Business Model Transformation Research Articles

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.

ПІДХОДИ ДО РЕАЛІЗАЦІЇ ЦИФРОВОЇ ТРАНСФОРМАЦІЇ БІЗНЕС-ПРОЦЕСІВ ПІДПРИЄМСТВА: УПРАВЛІНСЬКИЙ АСПЕКТ

The article is devoted to the study of approaches to managing the digital transformation of business entities. It presents differences in the interpretation of the essence of the concepts of digitalization, digitization, and digital transformation. Three main areas of the enterprise affected by digital transformation have been identified: work with clients, operational business processes, and business models of the enterprise. Digitalization of enterprise business processes will influence changes in value formation and structural changes, and will also depend on them. It is substantiated that the level of use of digital technologies will be greatly influenced by the financial capabilities of the enterprise. An algorithm for the digital transformation of an enterprise has been developed, which makes it possible to choose priority areas for optimizing business processes through varying degrees of digitalization. This algorithm provides a preparatory stage at which it is recommended to carry out a detailed diagnosis of the external environment and assess the degree of penetration of digital technologies into the industry in which the activity is carried out. It provides for diagnostics of the enterprise taking into account available resources and identification of business processes that require innovative changes and solutions. The developed algorithm provides for partial optimization of individual business processes (installation of ERP-, CRM-, HRM- and other resource management systems, document management, logistics, etc.) and significant changes in several business processes using AI, BigData, IoT, cloud technologies, etc. The algorithm ends with the implementation stage, at which the necessary software and technological solutions are implemented. Transformation of operational processes through automation will provide economies of scale and increase productivity. The elements of digitalization of business processes of the enterprise are characterized. Three variable blocks in the transformation of business models are considered: digital modifications of individual processes, the introduction of new digital business models, and digital globalization. Conclusions about the main advantages of enterprises that have carried out digital transformation are drawn.

The Impact of Big Data Capability on Business Model Transformation： Mediated by Knowledge Renewal and moderated by Resource slack

The Impact of Big Data Capability on Business Model Transformation： Mediated by Knowledge Renewal and moderated by Resource slack

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.

Платформенные экосистемы: накануне нового прорыва в области коммерциализации интеллектуальных прав

The aim of the work is to analyze the new investment capabilities that appeared as a result of the development of new platform ecosystems that form the economic circulation of digital intellectual assets of copyright. The productive ideas of the possible use of intellectual assets in financial engineering were voiced back in the 1980s, i.e., almost at the dawn of the emergence of financial engineering as a science itself. For example, in one of the first reference books on financial engineering and financial innovation, the growing use of legislation on intellectual property protection was mentioned as one of the aspects of financial engineering, the significance of which would grow in the coming years. The main stage of development is characterized by a massive transformation of business models and the transition to platform ecosystems, much more mobile and susceptible to organizational and financial innovations. A huge role in this process was played by the rapid development of information technology. The work shows that, by analogy with the period preceding the first transactions of the intellectual property secretion in the 1990s, there is currently a steady increase in the income of microstock platforms. In addition to ordinary investors, the ecosystem of microstocks includes an extensive contingent of the so-called creative investors – authors of digital images, video and sound files posted in the collections of such companies. Investors of this category are participants in the total intellectual capital successfully controlled by microstocks. The basics of the business of microstocks were laid back in the early 2000s, in fact, in the wake of the “dot-com”, when there was a stir of exciting, sound and literary content from the multimillion-dollar army of creators of the modern Internet. On the basis of ten-year observations of the portfolio of digital images, the study confirms that (1) the position of the author/investor on digital assets is not exposed to losses in the classical sense; (2) a correlation between the yield of the portfolio of digital images of the individual author and the profitability of the action of the microphotostock company, in the collection of which the portfolio is located, is absent. The results prove that the portfolio of digital intellectual assets of the author/investor can be used as a hedging element as part of a hybrid investment position that includes the shares of a microstock company. In addition, preliminary quantitative assessments of the possible contingent of investors who are interested in implementing the ideas of the proposed hybrid tool are made in the work. The study allows predicting the emergence of new ideas and investment capabilities in the field of commercial circulation of digital intellectual assets.

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.

Features of design and construction works in the context of digital transformation of industrial pro duction

The analysis results of the scientific and technological progress influence on technologies for performing design and construction works are presented. A model of the design and construction works performing, based on a service-oriented approach to the creation of complex technical systems, which takes into account the features of the digital transformation of business models for modern design organizations is proposed. The question about the relevance of developing new methods for assessing the effectiveness of design and construction activities is raised. Keywords design and construction works, digital transformation, Industry 4.0, process model, efficiency assessment

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.

What to expect from such changes? The business model reconfiguration and the dilemma for business evolution

This case is a fictional narrative based on a real case experienced by the authors throughout their professional career. The Alpha Company (fictitious business name) has been operating in the furniture sector since 2006. In 2015, Alpha's managers faced a great dilemma regarding technology adoption and the transformation of the organization's business model to meet the demands of its customers and increase the company's profitability. The case describes the organizational trajectory of the company, showing the reconfiguration of its business model over the years and the dilemma experienced by managers. At a certain point in the organizational trajectory, the business's evolution and growth depend on an important decision regarding the organizational processes. The primary focus of this case is on business models, including strategic decisions and technological changes. Appropriate theories on business models are drawn from the literature to discuss and address these issues. This case was written for use in classes on organizational strategies and strategic planning at the undergraduate level. The focus of the case aligns well with discussions of business models, strategic decisions, innovation, and technological changes.

Mapping the field of digital entrepreneurship: a topic modeling approach

In the evolving landscape of entrepreneurship, digital technologies have ushered in new possibilities, attracting considerable academic attention. Despite the burgeoning research in Digital Entrepreneurship, the field remains fragmented, warranting a synthesized overview and structured research agenda. Consistently with the above, the paper presents a quantitative mapping of Digital Entrepreneurship through a bibliometric analysis of its publications. The research aims to address the need for a comprehensive, bibliometric overview of the topic, which has been echoed in recently published papers. In order to achieve this goal, we collected data from the Web of Science database, a common and scientifically sound choice in entrepreneurship research. The data were analyzed by applying Latent Dirichlet Allocation and topic modeling, thus providing a unique approach to bibliometric mapping. Topic modeling allows for the processing and analysis of significant amounts of scientific data, thus making it an ideal tool for bibliometric research. We find the field of Digital Entrepreneurship to be rather lively and in rapid development, with several publication outlets, affiliations, and countries contributing to it. We found four main topics to be extracted: the implications of Digital Entrepreneurship for innovation, Digital Entrepreneurship as an enabler for empowerment, the transformation of business models through digitalization, and the surge of digital platforms as entrepreneurial ecosystems. Additionally, we have provided a comprehensive overview of the theoretical lenses used amid the sample and a structured research agenda built upon extant gaps. From a theoretical perspective, the article serves as a starting point for future research on the topic and a comprehensive analysis of its present and past. From a practical perspective, the study is of interest to digital entrepreneurs willing to learn more about the opportunities and challenges provided by the digital landscape.

Russian ecosystems participant banks: specifics of activity, growth and development opportunities

New realities of social development dictate the need to transform established business models into a modern format. This trend has not bypassed the banking sector: a number of credit institutions have outlined a further strategy for their development within the framework of an ecosystem model of doing business, with varying degrees of participation of banks in the activities of such platforms noted.The work examines the main controversial issues about the essence of ecosystems, as well as the prerequisites for their formation in the national financial market, identifies the reasons for the transition of banks from a traditional business model to an ecosystem one, defines specific criteria for classifying organizations as an ecosystem, and identifies the features of the functioning of the largest national ecosystems built with direct participation of Russian commercial banks, their comparative characteristics were made. It is concluded that the transformation of the traditional banking business model into an ecosystem one opens up new opportunities for credit institutions for growth and development.

Influence Social Media Marketing, Content Marketing And Event Marketing Towards Purchase Intention Mediated By Customer Engagement

The Fast Moving Consumer Good (FMCG) industry, one of Indonesia's main industries which is closely related to the retail sector, and makes a significant contribution to the national economy, especially food and beverages, experienced an increase of 3.6% in the first quarter of 2022. Transformation of the e-commerce business model Currently, it is not only limited to the B2C (business-to-customer) e-commerce business model, but the B2B (business-to-business) e-commerce business model has spread in Indonesia, making it easier for retail businesses to meet their stock needs for goods for sale. In this study, AMOS version 24 was used to process data from 250 respondents and the quota sampling method from five regions and the criteria for respondents using B2B e-commerce applications. The research focuses on looking at the impact of marketing via social media, marketing content and marketing events on customer interests which mediate purchasing intentions. The results showed that marketing via social media and customer presence had a positive and significant effect on purchase intentions, then marketing events had a positive and significant effect on customers. Meanwhile, marketing content and marketing events have no effect on purchase intentions, marketing via social media and marketing content also do not have a positive and significant effect on customers. Meanwhile, the mediating effect of customers is unable to provide a positive and significant influence on marketing via social media and marketing content on the purchase intention of stall or grocery store owners using B2B e-commerce applications.

Digital Skills in Modern Business Models

The purpose of the article is to explore the role of digital skills in modern business models and their impact on company management. The research methodology is based on the principles of scientific research. General scientific methods of cognition are used, global practices of digital skills assessment are analysed based on the use of official documents and methodologies, and cases of digital transformation and the use of digital skills in the business models of global companies are studied. The scientific novelty lies in the formulated advantages of digital skills, which have a decisive impact on the transformation of business models in the digital environment, as well as on the structure and trends of the labour market, defining the basic competencies of the workforce and shaping the range of employers’ requirements. Digital transformation has not only changed the world of work creating new job roles and changing the nature of work itself but also developed the readiness of companies to face modern global and regional challenges. Best practices for assessing digital skills include using a comprehensive digital competency framework, conducting regular employee skills assessments, and providing targeted training and development programs to address skills gaps. Conclusions. It is formulated that digital skills management is an ongoing process that involves identifying the skills and competencies required for each role in the organisation, assessing current skills and providing learning and development opportunities. Rapid technological advancements, the need for retraining and upskilling, the problem of finding talent, digital security, organisational resistance to change, lack of standardisation, difficulty in integrating with existing processes, etc. pose challenges for modern companies. The cases of Amazon, Walmart, General Electrics, and IBM were studied. They were able to use digital skills to collect and analyze data, improve team collaboration and communication, and optimize their operations, which led to such benefits as increased efficiency, customer satisfaction, and cost reduction.

A Study on the Impact of Subcultural Capital on the Management of Chinese Official Media

China's official media business model transformation pressure is increasing day by day. The contradiction of the binary system business model is becoming increasingly prominent. Official media need to take into account the goals of ideological propaganda, commercial operation, and improving profitability. Against this background, subcultural capital has become the favored breakthrough of traditional media. Cultural capital and subcultural capital, as a kind of resource that can be invested in and reproduced, reveal the internal logic of the subculture industry and provide a new perspective for people to study the effect of subcultures on the operation of official media. This paper uses the economic management model SWOT-PEST mode analysis model to explore the impact of subcultures communication on the operation of China's official media, as well as the advantages, disadvantages, opportunities, and threats brought by cultural communication in the political, economic, technological, and social environment. This paper tentatively puts forward the concept of mainstreaming of subculture and probes into the contradiction between official media's subcultural capital investment and the development path of subculture itself.

Transform to adapt or resilient by design? How organizations can foster resilience through business model transformation

Advisors and consultants consider business model transformation (BMT) as vital in responding to disruptive events like the COVID-19 pandemic. However, some companies demonstrated exceptional resilience during the pandemic without BMT. Given this scenario, we investigate the effect of BMT on firm resilience in 2020, the pandemic’s first year. We collect data from 336 Italian companies and develop an improved resilience measure that maximizes consistency with our theoretical framework. The results reveal that firms following an adaptive path towards resilience successfully leverage BMT. We also found that innovative and more internationalized companies are more likely to follow an absorptive path towards resilience, thus reducing the need for BMT when facing shocks. High levels of resilience can be achieved through small adjustments around a situation of constant equilibrium. Our study advances the resilience literature by showing that an absorptive path is equally effective to an adaptive path in fostering organizational resilience.

Influence of digital ambidextrous capabilities on SMEs' transformation performance: The mediating effect of business model innovation

As the global digital transformation process accelerates, how SMEs can successfully achieve digital transformation is currently an important research question in the field of strategic management and a real-life dilemma that entrepreneurs need to address. This study classifies business model innovation into market-driven business model innovation and driving-market business model innovation based on market orientation theory. The relationship between digital ambidextrous capabilities, business model innovation and transformation performance is explored according to the paradigm of ‘capability-behaviour-performance’. This study used SEM and fsQCA to analyze 289 questionnaires collected from middle and senior managers of Chinese SMEs. The results show that digital exploitation capability is positively associated with market-driven business model innovation, while digital exploration capability is positively associated with driving-market business model innovation. In particular, business model innovation plays a fully mediating role in the process of digital ambidextrous capabilities enhancing the transformation performance. Our findings shed new lights on the current debate surrounding the digital transformation of SMEs and will be instructive for both academics and business managers.

Digital transformation dimensions for evaluating SMEs' readiness for big data analytics and artificial intelligence: A review

Assessing the readiness and maturity of small and medium enterprises (SMEs) is a foundation for implementing emerging technologies like big data analytics and artificial intelligence to drive their digital transformation endeavours. This study emphasises that readiness and maturity dimensions offer descriptive and prescriptive guidelines for gauging the current and desired levels of preparedness and maturity required to achieve desired digital transformation outcomes. However, prevailing readiness and maturity models overlook the diverse stages of advancement in big data analytics and artificial intelligence. This research explores the dimensions essential for assessing SMEs' readiness to adopt big data analytics and artificial intelligence. This paper identifies the key dimensions for evaluating SMEs' readiness and maturity across different categories of big data analytics and artificial intelligence by conducting a systematic literature review and employing cluster analysis. The study's principal findings underscore that SMEs' readiness for maturity is influenced prominently by strategic leadership and organisational culture, closely trailed by information technology, security, and business model transformation. Additionally, three pivotal dimensions encompass data analytics and governance, cost-benefit and risk management, and environmental factors. Consequently, proposing that evaluating digital readiness and maturity for SMEs should encompass these six dimensions, thoughtfully considering various prerequisites related to analytics and artificial intelligence.