Business Model Elements Research Articles

Business Model of Insurance Technology Company in Indonesia (Case Study on Premiro.com)

The rapid increase in internet usage in Indonesia has fueled the rise of Insurtech, addressing low literacy, inclusion, and insurance penetration levels. Insurtech companies are pivotal in offering digital-based insurance services to increase insurance users. This research examines the business models employed by Indonesian Insurtech firms, focusing on a case study of Premiro.com. The study also aims to identify the strengths that provide these companies with competitive advantages. Utilizing a descriptive research methodology and a qualitative approach, the research includes interviews and secondary data collection through literature reviews and company information. The analysis employs the Business Model Canvas and Value Design Model frameworks. The study details Premiro's business model elements: customer segments, value proposition, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. It also examines value drivers, nodes, exchanges, and extracts. Findings reveal Premiro's strength lies in its lean and efficient cost structure. The study offers practical recommendations for Premiro to enhance operational effectiveness, expand market share, and boost competitiveness.

In Search of Sustainability Gains from the Complementarity Between Value Creation, Value Proposition and Value Capture Elements of Circular Business Models

In Search of Sustainability Gains from the Complementarity Between Value Creation, Value Proposition and Value Capture Elements of Circular Business Models

Business model of international consulting: main characteristics and elements

Based on the analysis of the essence and modern types of business models of enterprises, the basic professional service business model of the international consulting "Consultant" and reveals its main characteristics is substantiates: the B2B model, the modification of the "Producer" business model, the integration of elements of service and digital business models, customer orientation. Based on the Business Model Canvas, the main components of the basic business model of international consulting are revealed: key partners: partner intra-service and inter-service networks of the consulting firm; key activity: providing professional assistance to business organizations in solving problems of international economic activity; key resources: intellectual human, organizational, market; value proposition: the value services of international consulting for the client; relations with clients: client orientation, client-centricity, positive client experience, cooperation between consultants and clients at all stages of the consulting process; channels: omnichannel, cross-channel communications; customer segments: target audiences, customer networks; cost structure; income streams. Client networks as a component of the basic business model of international consulting are characterized and measures to optimize them are disclosed: forming a loyal attitude of clients to the consulting firm, consultants, and services; accumulation and protection of a network of regular customers; forming a positive customer experience; improving the efficiency of consultant-client relations; development of omnichannel provision of professional assistance to clients; ensuring client orientation of the personnel of the consulting firm; management of the value and quality of consulting services; introduction of new consulting services and technologies based on consulting innovations.

ОТ ПОЛИГОНА К КАРБОНОВОЙ ФЕРМЕ: БИЗНЕС-МОДЕЛЬ

In the context of the climate agenda, a systematic presentation of the scientific, methodological and educational tasks of the carbon landfill is given, the «carbon theme» is designated and the subprocesses (main, accompanying, providing and managerial) of the carbon sequestration process implemented on carbon farm plantations as a potential business-process are highlighted. Based on a comparison of well-known approaches to business modeling of entrepreneurial activity, a research hypothesis was formulated and the interpretation, composition of elements of the carbon farm business model, its value proposition were clarified, and the uniqueness of the final product (services for the absorption and sequestration of carbon by «air-plant-soil» ecosystems) was noted. The distinctive characteristics of the dynamic, complex, sensitive and multifactorial natural process of decarbonization as the basis of the operating cycle are substantiated. It is shown that biological features of the business process generate various risks, this does not guarantee sustainable profit generation. A three-link value chain and a business-model mind-map are proposed, which can serve as a working tool for planning, monitoring, diagnostics and critical analysis of the commercialization of an ecosystem service in the context of the emerging sequestration (decarbonization) industry. The scientific novelty of the work consists in adapting the management template «business-model» proven by the practice of industrial enterprises in relation to the new ecosystem service «decarbonization», which is a natural result of the transformation of carbon polygons into carbon farms as business entities.

ФУДШЕРИНГ: НОРМАТИВНО-ПРАВОВОЕ РЕГУЛИРОВАНИЕ И ВЛИЯНИЕ НА ДЕЯТЕЛЬНОСТЬ ПРОДОВОЛЬСТВЕННОЙ РОЗНИЦЫ

The purpose of the study is to develop rec-ommendations for the use of food sharing in food retail in Russian Federation, taking into account legislative initiatives to regulate the distribution of food surplus. An analysis of the legislative initiative submitted to the State Duma of the Russian Federation was carried out. It is shown that the optimal op-tion for food sharing in Russia is its imple-mentation based on the food retail trade in-frastructure. It is shown that food sharing should become an important element of the food retail business model and a tool for its ESG transformation.

Unlocking success: key elements of sustainable business models in the wooden multistory building sector

Few studies have investigated the processes and strategic interactions among the Wooden Multistory Construction (WMC) industry actors, its customers, and local policymakers. Further insights into this field are needed for a sustainability transition in the construction sector. This study aims to explain WMC’s corporate sustainability strategies for co-creation with customers and municipalities. This was based on interviews with key informants in the sector and WMC actors using three case studies in Sweden. Our interviews focused on business processes, interactions with users and municipalities, sustainability, and innovation in the WMC market. The findings reflect the notion of a slow transition in the Swedish WMC market toward using more wood as a bearing structure, which is supported by the competitive advantages and climate performance of wood. The three case studies indicated that the corporate focus is currently placed on incremental improvements in operations, price competitiveness, and successful project management. However, in contexts where wood construction is seen as a unique advantage, collaborations between the construction industry and end users have developed and served as novel platforms for WMC market development. The study concludes that WMCl growth hinges on the industry’s housing offerings prioritizing quality, affordability, and swift construction.

Науково-методичні аспекти аналітики сучасних бізнес-моделей інфраструктурних рішень

Modern infrastructure is a complex of systems, networks, objects and technologies that ensure the effective functioning of society and the economy in the conditions of modern challenges and technological progress. The creation and maintenance of such infrastructure is a critically important aspect for the development of the country, its competitiveness and ability to adapt to new conditions. The introduction of innovative methods, such as the business process approach, allows creating efficient and adaptive infrastructure systems. At the same time, business practices have not become sufficiently widespread in infrastructure enterprises, which is an important problem in the conditions of directing significant funds to restore damaged and create new infrastructure. The purpose of the research is to determine the features of the business model of infrastructural solutions and to develop proposals for evaluating its effectiveness. The study identifies the key elements of the infrastructure services business model. The main directions of transformation of business models in the infrastructural sphere are considered. In accordance with modern management standards, the key principles of the concept of continuous improvement of business processes in the field of service enterprises have been defined. DEA analysis was used for the comparative assessment of the effectiveness of the business model of business structures based on the results.

Innovativeness of business models in B2C and B2B online education segments in the USA

Aim. To conduct a comprehensive analysis of the structural and functional composition of innovative business models in the B2C and B2B online education sectors, and to identify the unique elements and factors that determine the success and novelty of these models. Objectives. To identify key development trends and current trends in online education, especially in the B2C and B2B segments; to identify and compare innovative elements of business models in the pre-university and corporate segments based on the analysis of online education project websites; to assess the degree of novelty of business models using the method of frequency analysis of business model elements based on data obtained from online sources.Methods. The study is based on the industry approach to identifying unique business models, analyzing the structuring of business models according to A. Osterwalder and I. Piñe, and assessing the innovativeness of business model elements based on frequency analysis. A comparative analysis of the two segments was performed in order to understand their specific requirements and characteristics, and to identify opportunities for cross-pollination of successful practices and strategies, which can contribute to the creation of new innovative approaches in online education. Data were collected from online education project sites and aggregated using SimilarWeb tool to assess site traffic.Results. The authors found that business models in the B2B segment show a higher level of innovativeness compared to B2C. The main elements of innovativeness are personalization of learning, integration with corporate systems, and development of specialized courses. The components contributing to innovativeness are identified, and recommendations for managing the structural components of business models in each of the segments are offered.Conclusions. The study indicates the importance of innovation in online education business models and the need to adapt them to the changing needs of learners and organizations. Ways to improve business models, including the integration of new technologies and the development of customized educational products for different market segments, are suggested.

Exploring consumer segments for online food provisioning services: Online supermarkets vs. alternative food networks

Recent years have witnessed a surge in online food provisioning services spanning from online mass retail to alternative food networks with digital sales platforms. Hence, enhancing our understanding of consumer preferences in the digital food space is vital, as digitalization holds significant potential to alter consumer habits within the food sector. To address this, we surveyed a representative sample of Norwegian consumers. We employed best-worst scaling to assess their preferences for eighteen characteristics derived from a variety of online food provisioning services. The characteristics covered business model elements such as key partners, resources, activities, distribution channels, and customer relations. Our findings identify two consumer segments. The first segment, labeled the Convenience segment, prioritizes efficient delivery and user-friendly interfaces, characteristics that resonate with online supermarket services. The second segment labeled the Local segment, prioritizes a wide range of locally and sustainably produced food in line with the ethos of alternative food networks. Notably, the latter segment, accounting for 48 % of the respondents, views several of the convenience characteristics derived from online mass retail as important. Taking the convenience preferences of the Local segment into account could broaden the appeal of alternative food networks and other sustainability-oriented niche providers to a wider range of consumers.

The concept of a sustainable business model: Opportunities and challenges


 
 
 The concept of sustainable development is considered one of the most important and urgent challenges facing humanity today. Therefore, solutions that promote sustainable business are of particular importance. The purpose of this article was to explore the concept of a business model as a potentially promising way of shaping the contribution of businesses to sustainable development. A systematic literature review method was used to identify, analyze and critically evaluate the first theoretical proposals for the concept of a sustainable business model. Fundamental differences between the proposed conceptualizations were identified, stemming from different understandings of the business model concept on the one hand, and from its embedding in different, partly contradictory approaches, to corporate contributions to sustainable development, on the other. The article adapts the holistic approach of corporate sustainability and the understanding of the business model as a representation of the essence of business including the proposition, creation, delivery and capture of value. As a result, key elements of the emerging new ontology of the sustainable business model have been identified and defined. The proposed concept of a sustainable business model primarily means adopting a different logic of business, and the basis for defining the various elements of the business model is the reconstruction of the concept of value. The sustainability of a business model is thus referred to the extent to which this model maximizes benefits while reducing economic, social, and environmental damage, and creates value not only for the company and its customers but also for various stakeholder groups. The main part of the article is a systematic identification of the opportunities and challenges associated with the new proposal. These are discussed according to the key elements of the sustainable business model, which are: the value proposition, value creation and value capture.
 
 

Basic principles of corporate social responsibility management under martial law

Corporate social responsibility is an integral element of the modern business model, especially for large companies. Effective management of this process ensures a positive result for both society and the business itself. Therefore, the study aims to substantiate the theoretical foundations of the management process in the context of corporate social responsibility, considering the military conditions in which Ukrainian business operates. To achieve this goal, a systematic approach and methods of analysis, comparison, deduction, comparison, and decomposition were used. The study analyses current approaches to understanding the corporate social responsibility of business. The main vectors in which the corporate social responsibility of enterprises is implemented are allocated. An author’s interpretation of the concept of corporate social responsibility management was formed. The basic principles of implementation of the communication policy for both the internal audience (company employees) and external stakeholders (partners, customers, society, the state) are formed and argued. The features and main directions of implementation of corporate social responsibility initiatives of Ukrainian businesses in the context of war are studied and highlighted. It is established that the priority of corporate social responsibility of companies in Ukraine is to ensure business continuity (allowing to pay salaries and taxes), ensure the safety of personnel (arrangement of bomb shelters, relocation of employees and their families), support for defence capability (various assistance to the Armed Forces of Ukraine) and assistance to territorial communities. The results of the study can be used by the business environment to form a management mechanism for implementing corporate social responsibility initiatives, as well as by the academic community that studies this issue

Behind-the-meter residential photovoltaic plus battery systems – An insight to business models under net-metering

This paper contributes with an analysis of the development of photovoltaic plus battery systems under net-metering using elements of business models, from the perspective of value proposition and value capture features. The Brazilian regulatory framework for distributed generation is taken as example. Five photovoltaic plus battery schemes are envisaged and value creation is analyzed regarding two aspects: batteries can improve photovoltaic generation and load mismatch and batteries can cooperate with the distribution system. Policy implications and barriers to the implementation of these schemes are indicated. A techno-economic feasibility analysis for residential prosumers is conducted to gain insight about the viability gap in three realistic scenarios. Behind-the-meter photovoltaic plus battery systems for arbitrage under Time-of-use energy tariffs and a scenario that includes the sale of stored energy to the grid are analyzed in relation to an only-photovoltaic system scenario. Three cities with different photovoltaic generation potential, tariffs and human development index provide good diversity for the comparisons. We find that in favorable locations in terms of high TOU tariffs and good solar radiation, Behind-the-meter photovoltaic plus battery systems could be spontaneously adopted if stacking revenues are allowed, but a case-by-case study is necessary. Moreover, in other cases net present value and payback signal economic viability, then, when specific technical conditions indicate the use of batteries integrated with photovoltaic systems to mitigate negative local effects of photovoltaic generation, in many regions of the country they are viable.

Business model configurations for successful vertical farming

PurposeAs a response to global population growth and increasing demand for food, farmers have been complementing traditional agriculture practices with vertical farming (VF) and indoor hydroponic systems. To facilitate the growth of the VF industry, this paper aims to identify business model elements and their configurations that lead to high firm performance.Design/methodology/approachThe research goals were met by conducting literature reviews coupled with a fuzzy-set qualitative comparative analysis (fsQCA) on five business model elements, “superior” OR “strong” performance as two possible outcomes, and the top-ranked global VF growers listed in the Crunchbase Database.FindingsFrom the fsQCA results, it was observed that several business model configurations lead to strong firm performance. Vertical farms growing in urban settings and having strong customer engagement platforms, coupled with a presence of business-to-business (B2B) sales channels, are more consistently associated with superior performance. These results imply that the decision configuration of location, along with customer engagement activity and sales activity are differentiating factors between good firm performance and superior firm performance in the case of vertical farms.Originality/valueThis paper contributes to expanding the knowledge of business model theory, business model configurations and VF management, providing specific guidelines for vertical farm owners and investors related to decision-making for higher firm performance, as well as positive environmental, social and economic impact.

Value Leakage in Product–Service System Provision: A Business Model Alignment Perspective

To stay competitive, manufacturing companies offer product–service systems (PSS) to avoid commoditization of their products. The potential to create value through PSS offerings lies in a company's ability to successfully implement the PSS business model. However, many companies are unable to realize the benefits because PSS represents significant changes to all the business model elements, which comprise value creation, value delivery, and value capture. This leads to misalignment among the business model elements, which is a topic of interest within PSS and business model literatures. This article aims to provide empirical insights into the business-model-element alignment problems and conceptualize their consequences, which manufacturing companies face during PSS implementation. This article utilizes an abductive multicase study of three Swedish manufacturing companies with long-term experience of PSS provision to provide novel insights by identifying six alignment problems that companies face as a consequence of the interaction among the three business model elements. Furthermore, we contribute to both the PSS and business model literature by conceptualizing the consequences of business model element alignment problems, explaining the three value leakages that occur as a result of inappropriate resource and capability utilization, unattractive offer configurations, and inefficient service network processes in PSS provision.

ЕКОЛОГІЧНИЙ ТРЕНД У ФОРМУВАННІ БІЗНЕС-МОДЕЛІ

Current economic tendencies stimulate entrepreneurs to seek innovative and sometimes revolutionary approaches to business conduct. Companies aiming to be trendsetters are characterized by their significant impact on addressing current social and environmental challenges. Projections indicate a nearly quadruple growth in the global market for green technologies and sustainable development. Nowadays, companies have access to modern tools in order to minimize negative environmental impact. Digitalization and sharing economy promote for generating tools to address environmental issues, with generational shifts intensifying societal focus on such concerns. Consequently, adherence to principles of sustainable development, particularly in the context of addressing environmental challenges, is a crucial aspect of modern business performance. Ukrainian businesses face the challenge of adapting to the European Green Deal, necessitating a review of their environmental goals and strategies for competitiveness. With the establishment of ambitious environmental goals, companies are compelled to reshape their business models. The influence of the environmental trend on shaping each element of a company's business model is important. Business model Canvas avails to recognize this impact. Analyzed customers segments and offering eco-centric value propositions are crucial for success. Key activities, especially in resource-intensive sectors like manufacturing, require innovation for environmental responsibility. Collaboration with stakeholders is essential for eco-friendly execution, as companies remain dependent on suppliers whose resources can provide neutralize harmful environmental impacts. Thus, environmental production primarily relies on innovation, despite the additional investments and risks involved.

Analysis of Elements Business Model in Coffee Shop

The study aims is to determine the elements of the canvas business model with three focuses, there are customer segment, value proposition and key resources at The Buddy House Coffee & Eatery. The research method used is descriptive qualitative. The data collection technique used is passive participant observation, semi-structured interviews and documentation. The data analysis technique used is data reduction, data display and conclusions and data validation using triangulation. The informants in this study were selected purposive sampling and snowball sampling as many as 3 people there are 1 Head Barista and 2 consumers. The results showed that the targeted customer segments are the middle social class, and the majority of consumer come from outside the area where the coffee shop was located. Meanwhile, for the value proposition element, of the 11 indicators, there are 2 indicators that have not been implemented optimally, there are newness and accessbility. In the key resource element, intellectual indicators must be maximized in terms of creating copyright on products made by The Buddy House Coffee & Eatery.

Artificial intelligence and new business models in agriculture: the “ZERO” case study

PurposeThis study aims to investigate the use of Artificial Intelligence (AI) applied to vertical farms to evaluate whether disrupting technology supports sustainability and increases strategic business model choices in the agricultural sector. The study responds through empirical analysis to the gap on the subject of AI-driven business models present in the growing sector literature.Design/methodology/approachThe paper analyzes the case of “ZERO”, a company linked to the strategy innovation ecosystem of the Ca’ Foscari University of Venice, Italy. The empirical data were collected through a semi-structured questionnaire, interviews and the analysis of public news on the business model available in the analyzed case study. The research is empirical and uses exploratory, descriptive analysis to interpret the findings. The article focuses on the evaluation of AI impact on the agricultural sector and its potential to create new business models.FindingsThe study identified how AI can support the decision-making process leading to an increase in productivity, efficiency, product quality and cost reduction. AI helps increase these parameters through a continuous learning process and local production, and the possible decrease in prices directed toward the goal of zero km food with fresh products. AI is a winning technology to support the key elements of the vertical farm business model. However, it must be coupled with other devices, such as robots, sensors and drones, to collect enough data to enable continuous learning and improvement.Research limitations/implicationsThe research supports new research trends in AI applied to agriculture. The major implication is the construction of ecosystems between farms, technology providers, policymakers, universities, research centers and local consumer communities.Practical implicationsThe ZERO case study underlines the potential of AI as a destructive technology that, especially in vertical farms, eliminates external conditions by increasing productivity, reducing costs and responding to production needs with adequate consumption of raw materials, boosting both environmental and social sustainability.Originality/valueThe study is original, as the current literature presents few empirical case studies on AI-supporting business models in agriculture. The study also favors valuable strategic implications for the policies to be adopted in favor of new business models in agriculture.

Transformative Business Models for Decarbonization: Insights from Prize-Winning Start-Ups at the Web Summit

The increasing social pressure for decarbonization has placed businesses under considerable scrutiny to actively reduce carbon emissions. A critical step towards achieving this objective is to shift conventional production and consumption systems to more sustainable alternatives. Thus, there is an emergent need to understand the patterns and drivers of the transformative business models (BMs) that underpin that shift. This study adopts a mixed-methods approach that integrates different literature streams—including Sustainability Transitions Theory (STT), Strategic Niche Management (SNM), and the Business Models approach—and stakeholders’ interviews to investigate the key elements of business models that lead towards sustainable practices. This research examines the organizational arrangements of European start-ups operating between 2014 and 2020. The transformation towards decarbonized production and consumption is characterized by an efficient combination of business strategies that incorporate advanced technologies (ATs), such as artificial intelligence (AI), machine learning (ML) and its algorithms, along with sustainable elements, resulting in transformative business models. By exploring the driving elements behind the transition to low-carbon approaches, this study fills a significant gap in the existing literature on business models. The findings from this research also hold relevance for policymakers to promote decarbonization.

How Applying the Lean Start-up Methodology can Affect Business Model Innovation

Start-ups often apply entrepreneurial approaches like the Lean Start-up Method (LSM) and Business Model Innovation (BMI). LSM emphasises experimentation during product development and testing in close interactions with potential customers to get first-hand feedback. Lessons learned are implemented so that improved product variants go through further feedback loops and so on. Products are developed by rapidly getting closer to what customers really want. BMI focuses on altering existing or developing new business models to enable differentiation from competitors. Typical elements of business models include target customer segments, value propositions, value chains and revenue mechanisms. BMI is assumed to take place when at least two of these elements are innovated in conjunction. Going beyond typical product or process innovation in isolation, BMI suggests to holistically consider interdependencies within the entire business model. The need for a better understanding on connections between LSM and BMI is expressed in the literature and this work’s goal is to contribute to this discussion. More specifically, this work seeks to address the question of how the application of LSM can affect BMI. In search of answers, business plans of 25 finalist start-ups in the 2022 edition of an annual innovation competition in Switzerland are reviewed. While the evidence on the connection between LSM and BMI is not entirely convincing, reviewed business plans reveal insights into LSM-related factors at play that can support business model changes and trigger BMI.

The Reconstruction of Artificial Intelligence on the Fit of Business Model in E-Commerce IndustryCase Study of Alibaba

Artificial intelligence has reconstructed the business model of the e-commerce industry and brought about fundamental changes in the industry ecology. However, few studies have comprehensively and clearly exposed the mechanism and impact of this change. In this paper, we decompose the existing business model elements and integrate artificial intelligence with the deconstructed business model elements based on the scenario of a changed e-commerce platform business model. Through the case study of Alibaba, the largest e-commerce platform in China, we constructed the module division of "people", "goods and services," and "scene" for the e-commerce industry based on the business model canvas, and summarized the mechanism of artificial intelligence to reconstruct the business model of e-commerce industry. This paper reveals the mechanism of digital technology transforming the fit of business model in e-commerce industry, and provides theoretical and practical guidance for e-commerce enterprises to make full use of digital technology to achieve business model innovation.