Innovation risk in digital business models: the German energy sector

2017 ◽  
Vol 38 (5) ◽  
pp. 35-43 ◽  
Author(s):  
Dominik Dellermann ◽  
Alexander Fliaster ◽  
Michael Kolloch
Keyword(s):  
Risk Management ◽  
Business Model ◽  
Business Models ◽  
Energy Sector ◽  
Virtual Power ◽  
Content Type ◽  
Management Framework ◽  
Risk Management Framework ◽  
Digital Business Models ◽  
Virtual Power Plants

Purpose Past research demonstrated that novel IT-based business models generate tremendous returns for innovators. However, the risks associated with these innovations remain under-explored. This paper aims to address this critical gap analyzing risks and offering important insights particularly for practitioners. Design/methodology/approach The authors adopted an exploratory multiple-case study research design. It draws on 22 semi-structured interviews with managers from leading energy utilities, as well as leading providers of virtual power plants technology within the German energy industry. Findings The research reveals that main risks in new digital business models in the energy sector are associated with three forms of interdependence between innovation actors: the regulatory, the technological and the collaborative. To deal with these interdependencies, the authors propose an original multi-step risk management framework. This framework considers the outreach as a critical dimension for risk assessment and offers a new risk response matrix to draw individual and collective mitigation activities for specific types of risks. Practical implications This paper offers a framework for the management of interdependence risks that are fundamental for business model innovations based on IT. Thus, it is applicable in companies both inside the energy sector and beyond. Originality/value This paper analyzes an important digital business model innovation that has not yet been explored in management literature – the virtual power plant (VPP). It is based on original and current empirical work and proposes a novel risk management framework for business organizations.

Integration of Islamic bank specific risks and their impact on the portfolios of Islamic Banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Syed Alamdar Ali Shah ◽  
Raditya Sukmana ◽  
Bayu Arie Fianto
Keyword(s):  
Risk Management ◽  
Portfolio Diversification ◽  
Islamic Banks ◽  
Content Type ◽  
Management Framework ◽  
Risk Return ◽  
Islamic Bank ◽  
Risk Management Framework ◽  
Impact Risk ◽  
Conventional Banks

Purpose This study aims to propose a risk management framework for Islamic banks to address specific risks that are unique to Islamic bank settings. Design/methodology/approach A unique methodology has been developed first by exploring the dynamics and behaviors of various risks unique to Islamic banks. Second, it integrates them through a series of diagrams that show how they behave, integrate and impact risk, returns and portfolios. Findings This study proposes a unique risk-return relationship framework encompassing specific risks faced by Islamic banks under the ambit of portfolio theory showing how Islamic banks establish a steeper risk-return path under Shariah compliance. By doing so, this study identifies a unique “Islamic risk-return” nexus in Islamic settings as an explanation for the concern of contemporary researchers that Islamic banks are more risky than conventional banks. Originality/value The originality of this study is that it extends the scope of risk management in Islamic banks from individual contract-based to an integrated whole, identifying a unique transmission path of how risks affect portfolio diversification in Islamic banks.

Project risk planning in high-tech new product development

2016 ◽  
Vol 29 (2) ◽  
pp. 110-124 ◽  
Author(s):  
Jorge Ayala-Cruz
Keyword(s):  
Risk Management ◽  
New Product Development ◽  
New Product ◽  
High Tech ◽  
Project Risk ◽  
Content Type ◽  
Management Framework ◽  
Risk Management Framework ◽  
Project Risks

Purpose The purpose of this paper is to present the implementation and testing of a modified project risk management framework that integrates PMI’s framework with Monte Carlo simulation to improve the effectiveness in high-tech new product development (NPD) projects. Design/methodology/approach The modified framework considers three bodies of knowledge: project management, risk management, and Monte Carlo simulation to produce an enhance project risk management framework. Its application is shown through a case study. Findings Using the integrated framework in a recent case study project and prior NPD projects measures (as benchmarks), it was shown that it could help to enhance risk responses caused by task durations and costs’ uncertainties. The framework proved to be better than segregated generic best practices and was key in providing insight to the issue of early project risk assessment. Research limitations/implications More experimental replications are required for enhancement effectiveness assertions of the framework, through the application of the framework to similar case studies. Furthermore, this could improve its reliability and soundness. Practical implications Future directions for research could include case and empirical studies that include hypothesis’s testing, and the integration of optimization procedure for improved NPD project’s planning and execution. Originality/value This paper outlines a way to close the gap of project risks management planning in NPD’s initiatives. It was motivated by a relatively new tendency in exploring integrated frameworks to deal with complex project risks issues.

Business models for the now economy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Art T. Weinstein
Keyword(s):  
Online Learning ◽  
Business Model ◽  
Customer Value ◽  
Business Models ◽  
Content Type ◽  
Digital Business Models ◽  
Business Practitioners ◽  
The Impact ◽  
Remote Learning

Purpose Business models are a key to success. This paper aims to identify the characteristics of the Now Economy, discuss the components of an effective business model, examine numerous e-commerce business models and provide an application of online learning. Design/methodology/approach The literature on business models is reviewed. E-commerce models are explored as a means for building competitive advantage in the Now Economy. An in-depth case study of remote learning in universities illustrates the development of a sound digital business model. Findings Business models explain where and how an organization competes and the financial feasibility of its strategy. Digital business models create market differentiation or disruption. This paper explains 20 e-commerce business models and offers an in-depth view of the opportunities and challenges in the online learning sector. Research limitations/implications Building on the literature, this work is conceptual and presents a case study. It is not an empirical study. A three-point agenda for scholars includes research on speed and service in business models, assessing the impact of customer value and examining the market power of Big Tech. Practical implications The digital component of the economy is growing annually. Business practitioners must respond by developing winning business models. The remote learning application is particularly relevant given today’s changing educational market. Originality/value While there has been considerable research on business models, there has been limited work on digital business models, which is the focus of this article.

Institutionalization of risk management framework in Islamic NGOs for suppressing terrorism financing

2014 ◽  
Vol 17 (1) ◽  
pp. 96-109 ◽  
Author(s):  
Radiah Othman ◽  
Rashid Ameer
Keyword(s):  
Risk Management ◽  
Money Laundering ◽  
Process Model ◽  
Task Force ◽  
Political Process ◽  
Asia Pacific ◽  
Content Type ◽  
Management Framework ◽  
Risk Management Framework ◽  
Terrorism Financing

Purpose – The aim of this paper is to propose solutions for improving internal controls and transparency to alleviate concerns of international community over alleged linked with terrorist groups. Design/methodology/approach – The authors explore the counter-insurgency theory and political process model to explain the current state of counter-terrorism activities aimed at Islamic NGOs after 9/11. Findings – The authors believe the idea of money flow disruption to be of greater importance than freezing the accounts to suppress terrorism financing. Practical implications – Islamic NGOs established for philanthropic and humanitarian aid in third world Muslim countries have been accused of being involved in terrorism financing. This revelation is to the disadvantage of the donors who do not channel their donations for such activities. The authors propose risk management framework useful at operational level to detect and prevent welfare activities financing warfare activities. Originality/value – The proposed risk management framework is to complement various regional and international initiatives championed by Asia/Pacific Group on Money Laundering and Financial Action Task Force to combat money laundering and terrorist financing.

scholarly journals Effectuation logic in digital business model transformation

2019 ◽  
Vol 26 (6/7) ◽  
pp. 811-830 ◽  
Author(s):  
William W. Baber ◽  
Arto Ojala ◽  
Ricardo Martinez
Keyword(s):  
Business Model ◽  
Model Transformation ◽  
Business Models ◽  
High Tech ◽  
Structured Interviews ◽  
Content Type ◽  
Digital Platforms ◽  
Study Approach ◽  
Digital Business Models ◽  
Causal Logic

Purpose The purpose of this paper is to study how digital business models evolve when entrepreneurs move to new digital platforms and how this evolution is related to effectuation and causation logics. Design/methodology/approach This study applies a multiple case study approach to investigate how digital business models change in small, Japanese high-tech firms providing their innovations through different digital platforms. To investigate digital business models, this study considers the elements that comprise general business models. The case firms were selected based on size, products and transitions from physical to various digital platforms. Semi-structured interviews were conducted with the key decision-makers from the case firms. Findings The findings show that through digital transformation, the case firms’ digital business models evolved by following effectuation logic as well as causal logic. All the firms employed causal logic when moving to new platforms, among other actions. The case firms used effectual logic with success for product development and adjustments to their network. Especially firms providing video games relied on effectuation for high impact products. Effectual logic did not play a role at all in changes to value delivery and had only little impact on revenue structures. Originality/value This research helps understand how digitalization of platforms and subsequent moves to newer digital platforms improve a firm by changing the business model elements through effectuation and causation logics. This research extends the understanding of digital business model transformation to a more granular level, business model elements.

scholarly journals Responding to the COVID-19 crisis: the rapid turn toward digital business models

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Charlotta Kronblad ◽  
Johanna Envall Pregmark
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Business Models ◽  
Digital Transformation ◽  
Service Industries ◽  
Organizational Characteristics ◽  
Negative Effects ◽  
Departure Point ◽  
Content Type ◽  
Digital Business Models

Purpose The effects of the spread of COVID-19 across the world are devastating, both from a health and an economic perspective. However, we also see encouraging examples of collaborative and innovative initiatives, in society and in organizations. The purpose of this paper is to focus on initiatives related to digital business model innovation. The authors explore how organizational characteristics provide a variety of opportunities for digital responses to the COVID-19 pandemic and discuss the potential consequences for the speed of digital transformation in organizations and society. Design/methodology/approach In this paper, the authors analyze how organizations attempt to mitigate the negative effects of fighting COVID-19 using digital business model responses. The authors draw on a qualitative study where they have collected data from the retail and service industries. They have analyzed the data in relation to theory to better understand this ongoing phenomenon. Findings The authors have identified four categories of organizations (crisispreneurs, accelerators, endurers and thrivers). Each category faces different challenges and shows a different intensity in their digital transformation. The authors propose that the rapid turn toward digital business models will have enduring effects, as organizations have gained transformational capabilities that will remain, and that the digital trajectory has, as a result, changed forever. Originality/value The findings in this paper point toward new challenges for leaders and policymakers in terms of how to support initiatives and meet the needs of different categories of organizations while simultaneously being conscious of the potential societal effects of this rapid digital shift. The authors hope that this paper can be of value for managing this shock and learning how to adapt for the future taking certain aspects of current business models as the departure point.

scholarly journals Digital business models and company growth opportunities in the energy market

2021 ◽  
Vol 250 ◽  
pp. 06006
Author(s):  
Boris Kovalenko ◽  
Elena Kovalenko ◽  
Tamara Yakovleva
Keyword(s):  
Business Model ◽  
Business Models ◽  
Renewable Energy Sources ◽  
Energy Sector ◽  
Energy Industry ◽  
Energy Market ◽  
Global Energy ◽  
Digital Business Models ◽  
Digital Strategy ◽  
Energy Companies

We are currently witnessing significant changes in the global energy market. The energy industry is entering the stage of the 4th energy transition, which is characterized by an increasingly large-scale increase in the use of renewable energy sources and a decrease in the share of fossil fuels. The energy sector is also strongly influenced by the trend of digital transformation and the use of digital technologies. The aim of the work is to study the possibility and conditions of using digital business models by companies in the energy sector to improve competitiveness and market growth. To achieve the goal of the study, the following tasks were set: to analyze the main trends and the state of digitalization of the energy industry; analyze digital business models and assess the possibilities of their use by energy companies; to formulate approaches to transforming the activities of energy companies in the transition to a digital business model. The authors hypothesized that the use of digital business models will allow energy companies to remain competitive and gain access to new markets by introducing new technologies. To conduct the study, the methods of microeconomic and industry analysis, systemic and comparative analysis, and analysis of the organizational behavior of the company were used. The results of the analysis showed that the global energy market is characterized by growth in dynamics and volatility. In order to adapt to changing conditions and maintain competitiveness, energy companies need to take advantage of digitalization and shape a digital strategy. One of the basic elements of an organization’s digital strategy is a successful digital business model. The article discusses the types and features of digital business models, and also formulates approaches to transforming the activities of energy companies in the transition to a digital business model.

Ar-Rahnu (Pawn-broking) in Al-Qamari Bank Berhad

2015 ◽  
Vol 5 (5) ◽  
pp. 1-6
Author(s):  
Aisyah Abdul-Rahman ◽  
A.M. Hafizi
Keyword(s):  
Risk Management ◽  
Learning Outcomes ◽  
Management Practices ◽  
Islamic Banking ◽  
Content Type ◽  
Postgraduate Students ◽  
Management Framework ◽  
Risk Management Framework ◽  
Banking Institutions ◽  
The Subject

Subjectarea The case is suitable for use in the topics related to the functions and roles of Islamic pawn-broking and the Islamic risk management framework. Studylevel/applicability The case is designed for undergraduate and postgraduate students taking courses in Islamic Banking, Islamic Finance and Risk Management for Islamic Banking Institutions. Case overview This case is meant to explain the mechanics of pawn-broking (Ar-Rahnu) in Islam as well as to understand the risk management of Ar-Rahnu in the bank. Ar-Rahnu is discussed, in general, from the perspective of muamalat and then is related to the financing service offered through Ar-Rahnu scheme at Al-Qamari Bank Berhad (a disguised bank). Ar-Rahnu means making an asset as a security or collateral for a debt. The collateral will be used to settle the debt when the debtor is in default. It may also be known as borrowing with either collateral or pawn-broking. In Al-Qamari Bank Berhad, gold and jewellery are the subject of collateral for Ar-Rahnu. In return, customers will get the cash based on the margin of loan with regards to the current market value of gold/jewellery as determined by the bank. The operation of Ar-Rahnu is discussed in Exhibit 1, while the risk management of Ar-Rahnu is discussed in Exhibit 2. Expectedlearning outcomes The learning outcomes include: to identify a problem and issue related to Ar-Rahnu; to evaluate the modus operandi of Ar-Rahnu; to analyze the risk management practices of Ar-Rahnu; and to develop decision criteria on whether Ar-Rahnu in Al-Qamari bank is Shariah-compliant or not. Supplementarymaterials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Evaluating cryptocurrency laundering as a complex socio-technical system

2019 ◽  
Vol 22 (3) ◽  
pp. 480-497 ◽  
Author(s):  
Dennis B. Desmond ◽  
David Lacey ◽  
Paul Salmon
Keyword(s):  
Risk Management ◽  
Law Enforcement ◽  
Systems Thinking ◽  
Design Methodology ◽  
Technical System ◽  
Content Type ◽  
Management Framework ◽  
Risk Management Framework ◽  
Framework Approach ◽  
Regulatory Bodies

Purpose The purpose of this paper is to present the findings from a literature review, which aimed to identify previous studies evaluating cryptolaundering from a systems thinking perspective. The aim of this paper is to first confirm that cryptolaundering systems can indeed be defined as complex socio-technical systems and second to present the findings from a systematic review of the literature to determine the extent to which previous research has adopted a systems thinking perspective. Design/methodology/approach The study involved a SLR of studies published in the peer-reviewed literature between 2009 and 2018. Rasmussen’s risk management framework (Rasmussen, 1997) was used to evaluate the extent to which a systems thinking perspective had been adopted. Findings The cryptolaundering process is considered to be a complex socio-technical system. The review demonstrates that no previous studies have defined cryptolaundering as a complex socio-technical system or used systems thinking framework approach to evaluate how criminals, regulatory bodies or law enforcement entities understand processes and assess risk within cryptolaundering systems. It is argued that using such an approach to the cryptolaundering process would likely improve assessing criminal risk analyses of cryptolaundering and assist law enforcement and regulatory bodies with understanding risk management during the laundering of cryptocurrencies. Originality/value Future assessments of cryptolaundering using socio-technical system analytical processes may afford law enforcement and regulatory bodies the opportunity to improve intervention techniques and identify gaps in regulations and enforcement.

scholarly journals Advancing real estate decision making: understanding known, unknown and unknowable risks

2018 ◽  
Vol 36 (4) ◽  
pp. 373-384
Author(s):  
David Higgins ◽  
Treshani Perera
Keyword(s):  
Decision Making ◽  
Risk Management ◽  
Real Estate ◽  
Downside Risk ◽  
Content Type ◽  
Management Framework ◽  
Risk Management Framework ◽  
Risk Framework ◽  
Management Techniques ◽  
Risk Categories

Purpose Whilst existing literature on real estate risk management focusses almost exclusively on holistic risk management techniques, documented increases in frequency and magnitude of unforeseen, rare and extreme events can throw up sudden, unexpected shocks that can challenge recognised real estate decision-making strategies. The paper aims to discuss this issue. Design/methodology/approach To advance real estate decision-making practice in this area, this research paper takes the skilfully conceptualised downside risk framework presented by Diebold et al. (2010), being the known (K), the unknown (u) and the unknowable (U) risk categories, to provide a blueprint for effective real estate decision making in a changing global environment. Findings In recording categories of risk, managing uncertainty can be achieved by an interrelated approach of adaption, robustness and resilience. This is important part of a real estate manager’s decision-making toolkit as risk recognition and knowledge of KuU event categories can augment an effective management strategy. Originality/value The mastery of modern real estate risk management can be better served by understanding and managing extreme downside risk events. Creating a comprehensive risk management framework can enhance comparative real estate performance whereby unprepared competitors fail in a world increasingly affected by large, highly improbable and unpredictable events.

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