Importance of the Innovative Business Models for the Future Success of the Company

Tashkent Branch of Moscow State University, named after M.V. Lomonosov, Tashkent 100000, Uzbekistan

^* Corresponding author: leyla-djuraeva@rambler.ru

Abstract

During the last decade, the market environment for the businesses has been influenced by digital developments and as a result, the focus on business model innovations has rapidly grown. Businesses started moving away from the classic method of creating competitive advantage like a new product development. Thus, this influenced business activities as well as companies’ business models into innovations of new products and services, a new ways of company relationships with customers and employees. Customers started expecting to receive services at a level comparable to digital solutions. Simultaneously, it put pressure on organizations to reflect on their current strategy and discover new business opportunities at the early stages. Digitalization is a one of the significant reasons for innovation on the business model of companies. Currently, business model as a tool is becoming a very popular topic due to its benefits received by companies and this topic studied by various researchers. This paper is based on theoretical perspective and the study was done by analysing previous researches, articles and papers in the present context. The study emphasizes that business model innovation can be a basis of sustainable competition for companies and innovators may increase their returns 4 times than product and service developers.