How Can Large Manufacturers Digitalize Their Business Models? A Framework for Orchestrating Industrial Ecosystems

2021 ◽  
pp. 000812562110591
Author(s):  
David Sjödin ◽  
Vinit Parida ◽  
Ivanka Visnjic
Keyword(s):  
Business Model ◽  
Business Models ◽  
Value Chains ◽  
New Approaches ◽  
Industrial Ecosystems ◽  
Digitally Enhanced ◽  
Specific Barriers

For manufacturers, remaining competitive depends on their ability to digitalize their business models (i.e., offer digital and digitally enhanced products and services). To achieve this, they must engage with new digital partners and help their existing suppliers, partners, and other stakeholders to digitalize. Orchestrating this growing ecosystem is challenging. Manufacturers struggle with this endeavor because of specific barriers associated with their existing legacy business model and related to their lack of digital vision, product-centric value chains, and a bias toward firm-centered profit formulas. To overcome these barriers, leading manufacturers have developed new approaches to ecosystem orchestration.

A Dynamic Vision of Value Chains

2015 ◽  
pp. 156-182
Keyword(s):  
Business Model ◽  
Business Models ◽  
New Products ◽  
Business Environment ◽  
Value Chains ◽  
Contemporary Debate ◽  
Digital Revolution ◽  
Dynamic Vision ◽  
Ict Industry

The Business Model (BM) notion has become popular because of a business environment shaped by ICT and globalization and characterized by an increasing complexity and uncertainty. Innovative ICT industry coupled with ever-growing products, services, and applications have placed business models at the heart of the new digital revolution. In this chapter, the authors examine how the concept has been applied in the field of ICT and is used in contemporary debate. These new BMs are based on new forms of organization and/or on new products and services offerings. The BM concept has attracted attention both from practitioners and academics. The concept has received wide recognition; yet in practice, it is a new and evolving concept. It has inspired numerous researchers and academics and has given rise to different interpretations, one around which there is not always a perfect consensus. However, despite its wide use, the notion of the business model has become more complex.

scholarly journals Cognitive Frames of Poverty and Tension Handling in Base-of-the-Pyramid Business Models

2020 ◽  
pp. 000765032097518
Author(s):  
Jordis Grimm
Keyword(s):  
Business Model ◽  
Poverty Reduction ◽  
Business Models ◽  
Value Chains ◽  
Poor People ◽  
Corporate Value ◽  
Base Of The Pyramid ◽  
Cognitive Perspective ◽  
Cognitive Frames ◽  
Defensive Responses

Base-of-the-pyramid (BOP) business models aim to achieve profitability and poverty reduction by including poor people into corporate value chains. This goal duality creates tensions. Actors’ responses to these tensions are influenced by their cognitive frames of the phenomena building the tension. Applying a cognitive perspective, I investigate how corporate actors with different frames of poverty respond proactively or defensively to the poverty–profitability tension by adapting business model elements. I find that proactive and defensive responses differ for actors holding different cognitive frames of poverty. The responses have consequences for the poverty impact potential of BOP business models.

scholarly journals TOWARDS CRYSTALLIZING CIRCULAR BUSINESS MODELS: A CRITICAL ANALYSIS OF LITERATURE

2020 ◽  
Vol 15 (6) ◽  
pp. 175-194
Author(s):  
AGNIESZKA KARMAN ◽  
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Critical Analysis ◽  
Business Models ◽  
Value Chains ◽  
Future Research ◽  
Value Proposition ◽  
Related Research ◽  
Research Questions ◽  
The Creation

Circular Economy (CE) can be promoted and supported by the creation of new and innovative business models which embed CE principles into organisations’ value chains. This paper provides a review of approaches to the circular business model (CBM). We conducted a literature review, including content analysis, and examined publications (51 papers) on circular business models published in English in peerreviewed journals. Our objective was to provide an overview and systematize the stateof-the-art in CE-oriented business model approaches. The following research questions were posed in relation to the objective: Which sub-processes and components are included in the Circular Business Models (CBM)? Which CBM archetypes have already been established? Which strategies and other factors support the creation/ transformation of the CBM? The results of the studies were presented in five areas encompassing the following: 1) development (including the methodologies of development and transformation), value proposition, creation and delivery, 2) CBM archetypes, 3) circular strategies, 4) the determinants of development and transformation of business models for CE. The paper contributes to the improved understanding of circular business models. It consolidates related research by offering an overarching conceptual framework. It also points to the directions of future research.

scholarly journals Brands, ‘weightless’ firms and global value chains: the organisational impact of trade mark law

Legal Studies ◽  
2019 ◽  
Vol 39 (2) ◽  
pp. 284-301
Author(s):  
Andrew Griffiths
Keyword(s):  
Business Model ◽  
Business Models ◽  
Global Value Chains ◽  
Trade Mark ◽  
Value Chains ◽  
Limited Effect ◽  
Fast Fashion ◽  
Trade Mark Law ◽  
Low Costs ◽  
Harmful Effects

AbstractThe Rana Plaza disaster of April 2013 was the most prominent of several incidents that have highlighted poor standards of business behaviour in the supply chains of well-known brands. Analysis of these incidents has attributed these poor standards to an institutional structure in which lead firms with strategic power outsource production into global value chains and pursue business models that involve rapid product upgrading and require low costs and fast turnarounds in production such as the garment industry's ‘fast fashion’ business model. This paper aims to complement that analysis by showing how trade marks, as the main legal anchors of brands, have reinforced the strategic power of lead firms, enabled them to outsource production and encouraged them to adopt business models of this kind. The paper will also evaluate the claim that brands mitigate their harmful effects by transmitting countervailing pressure back onto their owners because they provide salient targets for bad publicity and blame, as coverage of the Rana Plaza disaster showed, which can threaten their owners with reputational damage. It will be argued that this countervailing pressure has a limited effect and cannot be relied on without more to address the issues that the Rana Plaza disaster revealed.

scholarly journals Sustainable Circular Business Model for Transparency and Uncertainty Reduction in Supply Chain Management

2021 ◽  
Vol 16 (4) ◽  
pp. 959-975
Author(s):  
Dawei Zhang ◽  
Xiuli Huang ◽  
Yunfeng Wen ◽  
Pooja Trivedi ◽  
Shanmugan Joghee
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Business Model ◽  
Business Models ◽  
Global Supply Chain ◽  
Sustainable Growth ◽  
Value Chains ◽  
Chain Management ◽  
Operational Level ◽  
Business Structures

Circular Supply Chain Management (CSCM) incorporates the economy concept into supply chain concepts, which gives the supply chain sustainability domain an innovative and convincing viewpoint. The challenging factors in the circular economy are cooperation, trust, and transparency. Therefore, to achieve sustainable results, collaboration, and openness between organizations within networks and value chains are required. This paper explores the sustainability success using the Sustainable Circular Business Model (SCBM) to incorporate the principle at an operational level and suggest a structure for combining Circular Business Model (CBM) and CSCM for sustainable growth. The proposed structure shows how various circular business structures power the global supply chain in multiple loops. The circular business models differ according to the difficulty of the Circular Supply Chain (CSC) and the value proposition. Proposed SCBM shows that circular market and supply chain aid in reaching goals for sustainability has been discussed in this research.

scholarly journals Business models in facilities management value chains

2019 ◽  
Vol 21 (4) ◽  
pp. 307-323 ◽  
Author(s):  
Per Anker Jensen
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Business Models ◽  
Value Chains ◽  
General Level ◽  
Facilities Management ◽  
Model Framework ◽  
Content Type ◽  
Core Business ◽  
Sourcing Strategies

Purpose This paper aims to identify typical sourcing strategies and business models in facilities management (FM) and map archetypes of value chains with complementary sourcing strategies and value chains. Design/methodology/approach The paper is based on literature and case studies from previous research. Theoretically, the paper takes a generic value chain as a starting point together with the recent ISO standard on sourcing process and a business model framework. A conceptual framework is developed and typical sourcing strategies and business models for FM are investigated. Archetypical value chains are established by a combination of sourcing strategies and business models. Findings The paper identifies eight archetypes of FM value chains divided in three groups according to whether the core business organisation occupies rented facilities and owned facilities or has facilities operation as a core business like serviced office providers, etc. Practical implications The results can be used on a general level by everybody who need to get an overview and understanding of the complex structure of the FM sector. Furthermore, the results can help all parties involved in the FM value chain to get a clearer understanding of their position in the chain and help them develop their sourcing strategies and/or business model, depending on their type of organisation. Originality/value While there is a huge amount of literature on sourcing in FM, there has only been limited research on business models and value chains in FM. The paper is original in combining an investigation of sourcing strategies, business models and value chains in FM.

scholarly journals Designing a business model to reduce CO2emissions from construction machinery: Aligning business and environmental objectives

2019 ◽  
Vol 9 (1) ◽  
pp. 1-19
Author(s):  
Jahan Sanne ◽  
◽  
Anders Bjork ◽  
Bo Sahlberg ◽  
Hakan Stripple ◽  
...  
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Business Models ◽  
Environmental Benefits ◽  
Value Chains ◽  
Sustainable Business ◽  
Construction Machinery ◽  
Carbon Reduction ◽  
Environmental Objectives ◽  
Sustainable Business Models

The literature on sustainable business models suggests a large potential for radical environmental benefits in many industries based upon current technological opportunities. However, there is a lack of empirical knowledge on how to design, implement and spread such business models in complex value chains. Based on a qualitative exploratory study, a concept for sustainable business models to reduce carbon emission when using construction machinery has been developed and measures needed to implement and design such a model within the construction industry is identified. The study is based upon interviews, study visits and a workshop, with participants representing all important actors in the value-chain. In conclusion, business and environmental objectives can be aligned through a result-oriented business model, supported by life-cycle data, contractual incentives, standardised emission measures and driver visualization. The concept is generalisable to the greening of value chains beyond carbon reduction and also to other complex business to business value-chains.

scholarly journals NEW APPROACHES TO BANKING BUSINESS MODELS IN THE DIGITAL ECONOMY

2019 ◽  
pp. 89-94
Author(s):  
I. D’yakonova ◽  
O. Pakhnenko ◽  
L. Shevchenko
Keyword(s):  
Information Technology ◽  
Business Model ◽  
Business Models ◽  
Business Environment ◽  
Digital Economy ◽  
Model Assessment ◽  
New Approaches ◽  
Banking Business ◽  
The Impact

The factors of the post-crisis development of the world banking system, the strengthening of the role of information technology in all industries, the increasing role of innovative Fintech intermediaries in the banking market encourage the management of banks to revise traditional business models and to form new approaches to managing the modern bank. In the article the authors aimed to investigate the impact of digitization on the choice of banking business model and the development of algorithm for estimating a bank’s business model. Traditionally banks choose one of five business models: lending, high leverage, investment, fee, margin. Most operating banks opt for traditional models because the business environment requires it. However, maintaining the bank’s competitiveness, enhancing its efficiency and resilience to financial imbalances is possible by building an innovative business model that takes into account the modern diffusion of information technology and the functioning of FinTech companies as an alternative to traditional banking business. Although nobody knows yet what will replace the current business model, there are currently three approaches to assimilating FinTech in banking: the Financial Control Center, Banking-as-a-Service, the Niche Bank. The choice of the banking business model and its transformation should be accompanied by an assessment of the bank’s business model. Thus, an important component of banking management in an unstable environment is the analysis of the business model of the bank and its transformation in order to minimize the impact of possible negative effects of financial crises on the performance of the bank. The proposed algorithm for estimating a bank’s business model includes 6 stages: preliminary assessment of the main components of the bank’s business model; assessment of the business environment of the bank; stress testing of the viability of the bank’s business model; evaluation of the bank’s strategy; identification of key vulnerabilities to which the bank’s business model is prone or likely to be vulnerable; and justification of the results and formation of effective conclusions. Keywords: banks, banking business model, banking management, digital economy, business model innovation.

Business Model Literature Overview

2014 ◽  
pp. 79-130 ◽  
Author(s):  
Ales Novak
Keyword(s):  
Business Model ◽  
Financial Reporting ◽  
Business Models ◽  
Potential Role ◽  
Financial Instruments ◽  
Business Logic ◽  
Literature Overview ◽  
Ifrs 9 ◽  
Definition Of

The term ?business model' has recently attracted increased attention in the context of financial reporting and was formally introduced into the IFRS literature when IFRS 9 Financial Instruments was published in November 2009. However, IFRS 9 did not fully define the term ‘business model'. Furthermore, the literature on business models is quite diverse. It has been conducted in largely isolated fashion; therefore, no generally accepted definition of ?business model' has emerged. Therefore, a better understanding of the notion itself should be developed before further investigating its potential role within financial reporting. The aim of this paper is to highlight some of the perceived key themes and to identify other bases for grouping/organizing the literature based on business models. The contributions this paper makes to the literature are twofold: first, it complements previous review papers on business models; second, it contains a clear position on the distinction between the notions of the business model and strategy, which many authors identify as a key element in better explaining and communicating the notion of the business model. In this author's opinion, the term ‘strategy' is a dynamic and forward-looking notion, a sort of directional roadmap for future courses of action, whereas, ‘business model' is a more static notion, reflecting the conceptualisation of the company's underlying core business logic. The conclusion contains the author's thoughts on the role of the business model in financial reporting.

Economic and Legal Bases of Using Car-Sharing Business Models in Ukraine

2020 ◽  
pp. 75-85
Author(s):  
Oleksandr M. Matsenko ◽  
Tetiana М. Malanchuk ◽  
Vladyslav S. Popov ◽  
Vladyslav S. Piven ◽  
Evhenyi O. Skrypka
Keyword(s):  
Business Model ◽  
Business Models ◽  
Swot Analysis ◽  
Road Traffic ◽  
Economic Benefits ◽  
Car Sharing ◽  
Bibliographic Analysis ◽  
Economic Method ◽  
Logical Sequence ◽  
Study Results

This article summarizes the concept of sharing, bibliographic analysis of publications in the field of car-sharing based on the Scopus database. The primary purpose of the study is to study the economic and legal basis for the development of car-sharing business models in Ukraine. Systematization of literature sources and approaches devoted to the economic efficiency of the implementation of car-sharing business models has shown that in Ukraine, this issue is almost not paid attention to in the economic, scientific sphere, and legal, scientific areas. The urgency of solving this scientific problem lies in the need and ability to relieve road traffic from traffic jams, reducing the average downtime of vehicles, as well as economic benefits for entities (vehicle owners and passengers) involved in sharing business models. The research has the following logical sequence: the types of car-sharing business models were analyzed, and their comparative characteristics were carried out; the economic and legal preconditions of car-sharing business development in Ukraine are investigated. The research identifies legislative obstacles to the establishment of a car-sharing company in Ukraine. A SWOT analysis of the conditions for implementing a car-sharing business model in Ukraine was performed. It analyses the costs and efficiency of creating a business based on a car-sharing business model in Ukraine on a conditional example. We propose to use system-structural and comparative analysis to analyze the problems of modern transport, methods of formal-logical analysis for determining the directions of development of car-sharing business models, and economic method for assessing the effect and a payback period of the proposed project car-sharing business model. The study results can be useful for the development of the car-sharing business in Ukraine, for entrepreneurs, scientists, and vehicle owners. Keywords: car-sharing, car-sharing business model, car-sharing business, motor transport, hire, expenses, analysis.

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