Business Model Components Research Articles

TRADITIONAL AND INNOVATIVE TOOLS OF ANTI-CRISIS MANAGEMENT OF AGRO-INDUSTRIAL ENTERPRISES

Purpose. The aim of the study is improving traditional and the need to use innovative tools for crisis management of agro-industrial enterprises. Methodology of research. General scientific and special methods were used in the course of the research, namely: dialectical methods in the identification of crisis phenomena; statistical methods (averages and relative values, indices for estimating the obtained actual values of indicators and comparing them in the dynamics); analysis and synthesis - to substantiate trends in the development of different categories of farms and net profits of enterprises, graphic - in the formation of conceptual foundations of crisis management of enterprises, etc. Findings. Trends in production are revealed as unstable, due to significant fluctuations in the direction of reducing production indices of enterprises and in all categories of farms. It was found that the share of profitable enterprises as a whole decreased and the share of unprofitable agro-industrial enterprises increased. The use of a wide range of traditional anti-crisis tools by modern management in diagnosing signs and determining the probability of crisis phenomena in enterprises, stabilization of the situation, development and implementation of programs to overcome the crisis, is proved. The directions of improvement of traditional anti-crisis management tools based on the use of digital technologies (PLM-systems, ERP-systems, CALS, CRM and Big Data), etc. are revealed. It is proposed to apply innovative tools, such as benchmarking; reengineering; outsourcing; risk management; express diagnostics; TEI-examinations, anti-crisis PR-management; interactive, simulation and structural-cognitive modelling; to carry out intellectualization of administrative processes for substantiation of alternatives of strategic management for the purpose of maintenance of steady effective development of the enterprises. Theoretical developments and generalizations of scientific approaches and practices of crisis management allowed to build a conceptual block diagram of crisis management, which combines the main components of new business models, which will facilitate the transition to better methods of business, will facilitate rapid substantiation of new high-quality timely decisions, the correct selection of innovations taking into account the peculiarities of business and dynamic changes in the environment of enterprises. Originality. A conceptual block diagram of anti-crisis management is proposed, which combines the use of the main components of traditional and innovative tools for choosing strategic directions for sustainable development of agro-industrial enterprises. Practical value. The obtained research results will contribute to the formation of an effective system for improving anti-crisis instruments, models of business process administration and productivity of enterprises. The use of tools for selecting optimal measures will increase the level of crisis resilience of enterprises and timely adaptation to dynamic changes in the external and internal environment to create favourable conditions and effective sustainable development. Key words: anti-crisis management, innovative tools, benchmarking, reengineering, outsourcing, risk management, express diagnostics, TEI expertise, urgent actions, digital and IT technologies.

ЦИФРОВАЯ ПРОГНОЗНО-АНАЛИТИЧЕСКАЯ МОДЕЛЬ ПРИБЫЛЬНОСТИ БИЗНЕСА СЕЛЬСКОХОЗЯЙСТВЕННЫХ ОРГАНИЗАЦИЙ

In the modern conditions of the spread of the Internet and information and communication technologies, as a result of the impact of the processes of general globalization, the traditional business models of the functioning of commercial organizations are gradually being replaced by new systems operating on the basis of digital platforms. Taking into account the fact that the digitalization of the functioning of domestic producers of agricultural raw materials and food is currently at the initial stage of development, the authors proposed to consider the digital business model of an agricultural organization from the point of view of managing its main constituent elements (business processes), which made it possible to display the main approaches to its formation. The main goal of any commercial organization is to make a profit, therefore, forecasting the main production and financial results of its activities, being an important component of the business planning process, is necessary to improve the efficiency of decisions made by management. Based on this, the authors proposed a predictive and analytical model for studying the key indicators of the functioning of a number of economic entities in the Saratov region, which can be considered as one of the integral elements of digital business modeling of the activities of agricultural organizations in the region. The predictive and analytical component of the digital business model proposed by the authors is aimed at studying the production and financial results of the functioning of agricultural enterprises in the Saratov region in dynamics over a certain period of time. Within the framework of the presented work, the method of graphical data analysis was applied, which made it possible to establish the state of the studied indicators in the near future. Revealing the coefficients of closeness of the relationship between individual elements of the costs of agricultural production and factors affecting profit using the method of correlation-regression analysis of indicators, increased the level of reliability of the developed model. To determine a number of predicted values of production and financial results of activities of economic entities of the region (factors), taking into account the coefficients of their relationship with individual cost elements, a formula has been proposed that allows combining the methods of graphical and correlation-regression analysis of data.

СОЦИАЛЬНО-ЭКОЛОГИЧЕСКИЕ АСПЕКТЫ БУХГАЛТЕРСКОГО УЧЕТА

In modern society, the problems of environmental safety, global warming and social inequality are becoming increasingly relevant. Accordingly, the solution of these problems is a primary task for state institutions and business. The socio-environmental agenda has become particularly acute over the past two years in the conditions of total quarantine restrictions. The aggravated social orientation changes the vector of the accounting and fiscal component of the modern business model. There was a need to reflect these objects in the accounting system in such a way that they were accessible and understandable for all groups of interested users. In addition, the emergence of new tasks and objects of accounting supervision requires new approaches to the development of a valuation model. However, to date, there is no specific methodology for assessing the environmental and social components of the activities of economic entities, which raises such questions that the traditional accounting model cannot give a correct answer to. Modern challenges of society have led to the emergence of such a concept as the economy of sustainable development, which in turn is based on the stability of the functioning of economic entities. In the presented work, the authors systematize the structural components and types of accounting for the formation of a comprehensive model of the conceptual foundations of accounting for the sustainable development of economic entities. Based on the results of the expert survey, the systematization of accounting types by user groups and the information provided to them was carried out. The authors have compiled and analyzed a matrix of characteristics of accounting for sustainable development (BUUR) in the context of monetary and natural definitions, taking into account the orientation to the past and the future. The definitions of the internal and external BUUR are given. The concept of a BUUR focused on monetary/natural and external/internal indicators is presented.

Бізнес-моделі та сучасні інструменти підвищення ефективності підприємств роздрібної торгівлі

The article is aimed at examining the main components of retail business models, to determine the probable directions in which these models can develop, as well as identifying the factors and tendencies that form the business models used by retail trade enterprises. The current status of retail trade, innovations and changes to the business models of evolutionary nature are analyzed. The need to implement new solutions for store formats, cooperation of distribution channels, changes in the range of products and services offered, as well as the use of machine learning for effective management of retail business is substantiated. Based on observations on the activities of modern retail enterprises, it can be stated that changes that occur in the business environment lead to the need to find and implement effective ways to gain competitive advantages through the use of new business models. The article consistently covers the nature and components of the retail business model, business model development issues, analysis of both external and internal factors that determine changes in business models, as well as defines trends and examples of innovative solutions in the formation of models for retail trade business. It is concluded that in the changing conditions of today, retailers need to constantly modify the business models used and improve the processes associated with the implementation of basic business functions, such as procurement, warehousing, sales and customer service.

ПРОГНОЗНО-АНАЛИТИЧЕСКАЯ ЧАСТЬ ЦИФРОВОЙ БИЗНЕС-МОДЕЛИ СЕЛЬХОЗОРГАНИЗАЦИИ РЕГИОНА

Profit is the key objective of the business enterprise, and its forecast plays a major role both in the initial business planning stage and in its ongoing work, since it allows the manager to make timely management decisions and adjust the vector of his development. The authors proposed an analytical model for forecasting the production and financial results of the functioning of economic entities of the Saratov region as one of the integral elements of digital business modeling of the activities of the agricultural organization of the region. The article considers the concepts of a modern business model of a commercial enterprise, presents a digital business model of an agricultural organization from the point of view of managing its main constituent elements (processes), shows key approaches to its construction, reveals the structure of its production unit. The proposed predictive and analytical component of the digital business model of the agricultural organization allows to investigate the production and financial results of activities of economic entities of the Saratov region in dynamics over 10 years by applying one of the methods of graphical analysis of data (superimposition of the moving average polynomial line of the second degree), as well as to find the corresponding equation for detecting the state of indicators in the near term. In order to improve the reliability of the predictive and analytical part of the digital business model, a correlation-regression analysis method was used, as a result of which coefficients were identified, reflecting the degree of interaction between individual elements of costs for agricultural production, on the one hand, and factors affecting profits, on the other. The main element of the novelty of this work is the combination of methods of graphical and correlation-regression analysis of data, as a result of which the authors proposed a formula for determining a number of forecast values of factors affecting the profits of agricultural producers, taking into account the coefficients of their relationship with individual cost elements.

Implications of the Internet-of-Things on the components of business models of mining companies

Implications of the Internet-of-Things on the components of business models of mining companies

Blockchain and digital transformation of insurance business models

The blockchain has recently received significant attention from researchers and practitioners, highlighting its perceived impact and emerging disruption potential. However, most of the literature on blockchain is dedicated to the banking sector, with limited attention to other sectors and answering how blockchain technology may affect business models. This research examines how the adoption of blockchain technology transforms business model components in the insurance industry. We performed a qualitative research through a multi-case study analysis of three blockchain implementations in the insurance sector. Based on the data, we identified that blockchain technology has the potential to contribute to the digital transformation of business models in all aspects. This research provides insightful implications for blockchain and insurance relevant researchers and executives.

Equipment as a Service: The Transition Towards Usage-Based Business Models

“Equipment as a service” is perhaps one of the most drastic examples of usage-based business model innovation (BMI) in the field today. To date, a systematic analysis of this phenomenon is lacking. This study aims to close this gap and develops a primer for usage-based BMI. Drawing on BMI theory and expert interviews, our contribution is three-fold: We clarify (1) why firms move towards usage-based business models, (2) what the main usage-based business model archetypes are, and (3) how shifting to these archetypes impacts business model components and innovates the business model. Our analysis identifies macro- and firm-level supply- and demand-side drivers and inhibitors which lead to four main usage-based business model archetypes: “Leasing Plus”, “Flexible Contracting”, “Renting/Sharing”, and “Performance Contracting”. The most radical model in terms of its supply-side risk-return profile is “Performance Contracting”. Evidence suggests that two groups of firms are particularly drawn to usage-based models: Firms in “young”, tech-enabled industries and firms in more mature or even declining industries. The former apply usage-based models as a proactive effort to push their products into the market. The latter do so as a defensive move to secure their market position and not lose customers with liquidity problems. Digitalization is likely to reinforce these developments.

FITNESS CLUBS FACING COVID-19 LOCKDOWN

The establishment of the state of epidemic in Poland in March 2020 caused significant difficulties in accessing certain services or a total ban on their rendering. The fitness industry faced the inability to provide activity. This extraordinary situation forced entities in the fitness industry (including fitness clubs) to face a number of challenges related to surviving the closing period. These include, first of all, financial issues, the development of electronic business model components, as well as thinking about the conditions of running business after lifting the ban. The aim of the paper is to analyse the actions taken by the Polish fitness clubs during the lockdown period (13/03/2020-06/06/2020) caused by the coronavirus pandemic (COVID-19). It covers recognizing the thinking of these clubs about the possibilities of acting despite these restrictions, as well as immediately after lifting restrictions on the service activities of this industry. The method of analysing the situation of the industry was based on two sources of information: a review of the literature and industry reports on the situation before the lockdown and media information presenting its state during the lockdown. The combination of information from both sources gave a unique insight into the justifications of the activities announced and undertaken by the Polish fitness club industry.

Бізнес-моделі інтернету речей

Бізнес-моделі інтернету речей

BUSINESS MODEL INNOVATION IN THE DIGITAL ECONOMY: BLOCKCHAIN BASED COLLABORATIVE MODELS

The current paper focuses on blockchain technology as a novel actor shaping business models and leveraging another rising star of the global business, collaborative economy. The research aims to grasp the main intersection points between blockchain drivers and business model components. Therefore, to accomplish this objective, the paper identifies the main impact drivers of blockchain technology in relation to collaborative models as: cost reduction, risk reduction and disinter mediation. Secondly, we have turned our attention to the methods in which this new technology influences business model innovation. Furthermore, this paper presents the possible outcome scenarios taking into consideration four stages of business model innovation in relation to different degrees of blockchain adoption by organizations. The key findings of this study focus on the impact on value proposition, value creation, delivery and value capture, and the ways each scenario constitutes an opportunity or a threat to the focal firm

The impact of digital logistics start-ups on incumbent firms: a business model perspective

PurposeDigital freight forwarder (DFF) start-ups and their associated business models have gained increasing attention within both academia and industry. However, there is a lack of empirical research investigating the differences between DFFs and traditional freight forwarders (TFF) and the impact of digital start-ups on incumbents' companies. In response, this study aims to examine the key business model characteristics that determine DFFs and TFFs and propose a framework illustrating the extent to which digital logistics start-ups influence incumbent logistics companies.Design/methodology/approachBased on the primary data gathered from eight interviews with experts from start-ups' and incumbents' logistics companies, as well as secondary data, the authors identify the main factors of DFFs start-ups that have an impact on TFFs and analyze the similarities and differences in regard to the business model components' value proposition, value creation, value delivery and value capture.FindingsThe results show that differences between DFFs and TFFs appear in all four business models' components: value proposition, value creation, value delivery and value capture. In particular, the authors identify three main factors that need to be considered when assessing the impact of DFFs on TFFs: (1) the company size, (2) the market cultivation strategy and (3) the transport mode.Originality/valueThis is one of the first studies to specifically examine the key business model differences between DFFs and TFFs and to propose a conceptual framework for understanding the impact of digital logistics start-ups on incumbent companies.

Business Model as a Base for Building Firms’ Competitiveness

Designing and creating a business model is crucial for a successful firm’s operation in today’s market in a complex and changing environment. A business model is the factor that differentiates one firm from another—it defines the distinctions of the firm, how the firm deals with the competition, the firms’ partnerships, and customer relations. This paper explores the role of the business model in the creation of sustainable competitive advantage. The empirical part of the paper presents the business model of three small companies from the Information and Communications Technology (ICT) industry in Croatia using the Business Model Canvas. Additionally, business model components were also analyzed using a framework for evaluating a business model. The results of the analysis point to a few crucial components of the business model, on which small ICT firms in Croatia build their competitive advantage by creating significant distinctions of those components. These distinctions are essential for their longevity and sustainability.

How to convert digital offerings into revenue enhancement – Conceptualizing business model dynamics through explorative case studies

Equipment manufacturers are currently utilizing new digital technologies such as the Internet of Things (IoT), Artificial Intelligence, or Big Data, for new digital offerings. However, these offerings seldom enhance revenue, because companies struggle with business model (BM) dynamics. By analyzing 27 companies through an explorative case-study approach, the authors consider how companies can successfully achieve revenue enhancement through digital offerings. The result is a threefold framework for revenue enhancement through digital offerings. First, this framework distinguishes between three phases of BM dynamics: 1) augmenting products through a “hardware plus” logic, 2) developing a portfolio of multiple logics for creating customer value, 3) integrating this portfolio through platform logic. Second, the framework emphasizes that three barriers, which we refer to as confidence, mixing, and collaboration barrier, limit the progress from Phases 1 to 3. Third, the framework reveals that each phase contains certain modifications of BM components. In the first phase, companies adapt their BM components slightly, so as to advance toward a “hardware plus” logic. In the second phase, companies embrace more radical BM innovations in order to convert services into an outcome-based BM and develop a new software subscription BM. In the third phase, companies modify BM components in order to integrate the BMs internally and to open them up for external collaboration partners.

Business model components to consider for ridesharing schemes in rural areas – results from four Swedish pilot projects

In this paper, business model components of rural ridesharing schemes are studied. Business models encompass generic components that need to be accounted for in a viable business case: customer value/interaction, usage of resources and the cost/income structure. The perceived values of ridesharing identified in previous studies – environmental and economic gains, increased flexibility, the benefits of not having to own a vehicle and the possibility to socialise – are confirmed in this study; however, the customer segment is not identified. The need of a digital platform to enable ridesharing is also identified and confirms previous studies. However, when turning to the key resource, vehicles, the literature does not provide information on agreements needed between platform providers and vehicle owners; it appears as though there is a belief that when there is demand, the supply will be generated automatically. This assumption introduces a risk that a demanded ride cannot be supplied, a risk that can increase when population density is reduced. To design efficient ridesharing schemes, business model components should not be overlooked. In order to achieve success in new mobility services, we stress the importance of (i) identifying the customer segment and (ii) securing the resources necessary to meet the demand.

Business models for the now economy

Purpose Business models are a key to success. This paper aims to identify the characteristics of the Now Economy, discuss the components of an effective business model, examine numerous e-commerce business models and provide an application of online learning. Design/methodology/approach The literature on business models is reviewed. E-commerce models are explored as a means for building competitive advantage in the Now Economy. An in-depth case study of remote learning in universities illustrates the development of a sound digital business model. Findings Business models explain where and how an organization competes and the financial feasibility of its strategy. Digital business models create market differentiation or disruption. This paper explains 20 e-commerce business models and offers an in-depth view of the opportunities and challenges in the online learning sector. Research limitations/implications Building on the literature, this work is conceptual and presents a case study. It is not an empirical study. A three-point agenda for scholars includes research on speed and service in business models, assessing the impact of customer value and examining the market power of Big Tech. Practical implications The digital component of the economy is growing annually. Business practitioners must respond by developing winning business models. The remote learning application is particularly relevant given today’s changing educational market. Originality/value While there has been considerable research on business models, there has been limited work on digital business models, which is the focus of this article.

A dynamic, network and resource-based approach to the sustainable business model

The network perspective of a business model provides an attractive outlook on the interactions and interdependencies of its components. The network is a “living organism,” it changes constantly and dynamically. Therefore, the key nodes in the network, and their potential loss, may be of vital importance to the network itself. The paper presents the network of relations between the components of a company business model operating in a sector of new technologies – virtual reality – and indicates the prominent and most influential nodes in the network that can affect value creation. The authors analyzed the influence exerted by a key node that has been eliminated from the network on the remaining structure, based on the immediate impact (change analysis), which computes the key nodes of the network and then isolates them individually to determine the effect on measured values. The primary research approach is an organizational network analysis (mostly centrality measures) and a simulation functionality used for determining measures and visualization, before and after changes. The results indicate the level of centrality measures of all nodes in the network (a virtual reality company’s business model), their interdependence, and the dynamics of their change. The paper concludes with implications for theory and practice, limitations, and directions for further research.

Dominant Logic and Business Model Innovation: Resolving Cognitive Dissonance on the Component Level

Dominant logic is generally seen as a cognitive barrier in the different steps of business model innovation processes. This particularly applies to micro-firms, where the business owner espouses the dominant logic and at the same time plays a vital role in innovating and potentially changing it. We engaged in an action research with forty butcher’s shops’ owners to shed more light on the conflicts between dominant and emerging logics at every business model component (i.e. (1) value proposition, (2) value creation, (3) value network, (4) value delivery, and (5) value appropriation). Furthermore, these conflicts triggered a state of cognitive dissonance among dominant and emerging logics. To investigate how butcher’s shops’ owners restored equilibrium we subsequently conducted a multiple embedded case study, with four positive cases (i.e. innovative butchers), and four negative cases (i.e. non-innovative butchers). Positive cases resolved cognitive dissonance by embracing emerging logics through a set of consistent ideas supporting the emerging logic at all five business model components, assessing the limitation of the dominant logic at the value proposition, as well as on the value delivery levels. In contrast, negative cases resolved cognitive dissonance by adding elements sustaining the dominant logic at the value proposition, value creation, value delivery, and value capture levels, and by reducing the importance of factors supporting emerging logics at all five business model components. The present study contributes to the business model innovation literature, by pointing to the dual role of cognitive dissonance between dominant and emerging logics at the level of different business model components.

The Role of Information Technology in Fintech Innovation: Insights from the New York City Ecosystem

Fintech is an active area of innovation and a rapidly growing sector of the economy, yet relatively little is known about how information technology contributes to innovation in fintech. We draw on the business model canvas framework and we examine the role of information technology in the business models of leading fintech startups in the New York City fintech ecosystem. We find that information technology plays a key role across nearly all components of the business models, orchestrating resources and processes to efficiently deliver personalized financial services to customers. Focusing on the IT-enabled value propositions across the fintech startups in our sample, we find that the startups tend to emphasize low-cost offerings that may pose a threat to incumbent business models in financial services.

Digital sustainable entrepreneurship: A business model perspective on embedding digital technologies for social and environmental value creation

This article explores how sustainable entrepreneurs embed digital technologies in their business models to leverage social and environmental value creation. To this end, we draw on the institutional logics perspective of sustainable business models. The article contributes to research on sustainable business models and entrepreneurship by showing that digital technologies enable novel configurations of sustainable business model components: a blended value proposition, integrative value creation, and multidimensional value capture. Moreover, we discuss the complementarities and tensions of a digital logic and logics of sustainability that clarify and advance the link between these concepts in an entrepreneurial context. This further adds to the theoretical development of sustainable business models as manifestations of multiple institutional logics. The article yields practical implications by describing possibilities and drawbacks of digital technologies for designing sustainable business models.