Proceedings of the 15th International Academic Conference, Rome

VALUE AS A PRINCIPAL DIMENSION IN BUSINESS MODEL

MARLENA GRABOWSKA

Abstract:

The aim of the study is to present the concept of value creation as a principal dimension in a business model of the enterprise. The problem of creating value has been attracting interest among theorists and practitioners of management. These problems are of interdisciplinary character. Generation of value depends on numerous variables in the enterprises and the factors that remain outside the influence of the entity. Suitable configuration of resources used by the enterprise allows for building competitive advantage which is conducive to creating value. Ability to define and redefine business models depends on key competencies which are conducive to building enterprise's value. Architecture of business model can be considered as a system of connections and cause-and-effect correlations between individual components of this model configured in order to implement the assumptions adopted by the enterprise. Therefore, it is essential for building competitiveness to ensure proper conditions that are conducive to supplying the value for stakeholders. The most of definitions that have described the problems of business model in the related literature points to value as a central category of long-term decision processes in the enterprise. Consequently, it can be indicated that the concept of business models is inherent in the problems of management of enterprises value. It should be emphasized that strategy of the increase in value and the respective concept of building business model represent the essential source of achievement of success through contemporary enterprises which are at risk of unpredictable behaviour from the market environment. Turbulent environment substantially changes market conditions of enterprise's operation. The relations between stakeholders are changing. This concerns in particular relationships with customers. In order to maintain competitive ability of the enterprise, they have to regularly adjust their offer to customer need, thus verifying the value they supply. This translates into the necessity of verification of business models used previously in the enterprise.

Keywords: business model, value creation

DOI: 10.20472/IAC.2015.015.061

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