Title: Risk assessment of business models driven by Industry 4.0

Authors: Kristina Kovaitė; Jelena Stankevičienė

Addresses: Faculty of Business Management, Department of Financial Engineering, Vilnius Gediminas Technical University, Saulėtekio 11, LT-10223, Vilnius, Lithuania ORCID: 0000-0003-4362-8001 ORCID: 0000-0002-5600-5842 ' Faculty of Business Management, Department of Financial Engineering, Vilnius Gediminas Technical University, Saulėtekio 11, LT-10223, Vilnius, Lithuania ORCID: 0000-0003-4362-8001 ORCID: 0000-0002-5600-5842

Abstract: Industry 4.0 changes business models and in so doing presents new risks that need to be addressed. Research presented in this paper developed a risk assessment for business model digitisation (RADi) matrix which consists of technical, competences, employee and customer consent, data security, and financial risk. The expert evaluation uses the FARE method as a multi-criteria decision support approach. The results determine which parts of a business model driven by the Industry 4.0 are most affected by different risks. The results indicate the greatest impact is on customer channels, key resources, revenue stream, and customer segments, whilst key partners are the least impacted. Our research demonstrates that the RADi model can be used by firms to identify and plan for critical risks as well as to implement the digitisation of business models. Policymakers will find the RADi approach useful to anticipate risks and prioritise public support and regional development.

Keywords: Industry 4.0; digitalisation; risk assessment; business model; multi-criteria methods.

DOI: 10.1504/IJEBR.2021.112014

International Journal of Economics and Business Research, 2021 Vol.21 No.1, pp.1 - 21

Received: 10 Sep 2019
Accepted: 04 Apr 2020

Published online: 27 Nov 2020 *

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