Innovative Business Models: Development and Evaluation

This research aims to address the challenges and opportunities faced by AnalyticResearchGroup (ARG), a marketing consulting agency based in Saint Petersburg, in navigating the contemporary local business landscape. In light of geopolitical sanctions and the advent of Industry 4.0, the study focuses on developing a novel business model to enhance ARG's market share, awareness, and financial stability. The research methodology involves in-depth interviews with executives of ARG, supplemented by external environmental analysis using theoretical frameworks such as PESTEL and SWOT, internal and financial analysis. As a result, a comprehensive business plan based on insights from the literature review and tailored to ARG's specific context is created. The proposed business model aims to improve sales and profit margins, positioning ARG for sustainable competitive advantage in the Russian consulting market. The developed business plan includes three subsequent stages: automation, subscription-based offer development and customer success management practices implementation. Additionally, the study extends the understanding of business model innovation in sanctioned economies, offering insights applicable to similar industries facing environmental limitations. It contributes to the theory on novel business model development by focusing on automation in B2B service industry for subscription-based offerings. For practical implications, this study presents the management of AnalyticResearchGroup a guideline on how to improve its prosperity, at the same time optimising operational costs by implementing innovations. With incorporation of the developed solution, the company was able to halve costs for the corresponding internal projects.