SIMULATING A NEW BUSINESS MODEL: A DYNAMIC BUSINESS MODEL APPROACH STUDY ON PT. AMM POULTRY PARTNERSHIP COMPANY

Abstract

Recent study show that the reconfiguration and reconstruction of new business models begin with the demands of changes or the addition of the company's value proposition that offered to consumers. The reconstruction and reconfiguration of the business model are known as business model innovation. In this study, the author conducted a simulation of the configuration of the new business model from PT. The AMM Poultry Partnership Company as a result of changes in the value proposition of the company using the steps to form a new business model includes identifying the new value proposition offered, profit formulation, and key resources and key process business models which are then simulated using a system dynamic approach that adopts the concept of dynamic business models. Based on the results with simulations over a period of 12 months, PT. AMM cumulatively had an increase in financial resources of 120% and an increase in the number of breeders’ population of 133928 to 144375 at the end of the simulation period. The optimal configuration of all business model components for the company in the simulation is seen in May - December with a positive cumulative increase. If it reflects the vision of a company that wants balanced profits for both the company and the farmer. The appropriate configuration is in August, September and November of the simulation month. This is because the farmer reaches the maximum profit value and the company has a positive profit.

Keywords

• Business model
• innovation
• dynamic business model
• public service