In an era where everything is updated at the speed of light, constant changes are taking place in the domestic and foreign markets, everything is moving to the level of digitization, virtuality, any business also needs to be in the trend, follow new implementations in order to remain a competitive player in the market. The success of the company usually depends not only on the management, but also on improving the business model of the organization. Usually, innovations in business are not focused on products, technologies, and most importantly, on the business model
A business model is a description of how a company will make money. It shows what needs to be done to grow a business, the resources it needs, and how to combine it into a single mechanism.
Innovative business models are ways of creating, delivering and capturing value that differ from traditional models. They give businesses a competitive advantage by enabling them to offer new products, services or solutions to customers, reduce costs, increase efficiency and adapt to changes in the market environment.
Innovation usually means new technological solutions, but an equally important and powerful tool for business development and its revolutionary transformation is innovation in business modeling. A business model describes how a company creates, sells and delivers value to customers.
It is innovative approaches to creating value for customers, forming target market segments and directing logistics flows that ultimately provide an innovative business model. It is worth noting that an innovative business model is characterized by the fact that the competitive advantages obtained as a result of its implementation persist much longer than the advantages obtained due to an innovative product or service. Competitors can not only quickly copy an innovative product or service, but also improve it. However, it is almost impossible to quickly copy and launch a business model, so an innovative business model has a much stronger competitive potential and better protection against copying.
The main advantages of innovative business models in the organization's competitiveness management system compared to traditional ones are 8 competitive tools. In contrast to classical methods, which involve innovations in one or two areas of the enterprise's economic mechanism, the introduction of new business models will make it possible to make significant changes in most of its elements, including in the selection of the target needs of the enterprise. potential of the enterprise. consumer, the mechanism of profit management and the way of their sustainable combination [2].
Among the advantages of innovative business models in business management, the following can be distinguished:
- innovative business models allow enterprises to stand out from competitors and create unique value for their target audience. For example, Airbnb uses an innovative business model that allows people to rent out their homes or find places to stay around the world using an online platform.
- innovative business models that contribute to the development and implementation of new technologies that improve the quality of products or services, increase productivity and reduce risks. For example, Tesla uses an innovative business model based on the production of electric cars, solar panels and batteries that use advanced technology and design.
- they also stimulate the creativity and initiative of employees who can offer new ideas, experiment and learn from mistakes. Innovation attracts the best talent. Forward-thinking professionals seek organizations that are at the forefront of industry trends, known for fostering creativity and embracing change. Assembling a team that shares a commitment to innovation becomes a strategic advantage in a competitive talent environment.
- innovative business models open new markets or segments that were previously inaccessible or unprofitable. For example, Netflix uses an innovative business model that allows users to watch movies and series online for a fixed monthly fee instead of buying or renting discs [1].
It should be noted that innovative business models can have many advantages for enterprises trying to succeed in today's dynamic world. They require entrepreneurs and managers to have a high level of strategic thinking, critical analysis, creative approach and readiness for change.
One of the most important benefits of implementing innovative business models is the flexibility and adaptability they offer. In an era marked by rapid technological progress and constant market dynamics, companies need to quickly respond to changes in consumer behavior, industry trends and global events. Innovative models enable companies to quickly overcome uncertainties by adjusting strategies and operations in real time.
The competitive advantage gained through innovation cannot be overstated. Companies that introduce new ideas, products or approaches position themselves as industry leaders, attracting the attention and loyalty of consumers. In a world where standing out is critical, innovative business models serve as catalysts for differentiation, helping organizations create distinctive features and secure stronger market positions.
Innovation is not just a business strategy; it is a risk management tool. Businesses that innovate diversify their portfolios and experiment with new approaches, reducing the risks associated with market fluctuations, changing consumer preferences, or unforeseen external disruptions.
Strategic partnerships and collaborations often arise as a natural byproduct of innovative business models. Organizations that innovate are more likely to form alliances with like-minded people, creating synergies that increase resources and capabilities.
The advantages of innovative business models in business management are multifaceted and transformational. Innovation is the driving force behind sustained success in today's business landscape, from quickly overcoming uncertainty to providing competitive advantage and fostering internal creativity. As business continues to evolve, those at the forefront of innovation will undoubtedly shape the future of industries and redefine the parameters of success.
References
1.Kasych A.O. (2019) Business models of modern enterprises: concepts, types, foreign experience. Prychornomorski ekonomichni studii, 37, 86–92.
2.Omelchenko A. Review INNOVATIVE BUSINESS MODELS AS A TOOL FOR STRATEGIC DEVELOPMENT OF THE ENTERPRISE. Economic Bulletin of the National Technical University of Ukraine "Kyiv Polytechnic Institute". URL: https://ev.fmm.kpi.ua/article/view/254847/253904
3.PEREIRA D. Business Model Innovation: Strategies and Examples for Successful Transformation. Business Model Analyst. URL: https://businessmodelanalyst.com/business-model-innovation/ .
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Supervisor: Kateryna Bagatska,Candidate of Economic Sciences, Docent, State University of Trade and Economics
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