Business Model Transformation Research Articles

Main mechanisms of blockchain technology implementation in digital technologies application

Purpose. To analyze the basic principles of blockchain technology implementation, highlighting the algorithms for reaching consensus in the blockchain network to ensure its reliability; to identify key problems in the implementation of such technology and suggest ways to overcome them; to perform a systematic analysis of the blockchain technology contradictions and suggest ways to eliminate them. Methodology. The research used the basics of economic analysis of economic entities to compare their managements centralized and decentralized models. This approach showed that another wave of transformation of business and social models has unfolded in recent years, caused by the next-generation digital technologies involving the economys transition to the digital area. Revealing the blockchain technology mechanisms is based on modern databases and peer-to-peer computer networks, covering in detail the main means of contradictions, application, and implementation of blockchain technology. Findings. The main results of these studies are obtained in the digital economy. The paper shows that digital technologies open up a wide range of opportunities for different sectors of the economy. The research highlights the features and principles of distributed registry technology (Blockchain) applications. It is shown that as a decentralized data registry, blockchain technology is the most discussed and relevant topic in the digital economy. Originality. The paper further developed the main component of the digital economy, which is progressing most intensively, the distributed ledger technology (Blockchain). The paper analyzed its strengths, such as cost reduction, increased security, and transparency of transactions that attracted the attention of various sectors of the economy. The authors approach for eliminating the revealed mechanisms of contradictions, application, and implementation of blockchain technology is presented. The definition of the digital economy, digital technologies in the economy, and end-to-end digital technologies have been improved to clarify the understanding of the economic management decentralization problems. That showed that the digital economy has several subtleties associated with insufficient research and comprehension of technical implementation and flexibility. Practical value. The research results will be useful for expanding ideas about the blockchain technology implementation in different sectors of the economy, accompanied by lower costs, increased security and transparency of economic entities, and improving their economic efficiency and development in digital technologies application. The blockchain technologies implantation at the enterprises of the mining and metallurgical industry allows making the production and sales of products more efficient and transparent, and at the same time significantly reduces the human factor.

DIGITAL TRANSFORMATION OF THE FINANCIAL MARKET: RISKS AND OPPORTUNITIES

The introduction of modern digital technologies into the practice of financial market entities contributes to the resolution of contradictions in economic relations between suppliers and consumers of financial products by forming a local compromise. The digitalization of financial services helps to increase the physical and tariff accessibility of financial services, reduces the costs of a financial company to expand its client portfolio. However, it should be noted that the production, sale and consumption of digital financial services and the digitalization of business processes of financial companies are associated with additional risks for all participants in economic relations.
 Purpose. Study of opportunities and risks of forming an effective financial strategy for a consumer of financial services in the context of digital transformation of the financial market.
 Methods and methodology. The article used the methodology of conflict-compromise management of economic relations, the general theory of risk, as well as content analysis of the literature on the research problem.
 Results. Results were obtained that confirm the hypothesis that the digitalization of various business processes in financial companies will lead to an increase in the process of disintermediation, which will inevitably lead to the transformation of traditional business models of companies, a revision of the factors affecting the formation of profits of financial companies, and for consumers of financial services to the need to form patterns of responsible financial behavior in the context of financial market transformation.
 Practical implications it is advisable to apply the results obtained by economic entities involved in the formation of functional strategies of companies.

РАЗВИТИЕ ИННОВАЦИЙ В БИЗНЕС-МОДЕЛЯХ В ЦИФРОВОЙ ЭКОНОМИКЕ

The article examines the issue of the development of business model innovations in the context of digitalization of the economy. The author emphasizes that nowadays the importance of business model innovations exceeds the interest of researchers and practitioners in product and process innovations. For a more comprehensive research on the issue, the article reveals the concept of a «business model», provides various directions for its conceptualization. As part of the business model innovation research, the author highlights various approaches to interpretation of business model innovation and draws attention to it in the context of inter-organizational interactions. In this regard, the author notes the current trend associated with the transformation of modern business models towards business ecosystems. At the same time, it has been noted that despite the positive aspects of introducing innovations in the business model, this process is associated with the problem of firms’ organizational inertia.

TRANSFORMATION OF BUSINESS MODELS IN THE CONTEXT OF DIGITALIZATION OF THE RUSSIAN ECONOMY

A business model is a plan created by a company to maximize profits and minimize costs, a kind of benchmark in cooperation with market participants, as well as in the provision of services and the production of goods. A well-built business model can be the key to success in the market - this is confirmed by the examples of all the largest companies in the world. In the article, the author examines the processes and factors of the transformation of business models in the context of the digitalization of the Russian economy.

The influence of digitalization on the administration of taxes and charges in Ukraine

Problem setting. Modern society is gripped by the trend of digitalization, which permeates all spheres of its life. First of all, such processes affected the state’s economy, and hence the taxation and administration of taxes and fees. According to scientists, the key technologies of the digital economy contribute to the digital transformation of business – the transformation of analog products, business processes and business models of organizations into those based on the effective use of digital technologies. In addition, it should be noted that the digital economy is shaping a new, digital business environment and includes all digital resources of business organizations integrated into the system, interaction with other economic entities within the country and abroad [1, p. 122–123]. In the digital economy, digital technologies are recognized as the basis for the creation of new products, values, properties, unique systems and processes. This thesis is confirmed by the provisions reflected in the Economic Strategy of Ukraine 2030, in particular, in paragraph 6.2 Ukraine 2030E a country with a developed digital economy: data becomes an asset. Data collection, description, storage and processing allow to obtain valuable information for use in business processes, public life, the work of the state. The ability to work with data and analyze it is an opportunity to be the first to obtain valuable market “insights”, to be more competitive [9]. It is obvious that the processes of introduction of new technologies in the context of digitalization of the country’s economy have not escaped the sphere of taxation and administration of taxes and fees. Target of research. The purpose of the article is to reveal certain aspects of the impact of digitalization on the administration of taxes and fees in our country. Analysis of recent researches and publications. Researchers such as O. Dmytryk, D. Kobylnik, A. Kolisnyk, M. Kucheryavenko, and O. Makukh, V. Ryadinska, M. Chinchin and etc. are engaged in the study of innovations related to the administration of taxes and fees in the conditions of digitalization. At the same time, many aspects still remain unclear. Article’s main body. It is emphasized that the introduction of electronic services in the field of taxation, as well as the approach of the legislator to their regulation should be positively assessed, because in the context of digitalization the implementation of such principles as simplifying the procedure of interaction between taxpayers and the supervisory authority. as can be seen, this principle is part of the principle of the general principle of tax law uniformity and ease of payment. In general, the legislative approaches to the regulation of electronic services taxation in Ukraine as quite acceptable and well-founded. However, in order to improve the implementation of the relevant tax legislation, we consider it necessary to define more clearly the list of electronic services subject to taxation, as such a list is currently open and may be subject to too broad an interpretation. Conclusions and prospects for the development. The article analyzes some aspects of the impact of digitalization on the administration of taxes and fees in Ukraine. It is emphasized that many innovations that meet modern requirements have been introduced in Ukraine. At the same time, not all of the proposed innovations are perfect (in terms of content and approaches to consolidation), which in the future may negatively affect the enforcement of such rules, and thus the replenishment of revenue budgets and more.

Глобальные тренды совершенствования системы кадрового обеспечения инновационного развития

Human resources management of innovative economic development creates conditions that activate innovative processes in all industries and spheres. The article contains a list of global trends that form these conditions. The trends usually depend on the digitalization and transformation of modern business models based on the ecosystem approach. For each trend, university education has the key role in staffing support.

Study on Intelligently Designed Business Innovation Service Models Driven by Big Data

Although conventional business models have been increasingly affected in front of the big data technology application, it has also brought new opportunities and challenges for enterprise development. In order to create a higher value, enterprises should keep pace with the times and actively develop business innovation service models. The greatest value brought by data is to help enterprises find potential business value. It can provide a broader user market and channels, avoid homogeneous competition, and realize the integration of upstream and downstream value chains. In addition, it abandons the extensive development under the traditional model and allows enterprises to return to real value services, which is also an irresistible trend of business model transformation. This paper studies and analyzes business innovation service models. First, the business model as required is presented, and the management system and risk evaluation method are introduced. Then, the construction of the business service model is discussed, and the typical big data technologies are reviewed. Next, according to the evaluation theory of business model, the index system of business innovation service model is explored, which can examine the development of business model objectively and comprehensively. Last, the operations of the business model under the big data are analyzed. The research on the business model in this paper can be provided with universality and has a certain practical value for the development of business innovation service.

Digital transformation of the value proposition: A single case study in the media industry

Digital transformation is among the most pervasive forces disrupting business models across every industrial sector. While prior research has explored the digital transformation of business models, the effect on the value proposition as a key element of the business model has received only limited attention. Drawing on an extensive single case study in the regional media industry involving 59 interviews with one service provider and its customers, this study explores the digital transformation of the provider’s value proposition and how this process was collectively enacted by the provider and its customers. This study develops an empirically grounded framework illustrating the key value proposition transformation drivers, provider and customer sense-making practices, and value element reshaping implications. Overall, this study advances contemporary digital transformation and value proposition research by demonstrating how the process of digital transformation changes the nature and content of the value proposition and how managers can facilitate this process.

Research on the Operation Modes of Electric Vehicles in Association with a 5G Real-Time System of Electric Vehicle and Traffic

With the popularity of 5G technology and electric vehicles, many countries around the world have adopted 5G technology to build sustainable smart city systems, and intelligent transportation is an important part of smart cities. From the perspective of 5G technology innovation bringing changes to traditional industries, in this paper, we analyze the mechanism by which 5G technology drives the transformation and upgrading of the electric vehicle industry. Based on the changes brought by 5G technology to the three industries of agriculture, industry and services, we analyzed the transformation of business models brought about by 5G with respect to electric vehicle operation. Furthermore, we analyzed the data of a 5G real-time system of electric vehicle and traffic operating in Nanjing, China, for a month in 2021, with a total of 10,610 electric vehicles and 1,048,575 cases to model the modes of electric vehicle operation associated with the platform. Based on the frequency density method, we identified three typical operating modes of urban electric vehicles: private electric vehicle use instead of walking accounts for 24.8%, passenger vehicles (Uber/Didi and taxi) account for 64.4% and logistic distribution electric vehicles account for 10.8%. We developed a method to automatically identify the operating mode of electric vehicles using data from a 5G real-time electric vehicle traffic platform, which provide a reference for the operation of electric vehicles associated with the platform. This work also provides data that can be used to support the establishment of models for the commercial operation of charging points.

Localization of the production: international experience and imperatives of russia in the conditions of sanctions regime

This article is dedicated to the study of production localization problem which became especially topical in conditions of new challenges characterized by the unprecedented strengthening of sanctions regime towards Russian economy and predetermining the necessity to create national manufacturing chains of full cycle, reconfiguration of the sectoral policies, transformation of business models in context of strategic goals of the import substitution. The purpose of the article is to generalize and evaluate international experience of localization of production, as well as to analyze the state of this process in the branches of the Russian manufacturing sector, which since 2014 has been under the action of the blocking and sectoral sanctions of the collective West. In the research process, a complex of general scientific methods was used, including: analytical, logical, monographic, interpretation, synthesis, as well as a method of graphical visualization. Methodological base of the study includes the set of classical and neo-classical concepts of the spatial organization of the economy, theory of innovative growth and cluster development. Fragmentary overview of production localization international experience is given. We have carried out analysis of mechanisms of the state industrial policy, contributing to the problems solution of the localization and import substitution, taking into account strategic priorities of Russia. The advantages of localization in practice of special investment contract (SPIC) conclusion were systematized. Its sectorial features in automotive industry, power engineering industry and aircraft building were stated. We have made a conclusion about the necessity of forming of effective localization strategy, overcoming of declarative character of import substitution in the key spheres of real sector of Russian economy which will help to solve the problems of national security provision and technological independence. Practical significance of the results of the study consists in the possibility of its use in the sphere of program and project management and development of strategies of national and regional levels development.

ROLE OF BLOCKCHAIN

At present, with the rapid development of the Internet structure, the topic of information technology together with the concept of digitalization has become important for enterprises. Arguably, the technological advancements that make digitization possible have contributed to the digital transformation of business models. The concept of digital transformation has surfaced as an area where businesses have been working hard. Digital transformation refers to the overall transformation of a business based on mortals, business processes and technology to provide more efficient and effective services. Therefore, blockchain, known as a disruptive technology, is of great significance for icing on the cake for the digital transformation of enterprises. In this study, some decisions have been made to abandon blockchain technology. Many industries, such as finance, pharmaceuticals, manufacturing, and education, use blockchain operations to benefit from the unique properties of this technology. Blockchain technology (BT) promises benefits in accountability, collaboration, association, identification, trustworthiness and transparency. We also review the literature and promising blockchain-based open intelligence systems to describe the current state of exploration. To this end, we specifically examine these systems for their applicability and contribution to open intelligence, and categorize them according to their primary purpose. Keywords: blockchain technology; digital metamorphosis; blockchain advantages and challenges

Green Insurance: A Roadmap for Executive Management

Anthropogenic climate change is accelerating, and severe and widespread consequences are expected in many areas. Although the insurance sector is not closely associated with any of the sustainability dimensions, expectations may change rapidly. Against this background, we analyze the role of insurers, especially in the property and casualty areas, in addressing the environmental and climate risk challenges and developing a truly sustainable, environmentally friendly business model—green insurance. Building on the Principles of Sustainable Insurance set by the United Nations, we develop a comprehensive roadmap along the insurance value chain for executive management to design their company’s sustainability efforts, with special focus on property and casualty. The roadmap indicates actions to be taken as well as metrics to be managed in product development, marketing and sales, risk management and underwriting and operations and claims management towards green insurance. The existing products, risk appetite and operational processes must be reviewed to support sustainability goals and include the full portfolio of activities, including claims. The time to act is now, the sustainability journey is complex and the proposed business model transformation should provide benefits for early movers.

Directions for improving the mechanism for increasing the efficiency of retail trade services in the food market: transformation of the traditional business model into a digital one

Directions for improving the mechanism for increasing the efficiency of retail trade services in the food market: transformation of the traditional business model into a digital one

Corporate narrative reporting on Industry 4.0 technologies: does governance matter?

PurposeThis paper aims to provide early evidence on corporate transformation towards Industry 4.0 (CTTI4) in the UK, particularly by examining the effect of corporate governance on the narrative reporting of CTTI4.Design/methodology/approachThe authors analyse all UK financial times stock exchange all-share non-financial firms that have published their annual reports for the period of 2013–2018. The authors use computerised textual analysis to measure the level of corporate reporting on Industry 4.0 (I4.0) for 1,001 firm-year observations. The authors used different regression models to test the research hypotheses.FindingsThe findings contribute to the growing literature on business model transformation in UK companies towards the I4.0 strategy. The findings show that the level of reporting on CTTI4 is improving over the sample period and varies between industries. The authors also find that better governance quality enhances the level of reporting on CTTI4.Practical implicationsThe findings of this study inform decision makers and regulators about factors driving UK companies to report information about their actionable strategies to direct I4.0 endeavours.Originality/valueThe paper makes an important and novel contribution to corporate disclosure literature. So far as the authors know, it is the only paper to examine the impact of corporate governance on corporate narrative reporting on I4.0 technologies. Moreover, to the best of the authors’ knowledge, it is the first paper to show that the quality of corporate governance adds value to this strategic type of corporate disclosure.

Blockchain and supply chain finance: a critical literature review at the intersection of operations, finance and law

In the current environment, where the Covid-19 pandemic has exposed the vulnerabilities of the incumbent paper-based trade and supply chain finance systems, digital transformation pledges to alleviate the friction on international trade. Here, we provide a timely review of state-of-the-art industry applications and theoretical perspectives on the use of blockchain as the medium toward digitalisation for supply chain finance systems. We argue that blockchain technology has an innovation promoting role in supply chain finance solutions through reducing inefficiencies and increasing visibility between different parties, which have hitherto constituted the main challenges in this sphere. Based on a review of the academic literature as well as an analysis of the industrial solutions that have emerged, we identify and discuss the financial, operational and legal challenges encountered in supply chain financing and the promise of blockchain to address these limitations. We discuss the bottlenecks as well as the benefits of blockchain and identify some necessary conditions required for the emergence of blockchain-enabled trade and supply chain financing, such as the establishment of co-opetition among supply chain actors, integration with IoT systems for data quality, and reform of regulatory and legal frameworks. We conclude by identifying promising research directions about the implementation process, inviting further research into the transformation of business models toward a more collaborative nature.

Research on Data Analysis of Digital Economic Management under the Background of Big Data

In order to study the application of big data in the field of digital economy, data management improves the needs of business model to a certain extent and responds to the pace of rapid development of science and technology and the transformation of business model in special times, so as to promote economic development. Based on the information extracted from the software system log, this study introduces machine learning algorithms such as spatial convolution and fuzzy multicolumn convolution, deduces the interaction between visitors and software according to the system software access log, wavelet algorithm, and denoising algorithm, deduces the data value index of the secondary market, constructs the simulation software under Matlab, and compares it with the previous system, By improving the prediction sensitivity of interaction and the prediction coupling of data value, it is confirmed that the system improves the efficiency of data management, so as to achieve the purpose of digital economic management and promote economic development and progress.

CONCEPTUAL FOUNDATIONS OF ADAPTIVE BUSINESS MODELS DEVELOPMENT (SERVICE SECTORS CASE)

In the modern conditions the most important priorities for companies deal with the company’s ability to adapt to changing environmental conditions, change the way they do business and determine the optimal business model that is effective in a dynamic environment and in the long term. The article is devoted to the issues of transformation of business models as an iterative process aimed not only at studying the existing realities of the industry, but also at identifying the main possible directions for its further development. Based on modern approaches to business models development the steps in a sample business model review framework for the listed potentials are outlined. In the applied context, as an important factor in the adaptability of business models, we note digitalization, which has fully come into its own in a relatively short period of time. It completely changed the architecture of modern business models and required fundamental changes from all market participants. We can conclude that the potential of functional use of websites by enterprises by type of economic activity is not fully used.

A digital business model for accelerating distributed renewable energy expansion in rural China

A business model that combines solar photovoltaic and fishery plays a role to expand distributed renewable energy and improve rural economy development. However, the business model of solar photovoltaic fishery is encountering growing difficulties with revenues decreasing due to changes of policy such as withdrawal of photovoltaic subsidies and land control. The spreading of digitization in photovoltaic industry and rural areas provides new opportunities for innovation of traditional solar photovoltaic fishery. This paper focuses on multiple value propositions to discuss a digital business model based of solar photovoltaic fishery on a case with a local Chinese photovoltaic agricultural company. The study results show that the digital business model of solar photovoltaic fishery improves the operational efficiency of solar photovoltaic power generation, economic benefits of aquaculture, and the diversification of revenue sources of solar photovoltaic agricultural company and leasing company. The transformation of business model from traditional solar photovoltaic power generation and fishery business to digital service platforms can not only accelerate expansion of distributed renewable energy and be potential deployed globally but also assist photovoltaic agricultural company to effectively respond to policy change. Finally, this paper proposes that supportive policy may focus on advocating system coupling to expedite the development of distributed renewable energies based on digital technology, and digital photovoltaic combined with rural energy market and financial, which will advance development of renewable energy electrification and promote rural economic growth.

The Transformation of Tech in Asia Indonesia into Subscription Based Digital Media amid The Covid-19 Pandemic

The Covid-19 pandemic has accelerated digital adoption and increased the profitability of subscription business model of global digital media companies. Digital media companies in the United States have proven that the subscription business model can be a more stable source of income for journalism than advertising. The success story of digital media subscription in the United States has inspired Indonesian digital media to implement the subscription business model. This study aims to determine in which organizational growth phase the transformation of the Tech in Asia Indonesia business model is carried out, based on Greiner's growth theory. This study also attempts to analyze how the transformation of business model of Tech in Asia Indonesia affects the editorial team, and changes the way journalists work in producing news, based on Lueke's organizational change model. This qualitative research uses interviews, document studies and participant observation to collect primary data. The data is then processed and analyzed by data reduction techniques, data display and drawing conclusions. Researcher also use triangulation techniques for the validity of the data. The results of the study show that the transformation of business model of Tech in Asia Indonesia into a digital subscription model that happened amid the COVID-19 pandemic was carried out in the fifth growth phase within the organization. The transformation has also changed the structure of the editorial team to be more specialized, the production process through more editing stages, and to a more extensive communication culture within the organization. The selection of a soft paywall model for the Tech in Asia Indonesia subscription has proven to be a new revenue source that helps companies maintain their business to get through difficult times amidst the pandemic. This business model also expected to be a more stable source of income in the long term.

THE ART OF HOLISTIC DIGITALISATION: A META-VIEW ON STRATEGY, TRANSFORMATION, IMPLEMENTATION, AND MATURITY

In the new global digital economy, holistic digitalisation has become central for all non-profit and for-profit institutions. Recent developments in digital initiatives have heightened the need to investigate holistic digitalisation. This paper aims to develop a meta-view of holistic digitalisation consisting of several fundamental perspectives for strategically oriented digitalisation. These perspectives include digital strategy, digital transformation of business models, digital implementation, and digital maturity. Each perspective consists of an approach including a procedure model and relevant content. Combined with our previous work, we applied semi-structured interviews and included the insights to develop an initial, grounded theory for a meta-view of holistic digitalisation. The paper offers a relevant concept and outlines an appropriate research methodology to advance this research field. This closes an existing research gap regarding digitalisation.