Innovation and business models of enterprises: synergy in a highly competitive environment

Abstract

Innovations have become an integral part of business models of enterprises, as they provide higher adaptability and efficiency in a highly competitive environment compared to traditional approaches. The purpose of the work is to analyze the systemic impact of innovations on key components of the business model of enterprises and assess their impact on increasing competitiveness in modern business conditions. Methods. The study used methods of analysis, synthesis, graphical methods and case studies. Results. As a result of the study, approaches to defining the concept of the business model were analyzed. This allowed classifying existing approaches into two conceptual directions. According to the first, the business model is considered as an abstract or simplified representation of the company's activities, and the second defines it as a functional system, logic, structure and processes that allow generating value and income. A classification of business models was provided, which demonstrates different approaches of companies to creating value for customers and the market and provides a basis for understanding how business models can integrate innovations. The key elements of business models are identified and characterized, which include value creation, value delivery and offer, as well as the revenue generation system. It schematically shows how digital technologies affect business models in terms of the four noted components. The internal and external drivers of the introduction of innovations into business processes are revealed. The main internal drivers include the organizational structure of companies and leadership, while the key external drivers include technological progress, changes in market demand, and policy and regulation. Conclusions. As a result of the study, the key areas of innovation implementation in the business model of enterprises were summarized, the business problems it solves were shown, and practical examples of innovation implementation were also given. Further research should be directed to a deeper study of how individual technologies affect transformations in the business models of enterprises, in particular, artificial intelligence, big data, the Internet of Things, automation, and analytics.