Risks of digitalisation of business models

Abstract

Purpose – to identify the types of risks to be analysed during the process of digitalisation of business models driven by Industry 4.0 and determine which blocks of business model are affected most. Research methodology – FARE method as a Multicriteria decision support method for expert evaluation is used. Findings – results determine 6 types of risks: technical, competence, acceptance by staff, acceptance by customers and partners, data privacy and security and financial risks. The highest effect is shown in customer channels, key resources, and revenue stream and customer segmentation. The lowest effect is shown for key partners. Research limitations – research focuses on the level of enterprise and does not cover macro-level risks. Practical implications – Industry 4.0 brings new types of risks to be assessed. The results show that risk assessment matrix RADi (Risk Assessment of Digitalisation of Business Model) can be used by enterprises to identify areas of highest risks when planning and implementing digitalisation of parts or whole business model due to Industry 4.0. Originality/Value – a new risk assessment matrix RADi (Risk Assessment of Digitalisation of Business Model) is developed by the authors as a contribution to the systematic approach to the changes occurring because of digitalisation in the business models.