How do SMEs in the Netherlands in manufacturing industries renewal their business model in the face of digital technological change

How do SMEs in the Netherlands in
manufacturing industries renewal their
business model in the face of digital
technological change

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
CHAPTER 2: THEORETICAL FRAMEWORK............................................................................6
Business model............................................................................................................................7
Business model innovation..........................................................................................................8
Digital technology......................................................................................................................11
REFERENCES..............................................................................................................................14

Title: “How do SMEs in the Netherlands in manufacturing industries renewal their
business model in the face of digital technological change“
CHAPTER 1: INTRODUCTION
In this modern era, every company wants to be competitive and for that they mostly used
advance technology. Such that due to digital transformation, each and every company profound
to have a change so that it will creates positive impact upon the firm. Moreover, by analysing
different situation, it is also quite necessary for the small enterprise to be gear up new and best
capabilities to acquire best transformational technologies for the accelerate growth. Therefore,
digital technology is not only means to using new model for smoothing of operation, but it is
actually responsible for sales, marketing, customer engagement and so on. Thus, digital
technology is actually consist of social analytics, working on Internet, cloud, digital platform,
Internet on things and mobile or online facilities (Henderson, Selwyn and Aston(2017). So, by
using digital technology, companies provide innovative products to their customers because it
will help to grab their attention and also increases the financial performance as well. SMEs are
currently accountable for approximately 99% of all firms, providing the main source of
employment, leading up to 70% of all jobs and generating between 50% and 60% of value
creation for the OECD economies (OECD, 2017)
Many SME have positive impact upon its business when they use such digital technology
like social media in which they promote their business and grab attention of many customer as
well. But on the another way, small companies in Netherlands also faces issues related to
adapting the digital technologies, though having a dynamic capabilities may acquire new
business opportunities to expand their business growth (Kane and et.al., 2015). But somehow,
SME faces issues related to employee resistance, and it is so because employees did not have
enough knowledge related to these advance technology and as a result, it will leads to employee
resistance. Thus, the current report will help to provide a better knowledge how manufacturing
industries business model is changing due to course of digital technological change. The chosen
form for this report is Rockwool which is founded as a family business and consider one of the
oldest firm, but now it Is well known and one of the leading manufacturer of stone wool. The
present study helps to raise knowledge related to digital technology and it is also analysed that
using advance technique into the working place will also help to grow small and medium
business to explore different ideas for new areas (Pagani and Pardo, 2017).
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In addition to this, it is also realized that adopting digital transformation to SME in
Netherlands face different issues and that is why it is essential to use digital technologies that
helps in the growth and expansion of the business. Further, as per the view of Nambisan (2017)
digital technology provides an open avenue for small business owners to reach wide range of
customers in order creates the positive impact upon business performance. Further, adopting new
models and implement the same into the working place will help the firm to raise it business
operations and also leads towards further level of success. Thus, it is also examined that SME in
Netherlands are legging behind when it comes to adoption of digital technologies which may
build as well as renew their resources and routines (Helfat and Martin, 2015). But there are
many OECD countries that also faces issue related to low productivity growth, globalization and
investment or rising high inequality from last few years. That is why it is essential to use
advance techniques into the working area that leads towards success.
Through this dissertation, researcher clearly outline the information related to OECD
countries and they are handle the digital transformation and then provide a significance
importance if digital transformation in the context of SME in Netherlands . Further, using
advance technology into the working area will also help the firm to change its current business
model into new so that it will support the company to enhance its overall image and provide the
best variety of product to their customers.
Business overview: The chosen firm or this research is Rockwool which is now one of the
leading manufacturing of stone wool insulation. Moreover, its products are majorly based upon
the innovative stone wool technology and that is why, it is consider one of the leading
manufacturer of Stone wool insulation. Moreover, the quoted firm also deliver the best solution
for the horticulture and marine offshore sectors, further, the company also committed to
empowering each and every employee that Rockwool will rise the development challenges of
modern living. This is possible only by using stone because it is consider one of the most
abundant natural resources that makes a lasting impact upon the future generations. The firm also
provides its best operation to their customers from last 80 years and have a global network of
sales officers, distributors as well as partners. Not only this, the company also provide a range of
services and as per company's history, it is analysed that firm uses advance technology in order
to cope up with different challenges and also raise its brand image. Rockwool also recognise that
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