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Article
Publication date: 26 March 2024

Bernardo Nicoletti and Andrea Appolloni,

The logistics industry has undergone a tremendous transformation. This transformation is necessary to cope with the fundamental changes in customer expectations and the need for…

Abstract

Purpose

The logistics industry has undergone a tremendous transformation. This transformation is necessary to cope with the fundamental changes in customer expectations and the need for digitalization imposed by the pandemic, changes in the socioeconomic world, and innovative technology solutions. This paper aims to present digital transformation as an integrated framework for transforming the operating model and applying advanced solutions to the ecosystem of a quintile logistics (5PL) company. 5PL operators are typically an ecosystem. Loosely coupled or self-organized entities that collaborate in a symbiotic relationship represent this ecosystem. They aim to jointly develop capabilities, create innovative services or solutions, share knowledge, facilitate transactions, and leverage network synergies in a logistics environment to provide optimized or novel customer- or partner-centric solutions (Lamberjohann and Otto, 2020).

Design/methodology/approach

Currently, there is no single definition of an integrated logistics operations model in 5PL practice, so the qualitative method used in this paper allows for investigation from an exploratory perspective. The paper follows a qualitative research methodology, collecting and analyzing data/facts through interviews and visits to subject matter experts, industry practitioners, and academic researchers, combined with an extensive review of academic publications, industry reports, and written and media content from established organizations in the marketplace. This paper follows a qualitative research methodology, as it is an inquiry rather than a statistical study. The qualitative method allows the study of the concepts of phenomena and definitions, their characteristics, and the defining features that serve as the basis (Berg, 2007). It emphasizes generalized interpretation and deeper understanding of concepts, which would be more difficult in quantitative, statistically based research. Fact-finding was conducted in two ways: in-depth interviews with experts from academia, information and communication technology organizations, and key players in the logistics industry; and academic publications, industry reports, and written and media content from established national and international organizations in the market.

Findings

The operations model introduced considers six aspects: persons, processes, platforms, partners, protection and preservation. A virtual team approach can support the personal side of the 5PL ecosystem’s digital transformation. Managing a 5PL ecosystem should be based on collaborative planning, forecasting, and replenishment methods (Parsa et al., 2020). A digital platform can support trust among the stakeholders in the ecosystem. A blockchain solution can powerfully support the 5PL ecosystem from partner relationships’ points of view. The implementation of a cybersecurity reference model is important for protection (Bandari, 2023). Reverse logistics and an integrated approach support the preservation of the ecosystem.

Research limitations/implications

While the author has experience applying the different components of the operations model presented, it would be interesting to find a 5PL that would use all the components presented in an integrated way. The operations model presented applies to any similar ecosystem with minor adaptations.

Practical implications

This paper addresses operations models and digital transformation challenges for optimizing 5PL operators. It provides several opportunities and considerations for 5PL operators interested in improving their management and operations to cope with the growing challenges of today’s world.

Social implications

The competitiveness and long-term performance of 5PL operators depend on selecting and carefully implementing their operations models. This paper emphasizes the importance of using advanced operations models.

Originality/value

The operations model derives from the author’s personal experiences in research and the innovative application of these models to logistics operators (DHL, UPS, Poste Italiane and others). This paper brings together academic and industry perspectives and operations models in an integrated business digital transformation. This paper defines an original optimal operations model for a 5PL operator and can add sustainable value to organizations and society. In doing so, it outlines different solution requirements, the critical success factors and the challenges for solutions and brings logistical performance objectives when implementing a digital business transformation.

Details

Journal of Global Operations and Strategic Sourcing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 6 February 2024

Mehreen Malik, Muhammad Mustafa Raziq, Naukhez Sarwar and Madiha Gohar

We explore the skills required for digital leadership for reshaping existing business models toward digital models. Digital leadership is pivotal in gaining a competitive…

Abstract

Purpose

We explore the skills required for digital leadership for reshaping existing business models toward digital models. Digital leadership is pivotal in gaining a competitive advantage and achieving successful digital transformation. However, little is known with regard to the underlying mechanisms related to digital leadership and transformation.

Design/methodology/approach

Data are collected through semi-structured interviews involving 20 participants from five Pakistani textile companies. Thematic analysis was employed as a data analysis tool.

Findings

Findings show that certain skills such as technological know-how, innovativeness, adaptability, ability to lead and steer, honesty, integrity, transformative vision, communication and collaboration are conducive to successful digital transformation in textile manufacturing firms. Similarly, digital leaders can significantly enhance business model innovation, create value for the firm, help develop new products (value proposition) and create Ecosystem partnerships (value network).

Originality/value

This article bridges gaps between existing literature on digital transformation and leadership. Digital leadership skills for digital transformation and the role of digital leaders in business model innovation have not been explored before. The conceptual framework is put forth, propositions are proposed and the findings offer some future research directions.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 28 February 2024

Misbah Faiz, Naukhez Sarwar, Adeel Tariq and Mumtaz Ali Memon

Research has shown that business model innovation can facilitate most ventures to innovate and remain competitive, yet there has been limited work on how digital leadership…

Abstract

Purpose

Research has shown that business model innovation can facilitate most ventures to innovate and remain competitive, yet there has been limited work on how digital leadership capabilities influence business model innovation. Building on the dynamic capabilities view, we address this gap by linking digital leadership capabilities with business model innovation via managerial decision-making through provision of grants received by new ventures.

Design/methodology/approach

The study is cross-sectional research. Data have been collected utilizing purposive sampling from 313 founding members of new ventures in high-velocity markets, i.e. from Pakistan. SPSS has been used to conduct the moderated mediation analysis.

Findings

Digital leadership capabilities foster the business model innovation of the new ventures because they enable new ventures to capitalize on digital technologies and create new ways of generating value for the customers and themselves. Moreover, managerial decision-making mediates digital leadership capabilities and business model innovation relationship, whereas, grants moderate the indirect positive effect of digital leadership capabilities on business model innovation via managerial decision-making. The study generates initial evidence on the impact of digital leadership capabilities on business model innovation via managerial decision-making for new ventures. We advance knowledge on new ventures’ business model innovation by deep-diving into dynamic capabilities view and emphasizing digital leadership capabilities as a significant driver for business model innovation.

Originality/value

With the help of dynamic capabilities theory, this study analyzes how new ventures make use of digital leadership capabilities to promote business model innovation.

Details

Journal of Small Business and Enterprise Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1462-6004

Keywords

Book part
Publication date: 11 December 2023

David J. Teece and Henry J. Kahwaty

The European Union’s Digital Markets Act (DMA) calls for far-reaching changes to the way economic activity will occur in EU digital markets. Before its remedies are imposed, it is…

Abstract

The European Union’s Digital Markets Act (DMA) calls for far-reaching changes to the way economic activity will occur in EU digital markets. Before its remedies are imposed, it is critical to assess their impacts on individual markets, the digital sector, and the overall European economy. The European Commission (EC) released an Impact Assessment in support of the DMA that purports to evaluate it using cost/benefit analysis.

An economic evaluation of the DMA should consider its full impacts on dynamic competition. The Impact Assessment neither assesses the DMA's impact on dynamic competition in the digital economy nor evaluates the impacts of specific DMA prohibitions and obligations. Instead, it considers benefits in general and largely ignores costs. We study its benefit assessments and find they are based on highly inappropriate methodologies and assumptions. A cost/benefit study using inappropriate methodologies and largely ignoring costs cannot provide a sound policy assessment.

Instead of promoting dynamic competition between platforms, the DMA will likely reinforce existing market structures, ossify market boundaries, and stunt European innovation. The DMA is likely to chill R&D by encouraging free riding on the investments of others, which discourages making those investments. Avoiding harm to innovation is critical because innovation delivers large, positive spillover benefits, driving increases in productivity, employment, wages, and prosperity.

The DMA prioritizes static over dynamic competition, with the potential to harm the European economy. Given this, the Impact Assessment does not demonstrate that the DMA will be beneficial overall, and its implementation must be carefully tailored to alleviate or lessen its potential to harm Europe’s economic performance.

Details

The Economics and Regulation of Digital Markets
Type: Book
ISBN: 978-1-83797-643-0

Keywords

Abstract

Details

Digital Transformation Management for Agile Organizations: A Compass to Sail the Digital World
Type: Book
ISBN: 978-1-80043-171-3

Article
Publication date: 18 April 2017

Gerrit Remane, Andre Hanelt, Robert C. Nickerson and Lutz M. Kolbe

The purpose of this paper is to provide managers from traditional industries with a blueprint to systematically analyze and discover digital business models and, thus, better cope…

17144

Abstract

Purpose

The purpose of this paper is to provide managers from traditional industries with a blueprint to systematically analyze and discover digital business models and, thus, better cope with the digital transformation of their industrial businesses.

Design/methodology/approach

The proposed blueprint is built on state-of-the-art research on digital business model innovation and a rigorous taxonomy-building approach. The process is demonstrated through a simplified case study of a passenger transport company.

Findings

The process involves three steps: identifying existing products and services, deconstructing business models and discovering new configurations. The managers from the case company very positively evaluated the efficiency and effectiveness of the proposed procedure.

Originality/value

The proven methodology relates the generic components of digital business models to a specific firm’s context, listing the solution space for each relevant dimension. The resulting framework aids in better understanding the existing business models and serves as a tool for the systematic discovery of new models.

Open Access
Article
Publication date: 18 February 2022

Tiziana Russo-Spena, Marco Tregua, Anna D'Auria and Francesco Bifulco

The paper offers a comprehensive understanding of how digital transformation affects business models and how firms operate and compete effectively and successfully in a digital

3977

Abstract

Purpose

The paper offers a comprehensive understanding of how digital transformation affects business models and how firms operate and compete effectively and successfully in a digital economy.

Design/methodology/approach

The research adopted an abductive approach (Dubois and Gadde, 2002) through constant movement between theory and empirical evidence. A systematic literature review led the first conceptual development and examples of practices from cultural heritage sectors were used in the theorizing process.

Findings

This paper depicts a digital model framework through a set of assumptions about how an organization creates and delivers value in an interconnected way by orchestrating new interactive processes, and providing experience propositions to customers, and about how value is framed in terms of economic, social and cultural outcomes.

Originality/value

The study contributes to the scientific debate by discussing the role of digital business models as enhancements more rather than replacements of traditional business models; it frames a digital business model as consisting of three main pillars: value orchestration, experience propositions and value sharing.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 28 no. 8
Type: Research Article
ISSN: 1355-2554

Keywords

Open Access
Article
Publication date: 1 June 2021

Yihua Chen, Ivanka Visnjic, Vinit Parida and Zhengang Zhang

The authors seek to understand the process of digital servitization as a shift of manufacturing companies from the provision of standard products and services to smart solutions…

10237

Abstract

Purpose

The authors seek to understand the process of digital servitization as a shift of manufacturing companies from the provision of standard products and services to smart solutions. Specifically, the authors focus on changes in the business model (i.e. the value proposition, the value delivery system and the value capture mechanism) for digital servitization.

Design/methodology/approach

The authors examine a Chinese air conditioner manufacturer, Gree, who became the global leader with their smart solutions. These solutions included performance-based contracts underpinned by artificial intelligence (AI)-powered air conditioners that automatically adjust to environmental changes and are capable of remote monitoring and servicing thanks to its Internet of things (IoT) technology.

Findings

To successfully offer smart solution value propositions, a manufacturer needs an ecosystem value delivery system composed of suppliers, distributors, partners and customers. Once the ecosystem relationships are well aligned, the manufacturer gains value with multiple value capture mechanisms (i.e. efficiency, accountability, shared customer value and novelty). To arrive at this point, a manufacturer has to pass through different stages that are characterized by both discontinuous and continuous interplay between business models and digital technologies. At the beginning of each stage, new value propositions and value delivery systems are first discontinuously created and then enabled with digital technology. As a result, new value capture mechanisms are activated. Meanwhile, the elements of the existing business model are continuously improved.

Research limitations/implications

By combining process-perspective and business-model lenses, the authors offer nuanced insights into how digital servitization unfolds.

Practical implications

Executives can obtain insights into the business model elements, they need to change over the course of digital servitization and how to manage the process.

Originality/value

A longitudinal case study of a traditional manufacturer that has achieved stellar success through digital servitization business models development.

Details

International Journal of Operations & Production Management, vol. 41 no. 5
Type: Research Article
ISSN: 0144-3577

Keywords

Content available
Article
Publication date: 8 June 2021

Phuc Hong Huynh

Digital innovation and circular business model innovation are two critical enablers of a circular economy. A wide variety of digital technologies such as blockchain, 3D printing…

9518

Abstract

Purpose

Digital innovation and circular business model innovation are two critical enablers of a circular economy. A wide variety of digital technologies such as blockchain, 3D printing, cyber-physical systems, or big data also diverges the applications of digital technologies in circular business models. Given heterogeneous attributes of circular business models and digital technologies, the selections of digital technologies and circular business models might be highly distinctive within and between sectorial contexts. This paper examines digital circular business models in the context of the fashion industry and its multiple actors. This industry as the world’s second polluting industry requires an urgent circular economy (CE) transition with less resource consumption, lower waste emissions and a more stable economy.

Design/methodology/approach

An inductive, exploratory multiple-case study method is employed to investigate the ten cases of different sized fashion companies (i.e. large, small medium-sized firm (SME) and startup firms). The comparison across cases is conducted to understand fashion firms' distinct behaviours in adopting various digital circular economy strategies.

Findings

The paper presents three archetypes of digital-based circular business models in the fashion industry: the blockchain-based supply chain model, the service-based model and the pull demand-driven model. Besides incremental innovations, the radical business model and digital innovations as presented in the pull demand-driven model may be crucial to the fashion circular economy transition. The pull demand–driven model may shift the economy from scales to scopes, change the whole process of how the fashion items are forecasted, produced, and used, and reform consumer behaviours. The paths of adopting digital fashion circular business models are also different among large, SMEs and startup fashion firms.

Practical implications

The study provides business managers with empirical insights on how circular business models (CBMs) should be chosen according to intrinsic business capacities, technological competences and CE strategies. The emerging trends of new fashion markets (e.g. rental, subscription) and consumers' sustainable awareness should be not be neglected. Moreover, besides adopting recycling and reuse strategies, large fashion incumbents consider collaborating with other technology suppliers and startup companies to incubate more radical innovations.

Social implications

Appropriate policies and regulations should be enacted to enable the digital CE transition. Market patterns and consumer acceptances are considered highly challenging to these digital fashion models. A balanced policy on both the demand and supply sides are suggested. The one-side policy may fail CBMs that entail an upside-down collaboration of both producers and consumers. Moreover, it is perhaps time to rethink how to reduce unnecessary new demand rather than repeatedly producing and recycling.

Originality/value

The pace of CE research is lagging far behind the accelerating environmental contamination by the fashion industry. The study aims to narrow the gap between theory and practice to harmonise fashion firms' orchestration and accelerate the transition of the fashion industry towards the CE. This study examines diverse types of digital technologies in different circular business models in a homogeneous context of the fashion industry with heterogeneous firm types.

Details

International Journal of Productivity and Performance Management, vol. 71 no. 3
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 18 January 2022

José Coelho Rodrigues

This study contributes to the understanding of how cultural organizations are using digital technologies to redesign their business models and enable sustainable and impactful…

1024

Abstract

Purpose

This study contributes to the understanding of how cultural organizations are using digital technologies to redesign their business models and enable sustainable and impactful audiovisual digital archives.

Design/methodology/approach

An inductive multiple case research design was used. Five cases of audiovisual digital archives of independent films were selected. Data collected was based on desk research, onsite visits, interviews with top managers responsible for the digitalization of some of the archives and experimentation with the services provided. Data was collected and analyzed based on a theoretical framework defined from the literature for business models of cultural organizations.

Findings

The archives analyzed faced the challenge of aligning the commercial viability with a mission of making content available to increase cultural knowledge. A sustainable business model may be achieved by using different revenue models, while guaranteeing to offer a value proposition carefully aligned with stakeholders' expectations. Moreover, an impactful business model, i.e. a business model that enhances the creation of cultural value for customers and reaches wider audiences, requires careful audience management and the use of data analysis about audience behavior to adjust the offering. Finally, the business model must consider the resources, activities and infrastructure that ensure critical capabilities for the business and must be designed to ensure financial resilience of the organization.

Originality/value

This study contributes with a holistic analysis of business models for the digital transformation of cultural organizations, detailing alternative configurations for the most relevant components of a digital business model for audiovisual archives.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 28 no. 8
Type: Research Article
ISSN: 1355-2554

Keywords

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