Changing Business Models Research Articles

Do we have to change our business models and managerial practice in COVID-19 times?

The new way of working that the COVID-19 pandemic has brought to all companies in the world has been a true “whirlwind” of changes to the traditional status quo of operation of each one of them. Ritter and Pedersen (2020) studied eight business-to-business firms to understand these specific changes and found certain elements that indicate that the management practices of these companies had to change to adapt to this reality. The methodology was qualitative in two crucial strategies, the exhaustive documentary analysis in 25 companies around the world and semi-structured in-depth interviews in the entire world, using theoretical sample. The most important findings were the identification of different clusters of changes in business models and management practices characteristic of the COVID-19 pandemic.

Methane storage in nano-pores: Molecular dynamics simulation and density functional theory

Anticipated changes in the complex reservoir production business model increase the demand for reliable methods of the total reservoir storage and capacity estimation for tight formations. The task is complicated by the fact that at nano-scale phase transition and adsorption phenomena are system size dependent. Therefore, fluid phase behavior in nano-pores is sufficiently different from those in the bulk. As the result, understanding of hydrocarbon content behavior in nano-pores at different pressures is of high demand, because such knowledge is crucial for development of an optimum production plan.In the current study, we present a detailed investigation of neat methane distribution in a system of slit nano-pores formed by graphene sheets. The fluid in slit pores is considered to be in thermodynamic equilibrium with the fluid in the larger matrix pore (bulk), thus the concentration of methane in pores is governed by the pressure in the connected bulk volume. The pressure and temperature ranges considered are chosen to represent typical reservoir conditions.The main goal of this study is to suggest a method that (1) is simple enough to be routinely applied for the practical purposes within the industry, and (2) takes into account all major phenomena, which govern fluid behavior in nano-scale pores. To match both criteria, we started with precise molecular dynamics (MD) simulations (fully atomistic and coarse grained) and then utilized the obtained data to calibrate parameters for classical density functional theory approach (c-DFT). In such a way, we managed to adjust computationally cheap and robust c-DFT method to produce the same results as atomically precise MD simulation. Finally, we summarized some results in a simple analytical formula, which describes methane adsorption on flat surfaces.The developed approach enables improved gas in-place estimation, especially in tight formations, which can be extremely valuable for both production design and economics evaluation.

Barriers and Drivers for Changes in Circular Business Models in a Textile Recycling Sector: Results of Qualitative Empirical Research

The growing environmental problems associated with the dumping of large amounts of textile waste and the demand for circular products are prompting textile waste recycling enterprises to develop circular business models (CBMs). This implies a radical change in the way some enterprises operate to obtain growth. Considering the importance of the drivers of and barriers for the adoption and implementation of CBMs in the textile recycling sector, it is claimed that the comprehension of these factors to CBMs is limited and deserves more attention in empirical research. Therefore, our research investigates the antecedents of circular business models in the textile recycling sector by highlighting influencing factors. The aim of the article is to explore the main enhancing and inhibiting factors in the development of circular business models on the example of a large enterprise operating for 30 years in the textile recycling sector. In this study, a case study design of mixed methods, including semi-structured interviews with a business practitioner and the data presented on the websites of the surveyed enterprise, is used. The results suggest that main enhancing factors are relevant regulations at the European level, appropriate technologies and digitisation, and increasing social and environmental awareness of consumers and managerial capabilities. However, inhibiting factors are supply chain complexity and supply chain collaboration in connection with a large scale of business in crisis situations, a large scope and range of geographic diversification of outlets in the perspective of the consequences of the information gap, and readiness to take the so-called “being the first in the market” risk. In practice, this means that general drivers of the CBMs may facilitate the reuse of second-hand clothing and recycling of textiles for other new products as the primary CE action. On the other hand, enterprises have to overcome a number of technological barriers, and in the case of the textile recycling sector, it is necessary to understand which barriers they face to take appropriate actions. Research findings indicate factors that may be the subject of intervention or support of managers or policymakers. This study has practical implications and suggests future study paths.

ОСОБЕННОСТИ РЕАЛИЗАЦИИ ПРОЦЕССНОГО ПОДХОДА В УПРАВЛЕНИИ ПРЕДПРИЯТИЕМ В УСЛОВИЯХ ИНДУСТРИИ 4.0

Industry 4.0 technologies directly related to the concept of sustainable development, which opens up new opportunities and can contribute to changing the traditional approach of manufacturing companies. Currently, the food system is undergoing widespread changes in business models, which also facilitated by the digital technologies use. A growing number of new digital technologies successfully applied in all major processes. Digital technologies can affect different processes in different ways, some may have a cross-cutting impact on all processes, while others may focus exclusively on one process. The introduction of digital technologies of Industry 4.0 by manufacturing companies primarily concerns the maintenance of various business processes. The article discusses the technologies used in the framework of the process approach of enterprise management in the context of Industry 4.0. The models of the process approach, their features, characteristics and functionality used to improve efficiency and achieve the desired results are considered. It shown that by integrating the methods of the process approach and Industry 4.0 technologies, enterprises can achieve the desired results, as well as the features of their implementation. The need for further scientific development of tools that increase the efficiency of enterprise management and business processes themselves justified.

ВПЛИВ ЦИФРОВОЇ ТРАНСФОРМАЦІЇ НА ЗАБЕЗПЕЧЕННЯ ЕКОНОМІЧНОЇ БЕЗПЕКИ ПІДПРИЄМСТВА

The article is devoted to the issue of the impact of digitalization on ensuring the economic security of the enterprise. The essence of the economic security of the enterprise is characterized as its ability to resist internal and external threats, as well as to maintain the proportions of balanced development. It is justified that the digital transformation led to the need to review approaches to ensuring the economic security of enterprises, since as a result of the mentioned process, the role of intangible production factors, such as knowledge, information, compared to material ones, is significantly increasing. It is also determined that high attention is paid to ensuring economic security in the conditions of digital transformation at the national level. The functional elements of economic security are considered, among which, in the context of digitalization, an important role is assigned to the informational component. In turn, it is stated that the information component is being built in the form of an information protection system, which requires certain procedures and tools to protect sensitive corporate information from improper use. That is why it is advisable to single out the digital security of the enterprise, which ensures the economic and informational interests of the enterprise based on technologies corresponding to the current state of the industrial revolution. This is due to the fact that digitalization has a complex and chaotic nature, which makes it difficult to determine the patterns of changes that it brings, and, accordingly, for enterprises to determine their own development strategy. The threats posed by the digital transformation have been studied and it has been proven that these threats affect business entities of any industry and require them to make systemic changes in business models and economic relations. But, in turn, industries where digital technologies are a determining factor in their activities are more prone to further digitization of business processes. Industries where the main factors are material assets and specific skills of employees are less prone. Although the study shows that there are examples of some traditional activities that have been quickly absorbed by the vortex of digital transformation.

СТРАТЕГИЧЕСКИЙ ВЕКТОР УПРАВЛЕНИЯ ОРГАНИЗАЦИЕЙ В УСЛОВИЯХ ЦИФРОВОЙ ТРАНСФОРМАЦИИ ЭКОНОМИКИ

The digital transformation of the economy is associated with the active introduction of digital technologies that lead to serious changes in organizations and industries. The digital transformation of organizations is associated with a change in business models, organizational culture, as well as with the improvement of management methods and approaches in accordance with the Company 5.0 strategy. The article discusses the main aspects of the implementation of digital transformation in organizations, including strategic directions and development objectives, the use of a human-centered approach to management. The use of this set will provide enterprises with a socio-economic effect in the conditions of digitalization of the economy.

ЭВОЛЮЦИЯ РАЗВИТИЯ ИНТЕРНЕТ-МАГАЗИНОВ И ПОТРЕБИТЕЛЬСКОГО ПОВЕДЕНИЯ

This article is a study of the dynamics of changes in the field of online trading and the impact of these transformations on consumer choice and expectations. Tracing the evolution of online stores from their inception to current trends, the article examines key development stages, technological innovations and changes in business models. Particular attention is paid to the impact of online commerce on purchasing behavior, including changes in preferences, the level of consumer awareness and their attitude towards online shopping. The authors examine what factors are shaping the modern online retail landscape, including the use of technology, the development of marketing strategies, and the implementation of personalized approaches. Ultimately, the article provides a comprehensive understanding of the evolution of online shopping and its impact on the expectations and preferences of modern consumers.

The effects of digital transformation, digital leadership, and entrepreneurial motivation on business decision making and business process performance: Evidence from greater Amman municipality

The purpose of this research was to examine the effects of digital transformation, digital leadership, and entrepreneurial motivation on business decision making and business process performance in the Greater Amman Municipality. The study's hypotheses were put to the test and proven through a variety of quantitative analysis and data processing techniques. The research hypotheses were evaluated using a Structural Equation Model. Participants in this research are managers from the middle and high echelons of the Greater Amman Municipality, who were responsible for making decisions in their respective divisions. One hundred and eighty middle and upper-level managers with at least eight years' experience in public service were recruited for this study from the Greater Amman Municipality. Distributed questionnaires and the deliberate sampling technique were used to compile this data. Decision making had a positive effect on the business process performance, and the results of hypothesis testing data processing using Structural Equation Model indicated that digital transformation, digital leadership, and the motivation of the business environment all had positive and significant effects on business decision making and business process performance in the Greater Amman Municipality. To conduct their research, the authors opted to focus on digital transformation, which includes four primary components: process transformation, business model change, domain transformation, and cultural transformation. The following dimensions commander, communicator, collaborator, and co-creator were all indicative of digital leadership. Entrepreneurial motivation could be seen in the word’s communication, hassle-free work environment, mastering the art of constructive criticism, and trust among others. The novel aspect of this study is the model developed to explain the interplay between digital transformation, digital leadership, and entrepreneurial motivation, and how these factors influence business decision making and business process performance at Greater Amman Municipality.

Anticipatory Effects around Proposed Regulation: Evidence from Basel III

ABSTRACTRegulation is often proposed, developed, and finalized over a lengthy rule-making period prior to its adoption. We examine the period over which banking authorities discussed, adopted, and implemented Basel III to understand how firms respond to proposed regulation. We find evidence to suggest that affected banks not only lobbied rule-makers against it but also made strategic financial reporting changes and altered their business models in ways that reduced their exposure to the proposed rule prior to rule-makers finalizing the regulation. Further, our results indicate a sequential response, with banks responding through lobbying and strategic financial reporting prior to making business model changes. These findings highlight the interplay among firms’ financial reporting, business model, and political choices in response to proposed regulation and indicate that the appropriate date for an event study may be the regulation’s announcement date rather than its adoption or implementation dates.JEL Classifications: G14; G21; G28; M41; M48.

Service trends and the forest-based sector – an analysis of wood construction, the bioeconomy and evolving product service systems

This thesis examines service trends in the operating environment of the forest-based sector on the level of companies and the evolving industrial production systems. The analytical framework is based on sociotechnical transitions research and service research knowledge bases on services and ongoing organizational changes in production and the markets. Three empirical studies have been conducted to detect service trends by investigating: 1) role of services in the European RDI roadmaps of the forest-based sector and parallel industries, 2) distribution of value and business model changes in the supply networks of industrial wood construction, and 3) market offerings and service innovation in sustainable housing construction projects in Finland. The empirical studies demonstrate evolving product service systems (PSS) in the further downstream customers of the forest-based sector, exemplified here by the construction sector. A game changing question for the forest-based sector is whether its industries and organizations focus on serving the PSS of today or whether they will seek to contribute to the next generation of PSS solutions, exemplified here by the potential for system change in construction regime. None of today’s PSS models alone capture the future PSS, but alternative scenarios are needed and assessment of their implications for the forest-based sector and future bioeconomy.

Впровадження цифрових технологій в управління ланцюгами постачань

During the period of military condition, one of the defining factors of the national economy and the welfare of the society is a well-established, automated process of delivery of cargoes by automobile transport. Changing business models under the influence of the situation in the country requires more flexible methods, as an example of which can be the formation of information networks to strengthen transport communications and to reduce transaction costs in the industry. Modern information and digital systems provide enterprises with effective strategic management, due to analysis of collected data and further planning of activity using risk-management methods. But it is also important to consider the security of such data and the protection of consumer privacy. Digital technologies are actively used in transport logistics when making certain payments for the given services. When delivering a cargo, as a rule, all conditions specified in the contract of carriage must be fulfilled. All payment transactions are carried out on digital platforms and demonstrate high efficiency, as well as the possibility to monitor compliance with payment terms. However, the expansion of the use of digital technologies in transport logistics has much greater potential, which will provide significant efficiency of the whole transport and logistics system. Digital technologies are built to meet the specific requirements of the task. The large number of operations during transportation of cargoes, peculiarities of transportation, as well as the necessary types of packing, storage and sorting include a certain array of data. They also provide data sets that need to be quickly integrated into specific threads. A very important component is the creation of information systems in the digital industry, where all transactions are carried out in digital format and show high results. In the case of road transportation, the transport documentation is fully transferred to the electronic platform and significantly reduces the cost of the unit of the transported cargo. Currently, software is being developed, connected with the use of electronic goods and transport waybills (e-TTS) for all types of transport. By using new innovative methods, on the example of electronic goods and transport waybill, the processing time of documents is reduced to 90%, protection of confidential information in cloud servers, cost savings on documentation printing, easy and fast search of documents with the help of online archive, convenient format of work for drivers, possibility of integration with existing systems with the help of API. All these indicators positively influence the development of transport processes and rapid achievement of results at the lowest cost.

Капсульований підхід до цифровізації бізнес-процесів підприємства на шляху його інтегративного розвитку

In connection with the development of the digital economy, there is a need to transform approaches to the efficient management of the integrative development of the enterprise. The purpose of writing the article is to model the dependence of the flows and business processes of the enterprise on the inlaid resources and investments and determine the ways of integrative development of the enterprise. The study of the encapsulated approach to the digitalization of business processes of the enterprise on the way of integrative development was carried out with the identification of key flows of business processes of telecommunications enterprises: material, innovation-intellectual, information-marketing, and financial. The study made it possible to identify the dependence of management efficiency along with achievement of a positive result on the synchronization of flows with the possible assumption of a temporary variation in the dynamism of investing a particular flow. The article builds a mathematical model for calculating profitability in the dynamics of investment flows tested according to the data of telecommunication enterprises of Kyivstar PJSC, Vodafone PJSC and lifesell LLC for the period 2018-2021, which made allowed to identify the most influential flows over the years and identify the pattern of change in leadership depending on the influence of environmental factors and internal conditions for organizing the work of the enterprises. The author proposes a map of integration development of flows at telecommunication enterprises and their influence on the formation of performance results, defines vectors of integrative development of telecommunication enterprises. It is concluded that the process of global digitalization, which modern society is experiencing, requires flexible management of business processes of enterprises, changing business models and making timely decisions through the use of modern information technologies.

ТРАНСФОРМАЦІЯ СУЧАСНИХ БІЗНЕС-ПРОЦЕСІВ НА ОСНОВІ ЗАПРОВАДЖЕННЯ ЦИФРОВИХ ПЛАТФОРМ

Digital transformation is shaping a new reality. It develops at a very fast pace due to innovations that change their direction under the influence of the external environment and turn from technological innovations into innovations in the field of business models. The purpose of this scientific article is to study changes in business processes under the influence of digital platforms. In the course of the study, changes in various types of business processes were considered based on the identification of signs of extended chain development. Changes in various types of business processes are considered based on the definition of features, which reflects the essence of changes in types of business processes in the space-time dimension, i.e. gradual transformation, in accordance with globalization processes. Types of influences on the economic system and subjects of business processes at the macro, meso, and macro levels are analyzed. It has been established that at the macro (state) level, such constituent elements are defined as: segments, industries, sectors, and types of economic activity; economic and social potential; medium and small business; labor productivity and the significance of their changes under the influence of digitalization. Changes in the activities of the subjects of the economic system (large companies and corporations, state management bodies, population) are also determined. The meso- and micro-level include such elements and subjects as: medium and small businesses, labor productivity and the population. The processes of interaction of subjects and elements of the economic system are changing according to changes in the surrounding environment and globalization processes. The types and essence of technologies in various industries, sectors of the economy, which signal the spread of the digital society, which affects further changes in the implementation of business processes, have been studied. The latest technologies are "stitching" all sectors and branches of the economy as digital assets, changing business models thanks to the acquisition and use of data (information) for assessment, forecasting and socio-economic transformation of the country. During the research, it was found that the transformation of business processes based on digital platforms is the dematerialization of the economy, free access to data, and innovations in information technology support, development and implementation of new business models.

Issues and Challenges Pertaining to Skilled Manpower: A Study of MSME Sector in India

The issue of skilled manpower has become a global challenge in recent years. As the world economy continues to evolve, the demand for skilled workers across various industries has increased dramatically. This demand has been met with a shortage of skilled labour in many regions, leading to a significant skills gap that threatens economic growth and development. This paper explores the major issues and challenges facing skilled manpower, including the lack of access to quality education and training, inadequate investment in human capital development, and the difficulty of retaining skilled workers. Additionally, the paper will discuss the impact of technological advancements and changing business models on the demand for skilled labour. Finally, the paper will present strategies to address these challenges, including the need for increased investment in education and training, targeted immigration policies, and the adoption of innovative technologies to upskill and reskill the workforce.

Algorithm of stress testing of business risks

The article states that the functioning of business in the VUCA environment, when the existing methods and mechanisms of enterprise risk management are no longer fully adequate to new realities and modern challenges, raises the question of the need, along with standard risk management tools, to apply the latest tools that can not only minimise their impact, change business models and approaches to the implementation of business processes, but also transform business to new levels. It is substantiated that one of such tools, which has already proven itself in the financial sector, is stress testing of risks. Its advantages are briefly described and it is noted that stress testing is effective only if it is systematic. Haphazardness, uncertainty of its place in business management and lack of a clear algorithm for its implementation lead to insufficiently accurate results, which complicates the adoption of correct management decisions to prevent or minimise risks. The article considers approaches to stress testing: "bottom-up approach and top-down approach. Their advantages and disadvantages and conditions of application are emphasised. The author also focuses on the methods of stress testing. It is proved that the choice of a particular stress testing method by a business should be individual. Each business structure should develop its own procedure for conducting stress testing and implement its own models for analysing the impact of various risk factors on the financial result, taking into account the individuality, specifics of its activities, the mechanism for ensuring economic security and the procedure for making managerial decisions. An algorithm (stage) of stress testing of entrepreneurial risks is proposed, which provides for a sequence of actions at each stage of stress testing. The necessity of stress testing the stress resistance of each of the structural units of companies is emphasised, which will ensure a quick response of business to possible threats and challenges in the early stages. The expediency of presenting a detailed description of possible scenarios and consequences in case of their occurrence in the stress testing report is substantiated.

Формирование цифровых экосистем бизнеса в условиях развития информационного общества: управленческий аспект

Introduction: digital business ecosystems formation is a natural and integral process in growing digital economy. Digital transformation, as a consequence of the technologies development and complexity of the environment, inevitably causes a change in management and business models used, as well as the tools and technologies involved. The logic of business models development in the context of digitalization can be traced in the following sequence: “analog economy – traditional business models”, “transitional economy – mixed business models”, “digital economy – innovative business models and digital ecosystems”. Objectives: concept justification of a process scheme for digital business ecosystems formation, which allows building a comprehensive vision of management system approaches and decisions in the transition to digital business models and ecosystems in the context of the information society development. Methods: comparative and system analysis, processes modeling and decomposition, as well as statistical comparison methods based on a comprehensive approach to the study of digital transformation of the economy and business processes. Results: the modern approaches to structuring transition process from analog (traditional) business models to digital (innovative) ones have been summarized; business models characteristics typical of the process have been identified as well as the instruments ensuring the efficient transition. Conclusions: economic systems and business models digital transformation contributes to changing consumer behavior, increasing the efficiency of economic entities, expanding the market, building competitive advantages, and developing innovation.

Effects of Digitalization and Intangible Assets in the Crop Production Sector

In economic research, the introduction of digital innovations in agriculture is identified as a critical factor for changing business models in terms of creating economies of scale, improving productivity and efficiency within a single farm, and creating and capturing value in the agricultural sector. The present study attempts, on the one hand, to systematize the effects of digitalization processes in relation to the crop sector from available research. On the other hand, it analyses empirical data of crop farms through the lens of digital transformation. An econometric analysis was carried out, using data from enterprises from the crop growing sector that carry out costs related to innovation activities. The scope of the study covers a period of five years.

한국 다국적 기업의 디지털 전환 및 데이터 분석 역량 준비도를 높이기 위한 최고 경영층 인식 연구

Purpose - This study investigates the differences in the recognition of the need, impact, and readiness of CEOs, directors, and employees for successful digital transformation. The success of digital transformation, which refers to the overall organizational change in business models and culture through application of advanced technologies is the shared perception and implementation of all members of the digital transformation. Design/Methodology/Approach - Based on data from 30 South Korean multinational enterprises, the difference in perception between groups was examined, and it was confirmed that there was a difference in perception among CEOs, directors, and employees. Findings - The data confirmed the relationship between the top management’s perception of digital transformation to the readiness of data analytics by employees, which is an essential element of sustainable digital transformation. Employees of the organization, which are recognized by top management as having a high need and readiness for digital transformation, are well prepared for data analytics. Third, we identified important sub-competencies through empirical analysis to derive priorities for employee competency development, and confirmed that programming ability and business domain differ between beginner and advanced levels, while the advanced scored the highest level of growth mindset. Research Implications - This study contributes to the international business area in terms of emphasizing the importance of shared perception among all members of the organization for successful digital transformation. Also, it provides priorities to enhance the readiness of data analytics for employees in terms of employee selection and development.

Crypto Using Web 3.0

Abstract: Web 2.0 and now Web 3.0 has created great heights in the face of the Internet industry. The distance from Web 1.0 to Web 2.0 has been covered for almost a decade. But soon after Web 2.0 a new Web 3.0 evolved which has not only raised the level of interest but also many questions among developers, users, and regulators. Do we need it at this stage, what are the forcing factors, how it is different from Web 2.0 and the Semantic Web, what are its social, moral, and security implications, is it only about personalization, all these questions have made Web 3.0 popular among its stakeholders. In this paper, the primary focus will be on the relationship between Web 2.0, Web 3.0, and the Semantic Web while the second will be on the rising security concerns about rapid and sequential Web developments. However, the changing business models in the future of Web 3.0 will also be highlighted

The banking sector of Ukraine in the space of influence of the VUCA environment on financial stability

Ukraine has been operating in a VUCA environment for quite a long period of time, which was significantly aggravated under the influence of the Covid-19 pandemic and the beginning of full-scale military operations on the territory of the country. A VUCA environment, as the antipode of stability, is characterized by chaos and unpredictability. In this article, financial stability of the banking sector is considered as its ability to effectively perform its functions and resist the effects of destructive factors of a VUCA environment. The essence and features of a VUCA environment manifestation have been examined in the article. The main challenges of the VUCA environment, which caused destructive changes in macroeconomic indicators and the main indicators of the functioning of the banking sector, have been identified, namely: the impact of the global financial crisis of 2008-2009; destabilization of the political situation, the conduct of the anti-terrorist operation in the east of Ukraine, the annexation of Crimea (since 2014); the impact of the Covid-19 pandemic (since 2020); a full-scale military invasion of Russia into the territory of Ukraine (since February 24, 2022). The country’s economy as a whole and the banking sector in particular have suffered the greatest losses during the studied period precisely as a result of the full-scale military invasion. In response to the challenges of the VUCA environment, it became necessary to develop concepts for countering destructive influences. The strategy of behavior in the VUCA environment is aimed at adaptive behavior, meaningful risk, and active implementation of innovations in the business model. Among the technologies that change business models of banks, acting as tools of digital transformation, providing new approaches to customer service and organization of internal business processes in banks, there are: artificial intelligence, big data, blockchain, biometrics, application programming interfaces, etc.