Annals of the University of Oradea: Economic Science (Dec 2021)
NEW BUSINESS MODELS GENERATED BY TECHNOLOGICAL INNOVATION
Abstract
The evolution of technology has caused a revolution in almost every fragment of the entrepreneurial sector, especially in terms of adapting business models to innovation. The management of a business in a competitive market has become increasingly unpredictable. Leadership style has changed the way the business model is framed through modern strategic thinking or management. By applying new information technologies, businesses need to constantly reflect in order to redesign the business models they use. Business models under the pressure of time changes have changed the format of operation and approach, depending on the 'innovation' factor. Today, companies around the world feel under direct pressure to operate in efficient solutions, designed to fully adapt to the various and comprehensive strategic business management activities. As a result of technological evolution, organizations find it easier to intervene in the markets, to increase their operating segments in the market, as well as to change the forms of the way the product is delivered to the customer. This has brought uncertainty in their managerial work but has also significantly facilitated the environment in which businesses operate. Even for many businesses technological development is the motto of their existence. Many companies themselves have been established on the basis of internet technology while from many others technological evolution is exploited to take advantage of another level in the market. The use of the software industry in business is considered a key factor of computerization due to the economic benefits, expressed in fast and intermediary transactions, cost reduction, revenue growth, competitive advantages, product diversity and saving of non-renewable resources. Studying the impact of technology and innovation on business models is essential to explore how companies innovate, need and should innovate the business model. The purpose of this paper is to advance research on the perspective offered by innovation in the business model. The aim is to emphasize the importance of technological development in the creation of digital businesses, hoping to inspire managers and entrepreneurs to compete in the market not only by applying the latest technology available, but also by creating their innovations to make their business more profitable and more sustainable. The novelty of this study corresponds to a general analysis of 'modern business models', in the way how business models in combination with technological evolution, mature and bring to the stage new business models, those provoked by technological trends.
