scholarly journals Testing successful Business Model using System Dynamics

2019 ◽  
Vol 7 ◽  
pp. 91
Author(s):  
J. Ganzarain ◽  
M. Ruiz ◽  
J.I. Igartua
Keyword(s):  
System Dynamics ◽  
Business Model ◽  
Business Models ◽  
Industrial Sector ◽  
Continuous Change ◽  
Dynamic Complexity ◽  
Holistic View ◽  
Short And Long Term ◽  
Systemic View

In our increasingly globalised economy, managing continuous change whilst remaining competitive and dynamic has become a central issue for firms in the industrial sector. One of the elements for obtaining this competitiveness is the value creation model of the firm. The most important challenges in firms are characterised by dynamic complexity which makes it difficult to understand factors in their context. Consequently management and decision making is hindered (Antunes et al., 2011). Business models are characterised by complexity and dynamism. Performance of the firm is a complex topic determined by the large amount of variables that can be involved in the system, and the different effects that influence the system in the short and long term. Due to this complexity a systemic view is required, that is, an holistic view of the whole system. Such a systemic view enables managers to make decisions based on evidence rather than intuition and personal experiences, as they understand how the whole system works. Thus, the main aim of this research is to use an empirical tool such as System Dynamics (SD), to support and sustain firms in the identification of new constructs related to their Business Model (BM).

Robustness in the Business Models of the Organizations Embedded in the Circular Economy

2020 ◽  
pp. 19-53
Author(s):  
Adam Jabłoński
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
High Performance ◽  
Business Models ◽  
Research Question ◽  
Business Continuity ◽  
Decision Making Processes ◽  
Short And Long Term

The dynamics of ongoing market changes require a new look at business management mechanisms. Often the key element of the organization's operation is to ensure business continuity, which is not easy. This requires strong embeddedness in the decision-making processes resulting from the properly built business model of the organization. A business model becomes a crucial determinant of the organizational success today. The aim of the chapter is to present the place and role of robustness in shaping the business models of organizations embedded in the circular economy. The scope of the chapter includes studies of listed companies that implement the principles of responsible business to ensure their robustness in the short and long term. In the chapter, the author poses a research question: Can the skillful use of the concept of business model robustness in circular economy companies guarantee the organization's ability to ensure business continuity and its high performance?

Capabilities of Bottom of the Pyramid Organizations

2021 ◽  
pp. 000765032110018
Author(s):  
Farley Simon Nobre ◽  
Rodrigo L. Morais-da-Silva
Keyword(s):  
Business Model ◽  
Integrative Review ◽  
Responsible Innovation ◽  
Future Research ◽  
Bottom Of The Pyramid ◽  
Main Question ◽  
Responsible Management ◽  
Responsible Consumption ◽  
Short And Long Term

Bottom of the Pyramid (BoP) organizations are the ones that develop a set of capabilities that contribute to create short- and long-term sustainability values inside and outside the boundaries of BoP ecosystems. Capabilities have an important role in BoP organizations’ strategies that aim to solve BoP issues. Notwithstanding its developments, BoP research still lacks theoretical contributions for the analysis of organizations. We suggest special attention to the need of advancing knowledge on capabilities of BoP organizations because this field is scattered and fragmented, misinterpreted, and still underdeveloped in the literature. We oriented our research formulating and seeking answers to our main question on what are the capabilities needed to enable organizations to create sustainability values in BoP ecosystems? We conducted an integrative review of BoP research for the period from 1998 to 2019, and we found 22 key capabilities of BoP organizations. We organized the capabilities into four major categories including BoP Responsible Consumption, BoP Responsible Business Model, BoP Responsible Management, and BoP Responsible Innovation. We advanced propositions and discussions regarding the capabilities and major categories’ popularity, interdependence and combination, short- and long-term temporal functions, sustainability roles, and effectiveness to address BoP issues. Our article organizes the field of capabilities of BoP organizations; advances contributions and implications for management, organizations, and policymaking; and opens fruitful avenues for future research.

scholarly journals AN EVALUATION METHOD FOR BUSINESS MODELS IN PRODUCT-SERVICE SYSTEMS DESIGN

2021 ◽  
Vol 1 ◽  
pp. 427-436
Author(s):  
Sanghyun Oh ◽  
Yoo S. Hong ◽  
Jihwan Lee ◽  
Yong Se Kim
Keyword(s):  
System Dynamics ◽  
Business Model ◽  
Business Models ◽  
Evaluation Method ◽  
Systems Design ◽  
Economic Sustainability ◽  
Management Service ◽  
System Dynamics Modelling ◽  
Dynamics Modelling ◽  
Modelling Task

AbstractTo pursue business innovation with PSS, many different PSS concepts are designed and evaluated. Various business models of a PSS design concept are devised and evaluated as well. Evaluation of the economic sustainability of PSS business models is critical. This paper presents a systematic method to evaluate the economic sustainability of PSS business models using a system dynamics modelling template. System dynamics modelling task is challenging for practitioners due to the variety of variables comprising business model strategies and their complex interrelationships. To enable the modelling task, a system dynamics modelling template composed of six modules of customer acquisition, channel acquisition, profit creation, resource acquisition, PSS provision, and partnership pattern has been devised. The PSS business model evaluation method has been illustrated using a smart study experience management service system design case to demonstrate the proposed system dynamics modelling template can reflect the case-specific business model which consists of the particular business model strategies.

Sustainable Competitive Advantage Through Business Model Innovation

2020 ◽  
pp. 191-213
Author(s):  
Purna Prabhakar Nandamuri ◽  
K. S. Venu Gopala Rao ◽  
Mukesh Kumar Mishra
Keyword(s):  
Business Model ◽  
Business Models ◽  
New Technologies ◽  
Business Environment ◽  
Business Model Innovation ◽  
Sustainable Competitive Advantage ◽  
Term Survival ◽  
New Business ◽  
Indian Perspective

Conventionally, businesses focus on their offerings for growth. But the increasingly unpredictable business environment is making them irrelevant in the market. So, businesses should resort to a system of dynamic management by innovating on the business models rather than a single aspect of the business. Business model innovation demands neither new technologies nor creation of new markets, but cares about delivering the existing products produced by existing technologies to the existing markets, through a unique model. Hence, defining, innovating, and evolving new business models have become the new basis of competition. A differentiated, hard-to-imitate, effective, and efficient business model is more likely to ensure higher profits and long-term survival. In this context, the present chapter attempts to furnish multiple global evidences and discuss the Indian perspective of business model innovation.

A Review of Alternative Economic Approaches to Achieve Sustainable Development

2022 ◽  
pp. 288-307
Author(s):  
Seda Yildirim ◽  
Isil Demirtas ◽  
Durmus Cagri Yildirim
Keyword(s):  
Sustainable Development ◽  
Global Warming ◽  
Business Model ◽  
Carbon Emission ◽  
Sustainable Development Goals ◽  
Business Models ◽  
Social Issues ◽  
Digital Economy ◽  
Development Goals

The COVID-19 pandemic has changed the progress in 2030 Sustainable Development Goals, and policymakers have been challenged with the implications of conventional economic system in the market. At this point, it can be said that the adoption of the best alternative economic and business model for the marketplace is the new phenomenon during the COVID-19 pandemic. Accordingly, alternative economic and business models can reduce the carbon emission, environmental pollution, and global warming, but there is a still dark point in solving social issues globally. This study aims to give a brief framework for alternative economic and business models in the context of sustainability. This study presents the links between 2030 Sustainable Development Goals, digital economy, and de-growth. In other words, this chapter focuses on digital economy (digitalization) and degrowth model (degrowing). Accordingly, it is thought to give an up-to-date work for achieving sustainable development after the COVID-19 pandemic in the long term.

Business Model Change Methodology: Applying New Technology in Organization

2013 ◽  
Vol 4 (4) ◽  
pp. 36-60
Author(s):  
Nastaran Hajiheydari ◽  
Payam Hanafizadeh
Keyword(s):  
System Dynamics ◽  
Focus Groups ◽  
Information And Communication Technology ◽  
Business Model ◽  
Communication Technology ◽  
Business Models ◽  
New Technologies ◽  
New Technology ◽  
Information And Communication ◽  
Modern Information

The present study intends to design a methodology for examining the influence of modern information and communication technology on business models (BMs). Theoretical framework is mainly selected based on literature as well as consultation with expert focus groups. This methodology is validated by expert judgment and simulated as a real case applying system dynamics. The outcome of the survey includes a change methodology formulated in 5 phases and 37 activities. Not only has this study covered the specification of the theory structure; it was carried out in an organization in order to test its feasibility, as well. The proposed methodology in this research could help business analysts and managers with changing business model while adopting new technologies.

Towards a Methodology for Monitoring and Analyzing the Supply Chain Behavior

2011 ◽  
pp. 186-208
Author(s):  
Reinaldo Moraga ◽  
Luis Rabelo ◽  
Alfonso Sarmiento
Keyword(s):  
Neural Networks ◽  
Sensitivity Analysis ◽  
Supply Chain ◽  
System Dynamics ◽  
Eigenvalue Analysis ◽  
Background Information ◽  
Short And Long Term ◽  
And Performance

In this chapter, the authors present general steps towards a methodology that contributes to the advancement of prediction and mitigation of undesirable supply chain behavior within short- and long- term horizons by promoting a better understanding of the structure that determines the behavior modes. Through the integration of tools such as system dynamics, neural networks, eigenvalue analysis, and sensitivity analysis, this methodology (1) captures the dynamics of the supply chain, (2) detects changes and predicts the behavior based on these changes, and (3) defines needed modifications to mitigate the unwanted behaviors and performance. In the following sections, some background information is given from literature, the general steps of the proposed methodology are discussed, and finally a case study is briefly summarized.

scholarly journals A generic system dynamics model for simulating and evaluating the hydrological performance of reconstructed watersheds

2009 ◽  
Vol 13 (6) ◽  
pp. 865-881 ◽  
Author(s):  
N. Keshta ◽  
A. Elshorbagy ◽  
S. Carey
Keyword(s):  
System Dynamics ◽  
Soil Cover ◽  
Dynamics Model ◽  
Water Balance Components ◽  
Absolute Relative Error ◽  
Short And Long Term ◽  
The Mean ◽  
Natural Watersheds ◽  
Generic System

Abstract. A generic system dynamics watershed (GSDW) model is developed and applied to five reconstructed watersheds located in the Athabasca mining basin, Alberta, Canada, and one natural watershed (boreal forest) located in Saskatchewan, Canada, to simulate various hydrological processes in reconstructed and natural watersheds. This paper uses the root mean square error (RMSE), the mean absolute relative error (MARE), and the correlation coefficient (R) as the main performance indicators, in addition to the visual comparison. For the South Bison Hills (SBH), South West Sand Storage (SWSS) and Old Aspen (OA) simulated soil moisture, the RMSE values ranges between 2.5–4.8 mm, and the MARE ranges from 7% to 18%, except for the D2-cover it was 26% for the validation year. The R statistics ranges from 0.3 to 0.77 during the validation period. The error between the measured and simulated cumulative actual evapotranspiration (AET) flux for the SWSS, SBH, and the OA sites were 2%, 5%, and 8%, respectively. The developed GSDW model enables the investigation of the utility of different soil cover designs and evaluation of their performance. The model is capable of capturing the dynamics of water balance components, and may used to conduct short- and long- term predictions under different climate scenarios.

scholarly journals Business model development for sustainable apparel consumption

2019 ◽  
Vol 12 (4) ◽  
pp. 481-504 ◽  
Author(s):  
Johan Holtström ◽  
Charlotte Bjellerup ◽  
Johanna Eriksson
Keyword(s):  
Business Model ◽  
Business Models ◽  
Consumer Preferences ◽  
Model Development ◽  
Distribution Networks ◽  
Term Survival ◽  
Content Type ◽  
Sustainable Solutions ◽  
Business Model Development

Purpose The purpose of this paper is to identify key aspects of business model development for sustainable apparel consumption, as actors show an increasing interest in product‒service systems. This purpose should be seen from a retailers’ perspective so as to develop sustainable solutions for long-term survival in the apparel industry when meeting consumer preferences for fashion as well as an increasing interest in consuming less. Further, this is from a perspective in an economy where sharing and circularity are potential drivers for changing consumer patterns. Design/methodology/approach The study is based on the apparel retailer Houdini Sportswear and its business model development from a traditional model of selling sportswear to a more future-oriented model where sustainability is more salient. The data for analysis were collected through interviews with employees within the studied company. The interviews have been guided by overarching themes covering relevant areas of interest for this study. Findings Overall, the paper shows how sustainability can be included in strategic development, from product idea, product development, production and sales/rental to repair, reuse and finally recycling. The paper also highlights potential obstacles in a developed business model with increased sustainability, including technological platforms, distribution networks for collecting and returning products and consumer consumption preferences. There are a few intertwined factors to be considered on different societal levels to achieve long-term success. Originality/value This study contributes an increased understanding of how more sustainable solutions can be included when developing business models. While the manufacture, distribution and consumption of clothes have an impact on the environment, some retailers and producers want to reduce this environmental impact. One alternative is to change the way clothes are consumed, to include more sharing and circularity.

scholarly journals The Balanced Scorecard and the Strategic Learning Process: A System Dynamics Modeling Approach

2015 ◽  
Vol 2015 ◽  
pp. 1-20 ◽  
Author(s):  
Steen Nielsen ◽  
Erland H. Nielsen
Keyword(s):  
System Dynamics ◽  
Balanced Scorecard ◽  
Measurement Model ◽  
Quantitative Model ◽  
Strategic Learning ◽  
Dynamics Modeling ◽  
The Balanced Scorecard ◽  
Short And Long Term ◽  
Methodological Aspects

The main purpose of this paper is to improve on the conceptual as well as the methodological aspects of BSC as a quantitative model by combining elements from traditional balanced scorecard (BSC) thinking with the Systems Thinking. This is done by combining short and long term aspects of measurements. The result is then used to build and construct a balanced scorecard model for strategic learning with the specific aim to maintain satisfied customers and motivated employees. Strategic planning, operational execution, feedback, and learning are some of the most important key features of any performance measurement model. This paper aims to address not only the conceptual domain related to BSC, that is, learning and system dynamics causality and feedback, but also the methodological domain concept of precision solved by differential equations. Our results show how a potential move from a static strategic vision map to a linked and dynamic understanding may be not fully realistic but very useful for learning purposes. The new knowledge obtained from the learning feedbacks fertilizes both decision discussion and decision-making and what may be required in order to move to the next level of BSC and system dynamics integration.

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