Transformation of value in innovative business models: The case of pharmaceutical market

Abstract

Creating and developing innovative business models (BM) currently becomes one of the key success factors for contemporary business. Rapid changes in the world triggered by COVID-19 crisis happening now reemphasize the need to better understand how BM can be successfully innovated in different markets. Digital component of BM innovation comes under a special spotlight, while NASDAQ stock index representing aggregated value of technological companies reaches its all-time high in June 2020. In the current paper we review the innovation strategies on the corporate level using the example of a company within the pharmaceutical industry, through the prism of BM innovation. In particular, this study demonstrates how BM innovation can be developed and implemented in practice within the pharmaceutical market, which accelerates its digital transformation to increase the value it brings to the healthcare systems around the world while sustaining the ongoing crisis. In order to do that the current paper offers the framework for BM innovation that defines BM elements, BM innovation aspects and BM innovation logic. This new approach is applied to undertake a deep analysis of opportunities to build innovative BM using the case of a pharmaceutical market. The paper uses a case study method to demonstrate BM innovation insights. The research described in this paper is of a cross-border nature and includes the analysis of a pharmaceutical company’s BM on six markets representing different value creation systems and mechanisms (Russia, Ukraine, Thailand, Chile, Mexico, Israel).The paper demonstrates how technological innovations can be activated using managerial tools and insights and also how they can be combined into the holistic system based on the needs of the key value chain actors.