Business Model Transformation Research Articles

Business Model Transformation and Information Technology Use on the Quality of Accounting Information Systems in MSMEs in Indonesia

This research investigates the impact of business model transformation (BMT) and information technology utilization (ITU) on the quality of accounting information systems (QAIS) in Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. A quantitative approach is employed, with data collected through a survey of MSMEs across various industries. Structural Equation Modeling (SEM) with Partial Least Squares (PLS) is used for data analysis. The findings reveal significant positive relationships between BMT, ITU, and QAIS. Business model transformation and IT utilization are found to significantly enhance the quality of accounting information systems in Indonesian MSMEs. These results highlight the importance of innovative business practices and effective technology adoption in improving financial management processes within MSMEs, providing valuable insights for practitioners, policymakers, and researchers.

Moving beyond ‘proof points’: Factors underpinning AI-enabled business model transformation

Business model renewal is a key consideration for organizations, and AI (artificial intelligence) has been identified as a significant potential enabler for that renewal. However, while there are examples of emerging organizations using AI as a key basis of competitive advantage as well as examples of established organizations trialing AI technologies, there are relatively few examples of established organizations fundamentally transforming their business models through the use of AI. Through case studies underpinned by interviews with named executives of ten organizations and complemented by an applicability check involving 14 executives, advisors and practice-oriented academics, this paper presents an empirically supported set of factors linked to successful AI-enabled business model transformation as well as a model of interactions between these factors. Using a horizontal contrasting approach to articulate the difference between empirical findings and a literature based model, this paper moves from the language of potentially passive top management support towards the concept of proactive leadership and introduces tech-sensitive innovation culture, AI-sensitive risk tolerance and strategic process discipline into the dynamic capability lexicon. The insights of this paper can be used by managers to assess their readiness to move beyond traditional ‘proof-points’ and successfully undertake and accelerate AI-enabled business model transformation.

Assessment of the impact of external factors on the business model of public catering enterprises

The transformation of traditional business models of public catering enterprises into their innovative version occurs under the influence of a certain set of external factors. The assessment, both negative and positive, of the influence of external factors should be carried out according to adapted methods suitable for the situation and the chosen industry. At the moment, a set of external factors that have a significant impact on the formation of successful business models remains insufficiently studied. The need for research is also due to the lack of a system of factors that must be taken into account when forming an adaptive business model for public catering enterprises. The purpose of the study is to form a system of factors that have a significant impact on the public catering sector, and to assess the nature of the influence of each factor on the activities of public catering enterprises. The research methods are: comparative analysis, statistical analysis, benchmarking, classification and ranking, Churchman – Akoff method, PEST-analysis. The result of the study is a developed system of factors that have a significant impact on the catering industry, and an assessment of the nature of the influence of each factor, as well as identified industry risks and identified strategies for responding to them. The authors conclude that the most significant factors influencing the formation of a successful business model in the field of public catering are: the sanctions imposed against Russia by some countries; increased investment in catering projects; increasing the importance of higher education; technological improvements, the introduction of modern technologies in the catering infrastructure.

Transformation of the company's business model in accordance with the circular economy principles

Subject. This article examines the problem of an enterprise's choice of the optimal way to transform its current business model into one of the types of circular business models. Objectives. The article aims to determine the most expedient way to transform the business model of a light industry enterprise according to economic criteria. Methods. For the study, we used a function modeling methodology (IDEF0) and the cost-benefit analysis. Results. A comparative analysis of the economic parameters of two waste management projects at a light industry enterprise shows that the most expedient is to create a spin-off enterprise to implement the open recycling model (that is, to search for permanent partners to organize the waste processing process at their production base).

Fintechs in South Africa: Impact on regulation, incumbents and consumers

Background: The financial services industry in South Africa has undergone many changes that have given birth to fintechs. Most of these changes are driven by the advent of technology and evolving customer expectations. Fintechs have led to process disruptions and business model transformations, yet their implications have yet to be sufficiently studied. Therefore, it is essential to close this knowledge gap by investigating the impact of fintechs on this industry.Objectives: This research aimed to investigate the impact of fintechs in the financial services industry in South Africa.Method: A qualitative study was conducted in which 18 industry experts were interviewed using semi-structured interviews. The interviews were audio-recorded and transcribed for data analysis. ATLAS.ti 22 was used to organise and analyse data.Results: Fintechs increase competition for the incumbents, reduce profits, expose the inability of the incumbents to be agile and introduce new regulatory risks in the financial services industry. In contrast, fintechs have also brought some positive changes into the industry: financial inclusion, new growth opportunities, increasing choices for consumers and making the industry more competitive, reducing costs, customising financial services, bringing convenience and forcing incumbents and regulators to become more innovative.Conclusion: This study uncovered the positive and negative effects of fintechs in financial services in South Africa.Contribution: The study will benefit academia by expanding the body of knowledge about fintech research and improving the holistic understanding of this field in emerging economies, which can inspire future research on fintech and its application.

Transformation of business models of financial organizations in the context of development digital technologies

Transformation of business models of financial organizations in the context of development digital technologies

Harnessing Disruptive Technologies for Agricultural Revolution: A Systematic Literature Review on Impact and Sustainability

This literature review employs the Scientific Procedures and Rationales for Systematic Literature Reviews (SPAR-4-SLR) framework to comprehensively analyze the impact of disruptive technologies on the agricultural sector, often characterized as the Agriculture Revolution. The review's primary focus lies on understanding how disruptive technologies influence business model transformation, enhance operational efficiency, promote sustainability, and mitigate supply chain disruptions within the agricultural domain. By systematically reviewing existing research, this study seeks to consolidate knowledge, identify research gaps, and provide valuable insights for the future development of agriculture in the era of disruptive technologies.

Digital economy: opportunities for transformation of entepreneurial structures

Purpose. To analyze the stages of digital transformation of entrepreneurial structures and identify the levels of transformation. Methodology. In the process of scientific research on the digital economy and the transformation of entrepreneurial structures, the following methods were utilized: expert assessment (involving experts from various fields of economic activity allowed for additional conclusions and recommendations regarding the possibilities of implementing digital technologies in entrepreneurial structures), scenario modeling (by developing various scenarios for the implementation of digital initiatives, the potential consequences and results of each were investigated), systems analysis (enabled considering the interrelations between various aspects of digital transformation and its impact on the economy and society as a whole), and marketing research (helped identify market needs and requirements for the implementation of digital solutions and products). Findings. The research considered the stages of digital transformation of entrepreneurial structures, which involve assessing the current state and readiness of the enterprise for the implementation of digital transformation; studying the potential offered by digital transformation and its effective implementation; investing in advanced digital technologies and the development of new digital products; designing and releasing products and services based on advanced digital technologies; controlling the transformed business and implementing advanced digital technologies and innovative business models. Advantages of digital transformation of business models are considered, which involve increasing the number of customers, enhancing customer satisfaction, increasing lead generation, traffic growth. The authors identified six levels of “digital transformation” of entrepreneurial structures, describing the stages of changes in business models caused by digital transformations: unsystematic level, opportunities monitoring, replicable level, results-driven, achieved controlling, and optimized level. Originality. A stage of digital transformation of entrepreneurial structures has been proposed: controlling the transformed business and implementing advanced digital technologies, which allows tracking the implementation of the strategy and achieving goals in the context of digital development. The authors highlighted such stages of digital transformation of entrepreneurial structures as opportunities monitoring and achieved controlling, which, unlike those existing in the scientific community, play a key role in the path of digital transformation of entrepreneurial structures. Practical value. The analysis conducted confirms the relevance of issues related to the digital transformation of entrepreneurial structures, the formation of changes in views on stages and levels of digital transformation in accordance with current trends and uncertain conditions. The research results can be taken into account and practically implemented when forming policies for the digital transformation of entrepreneurial structures, regardless of the field of activity.

Components and Strategic Routes of Corporate Transformations

In response to modern-day disruptions and to maintain competitiveness and viability, companies embark on corporate transformation journeys to enhance performance and boost organizational health. When transformations succeed, they fundamentally boost a company’s key business drivers. This article is a first step in providing prescriptive literature to transforming companies that they can use to navigate their journey. The article defines the three components of corporate transformations business model transformation, digital-enabled transformation, and organizational transformation - and their interdependencies. The study is based on the systematic review of literature available on the components of corporate transformations which is mostly unidimensional and leads to the consolidation of the components into a framework. It also describes the strategic routes of corporate transformations (mesa-transformation and meta-transformation). The framework is applicable for academic research and for practitioners when diagnosing companies, strategizing their transformations, and planning their transformation journeys.

Effectiveness National Health Insurance (JKN) Using Mobile Application To Patients BPJS Health Services In Sibolga City

The National Health Insurance (JKN) mobile application is a form of digital transformation of the BPJS business model that can be used by participants anywhere and at any time without time limits for convenience for BPJS users and the public. The convenience in question includes paying BPJS fees, changing membership data, knowing participant family data. Research objective: to find out the use of the National Health Insurance (JKN) application to increase the effectiveness of BPJS health services in Sibolga. This type of research is descriptive research with a qualitative approach. This research took four sources as sources. Meanwhile, data collection techniques use observation, interview and documentation techniques. The research results show that the effectiveness of BPJS health services through the National Health Insurance (JKN) mobile application in the city of Sibolga is said to be effective and efficient because this application really helps administrative activities at the BPJS health office in serving the community. The JKN mobile application is very helpful for accessing BPJS health services because of the many features in it so that participants do not need to go to the BPJS health office, by using the JKN mobile application or care center participants can immediately get BPJS health services.

ПАРАДИГМА ЦИФРОВОЇ ТРАНСФОРМАЦІЇ БІЗНЕС-ПРОЦЕСІВ ПІДПРИЄМСТВА

The article is devoted to the actual problem of substantiation of scientific and methodological provisions and development of practical recommendations on the paradigm of digital transformation of business processes of enterprises. It is determined that for successful operation in the market, enterprises must develop a business model to create value for customers and make a profit by the company. Five main areas covered by digital transformation are revealed: business model transformation, automation and optimization of business processes, innovation in digital products and services, empowerment and employee engagement, and customer interaction. The definition of "digital transformation" is given as the integration of digital technologies into all business areas, which radically changes the principles of enterprise operation and providing value to customers. The advantages that enterprises that make the transition to the digital transformation paradigm receive are revealed: a better understanding of market trends; expanding markets and sales channels; ensuring compliance with customer expectations and meeting their needs; increasing customer loyalty; expanding opportunities to reduce costs and increase profitability. The stages of forming a digital transformation strategy are substantiated, which consist in the following: defining the mission and strategic vision; auditing the existing business strategy; reviewing business processes to add value to the product using digital technologies; defining your own priority projects; developing a system of necessary competencies; outsourcing of functions to partners or external organizations; identification of key indicators of the organization's development and measures to implement the strategy; optimization of the management process and formation of Digital Culture; selection of the most effective digital technology. Companies that have successfully applied digital technologies to transform their business in various fields of activity are represented: Walmart in retail, Mayo Clinic – medical services, investment bank Goldman Sach, travel and hotel company Airbnb, car manufacturer Toyota.

Guest editorial: Innovations and digitalization in a disruptive global environment: business model transformation

Guest editorial: Innovations and digitalization in a disruptive global environment: business model transformation

E-commerce Transformation in Indonesia

This study investigates the interplay between entrepreneurial dynamism, innovation, and technological advancement in Indonesia's burgeoning e-commerce sector. Framed through the lenses of Creative Destruction and Disruptive Innovation, the research delves into the transformative impact of digital globalization on traditional business models. By tracing the historical development of e-commerce and scrutinizing the closure of offline stores in 2017, this study highlights the potential of digital globalization to disrupt established market players, paving the way for MSMEs to explore unconstrained market segments. The study introduces the Model of Disruption-Destruction Cycle, elucidating how entrepreneurs' innovations lead to technological advancements and business model transformations. These dynamics enrich our understanding of Indonesia's evolving digital economy. The contribution lies in its comprehensive analysis of the transformative forces redefining the e-commerce landscape. While the study presents valuable insights, it also acknowledges limitations, including the need for further empirical validation. Finally, this paper offers a platform for empirically validating and exploring the ever-evolving landscape of entrepreneurship, innovation, and technological advancement in Indonesia's e-commerce realm.

Facilitating business model transformation: Theory, operators, and patterns

Understanding Business Models (BMs) has become an essential capability for organizations seeking to drive growth, revitalize a lagging core or defend against industry disruption. However, this concept still has multiple interpretations, as it is often intertwined with others, like business strategy (BS), making it difficult for stakeholders to understand and re-design their own BMs. In fact, current tools including taxonomies, have encountered difficulties in providing mechanisms to guide this process. Seeking to contribute with the strengthening of the theoretical basis and with tools to transform BMs, in this work, we follow a Design Science Research (DSR) approach to provide a theoretical foundation for the concepts of BM, Business Model Patterns (BMPs), and BS under a formal conceptual representation. In doing so, we propose a language to describe a BM and we introduce a set of mechanisms to transform BMs. Finally, we provide a collection of BMPs that serve as the foundation for the application of these mechanisms. Thus, we aim to contribute to the development of a solid knowledge base to be used as a source of inspiration when restructuring, specializing, or creating new BMs.

Offering Subscriptions of Industrial Goods: Uncertain Experiment or Necessary Step?

The implementation of Industry 4.0 often entails various changes to a company's business model. Not all companies take advantage of the new technological capabilities or create new digital revenue streams. In this regard, subscription business models are growing more prevalent in the market for industrial goods. Although just a few pioneers have integrated subscription offerings in their portfolio so far, an increasing number of companies are considering doing the same. This article contributes to this subject by examining the transformation from a component supplier to a subscription service provider and its impact on customer relationships. The findings are drawn from three in-depth case studies, two interviews per each case and ten additional interviews with experts to gather further information. Agency theory provides the theoretical framework. We identify enablers and challenges of subscription business models during the consideration, implementation, and operation phase. This article provides practical insights into the transformation of a provider's business model in conjunction with subscription, thus benefiting companies in every step of the transformation process. Moreover, we contribute to the theoretical literature on Industry 4.0 and servitization by structuring the transformation toward a subscription business model in phases and correlate features with each phase.

Summer School on Circular Economy for Sustainable Manufacturing: A Case Study and Lessons Learned

The Circular Economy Action Plan is the main building block of the European Green Deal, Europe's new agenda for sustainable growth. Businesses need new technologies, new methods and new industrial organization either to create new businesses or to transform their products, processes and business models. They also need new talents to innovate, create businesses and new jobs, and transform society into a more sustainable one. Circular economy has grown significantly in recent years as a topic taught in engineering curricula. The purpose of this paper is to present the design, implementation and evaluation of a summer school program dedicated to the development, transformation and implementation of circular economy systems and new business models in manufacturing. The program was designed in collaboration with three university partners during a European project and relied on contributions from industrial companies, including start-ups and innovative companies. At the end, some lessons are drawn in order to show the main added value based on the evaluation of this summer school and to identify recommendations for the design and implementation of similar summer schools.

СУЧАСНИЙ СТАН УПРАВЛІННЯ РИЗИКАМИ ПІДПРИЄМСТВ У СИСТЕМІ ЦІННОСТЕЙ ЦИРКУЛЯРНОЇ ЕКОНОМІКИ

The modern state of the economy and the environment presents Ukrainian enterprises with complex challenges, among which the integration of environmental standards and principles of the circular economy into risk management strategies occupies a key position. Ensuring business resilience in such conditions requires the implementation of innovative technologies, the development of new management practices focused on efficiency and minimizing environmental impact. The adoption of the circular economy involves a profound transformation of business models, including changes in production processes, consumption, waste management, and resource reuse. Special attention in this study is devoted to the analysis of risks associated with these changes and the development of methods for their minimization and management. In the analysis of the current state of enterprise risk management within the framework of circular economy values in Ukraine, it is argued that the circular economy is both a trend and a necessity for enhancing the competitiveness and resilience of enterprises. It has been demonstrated that the integration of circular economy principles contributes to resource optimization, reduction of production waste, and ensures more sustainable production. Additionally, it is justified that the adoption of innovative technologies such as artificial intelligence, blockchain, Internet of Things, and advanced analytics provides enterprises with tools for effective risk management. The research findings confirm that circular practices and technologies help manage risks and integrate the values of the circular economy into enterprise activities, thereby enhancing their long-term competitiveness and resilience. This, in turn, fosters a deep understanding of effective management mechanisms in the context of the circular economy, which can be utilized for senior management training, corporate policy development, and strategic planning. The concluding remarks underscore not only the importance of the circular economy as a strategic development direction for Ukrainian enterprises but also identify the main avenues for their adaptation to changing market conditions. Thus, based on the analysis, it is argued that the implementation of integrated risk management systems that consider the values of the circular economy is critically important for ensuring the stability and successful development of enterprises at the international level.

Integrated business model of sustainable development for agricultural sector

Purpose. The purpose of the article is to improve the methodology of the integration process of business model to ensure environmental, social and financial results of entrepreneurial activity taking into account the interests and needs of stakeholders and to study the possibilities of implementing sustainable practices in different segments of the business model and the sustainable value created by these transformations. Results. The study highlights a number of approaches to the methodology of creating sustainable business models, which are the Business Model Canvas, the Teece Business Model, the Ecosystem Pie Model, and the Sustainable Value Creation Model. Each of the methodologies has its advantages and disadvantages, but they all have common elements that can be combined and integrated when considering industry specifics. The author used the methodology of creating sustainable value, which is formed through the implementation of new approaches to the implementation of sustainability, in particular, the methods of ecodesign, climate-smart agriculture, organic farming, biodynamic agriculture, sustainable intensification and renewable agriculture. Sustainable value is created through activities in different segments of the business model, at the same time the Business Model Canvas (BMC) is a template for mapping the transformations in each segment. The integrative business modeling approach is able to provide a detailed qualitative overview of a specific business by combining social, environmental and economic components with stakeholder theory. Therefore, taking into account the needs of a wider range of stakeholders than is provided for in the "key partners" field of the Canvas model took place through the implementation of sustainable value in the complex Ecosystem Pie Model. Scientific novelty. The scientific novelty consists in the adaptation of the methodology of transformation of traditional business models into sustainable ones for the agricultural sector, which, unlike the existing ones, allows taking into account sustainable value through new sustainable approaches that cause changes in the fields of Business Model Canvas with the subsequent transfer of their individual elements to the Ecosystem Pie Model for a systematic visual perception of both the current situation and prospects for further development for the enterprise. Practical value. The results of the research can be used by scientists, representatives of business and state institutions dealing with the issue of introducing sustainability principles into existing traditional business models, based on the needs and interests of stakeholders.

Research on the Impact of Digital Marketing on the Strategic Positioning of Enterprises

Nowadays, with the development of Internet information technology, digital marketing plays an increasingly essential role as a means of marketing, which makes it more and more important to the strategic positioning of enterprises. Studying this topic will enable enterprises to have a clearer plan for their own strategic positioning, thereby promoting economic market development. For the analysis of the problem, this paper first expounds on the difference between digital marketing and traditional marketing in the 4P strategy, shows the advantages of digital marketing from two aspects, and finally lists five dilemmas of businesses in digital marketing. Next, corresponding countermeasures are put forward for the above five dilemmas. At the same time, implementing precision marketing and strengthening integrated marketing are also the main suggestions. Finally, the examples of NetEase Cloud Music, IKEA, Starbucks, and other companies are cited to illustrate some specific digital marketing measures. In conclusion, this paper helps relevant enterprises to understand and pay attention to the importance of digital marketing and also puts forward some measures and suggestions for the development of enterprise digital marketing to provide the impetus for the transformation of enterprise business models and modern industrial patterns, and promote the progress of the marketing industry and the digital economy.

DIGITAL TRANSFORMATION OF ECONOMIC PROCESSES

Topicality. Digital transformation is shaping a new reality. It develops at a very fast pace due to innovations. Technologies and innovations change their orientation under the influence of the external environment and turn from technological innovations into innovations in the field of economic processes and implementation of business models.Aim and tasks. The purpose of this scientific article is to study the further transformation of economic processes and business models in Ukraine and the world. The tasks of this study are: to determine the spheres of influence of digital transformation; to consider the creation of various types of values: to investigate modern technologies of economic development; analyze positive changes from the digital transformation of economic processes.Materials and Methods. Comparative analysis, system analysis, theoretical generalization of scientific research, content analysis, structural and logical analysis, grouping, modeling. Also, scientific research is developed on the basis of data from the State Statistics Service, scientific publications.Research results. The article defines the spheres of influence of digital transformation: the economic structure under the influence of digital technologies (changes in: traditional markets, state administration, social relations); sources of added value and structure of the economy (formation of effective economic processes thanks to digital infrastructure); functions of the economic development mechanism to institutions that function on digital models and at different levels (markets, types of economic activity, industries, spheres of activity); technological level of development (advanced technologies, digital platforms); the market environment (business models) as a single environment that optimizes the development of economic and technological levels and strengthens their interaction (normative regulation, information infrastructure and security, human resources). The creation of different types of values is considered: cost savings, the value of gaining experience, the value of the participation of subjects. Modern technologies of economic development are studied: artificial intelligence, cloud computing, mathematical modeling, blockchain, cyber-physical systems, robotics, 3-D technologies, additive technologies, identification technologies, "Internet of Things". Positive changes from the digital transformation of economic processes are analyzed.Conclusions. In the modern world, a new paradigm of further development is being formed, and it consists, first of all, in the digital transformation of economic processes and business models. In the course of these processes, business conditions, business processes and markets are changing, transaction times and transaction costs are reduced thanks to digital platforms.Digital businesses are capturing markets and creating competitive conditions to drive down prices. Users of the platforms quickly make the transition to a more attractive price offer. At this time, the cost of transactions is reduced, which affects the demand for goods/services and leads to an increase in the share of digital markets. Business models that functioned effectively before are gradually being replaced by platform ones. Traditional operations in industries, sectors, and markets are turning into platform ones.