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THE IMPACT OF ECOSYSTEM IMPLEMENTATION ON BUSINESS D.I. Kiselev, Graduate Student
Supervisor: E.S. Novikova, Candidate of Economic Sciences, Associate Professor Plekhanov Russian University of Economics (Russia, Moscow)
DOI:10.24412/2411-0450-2022-3-1-140-147
Abstract. The article considers the reasons for the popularization of ecosystems in the modern economy as a result of the development of management and the transition of the economy from the traditional to the digital economy. The main factors that affect the implementation of the ecosystem in the business were identified. Based on the study of modern scientific literature, indicators were identified that show the impact of the introduction of the ecosystem on business. Also in this scientific article, a study of the impact of the introduction of ecosystems was conducted on the example of Sberbank based on the data found in the annual reports and other open sources of information and calculated in the course of the study. The data obtained in the course of the study were analyzed and conclusions were formed showing the impact of the introduction of the organizational structure of the ecosystem in the business.
Keywords: ecosystem, ecosystem implementation, business ecosystem, organizational structure, digital economy.
Introduction. Business ecosystems are becoming a popular organizational model, which is being implemented by many IT giants around the world, including in Russia. According to a study by the international consulting company IDC, the economy continues to follow the course of digital transformation, and by 2022, 65% of global GDP will be brought by digital transformation, which will provide more than $ 6.8 trillion of direct investment in digital transformation between 2020 and 2023. Mature organizational structures and plans for the development of digital enterprises. By 2023, 75% of organizations will have comprehensive plans for implementing digital transformation, compared to 27% today, which will lead to real changes in all areas of business and society. The growing use of digital platforms and the expansion of ecosystems. By 2025, due to the volatile global environment, 75% of business leaders will use digital platforms and ecosystem capabilities to adapt their value chains to new markets, industries, and ecosystems. By 2022, 70% of all organizations will expand the use of digital technologies, transforming existing business processes to improve customer engagement, employee productivity, and business sustainability.
With the transformation of traditional economy to the digital economy and, as a result, the growing popularity of business ecosystems, there is a growing need to research the impact of ecosystems on business, society and economy.
Hypothesis- transforming company into an ecosystem has positive financial, social and resource effect on business.
Literature review
James Moore made the first mention of ecosystems in field of economy in the article "Predators and Prey: A New Ecology of Competition" in Harvard Business Review journal in the 1993.James Moore adopted this concept and suggested that the company should not be considered as separate players, but as a business ecosystem, that includes many participants from different industries. Business ecosystem is gradually moving from a random set of elements to a more structured community like its biological analogy [1].
The environment that creates conditions for innovation and the use of digital products and services within the digital economy is the ecosystem of digital organization. According to the article by H. Dong, F.K. Hussain, E. Chang, the digital ecosystem is digital objects, users of this system, factors affecting the interaction of participants, and the infra-
structure for storing, processing, using, transmitting, and transmitting information [2]. The article by Abrosimova and Klimova "Formation and development of the digital ecosystem of a modern enterprise" describes the prerequisites for the formation that will help in further research in identifying factors of influence:
- development of technologies, such as BigData API for organizing digital interaction with the client;
- desire of customers to receive goods and services as quickly as possible using digital technologies;
- trend of a youth representatives of society to receive personalized offers based on the transfer of their personal information to the company.
Abrosimova and Klimova also consider, that the use of ecosystems in the work allows the participants of the interaction to increase the final value due to the synergistic effect. They distinguish the following elements of the ecosystem: the core, the company that implements the main innovations and the participants who implement their products and services using the capabilities of the ecosystem. Company can also have different roles in different ecosystems [3].
There are a huge number of scientific articles considering ecosystems. One part of them research the term, its origin and the essence of ecosystems. For example, in the article "Innovative Ecosystems in the digital economy" V. Larionov, E. Sheremetyeva and L. Gorshkova analyzed approaches to the definition and content of the term ecosystem, research the specifics and conditions of ecosystem management [4]. Another part considers ecosystems through the prism of economic clusters for example, in the article "Business ecosystems as a form of cluster development", Y. Androsik attempts to rethink the concept of clusters and identifies the concepts of clusters and ecosystems [5]. In addition, ecosystems are considered as part of the digi-talization of the economy and consider the impact of the business environment on ecosystems, but not vice versa. In the scientific article by A. Kislyakov "The impact of the fourth industrial revolution on the ecosystem economy and its impact on consumer trends"
we can find out about the impact of the fourth industrial revolution on such elements of the digital economy as business ecosystems, block chain, cloud technologies, Internet of Things and etc. [6].
However, no one has yet considered the effect of introducing ecosystems into business.
Methodology
As a scientific tool for this research paper, the authors selected methods of deduction and induction for drawing conclusions and creating a logical chain of scientific work, analytical methods of system, retrospective, and financial analysis. The scientific and methodological basis of the research paper was made up of scientific works of authoritative domestic and foreign authors in the field of economics and business, regulatory and legal documentation.
The authors conducted statistical measurements based on the study of historical data of the securities market and reporting data of the largest business ecosystems in Russia. The authors also aggregated data from reports on the business ecosystem market of the largest consulting companies in Russia.
Findings
During the Covid-19 crisis, the number of digital interactions among users increased, which accelerated the adoption of ecosystem business models. McKinsey&Company's global consumer sentiment survey shows that the trend of increasing online sales will remain at the same level for some time even after the COVID-19 crisis is over. According to surveys, 71 percent of consumers are ready to use integrated ecosystems. Most global companies are currently actively considering the ecosystem business model, taking into account the potential for growth of the core business, creating company value, expanding the customer base, diversifying risks and entering new market. The integrated network economy could represent a global revenue pool of $60 trillion in 2025 with a potential increase in total economy share from about 1 to 2 percent today to approximately 30 percent by 2025 [7].
There are a large number of scientific papers describing various classifications of the main effects of innovation. For analysis, we will select the most common types of effects
and combine them into one classification. Thus, the main effects of the introduction of innovations, including the innovative organizational structure-ecosystem:
- Economic effect;
- Technical effect;
- Financial effect;
- Resource effect;
- Social effect.
The economic effect is the difference between the results of economic activity obtained during the use of an innovation and the costs incurred for the implementation and maintenance of this innovation.
The scientific and technical effect does not have a quantitative value, and refers to a qualitative assessment method. This effect includes such evaluation elements as evaluation of the technical qualities of the innovation, aesthetic qualities, and operational qualities.
The financial effect is based on the basic financial indicators of the ecosystem and the dynamics of their changes for a specific period of time. This analysis allows us to draw conclusions about how the introduction of the ecosystem has affected the financial side of the business.
The resource effect shows the change in the ecosystem's resource bases, such as capital, customer base, etc.
The social effect is an effect that shows the impact of the introduction of an ecosystem into a business on the perception of this business in society. A quantitative indicator of this effect is the change in the value of the company in the securities market, since this indicator is sensitive to changes in public attitudes towards any company.
According to a study conducted by the BCG Henderson Institute [8], a business ecosystem is a dynamic group of companies that provide a product or service grouped into a single solution. Each business ecosystem has a well-defined group of economic players that have different roles that change according to market requirements, and each business ecosystem has a specific value proposition.This article also includes the advantages of the business ecosystem in comparison with other management models:
- Modularity;
- Multilateralism;
- Customization.
The modularity of business ecosystems is characterized by the formation of a holistic offer from a number of components developed independently of each other, in contrast to hierarchical supply chains and vertically integrated models. An example of this holistic offer is a subscription to the MTS library services, which offers separate modules, such as book subscriptions, audiobook subscriptions, and press subscriptions. After you select the subscription modules you need, the app will calculate a personalized price that will save you money by eliminating unnecessary modules.
The multilateralism of business ecosystems is the result of the interaction of two combined companies, which will help to create unique offers, expand the range of products by creating common products or services, as well as a combination of complementary products and services, and increase the customer base. An example of this advantage of business ecosystems is the synergy of the online cinema theater Okko and the express delivery service "Samokat" which are the parts of Sber ecosystem, which created a unique offer, allows you to order popcorn delivery via the app with a discount together with a movie subscription.
The effect of setting up the ecosystem is characterized by mutually adaptable digital elements, as well as a seamless interaction of services that reduce the time and simplify the process of making a purchase of a product or service, and reduce the amount of information required for ordering.
Sberbank began creating its ecosystem in 2016, with one of the first deals to buy a controlling stake in Segmento. Segmento is a programmatic platform that uses machine learning technologies. Sberbank felt that they needed machine learning technologies to target digital advertising in apps and social networks. The amount of the loan, according to experts, amounted to $ 10 million. The terms also included Sberbank's right to increase its share in Segmento's share capital to 100%, which was subsequently implemented. In mid-2019, Sberbank continued its policy of creating a business ecosystem and announced the creation of a joint venture with Mail.ru
group. The joint venture included the food delivery service Delivery Club, the express delivery service "Samokat", a share in the taxi service "Citymobil", the service "Kitchen in the area" and a share in the service Foodplex. Sberbank and Mail.ru po owns 50% of the shares.The companies invested 64 billion rubles in the first stage of the transaction. And in December 2019, an additional 12 billion was invested distributed to support the 2GIS cartographic project, the express delivery service, etc.
According to data from 2019 to 2021, Sberbank spent 3% of its net profit, or $1 billion, on the development of the ecosystem [9]. According to the calculations of analysts at Morgan Stanley, Sberbank generates 650 billion rubles in first-tier capital, if the bank uses 50% of retained earnings to pay dividends to shareholders, then there will be 200 billion rubles a year left, which the company will be able to invest in non-financial assets. According to Morgan Stanley analysts, from 2012 to 2019, Sberbank invested 124 billion dollars in more than 20 non-financial services. The total EBITDA of non-financial services in 2020 amounted to 11.9 billion rubles of losses in contrast to 2019, in which Sberbank received 2.2 billion rubles. According to the financial statements the main services generating negative EBITDA are the following areas:
- Taxi, car sharing, food (-10.4 billion rubles);
- E-commerce (minus 6.4 billion rubles);
- Media services (-3 billion rubles).
In 2020, the revenue of Sberbank's non-financial services increased by 2.7% compared to 2019 and amounted to 71.4 billion rubles. Non-financial business revenue accounts for 2.1% of Sberbank's total revenue, which was $ 3.37 billion in 2020.
Next, we will consider the main indicators of the impact of the transition from traditional business to the concept of an innovative business ecosystem on the example of Sber.
To consider the impact of technological changes on the financial side of the company, consider the following indicators of the company:
- Revenue;
- Enterprise value;
- Market capitalization;
- Income from non-financial activities.
In 2020, revenue from Sberbank's non-financial business amounted to 71.4 billion rubles, 2.7 times more than the result of 2019, according to Sber's IFRS statements. The bank discloses the financial result of its ecosystem for the first time, so historical consideration for a period of more than 3 years is not possible
In 2019, revenue from non-financial business amounted to 26.4 billion rubles. "Sber" calculates this indicator in proportion to the group's ownership interest in a particular company during the reporting period, since the bank did not own some businesses for the entire year.
The largest contribution to the revenue of this segment was made by b2b services (33.6 billion rubles). Next comes e-commerce: its turnover and revenue (GMV, Gross Merchandise Volume) amounted to 12.9 billion rubles. The revenue of the Entertainment category reached 7.4 billion rubles, FoodTech & Mobility - 4.8 billion rubles, Health - 2.1 billion rubles. The remaining non-bank companies brought in 10.6 billion rubles. revenue.
This increase in revenue from non-financial activities in the period from 2019 to 2021 is the result of Sberbank's transformation into an ecosystem. The increase in the share of non-financial revenue will allow the company to diversify risks, as well as increase all financial and non-financial indicators of the company due to synergy.
Based on the data of Sberbank's financial statements for 2011-2020, a bar chart was selected and constructed showing revenue for the research period. As you can see, the revenue has a positive trend and has been growing for all 10 years. The highest value of revenue corresponds to the last year of 2020 and is equal to 2.1 trillion rubles, and the lowest value corresponds to 2011, in which revenue amounted to 729 billion rubles. The steady growth of the company means that the company sets itself the strategic goal of sustainable development of the company. The largest change in revenue occurred in the period from 2015 to 2016 and amounted to 277 billion rubles, which in percentage terms is equivalent to an increase of 19%. This is due to the fact
that in 2016, Sberbank set itself the task of ly began to implement it, which is what led to creating a business ecosystem and successful- this jump in the scale of values.
2011 2012 I 2013 2014 1 2015 »2016 »2017 12018 1 2019 12020
Figure 1. Revenue from Business Activity of PJSC Sberbank 2011-2020 in millions of rubles
The company's value for the last 10 years was calculated based on Sberbank's financial statements. Since the value of an enterprise is a complex indicator that depends on discounted cash flows, the risks of the organization and country risk, this means that the change in this indicator is very important in decision-making, as it allows you to see changes in the structure of the company, determine the profitability of the company, as well as assess the aspects of the company associated with risks. Based on the financial statements of Sberbank, the company's value in the period from 2011 to 2020 increased by more than 2.5 times from 2 trillion rubles to 5.8 trillion rubles, which indicates an increase in cash flows and a reduction in the risk of investing in this company. The value of Sberbank PJSC is a volatile indicator, since the increase and decrease are not stable and the difference between the values is large. Based on the data from the table, it can be found that in the period from 2011 to 2013, the company's value increased from 2 trillion to 3.4 trillion rubles. This change amounted to 1.4 trillion rubles. The percentage value of this change was 70%. In 2014, the enterprise value index fell by almost 30%. This change was due to the currency crisis of 2014. Then the ruble fell in price against the dollar and the euro by 2 times and the RTS index fell by 10% [10]. After the situation stabilized and the crisis ended by the end of 2015, Sberbank
began its restructuring and at the annual meeting of shareholders it was decided to adopt the strategy of restructuring Sberbank into a business ecosystem. Against the background of positive economic dynamics and structural changes in the company, the company's value in the period from 2015 to 2016 increased by 32 percent, these changes in absolute value amounted to 917 billion rubles. From 2017 to 2018, the value of Sberbank again decreased against the background of the weakening of the ruble and the introduction of US sanctions against Russia and amounted to 3.5 trillion rubles. In 2018, Sberbank began to prepare for rebranding, a large number of mergers and acquisitions, as well as for the full transformation of the company into an ecosystem with a single software platform. Against the background of rebranding and the creation of successful synergy between the ecosystem elements, the company's value in 2019 increased by 1.2 trillion rubles, or 33%, compared to the previous year, the same trend continued in 2020, as the company's value in the period from 2019 to 2020 maintained its pace and amounted to 1.1 billion rubles, or 22%.
Summing up, we can conclude that the value of the company of Sberbank PJSC was the result of various factors including restructuring and the greatest positive changes were associated with the transformation of Sber-bank into an ecosystem.
Figure 2. Value of PJSC Sberbank 2011-2020 in million of rubles
To consider the impact of implementing ecosystem on society, it is necessary to consider an indicator that reflects the attitude of consumers of services, an indicator that is sensitive to social changes. This indicator is the market value of the company Sberbank PJSC.
During the research period, the market capitalization of Sberbank increased 3.5 times, from 1.7 trillion rubles in 2011 to 6.1 trillion rubles in 2020. In the first 3 years, the market capitalization indicator grew steadily by about 200 billion rubles. In 2014, the market capitalization was the lowest in the entire study period, which was caused by the currency crisis. The biggest positive changes in market capitalization occurred between 2015
and 2017 and between 2018 and 2019. These changes occurred during the period when the organization was changing its structure and turning into a business ecosystem. These changes had a positive impact on the public opinion, confidence in the company, aroused interest and convinced of the reliability of Sberbank, which in turn caused an increase in the market capitalization index. In the period from 2015 to 2017, the value of the indicator increased more than 2 times, which in absolute terms amounted to 2.73 trillion rubles. In the period from 2018 to 2019, the value of the market capitalization increased by 1.6 trillion rubles and reached 5.7 trillion rubles, which was the highest value in the last 8 years.
2011 2012 ■ 2013 ■ 2014 И2015 И2016 И2017 ■ 2018 ■ 2019 «2020
Figure 3. Market capitalization of PJSC Sberbank 2011-2020 in millions of rubles
The last indicator considered will be the customer base, which will show the resource changes of the company.
Between 2018 and 2020, the total number of active customers increased from 92.8 million to 98.9 million. The total number of corporate customers increased by 18% from 2.2 million customers to 2.7 million. These positive trends also show the growth of the customer base due to the inclusion of new businesses in the structure of the Sberbank ecosystem.
Discussions & Conclusion
The main objectives of this study was to identify factors that are affected by ecosystem adoption, identify qualitative and quantitative indicators of the impact of ecosystem implementation on business, search and calculate the values of previously defined indicators of the impact of ecosystems on business and analyze of the data obtained and drawing conclusions. The analysis of modern scientific literature has shown that the factors showing the impact of ecosystems on business are economical, technical, financial, resource and social. Also in this research paper was identified the indicators of the company to consider the impact of implementing ecosystem on business. These indicators are revenue, enterprise value, market capitalization and income
the research process, the hypothesis was confirmed. Implementing of business-ecosystem influence on all areas of Sberbank PJCS. In the future, this experience of Sberbank will attract the attention of large and medium-sized businesses, which will also begin to create and implement ecosystem technology in their business. Ecosystem has a positive impact on business, as it increases the company's efficiency, reduces costs by synergy effect, allows you to attract more customers, create comfortable conditions for increasing competitive advantages. Also, ecosystems, regardless of the scope of application, can reduce the risks of the company, which as a result will increase the investment attractiveness and value of the company.
The largest changes in indicators such as market capitalization, company value, customer base, revenue occurred in the period from 2015 to 2017 and from 2019 to 2020. Despite the pandemic and the COVID-19 crisis, the company continues to grow and develop. Due to the creation of the ecosystem, the company increased the number of customers by 18%, the company's value increased by 22% over the last year of the study, and the market capitalization over the past 2 years increased by 30% and amounted to 6.1 trillion rubles.
from non-financial activities. As a result of
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ВЛИЯНИЕ ВНЕДРЕНИЯ ИННОВАЦИИ ЭКОСИСТЕМ НА БИЗНЕС Д.И. Киселев, магистрант
Научный руководитель: Е.С. Новикова, канд. экон. наук, доцент Российский экономический университет им. Г.В. Плеханова (Россия, г. Москва)
Аннотация. В статье рассматриваются причины популяризации экосистем в современной экономике в результате развития менеджмента и перехода экономики от традиционной к цифровой экономике. Были определены основные факторы, влияющие на внедрение экосистемы в бизнес. На основе изучения современной научной литературы были определены показатели, которые показывают влияние внедрения экосистемы на бизнес. Также в этой научной статье было проведено исследование влияния внедрения экосистем на примере Сбербанка на основе данных, найденных в годовых отчетах и других открытых источниках информации и рассчитанных в ходе исследования. Данные, полученные в ходе исследования, были проанализированы и сформированы выводы, показывающие влияние внедрения организационной структуры экосистемы в бизнес.
Ключевые слова: экосистема, внедрение экосистемы, бизнес-экосистема, организационная структура, цифровая экономика.
