Digital Business Models and Economic Value: Finnhammars Case Study

This case study analyzes Finnhammars, a Swedish accounting company, focusing on its digital business models and strategies for economic value creation. It examines the company's history, services, marketing plans, and market trends, highlighting the increasing use of technology and client growth through value creation. The analysis includes a SWOT analysis, competitive analysis, and the application of Porter’s Value Chain model. The study proposes development measures based on the Balanced Scorecard framework to enhance the company's strategic planning and sustainability. The study emphasizes the importance of adapting to technological evolution and understanding customer behavior to maintain a competitive edge in the digital market. The document also underscores the company's strengths, such as client loyalty and a strong contact network, in achieving its goals and mission.

Running head: DIGITAL BUSINESS MODELS
Digital business models
Name of the student
Name of the university
Author Note:

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Table of Contents
Introduction......................................................................................................................................4
Description of the Company........................................................................................................5
Analysis of the present Situation of the Company..........................................................................7
Marketing Needs of the Company...............................................................................................7
Marketing Plans of the Company................................................................................................8
Market Trends..............................................................................................................................8
Services Offered by the Organization........................................................................................10
Goals of the Company...............................................................................................................10
Vision Statement of the Company.............................................................................................11
Mission Statement of the Company...........................................................................................11
Accounting Frameworks used by the Business and Business Model........................................11
Figure no 1: Elements of Business Model.................................................................................13
Porter’s Value Chain Business Theory/Business Model...........................................................14
Figure No 2: Porter’s Value Chain Business Model.................................................................15
Target Market of the Company..................................................................................................16
Internal and External Analysis...................................................................................................17
SWOT Analysis.........................................................................................................................17
Competitive Analysis.................................................................................................................19
Proposal for one particular development measure on the economic value creation......................20

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The Balanced Scorecard............................................................................................................20
Figure no 3: The Balanced Scorecard........................................................................................21
Critical Reflection of the Total Situation.......................................................................................23
Conclusion.....................................................................................................................................24
References......................................................................................................................................26

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Introduction
The following work is based on the analysis of a company and preparation of a case study
to determine the present ways by which a company generally undertakes measures to increase its
economic value in the market. The study will verify the different ways and processes along with
the increase in the value of the goods and services that it provides to the end customers of the
business. Value and Supply chain have been studied widely in the field of the strategic
management. The value networks have gradually gained importance in the fields of e-commerce
and mobile commerce business. However there is a lack of study for the same applications in the
areas of accounting business (Witjes and Lozano 2016).
The studies have mostly been theoretical in nature and the absence of empirical studies
concerning the creation of the values in the organization. The objective of the organization is to
analyze the present situation of the organization in terms of the economic value creation that also
includes the use of the different kinds of digital and other kinds of advanced technologies that
helps the organization to gain a competitive ground in the business market. The case study will
thus highlight the importance of value creation by the organization and will help it to serve the
organization in a much better manner.
Another important factor that has been highlighted in the following case study is the
importance of the technological evolution of the companies along with time. Revolutions in
technology have occurred since the growth of the different kinds of organized communities and
are according to the researcher’s phenomenon accordingly. The findings from the different
studies that compare the technological shifts clearly state that there is an exceptional rise in the
pace and the development of the different kind of technological shifts. The rise in the popularity
of the digital market has been attributed to the growth of the technological growth. The shift in

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the behavior of the customers has been the main reason behind such a shift of the business
houses towards digital transformation.
After the introduction of the outsourcing concept in the business market, the business
organizations started to enter into joint ventures, alliances, partnerships, outsourcing and many
other such similar ventures to ensure the profitability in the market. The example of
Finnhammars Company has been taken in regards to the following study.
Description of the Company
Finnhammars is a small yet sophisticated Accounting Company located in Sweden. The
company has a brief history. Set up in the year 1983 by Ola Spinnars and Bo Finnhammar along
with the help of four other different colleagues, the company had the vision to create an audit
firm based on strong client relation base and effective service (finnhammars.se 2018). The main
focus of the management of the organization that was targeted included the likes of the small and
medium sized organizations that were present in plenty in the business organization. The
company officials aimed to provide these companies a combination of both auditing along with
advisory services.
The company which started with just a few people on board had now grown into a
medium sized accounting firm with 50 different people now working in the organization. The
office of the company opened in Downtown Stockholm in the year 1998 downtown Stockholm
opened in 1998 when Hans Sundstrand and Ulf Christiansson with colleagues, previously part of
Leanders Revisionsbyrå in Stockholm, joined the organization. Bengt Beergrehn and Peter
Olofson from Dahlström & Partners accounting firm joined 2009 (finnhammars.se 2018). All the

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above mentioned people were highly qualified in their part and thus they helped in the formation
of the company and also helped in the growth of the Company name in the market.
The shift in the generation started from the younger partners and continuously increased
the share in the partner group. At the present scenario the company is operated by 12 different
partners with Malin Markman being the CEO of the organization (finnhammars.se 2018). The
company under him has taken a number of different decisions that has helped it to make a mark
in the Swedish business market. According to the management of the company, the organization
believes that their strategic planning is well ahead of times and is sustainable for the next 30
years under different kinds of circumstances. The largest strength of the company is the loyalty
of most of the consumers towards the business organization.
Bocken et al. (2014) has stated that running an organization is not easy at all as because the
operators of the organization must stay updated about the legal and other tax related issues. The
professional advice and a proper consultancy is one of the most important areas where the
company plays an important role. The company offers a large number of tasks for its clients that
includes the likes of the;
a. Accounting Matters
b. Restructuring
c. Preparation of the Tax Returns for the client or the client company
d. Financial analysis
e. Changes in Generation
f. Issues involved in shares and that involves with the Swedish companies
g. Assistance in dealings with the authorities of the business

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h. Providing excellent legal or financial guidelines to the client organization
i. Setting up abroad and internalization
Apart from the above mentioned services provided by the business there are also many other
financial and legal services provided by the organization.
The organization began its operation from Sweden since 1983 and since then has gradually
expanded its base in the country. The presence of a large and effective contact network as well as
the collaboration with large number of experts that includes Lawyers, attorneys, tax consultants,
accountancy firms as well as legal firms (finnhammars.se 2018). This collaboration helps the
organization to establish contacts with the different people and establish right kind of contacts
for the organization. The auditors are generally much happier to establish the perfect contacts. At
an international level, the company represents two of the worldwide networks for accounting.
Analysis of the present Situation of the Company
Marketing Needs of the Company
Finnhammars provides both a tangible along with an intangible value. The main task of
the organization is to reduce the tax burdens faced by the clients of the organization and also
follow the different state and Government laws on accounting and finance. The bigger picture
will reveal that the management of the company has been providing peace to the consumers or
the clients of the organization (Grant 2016). Thus it can also be said that the clients of the
company have been legally and wisely by the use of the personal financial resources in one of
the best possible manner as possible. These help the business enterprise to make the complex
process of auditing and accounts easily understandable. The company acts according to the
advisory role as prescribed by the clients of the organization. This helps the organization to have

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a much better influence and optimize the personal as well as the corporate wealth. Unofficially
the aim of the organization is thus to help the clients to make profit and also provide a tension
free life for the clients.
Marketing Plans of the Company
Before the introduction of the marketing plans of the organization, it is important for the
organization to have a clear idea about the market of the organization. The organization has been
a full size service accounting firm that generally tends to serve the business and the personal
needs for the particular class that is present in Stockholm and other major cities of Sweden. The
most important clients of the company generally lie in the range of middle to small scale
business group that relies on the services for the accounting needs (Witjes and Lozano 2016).
The preparation of tax and planning is only the basic start as the management strives to become
an integral part of the financial management and the planning process. The clients of the
company rely on the business organization as because they value the time as well as the
resources and also seek to minimize the tax obligations of the organizations (Burns 2016). The
clients must not be presented with any negative surprises. They must realize and appreciate the
values through the services offered by them.
Market Trends
The market trends of Finnhammars can be segmented into three different categories
accordingly, Increase in the use of technologies, client growth through value creation and growth
of the business market.
 Increasing use of Technology- As said earlier, there has been a large-scale rise in the use
of technology by the accounting firms of the market. The use of tax software is the

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modern trend in the accounting business and therefore it is said to be a major competition
and continues to erode revenue from the different clients with very simple returns. This
kind of design thus includes the use of new online tax systems and other online financial
products. New Software has also been a proper and efficient resource that helps to
increase the effectiveness of the business organization (Wirtz Pistoia Ullrich and Göttel
2016). For example, the organization has been producing in excess more than 50% of the
work and thus online systems will be of a real help to reduce the time and save costs.
 Growth of Client- According to, (Upward and Jones 2016) the presence of a number of
important clients has experienced an increase in the growth as well as a good amount of
success in the market. Meeting the needs of these clients is utmost necessary for the
organization as because it provides additional opportunity for the Company to grow and
survive strategically in the business market. Such marketing also helps to gather quality
knowledge and expertise in the field of the business. These are marketed to the other
clients and used as a point of interest to attract more and more clients from both Sweden
and the other countries where the company has served before.
 Market Growth- The growth of the market is a quite natural phenomenon and the growth
rate of the total target market has averaged quite proximately to 7.56%. This has been
possible mainly due to the establishment of the business in the following area. The
growth rate of the organization has seen a sharp rise in the last few years due to the
increase in the business opportunities that were provided from different new clients who
were new in the industry.

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Services Offered by the Organization
As mentioned by (finnhammars.se 2018), the services offered by the organization
enable the clients to better realize the different kind of financial objectives of the business and
also help to accomplish the following for the clients into the different areas of service
accordingly;
Clients of the Business
 Tax Advising, preparation as well as planning
 The services that are consulted includes the likes of;
a. Corporate Pension- Consulting
b. Industry-Specific Consulting
c. At-Risk Business Consulting
Individual Clients
 Tax Advising, Planning and the preparation for the individuals
 Consulting Services that includes the likes of
a. Pension Planning
b. Retirement Planning
c. Personal Lifetime Financial Planning
Goals of the Company
The goals of the business are as follows;
1. To be one of the best Accounting Companies of Sweden
2. To satisfy the clients by means of proper accounting procedures

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3. To sustain itself in the highly competitive market
Vision Statement of the Company
The vision statement of the organization highlights the future aims of the organization.
The management of the organization tends to become one of the best and largest accounting
companies of Sweden in the near future (finnhammars.se 2018). The growth of the organization
in the market will mainly depend on the rise in use of different kinds of technologies. The
digitalization of the business organization will help in ensuring the profitability and sustainability
of the organization.
Mission Statement of the Company
At present the mission statement of the organization is to continue being a profitable firm
that has the capability to achieve the different financial objectives of the business stakeholders
and also provides a clean and successful environment for the workers. The firm will be
remaining strong growth as a provider to high quality professional services to the clients of the
organization (finnhammars.se 2018). The company tends to offer the innovative approach clients
need to reach their business and personal financial goals. The mission statement of the
organization thus focuses clearly on the development of the organization to be stable to the profit
and the developmental process of the business.
Accounting Frameworks used by the Business and Business Model
The Accounting Framework is used to measure, recognize, present and disclose the
information that generally discloses the information appearing in the financial statement of the
organization. The presence of the following framework has helped the organization to ensure a
clean audit program for the business. Finnhammars Company uses the IFRS standards as their

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accounting framework and carries on business according to the guidelines of IFRS
(finnhammars.se 2018).
The business models of the company are totally old as the art of the creation of new
business models. Each and every company in today’s world does not possess a business model;
rather they prefer different strategic decisions for carrying out different kinds of business
activities in order to make money, value propositions, preparation of strategic decisions,
managing the cost structures, creating healthy relationships with the customers of the
organization and many more as such (Schaltegger Hansen and Lüdeke-Freund 2016). The
presence of a proper business model can however make it easy for stating a business strategy
model and clarify on how to gain a competitive advantage in the business. The description of the
business model is required to gain the idea about the purpose which is to identify and guide the
company to the process of making money. The models of the business thus summarizes on how
the inputs are transformed to the outputs and thus creating value for the organization.
There are a large number of different business models that are used by the accounting
firms in the modern competitive market. The management of Finnhammars uses some of the
selected business models to ensure success for the organization. The elements of a business
models is important to understand the components that are required for the construction of a
business model. The model design elements must be clearly viewed in the below provided figure.