Changing Business Models Research Articles

CLIMATE RISKS AND VULNERABILITY OF THE LOCAL ECONOMY OF THE CITY OF SKOPJE

Climate change is a global problem that challenges humanity. Global warming, which is expected to bring extreme weather events, exposes human health, ecological systems, and ultimately the economy to great risks. Although the economy affects climate change, climate change also affects the economy. The effects of climate change on the economy in the short term can be positive or negative, but in the long term there is a consensus that global GDP will on average experience a significant reduction depending on the intensity of global warming. In addition to the small direct impact through disruption of economic inputs, the indirect impact through the transmission mechanism of productivity and investments on GDP is complex.However, climate impacts are not expected to have an equal negative impact on all economies in the world, and the Republic of North Macedonia is in the group of counties less vulnerable to climate change. In this paper, we will apply the SECAP methodology for assessment of climate risks and vulnerability of the local economy of the City of Skopje. For this purpose, we will do an in-depth analysis of the local economy through the sectoral approach. The City of Skopje is an administrative city, and the sectors that are most vulnerable to climate change, such as agriculture, forestry, fishing and construction, are marginal. An increase in the intensity of the extreme weather is expected, especially the increase in temperatures in all seasons with increased precipitation and flash floods. Therefore, an increase in climatic risks is expected in the local economy in the City of Skopje in relation to the current vulnerability. Аlthough some sectors would be negatively affected by climatic change, the general assessment is that the economy of the City of Skopje will remain moderately vulnerable to future climate risks. It is because of the expectations for strong adaptability of local businesses and change of business models according to the new economic conditions.

Beyond Buzzwords: Mandatory Human Rights Due Diligence and a Rights-Based Approach to Business Models

AbstractThis article argues that the trend to zoom into mandatory human rights due diligence (mHRDD) as the sole solution to corporate abuse is misleading. In fact, it might risk missing entirely the main point which, as set out in this article, should be creating economic systems that enable rights-based and rights-driven business models. A small, but growing number of scholarly articles address the economic, fiscal and regulatory institutions needed to create an enabling environment for the fulfilment of human rights. These policy areas constitute what some of us understand as a ‘rights-based economy’ or ‘rights-enabling economies’. State-level efforts would be much more effective in promoting substantive equality if driven by a rights-based approach rather than a market logic. This article contends that while ensuring comprehensive mHRDD is in place as a preventative and mitigation tool, states must also push for transformative macroeconomic policies based on human rights principles as a way to fundamentally change business models.

The Impact Of a Firm's Business Model Change on Its Competitiveness: From Atlasjet to Atlasglobal

This study scrutinized the business model change of Atlasglobal, having operated in the Turkish airline industry, and attempted to explain in what direction the change affected the firm's financial performance along with its competitive practices. First, the study focused on the change occurring over time to explain the impact in question. Then, we explained the change with the help of the case analysis method within qualitative research design, while a quantitative approach was employed to reveal the impact of the change on the firm success. The results uncovered that the firm's financial performance decreased after the business model change. On the other hand, we concluded that marketing and promotional moves increased financial performance more than other types of moves, while capacity moves reduced the performance compared to others.

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

Tools for Industrial Enterprises Management Based on the Principles of Lean Manufacturing and ESG

Relevance. To date, most industrial enterprises focus on "green" and environmental standards. Driven by stricter regulations, pressure from investors and changing customer preferences, companies are forced to use technologies that are either completely harmless or the least harmful in comparison with traditional production methods. Such actions involve modifications in many directions, including changes in supply chains, production processes and business models. Companies are also rethinking how their products are developed, designed and used, looking for ways to meet performance and quality requirements while using fewer resources throughout the life cycle of everything they produce.The purpose – the study of the management process of industrial enterprises based on the principles of lean manufacturing and ESG.Objectives: compare the similarities and differences between the principles of lean manufacturing and ESG; assess the current state of their implementation at industrial enterprises; as well as consider the criteria for assigning ratings.Methodology. In this research, theoretical (for example, analytical, descriptive, historical, etc.) and empirical (for example, comparative; forecasting and measurement) research methods are used.Results. The relevance of such industrial enterprise management tools, which are based on the principles of lean manufacturing and ESG, is revealed – today they are a priority for the economy. Conclusions. If an enterprise wants to be highly competitive, it should adhere to the continuous development and improvement of equipment that could reduce emissions into the environment. Such an indicator can be achieved with the introduction of lean manufacturing and ESG tools at the enterprise. Thus, it becomes clear that concern for the environment is closely linked to the success of firms.

How Social Media Changed Catering Industry during the Pandemic

The catering industry is facing threats during the pandemic as widespread virus reduces the number of patrons in restaurants. The catering industry is within the crosshairs of the infection of COVID-19 and the mitigation steps taken to control its spread. The purpose of this research is to find out the possible business model changes for restaurants survival during the pandemic. Nowadays, social media is one of the new marketing tools for the catering industry, but it is underutilized when it was compared to other industries. This research aims to find out the marketing strategies that can be carried out on social media by the restaurant during the pandemic, and also, it investigates how the conditions of COVID-19 affect the elements of social media marketing campaigns. This is because during the lockdown period, restaurants were merely operating through food deliveries and during post COVID-19, the activities of food deliveries continued. The data are collected through a quantitative survey, i.e. distributing questionnaires to the customers of company Tenton. This research provides a systematic analysis of business model changes that occurred due to COVID-19 dining restrictions. Researchers can use this information as a guide for further analysis on a specific theme introduced herein, this paper may help restaurants develop efficient marketing strategies by utilizing social media.

An Analytical Study of Changing Dynamics of the Indian Market with Reference to E-Marketplaces

Abstract: E-commerce is booming in the modern business world. E-commerce is electronic commerce. Electronic commerce (ecommerce) involves the buying and selling of goods and services, or the transfer of funds and data over electronic networks, primarily the Internet. E-commerce (electronic commerce) is a paradigm shift affecting both marketers and customers. In fact, e-commerce is more than just another way to promote existing business practices. This completely changes the traditional way of doing business. This major change in business model has resulted in tremendous growth worldwide. India is no exception. Massive internet penetration has contributed to the growth of e-commerce, and startups in particular are increasingly using this option as a differentiating business model. In addition, e-commerce has a significant impact on the environment. While this model is widely used in current business scenarios, this option has not yet been fully explored. Current research is being conducted to illustrate e-commerce scenarios and analyze e-commerce trends. The study also examines key variables critical to the success of e-commerce business models.

PREREQUISITES OF ADAPTIVE MANAGEMENT OF BUSINESS PROCESSES IN THE CONDITIONS OF DIGITALIZATION: THE NATIONAL DIMENSION

The article defines the factors that form the environment of adaptive management of business processes in the conditions of digital transformation, and the nature of their influence. It was determined that the characteristic features of digital technologies are integration, intellectualization, and individualization. It is noted that the business process as a sequence of interrelated events that ensure the result of the activity of the subject of economic activity depends on many factors at each of the stages. It has been determined that the orientation of business processes on performance determines the objective necessity of classifying factors according to the nature of the impact – positive or negative. Among the favorable conditions, structural shifts in the labor market under the influence of digitalization, the formation of cyber-physical systems and platform technologies are highlighted. Structural shifts in the labor market under the influence of digitalization are associated with changes in labor relations, forms of employment, the quality of labor resources and their motivation, which will certainly contribute to changes in business models and their management. Cyber-physical systems, embodying material and virtual space, contribute to prompt response to problem situations, effective use of resources, and synchronization of work operations. Platform technologies help reduce transaction costs and save time. The threats of unfavorable factors are in the demographic and institutional planes and are related to deglobalization, resource failure. Unfortunately, it has been determined that the negative trends associated with the decrease in the number of labor resources and the deterioration of their quality characteristics will intensify. It is substantiated that in Ukraine at the current stage of development, the institutional environment does not have enough motivating motives for the effective use of the potential opportunities of business entities in the field of digitalization. It is noted that the resource failure is multi-layered and is a consequence of imperfect state regulation of the national economy, institutional environment, and low labor productivity. Prospects for further research are related to today’s challenges and substantiation of the possibilities of using digital technologies in the construction of business models during the post-war reconstruction of our state.

The role of digital knowledge servitization in supply chain management

PurposeThis paper aims to contribute to overcoming the gap existing in the supply chain literature related to digital servitization by bridging digital servitization with knowledge management and identifying the rise of digital knowledge servitization as a driver for changes in the supply chain business model towards open innovation.Design/methodology/approachThe study follows an inductive grounded theory approach for theory building. To analyse the impact of digital knowledge servitization, in-depth interviews of managers in the main business units of the Volvo Group supply chain ecosystem were carried out.FindingsThe results show how the digital servitization process affects the supply chain business model, highlighting the central role of knowledge in the service ecosystem and the rise of the theoretical concept of digital knowledge servitization. In particular, through the Innovation Lab (Volvo Group) study, the paper contributes to bringing together the theoretical knowledge-based view of servitization with the digital servitization concept, which demonstrates the role of this combined perspective in the transformation of the supply chain; this is carried out by introducing a new business model based on open innovation in inbound and outbound processes.Practical implicationsThe research offers interesting insights from a managerial perspective, as increasingly advanced and complex digital solutions require shorter times in supply chain management (SCM). Companies need to be able to quickly manage information and knowledge flows deriving from internal and external interactions and involvement with external actors upstream and downstream of the supply chain ecosystem. Therefore, the digital knowledge servitization of the supply chain also highlights implications for managers in terms of human resources management.Originality/valueThe novel research goal is to contribute to the supply chain literature by integrating the digital servitization with the knowledge view and analysing the impact on the inbound and outbound supply chain through the introduction of an open innovation business model.

Activating supply chain business models' value potentials through Systems Engineering

AbstractNew business opportunities, driven by smart digitalization technology and initiatives such as Industry 4.0, significantly change business models and their innovation rate. The complexity of methodologies developed in recent decades for balancing exploration and exploitation activities of digital transformation has risen. Still, the desired integration levels across organizational levels were often not reached. Systems thinking promises to holistically consider interdisciplinary relationships and objectives of various stakeholders across supply chain ecosystems. Systems theory‐based concepts can simultaneously improve value identification and aligned transformation among supply networks’ organizational and technical domains. Hence, the study proposes synthesizing management science concepts such as strategic alignment with enterprise architecture concepts and artificial intelligence (AI)‐driven business process optimization to increase innovation productivity and master the increasing rate of business dynamics at the same time. Based on a critical review, the study explores concepts for innovation, transformation, and alignment in the context of Industry 4.0. The essence has been compiled into a systems engineering‐driven framework for agile value generation on operational processes and high‐order capability levels. The approach improves visibility for orchestrating sustainable value flows and transformation activities by considering the ambidexterity of exploring and exploiting activities and the viability of supply chain systems and sub‐systems. Finally, the study demonstrates the need to harmonize these concepts into a concise methodology and taxonomy for digital supply chain engineering.

Remote Audit Compared to Onsite Audit and the Capabilities Required in the View of Internal Auditor Practices

<em>The COVID-19 pandemic has made the business model change even faster. One of the things that must be adjusted is the organization that is engaged in auditing, especially internal audit. If in the past, the audit process was carried out with on-site visits, now it can be done with a new process called remotes audits. therefore, this requires new competence in conducting audits, especially how to conduct remote audits, but can still produce audit reports of the same quality as the previous reports. In practice, there are some similarities and differences in conducting remote audits compared to onsite audits. This paper will discuss the internal auditor's views regarding the similarities and differences between the remote audits and onsite audits processes from the view of auditors practitioners and what capabilities the auditor needs to deepen so that the remote audits process can run well. this study uses an explorative descriptive method involving 20 internal auditors as respondents, who were asked for their opinion in October 2022. The results of the study indicates that there is no difference in the planning process and reporting process. The only difference is in fieldwork, where remote auditing is technically more difficult. In addition, auditors are expected to deepen their knowledge in the field of digital and communication technology.</em>

Enablers and Barriers: The Conflicting Role of Institutional Logics in Business Model Change for Sustainability

How underlying norms influence the introduction of sustainability in existing commercial business models is under-researched. We present an ethnographic study of a professional services firm operating under commercial and professional logics and responding to the introduction of the sustainability logic. We find that different logic characteristics can be core in each business model component, leading to distinct enablers and barriers to change towards sustainability. We show how the alignment of practices between logics of responding to a specific client and employee expectations are enablers for sustainability. Conversely, barriers are created when clients or employees do not require action. We find enabled actions are bound by barriers of not being open to leading clients in sustainability, requiring professionals to integrate sustainability into service delivery, and taking on risk to shareholder returns. This study shows that logics and how they are expressed impact the antecedents of business model change for sustainability.

The Changes in the Business Strategies and Models of the Cross Border E-Commerce Company under the Black Swan

Due to the sudden hit of the Black Swan (COVID-19 pandemic), the rise in production cost had impacted the profits earned by the industry, and so the cross-border e-commerce industry had undergone significant changes during these years. In order to overcome the problems, the Cross Border E-Commerce companies tend to implement new business strategies and models to help with its recovery and development. This paper follows the research method of case study, which means it will adopt a specific example of a Cross Border E-Commerce company and analyze its changes in business strategies and models under the pandemic. The result has shown that the adjustment of the business pattern (especially focusing on online office) tend to help the industry overcome the negative impacts caused by the outbreak and develop in a relatively fast and steady rate. The companies are able to learn from company Z’s approach to invest in R&D, optimize the supply chain, adopt the software management system and pay more attention to the cultivation of brand.

Samudera Ports Digital Transformation Development Strategy Through the Implementation of ETOS (Electronic Terminal Operating System)

Samudera Indonesia is a shipping and logistic company in Indonesia that actively engaged in adapting digitalization in its various business activities. One of the digitalization efforts carried out is by implementing ETOS (Electronic Terminal Operating System) in Samudera Ports business line. This study aims to study the Samudera Ports business model, analyze the business model change approach strategy and develop a digital transformation roadmap on the Samudera Ports business model. This qualitative research contains 5 variables: Digital Reality, Digital Ambition, Digital Potential, Digital Fit, and Digital Implementation. Digital transformation process started by the phase when Samudera Ports is still running a manual business model. Digitalization through the implementation of ETOS is able to increase the effectiveness and efficiency of the four core terminal activities: Receiving, Delivering, Loading and Discharge. Changes in the business model with ETOS affect the Customer Dimension, Benefit Dimension, Value Added Dimension, Partner Dimension, and Financial Dimension. The main objective of digital transformation is to achieve a more effective, efficient and environmentally friendly business model. Digital transformation begins with problems that occured in port operational activities and benchmarking to overseas modern ports. Digitization is adjusted to each port’s capability. The management of Samudera Ports directly handles system education for both internal and external parties. This is intended to create an ideal reciprocal relationship and minimize errors or failures in the implementation of ETOS. Samudera Ports management implements the changes approach strategy with 3 stages of changing management: Unfreeze stage where Samudera Ports realizes the need for a system to overcome the problems, the second stage is Change, where Samudera Ports establishes the policies in the implementation of ETOS. Next, the Refreeze stage where the ETOS-based business model is standardized and used as the standard for Samudera Ports port business.

Діджиталізація бізнесу як запорука зростання конкурентоспроможності та успішного розвитку компаній у динамічному середовищі господарювання

A key factor of success for modern companies is the timely restructuring of business processes, considering the penetration of digital technologies in all spheres of society. Approaches to the definition of terms "digitization", "digitalization" and "digital transformation" are analysed. Attention is focused on the need to implement digital technologies in the activities of business structures for their successful functioning. The main stages of the business digitalization process are outlined, the need to adjust the architecture of solutions in accordance with the specifics of companies and business conditions is emphasized. The measures of implementation of digitalization in the business processes of companies that lead to tracking the parameters of all production operations, their control and making timely decisions on the need for corrective actions are revealed. On the example of leading companies, it is proved that the challenges of recent years have contributed to the restructuring of business processes, changes in business models, the use of digitalization to ensure the sustainable development of business organizations in today’s changing external medium. It is emphasized that the effectiveness of business structures largely depends on the innovative and technological potential of each country, the level of technology development, the ability of the country’s economy to develop in the context of digital transformations, which are increasingly taking place every year. The rating of countries by the level of network readiness is analysed, the place of Ukraine in this rating is determined. It is emphasized that despite the complexity of modern economic conditions in Ukraine, the government is working to increase the cyber resilience of the state and further improve digital technologies in all spheres of life. Such measures show that digitalization in Ukraine is gaining momentum and is the key to the survival and further development of domestic business structures.

An investigation into the digitalisation of New Zealand general practice services during COVID-19.

This study investigates the digital transition initiated by the onset of the COVID-19 pandemic and the factors that enabled the digitalisation of general practices (GPs) in New Zealand. Using a multiple case study design, we conducted 86 in-depth interviews with staff from 16 GP centres in New Zealand. The critical enablers of digital transition in response to the pandemic were support from the community, agility and adaptability of GP medical centres and the ability to pragmatically create external operational processes to ensure business continuity and to meet patient expectations. Major barriers to digitalisation at the early stage of the COVID-19 pandemic (28 February to 30 August 2020) included lack of organisational leadership, financial support availability, systems management collaboration, and patient and staff knowledge and preferences. Digitalisation was characterised by the GP centre's ability to provide telehealth services using existing systems and technology, embracing e-prescription, e-referrals, e-lab and video-only consults. The decision to adopt digitalisation had a significant impact on GP centres, disrupting the norm but also allowing continued access to health services to patients who were the most vulnerable during the pandemic. The pandemic forced GP medical centres to change to digitalisation and led to significant changes in GP medical centres' business models. However, it remains to be seen how the rapid change effected at this time correlates with patient satisfaction and how the digitalisation capabilities that have been built impact on future primary care services. This study suggests that changes brought about by COVID-19 may pave the way to an expansion of GP telehealth services, which has the potential to permanently change the primary care landscape.

Investigation of production of spare parts in agricultural industry in industry 4.0 through an example system edit

The search for maximum efficiency which was formed as a result of the digital transformation, which was founded in the 1970s, brought Industry 4.0, which means the change of production strategies and business models, in 2011. In this new age which predicts the use of smart factories using unmanned cutting-edge smart robots; it is claimed that resource efficiency will increase, costs will decrease, the speed of product launching will improve and energy savings will be achieved thanks to dark production. It is a fact that the competition in the market will increase with this new age in the world. Turkey's success in holding on to this global market seems to depend on adaptation to newly created technologies, hosting and support processes. Especially the adaptation of SMEs, which constitute a large share of entrepreneurship activities, to this process is important. For this reason, in this study, by examining the production flow of "Kan Metal", which makes small scale production; it has been adapted to Industry 4.0 setup. Thus, by comparing the current system with the predicted one; advantages and disadvantages are identified and changes in the transformation process are revealed.During the examination of the production system, firstly, an information questionnaire was sent to the company, a visit was made to the company, information was exchanged with the company official with the semi-structured interview technique in the light of the information obtained from the questionnaires, and the production line was examined and photographed with the observation method. The current system was analyzed in the light of these data and adapted to the industry 4.0 system with the literature review method and a fictional model was designed.As a result, industry 4.0 means many advantages for the market, such as increased productivity, reduced costs, ease of use of resources and space, tracking the production flow from order to supply, and creating sensitive products. However, the high costs and unqualified personnel of the establishment of new technologies constitute the biggest disadvantages for SMEs. Transition to the new system seems possible only if these companies are supported in terms of infrastructure, education and capital.

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.