The Value Chain as the Basis of Business Model Design

Abstract

The article presents a new approach to the generation of business models based on value streams. The originality of the study lies in the assumption that in every business model the generator of added value is the value chain which, if original enough, will maximize potential while minimizing costs. This approach will provide the respective enterprise with a high level competitiveness in the long term. The tested group of enterprises consisted of 354 SMEs, one hundred eighty-seven of which were from the manufacturing and industry sector, with 167 from the services sector. The novelty of this approach also consists of the integrated approach to the business environment in which the value streams were analyzed. The results suggest that the analysis of value streams is suitable for the projection of business models. In addition, the methods of dimensional reduction and logit regression have been identified as appropriate analytical tools, with representative results found valid and utilizable in business practice. The authors of the article are aware that this is only the first step in addressing this issue, one which will play a critical role in the gradual process of the upcoming digital transformation of all business models, not only those of SMEs in the Czech Republic.The article presents a new approach to the generation of business models based on value streams. The originality of the study lies in the assumption that in every business model the generator of added value is the value chain which, if original enough, will maximize potential while minimizing costs. This approach will provide the respective enterprise with a high level competitiveness in the long term. The tested group of enterprises consisted of 354 SMEs, one hundred eighty-seven of which were from the manufacturing and industry sector, with 167 from the services sector. The novelty of this approach also consists of the integrated approach to the business environment in which the value streams were analyzed. The results suggest that the analysis of value streams is suitable for the projection of business models. In addition, the methods of dimensional reduction and logit regression have been identified as appropriate analytical tools, with representative results found valid and utilizable in business practice. The authors of the article are aware that this is only the first step in addressing this issue, one which will play a critical role in the gradual process of the upcoming digital transformation of all business models, not only those of SMEs in the Czech Republic.