Digital business models and company growth opportunities in the energy market

Abstract

We are currently witnessing significant changes in the global energy market. The energy industry is entering the stage of the 4th energy transition, which is characterized by an increasingly large-scale increase in the use of renewable energy sources and a decrease in the share of fossil fuels. The energy sector is also strongly influenced by the trend of digital transformation and the use of digital technologies. The aim of the work is to study the possibility and conditions of using digital business models by companies in the energy sector to improve competitiveness and market growth. To achieve the goal of the study, the following tasks were set: to analyze the main trends and the state of digitalization of the energy industry; analyze digital business models and assess the possibilities of their use by energy companies; to formulate approaches to transforming the activities of energy companies in the transition to a digital business model. The authors hypothesized that the use of digital business models will allow energy companies to remain competitive and gain access to new markets by introducing new technologies. To conduct the study, the methods of microeconomic and industry analysis, systemic and comparative analysis, and analysis of the organizational behavior of the company were used. The results of the analysis showed that the global energy market is characterized by growth in dynamics and volatility. In order to adapt to changing conditions and maintain competitiveness, energy companies need to take advantage of digitalization and shape a digital strategy. One of the basic elements of an organization’s digital strategy is a successful digital business model. The article discusses the types and features of digital business models, and also formulates approaches to transforming the activities of energy companies in the transition to a digital business model.

Dynamic Capabilities in Electrical Energy Digitalization: A Case from the Norwegian Ecosystem

“…According to Kovalenko et al [44], the trend linked with digitization and the use of digital technology in the industry has a significant impact on the electrical energy sector as well. Digital technologies are already being actively used by electrical energy service providers to automate every process across the value chain.…”

“…According to Kovalenko et al [44], New businesses may offer personalized goods and services at cheaper costs than established businesses because of digitalization. As a result, iterative and design thinking approaches are becoming increasingly important for a transition toward digital and platform business models, which are also essential activities of seizing [50].…”