Introduction Of New Business Models Research Articles

Examining the impact of economic cycles on India’s information technology sector

The link between the Indian IT industry and business cycles is examined in this article. The IT-BPO sector has spearheaded India’s transition from an agricultural to a service economy. The industry has dominated this field by producing around 10% of India’s service industry earnings and developing a special “service-directed” export-oriented business model. In India there has been massive growth in the software industry due to its potential of exports and for hardware, a very promising demand at the domestic front has been indicated, starting in 1991. The main factors influencing the rise in technology adoption in India include the country’s economic growth, the quick development of its technological infrastructure, the fierce competition among Indian businesses, the government’s increased attention, and the introduction of new business models that enable the provision of IT to untapped markets. The study investigates the potential relationship and sensitivity of the IT sector to the cyclical patterns of the Indian economy. If so, what is the degree of correlation between IT companies and Indian business cycles? Whether the movements of IT Industry are procyclical and coincident to the movements of GDP. Data analysis was comprised of stationarity tests, detrending, and log transformation. Comparative charts clearly highlighted a positive relationship, but because of IT exports, the relationship is more complex. Also, it has been found the IT is not a lagging indicator.

Creating an Innovative Ecosystem for the Development of Unmanned Aviation in Ukraine: Synergy Between Science and Industry

Abstract In this paper we advocate for the establishment of an aviation “innovative ecosystem” in Ukraine, particularly regarding the technology of unmanned aerial vehicles (UAVs). This ambitious strategy necessitates the introduction of new business models, taking advantage of new opportunities for achieving sustainable development goals in the increasingly resource-limited world. Moreover, this initiative faces a notable challenge: navigating the “double transition” of adopting both green and digital transformations across multiple domains. We believe the solution to creating an innovative ecosystem lies in harnessing the intellectual and infrastructural capabilities of top-tier research institutions – which in Ukraine include the National Aviation University (NAU) and the National Technical University “KPI.” By combining the efforts of Ukrainian higher education institutions and actively enhancing international cooperation, in particular with the Łukasiewicz Research Network – Institute of Aviation in Warsaw – we argue – Ukraine can expedite the development of “factories” of ideas and innovations by supporting the training, incubation and growth of startups, encourage the formation of micro and small high-tech enterprises and bringing their products to global and regional markets, improving the mechanisms of interaction of the startup teams with venture capital funds and investment companies.

Моніторинг циркулярності економічних систем

In the conditions of the transformation of modern society, due to the spread and introduction of the Internet, digital data, robotics, and artificial intelligence, all spheres of human life are changing. Over the past decade, the circular economy has been actively implemented in developed countries, eliminating the outdated linear economy, the disadvantages of which are the depletion of natural resources and the aggravation of environmental problems. The construction of a circular economy involves global changes at all stages of the production process, starting from the production and sales chain to the introduction of new business models, preservation, and extension of the service life of products (conservation of natural resources), recycling of waste into a resource, as well as the introduction of new forms of conscious consumer behavior. A critical condition for activating the intensification of the transition to the circular economy model is creating a comprehensive methodological tool for assessing its development, which is necessary for effective strategic and program planning at the state level. It is noted that low rates characterize the progress of circular transformations. Along with this, the methodical level of assessing the circularity of economic systems of different levels and their effectiveness remains quite complex and debatable. Many international organizations, national governments, and their associations are searching for effective methods and approaches to evaluating the development of circular processes. The main methodical approaches that are widespread in practice today are analyzed: the umbrella approach, material flow approach, circulation, assessment based on standards, and integrated approach. Two critical directions of evaluating the circularity of economic processes (technical and biological) are currently popular, characterized by their monitoring and evaluation indicators system. The multifaceted nature of indicators for evaluating circular macro-level processes and the variety of conditions in which these processes are carried out led to the understanding of the need to create appropriate circular economy standards that would form a complete methodological basis for monitoring, comparison, and evaluation. Keywords: monitoring, economy, system, indicators, sustainable development.

REGULATION OF DIGITAL TRANSFORMATION PROCESSES OF REGIONAL ECONOMIC SYSTEMS

The article presents the principles of regulating the processes of digital transformation of regional economic systems. It was established that digitalization is considered as the introduction of various technologies into all spheres of social development. But to a greater extent, digital transformation is the key to development. Digital transformation is considered as the transformation of heterogeneous economic processes due to the introduction of new business models, strategies, systems, approaches and other tools due to the use of digital technologies. The use of digital technologies provides an opportunity to introduce new innovative, creative tools in various spheres of social development, as well as to increase the efficiency of the functioning of established processes. It is substantiated that the digitalization of regional economic systems occupies an important place in the development of regions, improving the quality of life of the population in all territories and increasing the level of economic security of the development of economic entities, the activation of international cooperation, etc. Digitization also plays an important role in ensuring the decentralization of power and the performance of functions that are delegated to localities. The main normative legal acts regarding the provision of processes of digital transformation of the regions of Ukraine have been studied. The positive consequences of the digital transformation of regional economic systems are singled out, which include: ensuring the speed of information transmission, its exchange, storage and processing; increasing the efficiency of management through the introduction of digital technologies; increasing the level of meeting the needs of consumers based on the timely determination of their requests; ensuring integration processes at different levels; facilitating access to services in the healthcare, education, and financial services system; overcoming corruption and increasing the transparency and efficiency of work of state and local authorities, etc.

UKRAINIAN FINANCIAL MARKET DURING THE WAR: REALITIES OF FUNCTIONING

Introduction. The war in Ukraine has a significant impact on the financial sector in general and the financial market, in particular. Without exaggeration, the year 2022 became a turning point for the Ukrainian financial market, as well as an indicator for the entire global financial system regarding its stability and flexibility, speed of response to challenges and adaptability, the ability and readiness to introduce innovations, acceptance of challenges by all market stakeholders. The main triggers of the functioning of the financial market are the rapid and client-oriented digitalization of services; volatility of regulatory policy due to Russia's military actions in Ukraine; immediate response to changes in conditions of limited access to financial resources; quick adaptation to work with clients under conditions of strict limitation of financial transactions. The answers to these challenges were: virtualization of services through cooperation with Fin-Tech companies and, as a result, the emergence of new tools in the financial services sector; forced transition and the inevitability of acceptance of new online offers by financial intermediaries; diversification and hedging of savings by converting them into currency-equivalent deposits and cryptocurrencies; modification of mobile banking applications. The purpose of the article to is analyze the realities of the functioning of the financial market of Ukraine during the war and to scientifically justificate the challenges of the financial sector in the conditions of the isolation of the financial market due to the introduction of martial law; identify the key development challenges, the latest financial and military activity trends; identify the channels of implementation of financial innovations by intermediaries of the financial services market; outline the triggers for the development of the financial market of Ukraine and understand the prospects for the introduction of new business models for financial market participants. Results. It was found that the financial market of Ukraine is a "key financial front" for ensuring the stability of the entire financial system; the war has a huge impact on the functioning of all components of the market and is an "indicative marker" of the mood in the country. It is shown that in conditions of systemic challenges and threats, innovative approaches in the field of financial technologies have a significant impact on the financial market landscape, which are widely implemented in all its areas, expand the functionality of financial intermediaries, offer diversification of tools and work methods, expand opportunities for participants, modernize existing norms and rules and, most importantly, establish new traditions and develop new habits in all participants of the financial market. It is argued that the main reason for radical changes and innovations, both in regulatory policy and in the daily activities of financial market participants, is the war in Ukraine, which became a catalyst for the revision of many policies and approaches to activity. It has been demonstrated that new vectors of financial sector development are crystallizing in the financial environment, which are aimed at: digitization and automation of most financial processes; raising access to financial services to a qualitatively new level; creation of new offers in the field of financial services with an emphasis on their inclusiveness and accessibility through the use of remote customer service channels using virtual communication technologies. It has been proven that during the russian aggression, the financial market developed high loyalty and flexibility when introducing new products; established a network of new partnerships; changed the focus of activity to the effective use of technological solutions in the financial sphere. It is substantiated that the key determinants of the functioning of the financial market in the conditions of martial law are: deep understanding of the essence of market problems; adaptation of the legislative field and flexibility of prudential supervision; introduction of innovations in the development of new financial products and digitization of existing products; creation of favorable conditions for the activity of financial intermediaries in the market. Conclusions. Based on the results of the conducted research, the following conclusions were drawn: new trends regarding the development and introduction of the latest financial tech nologies in the activities of financial intermediaries are outlined in the financial market; in modern realities, changes are taking place in the landscape of the domestic financial market – the war became a catalyst for the "survival" of both institutions and products; repurposing to remote work with clients creates a platform for promoting new products and introducing new business models.

Strategic Management and Crises Management as the Main Pillars of Recovery in the International Tourism and Civil Aviation Transport

Abstract Tourism and air transport are among the sectors most affected by the covid-19 crisis. The pandemic lasting almost two years has been reflected in short-term effects in both sectors, but there are also serious long-term consequences including the impact on quantitative and qualitative employment change. National authorities will have to set recovery plans in accordance with the relevant policies and in international cooperation with public and private entities. The aim of the paper is to identify a set of strategic and crises measures to recover the international tourism and international civil aviation transport in the context of the long-term human resource management and the optimisation of future quality and quantity of human resources in both mentioned sectors. These strategic recommendations are intended for application in national tourism and transport policies. The methodology of the paper is based on current statistical data and strategic documents at the national and international level represented by the international organisations (esp. UNWTO, WTTC, IATA, ICAO, ECAC). Attention is focused on crises management of the public sector entities in terms of the definition and implementation of reconstruction strategies, on private sector stakeholders, on the interconnection of the tourism and air transport sectors, as well as cooperation in the international environment. Methods and tools for the renewal of both sectors are based on a strategic approach of the public sector, support for the introduction of new business models in the private sector, change in the product and marketing mix, digitization, innovation and education.

Methods of Covid-19 Crisis Management in the International Tourism and Civil Aviation Transport

Tourism and air transport are among the sectors most affected by the Covid-19 crisis. The pandemic lasting more than a year is reflected in short-term effects in both sectors, but there are also severe long-term consequences. National authorities will have to set recovery plans following the relevant policies and encompass international cooperation with public and private entities. The article aims to identify the methods and procedures that can be implemented, which can mitigate the consequences of the crisis and initiate the renewal of international tourism and air transport in particular. The paper's methodology is based on current statistical data and strategic documents at the national and international level represented by the international organizations (esp. UNWTO, WTTC, IATA, ICAO, ECAC). The focus is on the crisis management of the public sector entities in terms of the definition and implementation of reconstruction strategies, on private sector stakeholders, on the interconnection of the tourism and the air transport sectors, and cooperation in the international environment. Methods and tools for the renewal of both sectors are based on a strategic approach of the public sector, support for the introduction of new business models in the private sector, change in the product and marketing mix, digitization, innovation, and education.
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The role of KIBS on digital transformation and technological changes in the Spanish publishing industry

The present study analyzes, by means of the online survey method, the role of KIBS in the processes of digital transformation and technological change of Spanish publishing companies. The general goal of this research is to explore the effects produced over Spanish publishing companies in interacting with KIBS as facilitators, bearers and generators of innovation. Some other more specific objectives linked to this general goal are the following ones: a) to determine the role of transaction costs as drivers of the outsourcing of knowledge management systems through KIBS; and b) to understand to what extent the interaction of publishers with KIBS promotes in those the introduction of new business models. Through the survey conducted among 310 Spanish publishers, it is concluded that: i) the extension of the relationship between publishers and KIBS moves from the production subsystem to the distribution one; ii) the link between their respective value chains is perceived as profound enough to turn KIBS into facilitators, bearers and generators of the innovation required by the Spanish publishing companies; and iii) KIBS are the fundamental axis for the adoption of new business models.

СТРАТЕГІЧНЕ УПРАВЛІННЯ ПІДПРИЄМСТВОМ ЯК БАГАТОВИМІРНИЙ ПРОСТІР ПАРАДОКСІВ

The expectation of strategic management of the enterprise is an attempt to choose the best strategy. It is established that there are no optimal strategies developed earlier and implemented later. An effective strategy is one that inspires and charges employees with energy: by implementing it, they make it successful. We find out if and to what extent the strategy is successful ex post, after its implementation. A fundamental common feature of successful enterprises is the ability to manage multivectority and paradox. It is substantiated that the paradox of the strategy is that a similar or even the same strategy, well planned and effectively implemented, can bring the company both success and failure. That is, strategies with the best chances of success also carry a high risk of failure. The paradox combines contradictions and is an expression of a cognitive attitude that rejects reductionism, which simplifies reality. Reconciliation of contradictions in business is a fundamental skill and a manifestation of creativity (management as an art). The ability to adaptively search for the ideal balance is called ambidexterity, in the effective use of diametrically different options. The article presents examples of strategic paradoxes faced by the management of enterprises in making key strategic decisions related to development. It is proved that the dualism of paradoxes allows to construct a theoretical multidimensional space of all possible strategies. It includes all completed and implemented strategies, as well as those that have not yet been implemented. The number of possible strategies in such a space is approaching infinity. The introduction of new business models and new strategies can be considered the effect of studying the multidimensional space of strategies. Each new technical or organizational invention may be accompanied by an expansion of this space by adding a new, unknown dimension. It is argued that the multidimensional space of strategic paradoxes is constantly expanding. It is established that the theory of strategic management must constantly solve its main paradox: the use of basic principles (science) and the creation of new solutions (art).

ЦИФРОВА ТРАНСФОРМАЦІЯ ЯК СПОСІБ АДАПТАЦІЇ БІЗНЕС-МОДЕЛІ В УМОВАХ ДІДЖИТАЛІЗАЦІЇ ЕКОНОМІКИ

The article is devoted the problem of business models adaptation to the modern digital economy conditions and based on the latest research and statistics on this issue. The objective processes of digitalization, which are taking place at a fast pace and stimulate accelerated growth, modernization and improvement of competitiveness of key sectors, primarily in the field of means of production, innovative development, introduction of new business models, are highlighted. Substantiated the necessity of digital transformation of business models based on the modern technologies. The analysis of influence information and communication technologies on the creation of new and transformation of existing business models in different countries carried out on international indicators. Given statistics of the level of using key digital technologies in Ukrainian enterprises and enterprises of EU countries. The author emphasizes the needed for digital transformation and implementation the "Industry 4.0" concept, which inevitably leads to increasing in productive forces based on digital production. To achieve this goal, in article used methods of statistical research and comparative analysis to assess the level of use of digital technologies in enterprises. We believe that such a comprehensive study determines the relevance of this work and requires further scientific study in the context of digital transformation of Ukrainian enterprises and the conditions of technology implementation. The author presents the features of business model adaptation to the processes of digital transformation. The advantages of digital transformation are demonstrated on example of successful cooperation of a leading industrial enterprise and an IT company. The key benefits, both direct and indirect, arising from investments in the digital transformation of business models are highlighted. Further development of this issue can be expressed in the development of a set of measures that will contribute to the formation of digital space in economic sectors and provide competitive advantages at the sectoral and national levels.

Prototypology for a circular building industry: the potential of re-used and recycled building materials

The growing scarcity of resources calls for a paradigm shift from linear material consumption to circular economy – especially in the construction industry. This shift involves a complete rethinking of design principles, materials, construction technics and technologies, as well as the introduction of new business models evolving from these reconfigurations within the field. This paper will show on-going research on these themes with a focus on direct material re-use and recycling through the discussion of a prototypology – the recently concluded Mehr.WERT.Pavillon (MWP) at the BUGA 2019 in Heilbronn. The research specifically addresses a reversible, mono-material structure that is made from re-used structural steel and recycled glass. The concept of cycles therefor is significant: Utilized materials are not consumed and disposed of; instead, they are borrowed from their material cycle for a certain period of time and later returned there at equal value and utility. Sourced from recycled materials, the prototypology is a built example of urban mining; designed for disassembly at the end of its service time, it also represents a material banks for future projects – while proofing the claim, that it is possible already today to build within a circular system.

Towards Circular Economy implementation: an agent-based simulation approach for business model changes

This paper introduces an agent-based approach to study customer behavior in terms of their acceptance of new business models in Circular Economy (CE) context. In a CE customers are perceived as integral part of the business and therefore customer acceptance of new business models becomes crucial as it determines the successful implementation of CE. However, tools or methods are missing to capture customer behavior to assess how customers will react if an organization introduces a new business model such as leasing or functional sales. The purpose of this research is to bring forward a quantitative analysis tool for identifying proper marketing and pricing strategies to obtain best fit demand behavior for the chosen new business model. This tool will support decision makers in determining the impact of introducing new (circular) business models. The model has been developed using an agent-based modeling approach which delivers results based on socio-demographic factors of a population and customers’ relative preferences of product attributes price, environmental friendliness and service-orientation. The implementation of the model has been tested using the practical business example of a washing machine. This research presents the first agent-based tool that can assess customer behavior and determine whether introduction of new business models will be accepted or not and how customer acceptance can be influenced to accelerate CE implementation. The tool integrates socio-demographic factors, product utility functions, social network structures and inter-agent communication in order to comprehensively describe behavior on individual customer level. In addition to the tool itself the results of this research indicates the need for systematic marketing strategies which emphasize CE value propositions in order to accelerate customer acceptance and shorten the transition time from linear to circular. Agent-based models are emphasized as highly capable to fill the gap between diffusion-based penetration of information and resulting behavior in the form of purchase decisions.

Supporting Circular Economy through Use-Based Business Models: The Washing Machines Case

The circular economy paradigm is being widely studied as a possible path to a sustainable development, decoupling economic growth from material consumption and environmental impacts. The introduction of new business models, based on use rather than ownership, has been identified as one of the possible enabling actions for the implementation of circular economy strategies. Thus, product-service systems (PSS) can represent a viable way for companies and customers to switch from a linear to a circular scheme, keeping together the advantages of a customer-oriented offer to those of dematerialization. In this work, an example of innovative, circular business model for the large appliances sector is proposed, based on a PSS and a closed-loop supply chain. A context study, supported by a deep literature analysis, is performed to identify the main changes involved in the transition from a traditional to a circular supply chain in the sector, as well as the main impacts on the actors involved, through causal loop diagrams. The study is a first step for the realization of a system dynamics model, for a further research on impact assessment.

An examination of NPD models in the context of business models

Most prior new product diffusion (NPD) models do not specifically consider the role of the business model in the process. However, the context of NPD in today's market has been changed dramatically by the introduction of new business models. Through reinterpretation and extension, this paper empirically examines the feasibility of applying Bass-type NPD models to products that are commercialized by different business models. More specifically, the results and analysis of this study consider the subscription business model for service products, the freemium business model for digital products, and a pre-paid and post-paid business model that is widely used by mobile network providers. The paper offers new insights derived from implementing the models in real-life cases. It also highlights three themes for future research.

Clustering Game Behavior Data

Recent years have seen a deluge of behavioral data from players hitting the game industry. Reasons for this data surge are many and include the introduction of new business models, technical innovations, the popularity of online games, and the increasing persistence of games. Irrespective of the causes, the proliferation of behavioral data poses the problem of how to derive insights therefrom. Behavioral data sets can be large, time-dependent and high-dimensional. Clustering offers a way to explore such data and to discover patterns that can reduce the overall complexity of the data. Clustering and other techniques for player profiling and play style analysis have, therefore, become popular in the nascent field of game analytics. However, the proper use of clustering techniques requires expertise and an understanding of games is essential to evaluate results. With this paper, we address game data scientists and present a review and tutorial focusing on the application of clustering techniques to mine behavioral game data. Several algorithms are reviewed and examples of their application shown. Key topics such as feature normalization are discussed and open problems in the context of game analytics are pointed out.

The Special Economic Zone as a Locomotive for Green Development in China

Special Economic Zones (SEZs) are considered the backbone of rapid economic development in China, the epicenter of reform, and the testing ground for the introduction of new business models and activities for long-term learning and value ladder up gradation. In fact, the Chinese SEZs are not only “windows” to promote exchange between China and the rest of the world but also testing laboratories to experiment with economic, social, and political reform. The objective of this research is to study how the SEZ acts as a change agent for sustainable economic development by serving as a role model of a green economy incubator that provides inspiration to other economic agents of the country. A focus group was organized with executives from the SEZs in this effect. We explore how companies operating in these SEZs perceive their role in the development and promotion of a green economy in China. Based on the results of a focus group discussion with 26 Chinese managers from SEZs, as well as secondary data from reliable sources, this research shows that, given the importance of these SEZs in the industrial production of the country, all these zones need to face up to major ecological challenges. However, China would need to not only introduce more regulations on the development of a green economy based on these SEZs but also promote a true green culture via education and outreach programs to create an overall understanding of environmental concerns for short-, mid-, and long-term economic growth and the public good. The contributions of this research are twofold: first, it reveals the characteristics of Chinese SEZs; second, it identifies the major challenges and key factors for the development of a green economy in China. Future research should include broad based samples and rigorous analysis with mixed method approach for generalizable results.

The relationship between open innovation, entrepreneurship, and introduction of new business models in Korean and Indonesian information technology enterprises

This case study sought to identify the relationships that can exist between open innovation, entrepreneurship, and the introduction of new business models at the enterprise level. Eleven Korean enterprises and five Indonesian enterprises were chosen, to obtain minimum research generality. While the number of enterprises is not great, it provides enough samples to determine the concrete relationships among these factors. The article starts by pointing out the general relationship between entrepreneurship, open innovation, and the introduction of a new business model. It examines two different contexts: the difference between the Seoul and Daegu regional innovation systems, and the difference between the Indonesian and Korean national innovation systems.

An e-contracting reference architecture

Business-to-business e-contracting aims at automating the contracting process between companies. It improves the efficiency of the contracting process and enables the introduction of new business models that can be supported by companies. For the development of an e-contracting system, an architecture is required that describes the system components and the communication channels between them. This paper presents a reference architecture for the development of e-contracting systems. The architecture is designed on the basis of a requirement analysis of e-contracting systems. Established architectural principles are used in its design. The architecture can serve as a foundation in the analysis and design of concrete architectures of e-contracting systems. Furthermore, it can be used as a standardization model that facilitates system integration and communication of ideas. Its value for both software architects and business professionals makes it an important tool in the analysis and implementation of e-contracting systems.

Why Incumbents Struggle to Extract Value from New Strategic Options:: Case of the European Airline Industry

Although industry transformations generally emanate from technological changes, recent examples suggest they may also be due to the introduction of new business models. Whereas many of these models contain seemingly principles and elements, and even though new entrants engage in profitable pursuits, incumbents often struggle in their attempts to extract value from them. Which factors are causing the difficulties experienced by incumbents? And, when are problems most severe? A review of the literature clarifies that incumbents face difficulties associated with cannibalization, conventional wisdom, internal and external inflexibility, and incompetence or overconfidence. The negative effects of these factors are reinforced by, among other aspects, business models consisting of many complementary elements, insufficient autonomy granted to new businesses, an absence of strong leadership or entrepreneurial alertness, and a low sense of urgency. Based on this, we develop a framework, which is illustrated with a case study of low-cost initiatives in the European airline industry, in which we compare endeavors of three incumbents (British Airways, KLM, and Lufthansa) with those of three new entrants (Ryanair, easyJet and Virgin Express). The paper contributes to the literature by shifting the attention from industry changes provoked by technological breakthroughs to transformations originating from the introduction of new business models, and by indicating why incumbents fail to extract value from these models.

Evaluating the role of intermediaries in the electronic value chain

E‐commerce enables new kinds of business models to coordinate a value chain. Coordination of the value chain can be accomplished using direct communication or with the help of intermediaries such as brokers, dealers and auctions. The role of electronic intermediaries is becoming increasingly more important. The introduction of new business models in a value chain is a cumbersome process, due to the complexity of the value chain, unclear implications, different goals and interests of the stakeholders and unclear business models. Therefore, there is a need for a business engineering methodology that supports the design and development of new business models by helping the identification of these new business models and by providing insight into the implications of these business models. A business engineering methodology is presented that supports the identification and evaluation of various alternative value chain configurations. The goal of this methodology is to give stakeholders insight into their current, and possible alternative, situations by means of visualization, to evaluate the added value of business models using simulation and to gain experience with the new business models using gaming.