Transformation of LEGO GROUP Business Model in the Digital Economy
- DOI
- 10.2991/aebmr.k.211118.039How to use a DOI?
- Keywords
- business model; transformation; digital economy; LEGO Group
- Abstract
The article considers the concept and structural elements of a business model, defines the directions of transformation of business models in the digital economy. Based on the case study results and the methodology of A. Osterwalder and Yv. Pigneur a canvas of the LEGO Group business model was built. The strategy of digital transformation of the company’s business model is defined from nine typical strategies - the synthesis of the existing and new digital model. Changes in eight elements of the business model in the conditions of digitalization are revealed. The creation of films, video games, online platforms, a website and applications were added to the key activities. The company’s value proposition has been transformed, LEGO bricks have been supplemented with digital technologies and video games. Key resources have expanded due to software for 3D modeling and application development. The channels of interaction with customers through MyLEGONetwork and gaming platforms have been modernized. The costs of R&D and support of digital tools have increased in the structure of expenses. As a result of digital transformation of the business model (monetization of content, ticket sales in cinemas) LEGO Group’s revenues have grown 5 times in fifteen years.
- Copyright
- © 2021 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - L. Kapustina AU - O. Gaiterova AU - M. Agababaev AU - J. Kondratenko AU - P. Sidelnikova PY - 2021 DA - 2021/11/29 TI - Transformation of LEGO GROUP Business Model in the Digital Economy BT - Proceedings of the Second Conference on Sustainable Development: Industrial Future of Territories (IFT 2021) PB - Atlantis Press SP - 214 EP - 218 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.211118.039 DO - 10.2991/aebmr.k.211118.039 ID - Kapustina2021 ER -