Đổi mới mô hình kinh doanh bán lẻ trong cuộc cách mạng công nghiệp 4.0: Trường hợp nghiên cứu tại Việt Nam

Nội dung text: Đổi mới mô hình kinh doanh bán lẻ trong cuộc cách mạng công nghiệp 4.0: Trường hợp nghiên cứu tại Việt Nam

1. Kỷ yếu Hội thảo quốc tế “Thương mại và phân phối” lần 1 năm 2018 BUSINESS MODELS INNOVATION IN RETAIL FOR INDUSTRY 4.0: THE CASE OF VIET NAM ĐỔI MỚI MÔ HÌNH KINH DOANH BÁN LẺ TRONG CUỘC CÁCH MẠNG CÔNG NGHIỆP 4.0: TRƯỜNG HỢP NGHIÊN CỨU TẠI VIỆT NAM MBA. Huynh Ba Thuy Dieu Korea - Viet nam Friendship Information Technology College Email: thuydieudng@gmail.com Abtract A retail business model articulates how a retailer creates value for its customers and appropriates value from the markets. Innovations in business models are increasingly critical for building sustainable advantage in a marketplace defined by unrelenting change, escalating customer expectations, and intense competition. In the face of the industry 4.0, Vietnam retail needs to change business models. This paper aim to change from Department Store model to Omni-channel model that integrates modern management and operation technologies. Drawing from new model, the paper proposes that innovations in retail business models are best viewed as changes in two components: (1) the elements of a retail business model and (2) a business model heathy check. It proposes six major ways in which retailers could innovate their business models to enhance value creation and appropriation beyond the levels afforded by traditional approaches to retailing. Keywords: business model, industry 4.0, innovation, retail. Tóm tắt Một mô hình kinh doanh bán lẻ nêu rõ cách thức một nhà bán lẻ đem lại các giá trị cho khách hàng của mình và nhận được các lợi ích từ thị trường. Đổi mới trong các mô hình kinh doanh ngày càng quan trọng để xây dựng lợi thế bền vững trong một thị trường được xác định bởi sự thay đổi không ngừng, tăng kỳ vọng của khách hàng và cạnh tranh khốc liệt. Khi đối mặt với ngành 4.0, ngành bán lẻ Việt Nam cần thay đổi mô hình kinh doanh. Bài viết này nhằm mục đích thay đổi từ mô hình Bách hóa tổng hợp sang mô hình bán lẻ đa kênh tích hợp các công nghệ quản lý và vận hành hiện đại. Dựa trên mô hình mới, bài viết đề xuất rằng các cải tiến trong mô hình kinh doanh bán lẻ với hai sự thay đổi: (1) các yếu tố của mô hình kinh doanh bán lẻ và (2) mô hình kiểm tra kinh doanh. Bài viết cũng đề xuất sáu cách chính trong đó các nhà bán lẻ có thể đổi mới mô hình kinh doanh của họ để tăng cường việc tạo ra giá trị và đạt được các giá trị vượt mong đợi. Từ khóa: Mô hình kinh doanh, công nghiệp 4.0, đổi mới, bán lẻ. 1. Introduction Based on the importance for corporate strategy and therefore firm performance, business model innovation has played a key approach towards business innovation. Firms, start to realize that in the context of accelerating environmental dynamics and harsh market conditions, business models do not permanently guarantee successful performance even for long-time established organizations. To the contrary, managers are becoming more aware that business as usual is no longer sufficient and that their future depends on their ability to continuously reconsider established business models, from both proactive and reactive approaches to exogenous change. The fourth industrial revolution or Industry 4.0 is called to pull applications and push technologies enabling a high degree of transformation of the companies, their associated value propositions and related business models. Therefore, Industry 4.0 should be interpreted by enterprise. as a new level of organization and management over the entire value chain and also as a paradigm shift in business operations and business models, rather than a technology based improvement of business as usual or an evolution. Nevertheless, companies tend to focus too much on the technological aspect of Industry 4.0 rather than on the paradigm change of business value propositions and business models. 61
2. Kỷ yếu Hội thảo quốc tế “Thương mại và phân phối” lần 1 năm 2018 Moreover, Vietnam is now developing and becoming one of the most dynamic emerging countries in the East Asia region. Higher living standards and rising income have enabled people to spend more for their lives. Although the economy has gone through a difficult period with recession, inflation and trade deficit, it is still one of the most potential markets for retailers with the compound annual growth rates. The total retail sales of goods and services was VND 2.49 trillion (US$ 100 billion), VND 2.675 trillion (US$ 118 billion), VND 2.900 trillion (US$ 130 billion) and vND 3.200 trillion (US$ 149.5) in 2015, 2016, 2017 and 2018 respectively (Central Statistics Office off Vietnam). These sales are rising year after year and total turnover of retail sales in 2013 is predicted to overcome the previous year. All these indicators suggest a bright prospect of Vietnam retail market. Figure 1. Vietnam retail sales of goods and services (Source: General Statistics Office ooff Vietnam) In fact, the industrial revolution 4.0 in the retail sector is quietly taking place and it has opened up many development opportunitiees for Vietnam, now it has made breakthrough changes from the standards of translation. Diverse, efficient and fast-based digital technology platforms. The aim of this paper is to illustrate a Business Model Innovation in retail for industry 4.0 in Viet Nam 2. Literature review and Methods 2.1. Literature review 2.1.1. Business model There is no commonly accepted definition of business moddelin the literature. Instead, the literature reveals a wide range ofdefinitions that vary in their emphases and scope (e.g., see the2010 Long Range Planning special issue dedicated to businessmodels). Neveertheless, most authors agree that a buusiness modelarticulates a firm’s value proposition, its sources of revenue, theresources used to extract rents, and the governance mechanismthat links firm’s stakeholders (Zott and Amit 2010). Drawingfrom this core idea, we propose a working definition of businessmodels: A business model is a well-specified system of inteer-dependent structures, activities, and processes1 that serves asa firm’s organizing logic for value creation (for its customers)and value appropriation (for itself and its partners). The business model represents the firm’s distinctive logic forvalue creation and appropriation (Chesbrough and Rosenbloom2002; Gambardella and McGahan 2010; Osterwalder andPigneur 2009; Teece 2010; Zott and Amit 2010).2For instance,a business model may outline how the firm creates value for cus-tomers via activities related to product development and flexiblepricing. A business model may also outline how vallue is appro-priated through, for instance, improved inventory management and changes to governance structures that reduce opportunitycosts, increase customers’ 62
3. Kỷ yếu Hội thảo quốc tế “Thương mại và phân phối” lần 1 năm 2018 switching costs, or lower the lever-age that various stakeholders exercise on the firm. Articulatingthe means by which a firm creates and appropriates value allowsfor a clearer delineation of the sources of its competitive advan-tage, which, in turn, facilitates updating and strengthening thebusiness model. A central aspect of our definition of a business model is that itincorporates interdependencies that transform a set of structures,activities, and processes into an integrated system. A businessmodel is not only specified by a revenue model, a cost structure,a set of resources, or a value proposition; it is fundamentallyabout how these pieces of the business “fit together” to cre-ate and appropriate value (Magretta 2002). In this context, “fit”refers to multi-layered interdependencies among the elements ofa business model such that the “whole” (business model) is notsimply the sum of its “parts” (elements). If these interdependen-cies reflect a high level of complementarity or synergy amongthe elements of a business model, then the business model islikely to be more cohesive and effective in achieving its pur pose (e.g., Porter 1996). Indeed, complementarities have beenhighlighted in numerous papers as a source of economic rentsand competitive advantage (see Ennen and Richter 2010 for areview). For instance, Milgrom and Roberts (1994) found thatthe total economic value added by combining two or more com-plementary factors in a production system exceeds the valuethat would be generated by applying these production factorsin isolation. Conversely, if the elements of a business model,however well designed, do not reinforce each other, synergiesare less likely to emerge and the risk of failure will increase. Insum, the beneficial interplay of the elements of a business modelis pivotal to its successful implementation. Conceptualizing thebusiness model as an interdependent system thus encourages“systemic and holistic thinking” instead of local optimizationsor piecemeal decisions (Zott and Amit 2010). 2.1.2. Industry 4.0 The first time the notion “Industry 4.0” (derived from the German term “Industrie 4.0”) was mentioned in public, was at the “Hannover trade fair” in 2011, Germany (Kagermann, Lukas, & Wahlster 2016). The following initiative set by the Federal Ministry of Education and Research, Germany (BMBF, Bundesministerium für Bildung und Forschung), also called “Industry 4.0”, intends to encourage the German manufacturing industry to prepare for the future of production (Bundesministerium für Bildung und Forschung 2016). In the meantime the term Industry 4.0 is also widely used across Europe. Consequently the term Industry 4.0 describes nowadays in general the digital transformation of the manufacturing industry, which is accelerated by exponentially growing technologies, like for example intelligent robots, autonomous drones, sensors and 3D-printing (Bundesministerium für Bildung und Forschung 2016). Other terms appearing along with Industry 4.0 are the “digital transformation”, the “Internet of Things” or the “Industrial Internet (of Things)”. These terms are also applied interchangeably with the notion Industry 4.0 and the last two are used more commonly in the United States and the English-speaking world (Deloitte 2015, p. 3). Furthermore other companies like for example Cisco are using the term “Internet of Everything” (De Bernardini 2015). All these notions are referring to similar technologies and applications, but can have different origins and meanings. Whereas Industry 4.0 is focused specifically on the manufacturing industry, terms like the Internet of Things, the Digital Revolution and the Internet of Everything are more focused on enabling and accelerating the adoption of internet-connected technologies across industries, both manufacturing and non-manufacturing. Nevertheless, what all these terms and concepts have in common is the recognition that traditional manufacturing methods are run through a digital transformation (Deloitte 2015). 2.1.3. Retailing business model (RBM) a) Definition A business model is the manner in which a business chooses to serve its customers and stakeholders. In retail, a business model would dictate the product and / or services offered by the retailer, the pricing policy that he adopts. The communication that follows to reach out to customers 63
4. Kỷ yếu Hội thảo quốc tế “Thương mại và phân phối” lần 1 năm 2018 and the size looks at the location of Retailer’s retail store. This is termed in retail as a format in which the retailer operates. Fiigure 2. Retail Business Models Integrate Two Distinct yet Intertwined Dimensions (Sourrce: BCG analysis/ www. BCG.com) b) The elements of a Retail Business model - The value proposition is the differentiating offer the commppany makes to its customers. It includes the following elements: - The product or service, including the depth and breadth of assortment, private-label options, and product quality - The customer’s shopping experience, including the physical layout of the storre and the arrangement of merchandise - The pricing and revenue model, including the pricing strategy (such as high-low or everyday low prices) and value-added services, such as free delivery 2.2. Research Method The literature survey was conducted in articles indexed in Web of Science, Scopus and Business Source Premier Databasess, as they are the referents in our field, for the purpose of carrying out a critical analysis of collected data and the exposition of some conclusions and futurre research opportunities. The method of analysis used is the one proposed by Becheikh. In order to do this, the steps related to the establishment of the inclusion criteria and the strategy for the selection of potential studies are particularly important. In our case, the criteria used are the following: 1) The content must show the impact of Industry 4.0 business model in retail, 2) the research must illustrate Retailing Business Model Innovations from the Industry 4.0 approach and 3) the papers must reveal how the adoption of the Industry 4.0 affects the Business Models components. 3. Results and discussion Facing the impact of the Industrial Revolution 4.0, the retail model in Vietnam has changed 64
5. Kỷ yếu Hội thảo quốc tế “Thương mại và phân phối” lần 1 năm 2018 from Department Store model to Omni-channel model that integrates modern management and operation technologies. As retail technology continues to grow, the dividing line between the online business and traditional stores is becoming blurred. Omni-channel is a marketing method that unifies channels to increase brand coverage and customer interest, not only enhancing brand value but also driving sales significantly by crossing all media or devices that customers can reach and interact with, to make the purchase process more convenient. Omni-channel marketing makes a big contribution to the creation of Omni-channel retailing to serve the needs of social networking, website, and phone calls to smartphone applications. (Vietnam Retail Magazine, 2015) Omni-channel retailing is described by Rigby (2011:11) as: “an integrated sales experience that melds the advantages of physical stores with the information-rich experience of online shopping.” This is the retailer's all-in-one marketing model – the customers come from a variety of sources and use different devices to get retailer’s information. Omni-channel is increasingly popular due to the increasing number of Internet users, which makes it possible for retailers to increase their coverage at lower cost while still enhancing the value of the brand. This will significantly boost sales, providing retailers with an opportunity to reach their potential customers and enhance the shopping experience for consumers. Omni-channel marketing contributes significantly to the success of Omni-channel retailing, making consumers feel more interested in buying from websites, social networks, and mobile applications. (Vietnam Retail Magazine, 2015) There is a lot of confusion between Omni-channel and Multi-channel. Essentially Omnichannel is just a development from Multichannel. Omni-channel derives from the needs and potential needs of customers and focuses more on branding and customer experiences as they engage in buying behaviour. With the Omni-Channel, retailers will have two major advantages; first expanding the business everywhere without having physical shop and secondly diversifying easily into products, and capturing the market and segmenting the customer base. (Vietnam Retail Magazine, 2015) 3.1. Operational efficiency Efficiency refers to doing things right, that is, faster, cheaper, simpler. It entails making competent and productive use of resources without wastage. The retailing literature has identified several ways to improve operational efficiency. First, retailers can streamline back end operations to improve efficiency. Second, retailers have also sought to enhance the store environment in a manner that reduces costs and increases profits. Related research has focused on identifying optimal store layouts, merchandise displays, and shelf allocation, which have all been shown to impact consumers’ purchase decisions. Finally, cost savings can be realized by adopting new technologies that automate processes previously handled by employees. Such technologies can streamline both the store environments and back-end operations. 3.2. Operational effectiveness While efficiency refers to doing things right, effectiveness entails doing the right things. Operational effectiveness and operational efficiency are distinct concepts: for instance, reaching 80% of a target market indicates high effectiveness; doing so in a streamlined way, with as little waste as possible, is indicative of operational efficiency. In other words, operational effectiveness is about producing desirable results by operating in a manner that maximizes organizational objectives (such as long-term profits or extent of target market reached). Examples of operational effectiveness in retailing include matching product assortment with demand, or implementing flexible pricing, which extracts maximum profits from the distinct segments in the market. Retail effectiveness has traditionally been realized via investments in marketing research and data management focused on ensuring that customer needs are well understood. Insights from this type of research are then used for inventory and assortment management. 65
6. Kỷ yếu Hội thảo quốc tế “Thương mại và phân phối” lần 1 năm 2018 3.3. Customer lock-in The design theme of lock-in is intended to decrease customers’ propensity to search and switch after an initial investment, which is determined both by a preference to minimize immediate costs and by an inability to anticipate the impact of future switching costs. In retail, lock-in has traditionally been implemented through mechanisms that create a high incentive for customers to return to a store, such as a membership or a subscription to a retailer’s services. Lock-ins, while useful for securing repeat business, can put customer satisfaction at risk. Retailers are now seeking more subtle ways to create lock-in, where loyalty reflects enduring customer relationships rather than constraint-based (e.g., contract or subscription-based) repurchases. One element of the RBM that has been astutely leveraged to create lock-in is product assortment. Since retailers typically sell someone else’s products, it would appear that product assortment has little potential to be a driver of competitive advantage. Nevertheless, a few retailers have challenged this notion and have built their assortments around products that are unique, inimitable and which deliver a clear value proposition to customers. 3.4. Customer efficiency Customer efficiency involves making customers’ access to products as easy as possible. Not achieving a high level of customer efficiency not only fails to endear the retailer to the end customers, but also makes it a less attractive partner for manufacturers seeking to place their products in the marketplace. Retailers have traditionally sought to increase customer efficiency by offering the product in multiple locations, increasing the convenience of product displays or offering more sales support. The advent of the Internet has further increased the efficiency of the shopping experience by reducing customers’ search costs and by allowing them to purchase products that were previously not geographically accessible. The Internet has not only enabled selling in multiple channels (e.g., online vs. stores), but also selling across channels, by allowing customers to purchase online and pick up at a store, or access the retailer’s larger online assortment while shopping in store where they can take advantage of customer support. 3.5. Customer effectiveness Customer effectiveness refers to the degree to which the retailer is able to facilitate consumers’ realization of consumption goals. Increasing customer effectiveness has traditionally meant increasing the likelihood that customers find products that truly meet their needs. This has typically been achieved by increasing the depth of product assortment, often at the expense of efficiency. Some demand was left unmet, as serving the long tail was seldom considered cost effective. The growth of online shopping has led many retailers to focus on niche segments and on the long tail. Some simply capitalized on the reduced search costs that the Internet affords and the increased efficiency that arises from warehousing in centralized locations. Others, however, saw an opportunity to innovate their business models by changing their underlying governance mechanisms. Specifically, they passed on to their stakeholders – customers and suppliers – the role of determining the optimal depth of assortment and supporting services that the retailer should offer. 3.6. Customer engagement The theme of customer engagement involves the degree to which the retailer is able to design customer experiences that evoke emotional involvement that goes “beyond purchase”. An engaged customer has well defined perceptions of the retailer brand, often chooses to articulate these perceptions and occasionally identifies with the brand. We noted earlier that firms can engage customers through unique product assortments. Nevertheless, changes to product assortments are highly visible, and thus, imitable. A different, and perhaps more enduring way to engage customers has recently emerged: one where added value tie-ins, whether tangible or intangible, make for a multifaceted and emotionally stimulating shopping experience which leads the customers to uniquely bond to the retailer. Retailers are seeking to redefine their activities in a manner that also allows them to redefine their brand and the meaning that this brand carries in the minds of their customers. 66
7. Kỷ yếu Hội thảo quốc tế “Thương mại và phân phối” lần 1 năm 2018 Retailers have an advantage over manufacturers in leveraging the engagement design theme due to their direct access to the end customers. 4. Conclusion In Vietnam, the retail market is developing and very potential with the sales are increasing year after year. There are many retail players in the market at the moment, both Vietnamese and international. There are many advantageous factors supporting the development of retail industry. In Vietnam, traditional trade with wet markets and small-scale stores are dominating. The Industrial Revolution 4.0 has had a dramatic impact on sectors of the economy, including the retail market. Vietnam's retail market is moving from a departmental model to a new multichannel retail model, with a large multi-functional area advantage, from shopping to entertainment, becoming a viable option of many families in large cities. And regardless of how the retail model is changed, six issues need to be addressed: operational efficiency, operational effectiveness, customer lock-in, customer efficiency, customer effectiveness and customer engagement. REFERENCE [1]. Krafft, M. & Mantrala, M. K. (2009), ‘Retailing in the 21st Century: Current and Future Trends’, New York: Springer. [2]. Lewis, P. & Goodman, S. & Fandt, P. & Michlitsch, J.(2006), ‘Management: Challenges for Tomorrow's Leaders’, Connecticut: Cengage Learning. [3]. Litvack ,J. I. & Rondinelli, D. A. (1999), ‘Market Reform in Vietnam: Building Institution for Development’, Connecticut: Greenwood Publishing Group. [4]. Meldrum, M. & McDonald (2007), ‘Marketing in a nutshell: Key concepts for non-specialists’, Oxford: Butterworth-Heinemann. [5]. Merson, R (2011), ‘Guide to Managing Growth: Strategies for Turning Success Into Even Bigger Success’, New Jersey: John Wiley & Sons. [6]. Moschis, G. P (1994), ‘Marketing Strategies for the Mature Market’, Connecticut:Greenwood Publishing Group. [7]. Pahl, N. & Richter, A. (2009), ‘Swot Analysis - Idea, Methodology and a Practical Approach’, Germany: BoD – Books on Demand. [8]. Porter, M. E(2008), ‘The Five Competitive Forces That Shape Strategy’, Boston: Harvard Business School Publishing. [9]. Pringle, H. (2008), ‘Brand Immortality: How Brands Can Live Long and Prosper’, London: Kogan Page Publishers. [10]. Proctor, T (2013), ‘Strategic marketing: An introduction’. London: Routledge. 62 [11]. Wilkinson, T. J. & Kannan, V. R. (2013), ‘Strategic Management in the 21st Century’, California: ABC- CLIO. [12]. Witcher, B. J. & Chau. V. S. (2010), ‘Strategic Management: Principles and Practice’, Connecticut: Cengage Learning EMEA. 67