and research design were developed to empirically investigate the sequences of change events in business models to find patterns characterising business model development in high-performing firms. The theoretical framework deconstructs the structure of a business model using three well-accepted dimensions of value: value creation, value delivery and value capture. It treats the business model as a dynamic open system in which a firm’s dynamic equilibrium behaviour and complementarity mechanisms are the drivers of change. Then, it employs principles from organisational theory, strategic management, innovation and entrepreneurship to explore the developmental trajectories of business models by examining: (a) the agents and nature of the actions driving business model changes; (b) the frequency of business model change events; (c) the magnitude of business model change events; and (d) the order of business model change events. The exploratory, longitudinal and quantitative research design supporting this study is process- based, where business model development is formulated as a sequence of change events unfolding over time. A set of 12 financial ratios are used to examine fluctuations in a firm’s operational, economic and product-market domains that are attributable to business model transformations for a sample of 1,651 listed firms in the IT sector worldwide. This sector was selected as the research setting because of its dynamism, global size and the pervasiveness of the technologies underpinning it. Business model change events are identified through outlier detection and analysis of coordinated changes across the value creation, delivery and capture dimensions of the business models. Data were collected from a large financial database and transformed into individual sequences of change events. A validation procedure assessed the accuracy of the identification process for business model change events through qualitative data and in-depth analysis for four firms in the larger sample. Then, the individual sequences of change events were used as inputs for data mining methods of analyses, complemented by frequency domain analysis and statistical tests, which revealed the patterns of business model development in high-performing firms. The results suggest a significant association between the timing and intensity at which firms change their business models and their average performance over time. The evidence also suggests that business model change is likely to culminate in events where the value delivery dimension is altered. In terms of the frequency and magnitude of changes, high-performing firms are more likely to develop their business models through frequent and incremental alterations over time, except for mature-large firms who, compared to young-small, young-large and mature-small firms, are more likely to implement radical, less frequent changes over time. Both environmental and internal forces influence the intensity at which high-performing firms typically alter their business models, although environmental factors are more significant than internal forces. Both unconscious and deliberated actions influence business model development in high-performing firms. Unconscious actions dictated by the firm’s particular characteristics of age, size and sub-industry membership are a more significant influence than deliberated, emergent actions. This research develops the new concept of business model development, and provides a contribution to theory by empirically examining a previously unexplored process. By adopting the process-based approach, this research contributes to new thinking and research in business model innovation centred on analysing the flow of events and patterns of business model development across multiple cases. Methodologically, this research developed a research design appropriate for large samples of firms, able to analyse multiple developmental trajectories of business models in a systematic and consistent manner. The research can assist practitioners and firms’ leaders adjust established business models by providing guidance on the intensity, order and frequency of the changes required.

The article is dedicated to exploring various strategies and approaches to business model development, emphasizing its role in enhancing organizational adaptability, competitiveness, and long-term sustainability. The study highlights the importance of business model development, innovation, and improvement in achieving sustainable success for organizations in dynamic market conditions. It identifies key factors that drive the need for continuous innovation of business models, including the impact of the external environment, influenced by rapid technological innovations, changing consumer preferences, economic volatility, and increasing competition. The article characterizes the main approaches to business model innovation depending on the enterprise's strategic focus (counteracting downturns or negative industry changes or striving for breakthrough growth) and the direction of transformation (transforming the core business activity or extending beyond it). Based on these approaches, enterprises are divided into reinventors, mavericks, adapters, and adventurers. We examine the forms of business model innovation: startups, transformation, diversification, and acquisitions, each involving different degrees of change to the business model. Criteria for classifying a business model innovation as sustainable or contributing to sustainable development are outlined. Popular strategies for business model innovation are summarized: integration, replacement, expansion, separation, exclusion, optimization, and relocation. For each strategy, opportunities and challenges are identified. Typical directions for business model development through these strategies are outlined. Internal and external factors to be considered in the analysis preceding business model innovation are defined. The article emphasizes that sustainable business models integrate technological, social, and environmental factors to ensure long-term success. Innovations toward sustainable development are key to achieving economic success and a positive societal impact.

Business model innovation in the digital age is an important exploration carried out by various industries to adapt to market demand, driven by the trend of digitization. This paper takes the new generation digital platform of the Information Network as a case study to deeply study its business model innovation practice and its position in the digital era business model innovation. By analyzing the development history, core structure, functions, and user and market impact of the platform, the unique value of the platform in business model innovation has been revealed. At the same time, a detailed analysis of the evolution of information network business models, core value chains, profit models, and competitive strategies comprehensively presents the diversity and innovation of information network digital platform business models. In practice, the impact of e-commerce, sharing economy, mobile payments, and financial technology on business model innovation was explored, highlighting the diversified paths of business innovation in the digital age. Finally, through in-depth analysis of innovative strategies such as customer value, data-driven decision-making, and multi-channel integration, insights are provided for future business model innovation in the digital age.

Business model innovation can be a strategy for developing paddy straw mushroom business in the era of increasing global competition. This study was conducted to analyze and design a business model with a business model canvas on the Sociopreneurship of Straw Mushroom Cultivation at Islamic Boarding School Daarul Qur'an Wal-Irsyad Wonosari. The analysis will be carried out on each block of Business Model Canvas which includes customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. The implementation of the business model Canvas can encourage students and the community around the Islamic boarding school to be involved in developing business models so that the right business model can be obtained and the Islamic boarding school can be economically independent. The research method used is qualitative through a phenomenological method approach by examining various observed factors related to the object under study. Data collection techniques are using surveys and interviews. The population in this study is the organizer of the Sociopreneurship of Straw Mushroom Cultivation at Daarul Qur'an Wal-Irsyad Wonosari Islamic Boarding School. Testing the validity of the data is using the triangulation technique. This technique is a multi-method approach in collecting and analyzing data that are obtained by researchers from various different perspectives so that a high level of accuracy is gained.

The aim of this paper is to evaluate different well-established non-electrical storage markets (gas, frozen food and cloud storage) in order to identify relevant lessons for electrical energy storage (EES) connected to the electricity distribution networks. The case studies that have been evaluated are Centrica Storage (gas storage), Google Drive (cloud storage) and Oakland International (frozen food storage). A specific business model methodology has been selected for comparing the different business model components across these sectors. The methodology (following Johnson et al., 2008) refers to key interconnected components: customer value proposition, the revenue formula, key resources and key processes. The evaluation of the three case studies suggests that well-developed business models already exist in growing and mature storage markets. Regulation also plays an important role across the different storage markets and business model components, how-ever its importance varies depending on the type of market. Innovation in storage business models is also observed (technological and contractual) which should be also facilitated in EES. Innovation helps move markets towards more sustainable business models.

Using the interpretative case analysis method, through the collection and analysis of second-hand data, and based on the four element theoretical model of business model with technological innovation as the core, this paper describes the DTC model innovation process of clothing vertical e-commerce stitch fix with the help of data science. The case mainly introduces and shows the development process and key success factors of stitch fix in recent 10 years from four aspects: customer value proposition, key processes, key resources and profit model, that is, the data model algorithm runs through all processes of the company's business, and improves the accuracy of personalized recommendation system, the sustainability of subscription service and the efficiency of logistics optimization, It has certain reference significance for Chinese garment enterprises to carry out digital transformation with the help of e-commerce platform.

Business model innovations, as adjustments of business models to changes in the environment, are currently being studied mainly from the process point of view. So far, an examination of the content of decisions to innovate business models and their components (i.e., resource allocation, competitive advantages, value architecture, customer value proposition and profit model) has been largely neglected. Nevertheless, they are very important particularly in the event of long-term discontinuous technological changes where the transition to the new technology takes so long that widely differing business models are possible simultaneously. To investigate such differing business model innovations, hypotheses on the adaptation of business models are formed on the basis of a variety of explanatory approaches, particularly the competence-based view, and studied in scenario-based experiments at 52 German automotive companies in the transition to electric mobility. With these experiments decisions on business models, especially alternative paths for innovating business model components can be identified (technology embracing, technology balancing and technology postponing).

Innovative and sustainable business models in the fashion industry: Entrepreneurial drivers, opportunities, and challenges

Business models have undergone significant transformations in recent years. All changes, both positive and negative, were largely caused by the COVID-19 pandemic and its effects. Companies have been forced to digitalise their business models while employees had to work on improving their digital skills. This paper identifies and explores the up-to-date features of a company’s business model. They are related to the innovative nature of design and development of business models; flexibility and adaptability to the dynamic conditions of the market environment; change management, the development of robust resource capacity; compliance with environmental trends and the principles of responsible consumption, and, undeniably, growing online presence. A company's business model, and in particular the level of its flexibility and adaptability to the external environment, is a core economic category that needs improvement and additional investment. Business models are complex systems. Understanding the role of each individual element in the system and the set of these elements overall is an extremely important task. Workforce is one of the essential components and a strategic resource for companies in the development of their business models. However, workforce as a key resource has the greatest value only once its potential is discovered and fully utilised. Therefore, one of the major objectives for companies today is to develop their workforce potential. This paper presents a study of workforce potential, i.e. its professional component, as an essential element for the development of a company's business model. The findings propose a set of skills, namely soft skills, which recent graduates – one of the most active groups in the job market - might lack or need in order to meet their own professional ambitions and the needs of employers today. In addition, it is concluded that the problem of worrkforce potential development requires a comprehensive approach. The paper suggests a vision of the role and participation of each stakeholder in solving the task of developing workforce potential.

Purpose of the paper:The purpose of the paper is to analyze how co-creation is managed within the innovative business models of sharing economy platforms.Methodology: Case studies analysis has been performed on three sharing economy platforms.Platforms have been selected according to the extent to which innovation driven by co-creative processes was evincible in the value proposition, in the profit formula or in the key processes and resources.The cases have been analyzed through the D.A.R.T. model that defines the four places of co-creation (dialogue, access, risk, transparency).Findings: The analysis shows that there is a link between the type of innovation and the dimension of co-creation.In particular: Dialogue is relevant when cocreation refers to the innovation of the value proposition; Access is more stressed when co-creation drives the innovation in the key resources and processes; Risk comes to be underlined in the platform where co-creation involves the definition of the profit formula.Transparency is a common element across all of the analyzed cases.Research limits: Shortcomings concern the selection of the theoretical framework, the exclusion of platforms other than C2C and the focus on secondary data.Practical implications: The analysis allows to understand the dimensions of co-creation that emerge as being particularly relevant in sharing economy platforms where the innovation of the business model is based on the involvement of customers.Originality of the paper: This work provides a joint analysis of BMI and co-creation as emerging in sharing economy platforms, proposing an integrated interpretation of these phenomena.

Background The internal audit function is a strategic infrastructural function of a company, organisation, or institution. Its digital transformation process must align with the organisation-wide digital business transformation process. The main determinants distinguishing successful from unsuccessful companies and internal audit functions are their overall business models. Objectives The main aim of this paper is to propose and design a unique digital business model canvas for the internal audit function and test its usefulness in practice. It also aims to investigate the current state and characteristics of internal audit functions’ business models and their innovations in the financial sector. Methods/Approach A combination of a comprehensive literature review and qualitative empirical research is applied to achieve the defined objectives. Results A unique canvas for designing the internal audit function’s business model is proposed. It summarises, on one page, how the function creates, delivers, and captures value for its stakeholders. This theoretically developed and empirically validated model is suitable for developing, describing, analysing, and synthesising customer segments, value propositions, channels, customer relationships, strategic direction, key resources, key activities, key partnerships, and operational direction. Conclusions Empirical investigation of the current state and characteristics of internal audit functions’ business model innovations and their compliance with global digital transformation trends shows that, in the Croatian financial sector, internal audit functions digitally innovate some elements but do not yet holistically transform all aspects. Thus, their digital business models differ in digital maturity, though digital transformation processes within the internal audit function align with those at the institutional level.

This chapter proposes a normative sustainable business model composed of the elements in which a fashion brand would engage. These elements include product sustainability, sustainable supply-chain management, design practice, business innovation, and consumer engagement. The model adopts a systems thinking approach in identifying elements within the fashion system and their organization. Typically within the field of sustainable fashion, the effort has been on technological modifications within the supply chain. Although these efforts can significantly reduce environmental impacts, the outsourced manufacturers are in control, thus limiting the influence of a fashion brand. The emphasis in the model is on those elements within the direct control of the business, particularly design practice. The holistic approach looks at how the design practice can evolve to increase sustainability within the supply chain, the product, innovative business models, and consumer consumption. By shifting focus to the design process, products can be designed to influence consumer behaviour, induce sustainable consumption, and reduce impact from use. Looking beyond the supply chain to include consumer behaviour, the development of sustainability-driven business models can be fostered in support of sustainable production and consumption. This research contributes an analysis of how the design process can support the development of new and competitive business models for a sustainable fashion industry.

Developing innovative business models is one of the complicated issues. Owing to the multiplicity of stakeholders with diverse worldviews about value creation and dynamic markets, the development of innovative business models has turned out to be a complex issue. Therefore, this research seeks to: (1) examine the complicated nature of the development of business model problem and, (2) provide a holistic and systemic framework for the development of business models. The proposed framework employs the Soft Systems Methodology (SSM). This framework is composed of 18 phases, which ranges from the phase of finding out the problem of developing a business model to the phase of its implementation. This methodology is characterized by taking into account the considerations of rational positioning views, evolutionary views, and cognitive views in designing and developing business models.