Complex Business Models Research Articles

Strategy for developing the utilization of organic waste as an alternative source of electricity in Indonesia

Background: Indonesia has pledged to reach its Net Zero Emission target by 2060, necessitating the shift to renewable energy sources. To achieve this, Indonesia must transition from its current reliance on fossil fuel power plants to renewable energy generators, ensuring the same or greater electricity capacity. One viable renewable energy source is organic waste. This study aims to explore strategies for developing organic waste as an alternative energy source to bolster Indonesia's energy resilience and environmental sustainability. Method: The research employs a qualitative approach, including literature reviews and qualitative descriptive analysis. Result: Waste to Energy (WtE) processes convert waste into electricity and/or heat, aiding in greenhouse gas reduction, improving waste management efficiency, and supporting sustainable development. WtE technologies can utilize both thermochemical and biochemical methods to convert waste into energy. The Indonesian government is known to have 12 projects to accelerate the installation of Waste Processing into Electrical Energy, both the Waste Power Plants that have been in operation and under construction and using gasification as the method. The development of WtE faces various challenges ranging from completeness and consistency of regulations, high tipping fees, complex cooperation mechanisms and business models, problems with the characteristics and nature of Indonesian waste that need special handling, and rejection from residents. Conclusion: Strategies that can be implemented in developing WtE in Indonesia include drafting policies and regulations, increasing public awareness, collaboration with the private sector, choosing the right technology, developing infrastructure, increasing the efficiency of waste collection, and international partnerships. Novelty/Originality of this study: This research offers concrete strategies to develop Waste to Energy (WtE) technology in Indonesia, including policy formulation, increasing public awareness, and collaboration with the private sector to utilize organic waste as a renewable energy source to support the 2060 Net Zero Emission target.

Simple to complex business models using system dynamics lens

Simple to complex business models using system dynamics lens

Towards a Unified Architecture Methodology for Product Service Systems

AbstractThere is ongoing digital transformation in many industrial contexts including non‐digital hardware‐intensive domains such as heavy construction equipment machinery. This transformation is augmented by the latest technologies, increasing sustainability regulations, as well as integrated customer needs. This paradigm shift is causing transformation of current product‐centric business models towards complex business models enabled by so‐called Product Service Systems (PSS) offering advanced “capabilities” and “services”. However, the development of PSSs requires a holistic approach to unify underlying solution domains such as mechatronic systems, embedded software control as well as information systems. In this paper, we describe a holistic “unified” architecture description methodology towards aligning the underlying domain‐specific design and development contexts. The framework, developed in construction domain, consists of two main parts: a minimalistic reference model as the “common language” for cross‐functional stakeholder communication; a modeling methodology based on existing standard modeling frameworks. We illustrate the methodology using examples from the construction equipment domain.

Smart-IoT Business Process Management: A Case Study on Remote Digital Early Cardiac Arrhythmia Detection and Diagnosis

Cyber-Physical Systems (CPS) and Internet of Things (IoT) systems are mainly in charge of sensing, acting, computing, communicating, managing, and evolving the software integrated in devices. The wide variety of technologies and devices that support IoT systems and the decentralization of services through infrastructures such as fog or edge computing, has led companies to complex business models. These complex business models require decentralized and business-aware architectures driven by the Business Process Management Systems (BPMS) that define the tasks involved in IoT workflows. Well-defined and established IoT BPM are required for companies to remain competitive. However, there are still challenges that must be addressed to smoothly integrate IoT BPM and their architectures into a digitally native company’s daily workflow. In this paper, we present an IoT architecture to support a smart IoT BPM that focuses on addressing the challenges of scheduling, resource allocation, and state management of Smart IoT systems. In particular, the IDOVEN company’s adoption of this Smart IoT BMP in an IoT system for remote digital early cardiac arrhythmia detection and diagnosis is illustrated which has been validated with 2188 patients across the 7 continents.

Business Models as Complex Nonlinear Systems: Providing a Conceptual Framework for Growth and Innovation

For a long time, researchers and practitioners have implicitly drawn from the notion of complexity and complex systems to better explain business model dynamics. However, for analytical tractability, the nonlinear nature of the construct has never been explicitly acknowledged. To date, the business model construct is still investigated according to the classical method of enquiry of Newtonian legacy.
 This study conducts a comparative analysis between complex nonlinear systems and business models, providing a new and interesting perspective to understand the construct.
 The value of directly addressing the construct’s nonlinear dynamic is twofold.
 First, it will try to resolve the conceptual ambiguity that has traditionally surrounded the discipline of business model and business model innovation by providing a new method to study the construct.
 Also, by linking the business models’ qualities (emergent properties, feedback loops, interdependency of its components, sensitivity to initial conditions and notion of equilibrium) under the umbrella of complexity theory, this paper hopes to resolve the disconnect in the current research effort and to encourage further dialogue and studies on the subject of business model and complexity science.

Antecedent configurations and performance of business models of intelligent manufacturing enterprises

Tackling climate change crises needs intelligent manufacturing and effective business models. This paper uses the adaptive structuration theory (AST) and configuration perspective to investigate the effects of digital infrastructure, digital orientation, top management team heterogeneity, servitization, government support, and customer demand uncertainty on the business model of intelligent manufacturing enterprises in China. The fuzzy set qualitative comparative analysis (fsQCA) was employed to analyze the data. The study found that there were five configurations of business model formation, which classified business models into five types: executive-led enhanced, digital leadership-enhanced, adaptive, extended, and complex business models. There was an intrinsic relationship between the five models with respect to the dimensions of digitalization and servitization. Further analysis revealed that executive-led, digital leadership-enhanced, and adaptive business models were positively associated with enterprise performance. The paper discusses the potential implications of these findings.

Quality culture boosts agile transformation—Action research in a business‐to‐business software business

AbstractAgile methodologies are sometimes adopted, with the assumption that benefits can be attained by only using a set of best practices, which can sometimes work to a degree. In this paper, a case is discussed where a software‐producing organization of seven teams achieved significant improvements. The goal of the research was to answer two questions: how an already agile organization could improve its performance further and what is the impact of promoting quality aspects? The questions were answered by implementing interventions based on prior literature and data emerging from semi‐structured interviews. The context was an established business with a complex revenue stream structure, meaning the mix of various project/service/product based work rendered the adoption of agile methods a challenge. Action research comprising three rounds of interventions was conducted to improve the organization and its quality culture while enforcing code review practices. Interventions resulted in a significant improvement in quality, as measured by reported defects. Therefore, it is suggested that agile methods are not sufficient on their own to take software business forward unless a quality‐focused culture is simultaneously achieved through a mindset change and organizational structures to enforce quality practices. The paper contributes to research on the managerial practices of software business and agile transformation by providing empirical support to introducing formal quality improvement to the agile mix as a method for practitioners to improve organizations with complex business models and multiple teams.

A cloud-fog architecture for physical-internet-enabled supply chain

ABSTRACT In today’s global economy, factors such as increasing and varied customer requirements, complex business models, and growing concerns about environmental, social, and legal aspects are crucial challenges facing logistics companies. Supply chain efficiency and sustainability are among the key issues that logistics systems have increasingly considered in recent years. In this context, this paper proposes a cloud-fog architecture to meet the new requirements of logistic networks based on the Physical Internet (PI) model. This study uses a simulation approach to evaluate supply chain performance in terms of time and cost-effectiveness by comparing two scenario models: the ‘cloud-only’ model and the ‘cloud-fog’ model. The strategy adopted is based on both the A-star (A*) pathfinding algorithm and the real-time processing capabilities enabled by the Internet of Things (IoT) and fog computing. The proposed solution allows for optimal physical routing at a competitive cost and within a reasonable time frame. Furthermore, increased visibility and traceability are achieved throughout the supply chain.

Implementation of Centralized Administration and Management of Funds in Enterprise Groups

Enterprise groups are characterized by multiple levels of enterprises with large scales of assets and complex business models. In the process of administration and management of funds, there are often some problems, such as unreasonable internal funds allocation, high financing costs, and flawed funds control. Centralized fund management is a tool for the overall allocation of intra-group funds and the coordinated management of group investment and financing. It can optimize the resource allocation of enterprise groups and reduce financing costs as well as capital risks. By selecting centralized fund management, establishing control and early warning system, as well as building information system and other steps, enterprise groups can better implement centralized fund management and improve their capital control.

The implications of economic uncertainty for bank loan portfolios

ABSTRACT This paper analyzes the impact of economic uncertainty on the composition of bank credit across household and firm loans. Using bank-level data spanning 40 developed and developing countries, we find that higher economic uncertainty is associated with an increase in the relative share of household credit in the loan portfolio of banks. This change in composition of credit may result from banks’ efforts to reduce the overall riskiness of their loan portfolios, since corporate loans are generally viewed as riskier than household loans. This shift is more pronounced for weakly-capitalized banks, which may face greater risks during economic shocks, and for larger banks, which may be riskier due to complex business models and more market-based activities. The variation in our main findings by banks’ capitalization and size suggests that they partly arise from bank-specific factors in response to greater uncertainty. The baseline results hold for a range of robustness tests. Our study highlights the role of aggregate uncertainty in micro-level outcomes and is relevant for bank capital regulation and the conduct of macroprudential policy.

Data Control in Public Cloud Computing: Issues and Challenges

Background: The Advancement in the Hardware and Progress in IoT based devices has led to significant transformation in digitalization and globalization of business models in the IT World. In fact Cloud Computing has attracted many companies to expand their business by providing IT infrastructure with very less budget in pay per use model. The Expansion and Migration of Companies to Cloud Computing facilities has really brought many pros and cons and opened new area of Research. The Management of IT infrastructure as per business requirement is a great challenge for the IT Infrastructure managers because of complex business models which needs to be updated with market trends and it requires huge and updated infrastructure to accelerate their business requirements. No doubt there are many benefits of moving to Cloud but several vulnerabilities and potential threats related to security is a major concern for any business sensitive data. These security challenges place restrictions on moving on-premises workloads to the Cloud. This paper has discussed key differences in cloud models and existing various Cloud Security Architectures and challenges in cloud computing related to Data Security at Rest and in Transit. Also data controlling mechanism need to be adopted by IT Industry along with end to end security mechanism has been explained. Objective: The main objective of this paper is to discuss about the prevailing issues in cloud in terms of data security which is discouraging the Industry and organizations to move their data into public cloud and also to discuss how to enhance security mechanism in cloud during data migration and multitenant environment. Methods: Based on different reports and analysis, it has been pointed that data breach and data security are most challenging and concerning factor for any customer when someone think to migrate the workloads from On-Premises datacenter to Cloud Computing. It needs more attention in every consideration. All criteria and considerations to secure and protect the customer’s information and data have been classified and discussed. Data-at-rest and Data-in-transit are transmission method for storing and moving the data from one source to destination. Different encryption methods for protecting and security data-at-rest and data-in-transit have been identity. However, there are still more areas need to work in for filling gaps for Cloud data control and security which is still a serious concern and on top of attackers every day. Results & Conclusion: Since, cyber-attacks occurring very frequently and causing a huge amount of investment on re-establishing the environment, it needs more control with effective usages of technology. All those concerns related to security are very reasonable concerns that needs to be addressed.

Multi-sided platform and data-driven care research

Multi-sided platforms in healthcare often focus their business model on standardizing care for wide-spread, chronic diseases. However, there is a lack of knowledge surrounding platform business models enabling individualized care coordination for patients with rare diseases. This paper analyses the development of a complex platform business model addressing Amyotrophic Lateral Sclerosis, a severe neurological disease that requires the coordination of a diverse network of medical specialists, care, and equipment providers. A longitudinal case study examines the platform’s development, focusing subsequently on qualitative and efficient care coordination, care research, and active and direct involvement of patients, as well as establishing two business models, namely, care coordination and care research. We reconstruct how these complex platform business models were configured to improve patient care and care research, thereby creating immediate value for patients and insights for long-term care improvements. The ongoing platform development carefully balances value generation for diverse stakeholders and economic sustainability.

Regional Electricity Models for Community Energy in Germany: The Role of Governance Structures

Community energy actors play an important role in the energy transition, fostering the diffusion of sustainable innovation in the renewable energy market. Because market conditions for business models in the renewable energy sector are changing and feed-in-tariff (FiT) schemes expiring, community energy companies are in the process of innovating their business models. In recent years, several community energy companies in Germany have entered the electricity retail market selling locally generated electricity from their renewable energy installations to customers in their region. We explore the evolving regional electricity business models for community energy companies in Germany, related governance structures, and the role they play for a sustainable energy transition. In order to implement these complex business models, community energy companies cooperate with professional marketing partners (intermediaries), which are capable of taking over the tasks and obligations of electricity suppliers. Through a series of expert interviews and desk research, we identify three distinctive regional electricity business models and examine opportunities and challenges to their implementation. Results show that there are different forms of cooperation, leading to specific governance structures and creating a set of new value propositions. Through these forms of cooperation, business networks emerge, which can function as incubators for sustainable innovation and learning for the post-FiT era.

From Basel I to Basel III

Developing economies can strengthen their financial systems by implementing the main elements of global regulatory reform. But to build an effective prudential framework, they may need to adapt international standards taking into account the sophistication and size of their financial institutions, the relevance of different financial operations in their market, the granularity of information available and the capacity of their supervisors. Under a proportionate application of the Basel standards, smaller institutions with less complex business models would be subject to a simpler regulatory framework that enhances the resilience of the financial sector without generating disproportionate compliance costs. This paper provides guidance on how non-Basel Committee member countries could incorporate banks’ capital and liquidity standards into their framework. It builds on the experience gained by the authors in the course of their work in providing technical assistance on—and assessing compliance with—international standards in banking supervision.

Information Leaks and Voluntary Disclosure

We study firms’ voluntary disclosures in a world of potential information leaks. We find that managers adapt their disclosure strategy to the likelihood and expected scope of leaks. An increasing likelihood fosters voluntary disclosure if leaks merely expose the manager’s information endowment and impedes disclosure if leaks in addition uncover the content of the manager’s information. We identify a non-monotonic effect on voluntary disclosure if the scope of information leakage is uncertain, i.e., if leaks reveal the information content with positive probability. Our results imply that information leaks are likely to increase voluntary disclosure whenever investors have difficulties interpreting the economic consequences of the leaked information. This is typically the case in industries with complex business models and innovative products. In mature industries, leaked information replaces voluntary disclosure. Our findings may help explaining mixed empirical evidence on voluntary disclosure in different reporting environments.

RELATIONSHIP BETWEEN LEADER-MEMBER EXCHANGE AND INNOVATIVENESS: MODERATING ROLE OF PSYCHOLOGICAL CAPITAL OF EMPLOYEE

Innovativeness / creativity are key for organizational health. Since the technological developments mostly eliminated the complex business models, organizations are easily copying the models from each other. In such a challenging environment, organizations should create difference. There are multiple ways of creating differences but the most sustainable way is to create organization culture based on innovation and creativity. This study aimed to examine the relation between leader-member exchange (LMX) and innovativeness with the moderating role of Psychological Capital. Structured survey questions addressed to 157 employees of different companies in Turkey to gather the research data.

From Basel I to Basel III: Sequencing Implementation in Developing Economies

Developing economies can strengthen their financial systems by implementing the main elements of global regulatory reform. But to build an effective prudential framework, they may need to adapt international standards taking into account the sophistication and size of their financial institutions, the relevance of different financial operations in their market, the granularity of information available and the capacity of their supervisors. Under a proportionate application of the Basel standards, smaller institutions with less complex business models would be subject to a simpler regulatory framework that enhances the resilience of the financial sector without generating disproportionate compliance costs. This paper provides guidance on how non-Basel Committee member countries could incorporate banks' capital and liquidity standards into their framework. It builds on the experience gained by the authors in the course of their work in providing technical assistance on-and assessing compliance with-international standards in banking supervision.

KOMPLEKSITAS MODEL BISNIS ADAPTIF BERBASIS TEKNOLOGI DIGITAL DAN JARINGAN BISNIS INTERNASIONAL

This paper develops a complexity of adaptive business modelson digital technology and international business network towards a sustainable competitive advantage. Furthermore, this paper aims to integrated the concept of adaptive organizational design with complex business models based on digital technology and and international business network. Adaptive organization design should change consistently with changing technological, ecological, economic, social, digital technology and international business networks.Theoretical basis of the concept of business model and relate it to elements of business model, digital technology and international business network. The complexity of adaptive business models based on digital technology emphasizes the importance of building change, international business networks, developing complex and adaptive organizations for innovation in achieving sustainable competitive advantage. Keywords:complexity,adaptive,technology<br /><br />

Complex business models: Pacorini at the edge of chaos

Sustainable and long‐lasting companies necessarily position themselves at the edge of chaos and evolve their business models in order to maintain a mix of efficiency and creativity. Organizations dealing with complexity necessarily position themselves at the edge of chaos, always swaying between order and disorder. Two opposite cycles (“sharing cycle” oriented toward efficiency and “creative cycle” oriented toward innovation) should be balanced dynamically and along time by organizations that want to evolve. We investigated business model evolution after external discontinuities, showing that sustainable and long‐lasting companies try to find an equilibrium between order and disorder, predictability and unpredictability, standardization, and innovation.

Designing viable multi-commodity energy business ecosystems: Corroborating the business model design framework for viability

Abstract In this paper, a multi-commodity energy business model for an industrial park is designed and evaluated using the extended “business model design framework for viability”. The framework has been validated earlier for mono-commodity energy systems. Our goal is to examine the application of the business model design framework for viability for multi-commodity energy systems as they are more complex. The framework was applied to an industrial park, where heat and electricity networks are integrated. The business model was designed iteratively to harvest and exploit the flexibility embedded in the industrial processes of the heat consumers. The first iteration showed that the business model design framework for viability was largely successful. However, adding two extensions to the framework helps to deal with the complexity of designing and evaluating viable business models for multi-commodity energy systems in a better way. First, the configuration techniques in the framework are extended to include reference business models. Second, the evaluation criteria in the framework are extended to include the capabilities of the stakeholders. The extended business model design framework for viability better enables the design of complex business models and allows to evaluate the capabilities of the stakeholders to implement the designed Business model. The extended business model design framework for viability successfully facilitated the design and evaluation of a viable multi-commodity energy business model and therefore is corroborated.