Business Modernization and the Role of Business Finance in This Process

This article is primarily concerned with exploring the concept of business modernization and its potential incorporation into an organization through the utilization of business finance principles. While previous studies have con - centrated on financial indicators, the authors recommend a more extensive approach that regards business modernization as an investment choice, ap - praising both risks and potential gains. The writers advocate for a thorough evaluation of diverse approaches to business modernization in order to ascer - tain their respective benefits and drawbacks for future implementation. The authors conducted an analysis of the most popular and modern strategies for business modernization in order to identify their corresponding advantages and disadvantages for organizations and their operations in markets. In addi - tion, they proposed to implement one of the analyzed methods for Apple Inc. For this purpose, the review of financial statements with the DuPont analysis for the company should be conducted. The outcomes of the analysis showed its investment potential and current financial position in the market and after that the authors proposed an appropriate business modernization strategy for the company. Although the strategy was evaluated in terms of potential return and risk in the paper. It is crucial to recognize that the conceptual and method - ological structure of this research derives from numerous sources encompass - ing statistical information, working papers on marketing and management by international scholars, as well as literature concerning business modernization processes and financial aspects. Through the utilization of a multifac - eted methodology, it is expected that this investigation will contribute to an enhanced understanding and deeper insights into the procedures involved in modernizing businesses as well as their financial implications.


Introduction
The absence of research on the subject of business modernization and the function of business finance may be the consequence of the necessity for more thorough instructions on how corporations can successfully perform modernization endeavors and use finance to support these attempts.This is crucial and well-liked because companies need to bring up to date their methods to adjust to shifting industry dynamics and technological progress.For enterprises to successfully pursue capital, manage risk, and allocate resources, finance is essential to the process.Moreover, there is an increasing necessity for modernization and digital transformation in the business finance sector.
The primary objective of the study is to find the best approaches and techniques that corporations may implement to modernize operations with the assistance of finance, that will eventually lead to consistent profit maximization.
In order to reach the aim of this study we have set these tasks: • conduct the analysis of the most popular and modern strategies for business modernizations in order to identify their corresponding pros and cons towards organizations and their operations in markets; • review financial statements and conduct the DuPont analysis for the company in order to identify its investment potential and current financial position in a market; • propose an appropriate business modernization strategy for the company and evaluate it in terms of potential return and risk.

Literature review
Scholars and practitioners have devoted significant attention to the subject of business modernization, as well as the function of business finance, due to its significance in promoting competitiveness and long-term viability within organizations.The objective of this literary examination is to evaluate and integrate the contributions of four prominent experts in the discipline, specifically Dr.Richard L. Nolan (1985), Dr. Robert S. Kaplan (1996), Dr. David Axson (2016), and Dr. Vijay Govindarajan (2019) and many others through a comprehensive analysis and combination of their works.The knowledge and perceptions provided by these individuals have been essential in enhancing our comprehension of the correlation among modernization, finance, and performance management within establishments.
The beginning of the literature review will center on Dr. Richard L. Nolan, a prominent scholar in business administration at Harvard Business School whose area of expertise lies in information technology strategy and organizational change.Dr. Nolan has authored a multitude of scholarly publications that investigate the impact of technology on propelling business modernization and transformation.Dr. Nolan's study focuses on technology-driven business transformation, accentuating the need to align IT and business strategies while distinguishing technology's significance in achieving organizational objectives [1][2][3].
Dr. Robert S. Kaplan, an outstanding academic in the field of business administration at Harvard Business School, specializes in leadership development and performance management.He gained prominence for his contribution to developing the Balanced Scorecard -an essential tool employed by organizations worldwide to gauge their operational efficiency and effectiveness.In his work Dr. Kaplan has emphasized how corporate finance can play a crucial role in effecting transformative change and accomplishing strategic objectives for enterprises [4][5][6].
In this field, another significant contribution is the work of Dr. David Axson to which we would like to allude.Dr. David Axson, an expert in the fields of business finance and performance management, holds the position of managing director at Accenture Strategy.The focus of his efforts is to facilitate the conversion of financial operations within companies for enhancing their overall performance.According to Dr. Axson, emphasizing performance management and finance transformation plays a critical role in driving modernization forward.Through the optimization of financial processes that are aligned with strategic goals, organizations can attain enhanced effectiveness, flexibility and profitability [7, pp. 3-12; 8, pp. 3-14; 9, pp. 3-14].
As for our examination of literature, it's important to acknowledge the significant contributions made by Dr. Vijay Govindarajan in this field.He is an expert in strategy, innovation, and change who teaches business administration at Dartmouth College.His research focuses on pro-Економіка та сталий розвиток moting a culture of experimentation that fosters business modernization through innovation.According to him, corporations should prioritize investing in new technology and adopting transformative measures to stay competitive and grow their businesses successfully [10, pp. 56-57; 11, pp. 5-7; 12].
The field of business modernization and the role of business finance have been greatly influenced by the scholarly works of many researchers as a final observation on this subject matter.The knowledge and skills possessed by these individuals have facilitated organizational changes, enhanced financial operations, and accomplished strategic objectives.
Academics have highlighted the significance of considering modernization and finance as crucial components for achieving success within an organization based on their research findings.

Results
In order to perform the analysis of the most popular and modern strategies for business modernizations and identify their corresponding pros and cons towards organizations and their operations in markets, we have set the table with assessments of every approach (Table 1).
In the contemporary business environment, which is characterized by rapid changes and reliance on technological advancements, enterprises are persistently exploring novel strategies to enhance their procedures, optimize activities, and facilitate informed choices [13][14][15][16][17][18].The occurrence of this phenomenon has resulted in the development of diverse commercial techniques, some of them are mentioned in our work (Table 1).Distinctive advantages and disadvantages are inherent to each of these methods, presenting varied avenues for enterprises to attain their objectives.Within this section of the discourse, we shall delve deeper into these approaches by examining their fundamental characteristics, advantages and possible disadvantages.Understanding these methodologies enables businesses to assess the most appropriate ones for their requirements and objectives, as well as how to effectively execute them.The incorporation of digital technologies to revolutionize business processes and operations constitutes the implementation of a business strategy known as digital transformation.The term has gained significant popularity among business communities, owing to its potential of enhancing organizational processes and maintaining competitiveness in the contemporary digital era.Digital transformation, as with any corporate tactic, comes with advantages and disadvantages [19].
The advantages of digital technologies [20]: • Digital transformation has the potential to enhance efficiency and productivity by optimizing procedures, automating recurring duties, and facilitating instant data analysis.• Employing digital tools and platforms enables enterprises to develop custom-made and integrated customer experiences, which augment contentment and devotion among their customers.• Digital transformation fosters enhanced flexibility and creativity by allowing corporations to promptly adapt to market fluctuations, generate novel goods and services, and maintain a competitive edge.• Through the implementation of digital processes and cloud computing technology, organizations can mitigate expenses associated with tangible infrastructure and storage facilities.This approach may result in substantial long-term cost savings for enterprises.
The disadvantages of digital technologies [21]: • The implementation of digital technologies presents obstacles to organizations in terms of considerable investments needed for technology, workforce development and training.In addition, it is a daunting task to integrate such initiatives with the overarching business strategy.• The escalation of digital tools and platforms has resulted in a corresponding rise in cybersecurity risks.It is, therefore, imperative for companies to allocate sufficient resources towards implementing robust security measures that will safeguard their systems and data from cyberattacks.• The issue of data privacy is a pertinent concern with digital technologies, as it involves the gathering and evaluation of large vol-umes of information.This can lead to apprehension about data security due to the mounting occurrences of breaches and controversial incidents.• In any organizational transformation, including digital technologies, the problem of employee resistance is frequently encountered.The adoption of new technologies, workflows or processes may be resisted by employees which could potentially impede the success of such initiatives.
The adoption of digital technologies can offer substantial advantages to enterprises, however, meticulous preparation, financial commitment and supervision are imperative in addressing the attendant difficulties and hazards.
The following technique we would like to mention is Lean Management, a corporate procedure concentrated on determining and getting rid of inadequate operations through ongoing cycle modification.The central purpose is to nurture a beginning of dealing with issues and constant improvement, prioritizing the deduction of excessive resources utilization and stepping up productivity.This strategy is applicable in diverse organizational backgrounds, varying from industrial exhibitions to medical services.It instructs enforcing an assortment of lean management methodologies strived at realizing these goals.As with any business tactic, lean management presents advantages and disadvantages [22].
The advantages of lean management [23]: • Lean management is centered on the optimization of processes, ultimately resulting in a heightened level of efficiency and productivity.• Lean management emphasizes reduction of wasteful tasks and concentrates on continual improvement, which enhances product and service quality.
• Lean management has the potential to improve customer satisfaction and retention by providing superior quality products and services in an accelerated manner.• Lean management can bring about a reduction in costs related to inventory, labor, and production through the elimination of all the waste and enhancement of efficiency.
The disadvantages of lean management [24]: • The adoption of lean management necessitates a transformation in cultural norms The implementation of lean management can yield substantial advantages for organizations, however, its successful execution necessitates meticulous strategic preparation, financial allocation and effective supervision to surmount the correlated impediments and hazards.In order to effectively implement lean management strategies, corporations must attain equilibrium between immediate profits and prolonged strategic foresight.To accomplish this feat, organizations must allocate resources toward employee training and support.
The agile methodology, as the third approach under investigation in this study, is a project management strategy that entails decomposing tasks into small and incremental phases and flexibly adjusting to variations.Despite its frequent usage in software development, this technique can be applied to various types of projects.The primary aim is to facilitate swift product or service innovation and experimentation, while enhancing teamwork through enhanced collaboration and communication among team members.The agile approach necessitates a considerable level of adaptability and readiness to modify oneself according to the evolving needs of the project.As with any corporate approach, the agile methodology possesses advantages and disadvantages [25][26][27].
The advantages of agile methodology [26]: • Agile methodology is formulated to offer intensify flexibility and adaptability, enabling businesses to promptly react to fluctuations in the market or customer demands.
• Agile methodology has the potential to enhance the standard of products and services through its emphasis on collaboration, circular processes, and ongoing improvement.
• Agile methodology has the potential to enhance customer satisfaction and loyalty through effective delivery of products and services in a timely and efficient manner.• Agile methodology can lead to cost savings in project development by means of reduction of wastefulness and efficiency improvement.
The disadvantages of agile methodology [27]: • The implementation of agile methodology could pose complexities and difficulties, particularly for sizable organizations or those that have hierarchical management structures.• The utilization of agile methodology demands the presence of a competent and committed labor force, which may pose an obstacle for organizations to establish and retain.• The agile methodology prioritizes swift iteration and ongoing enhancement, resulting in a lack of predictability when it comes to projecting project outcomes and timelines.• Agile methodology may result in an excessive focus on collaboration, which could compromise individual responsibility and accountability.
The implementation of agile methodology has potential advantages for enterprises, however, addressing challenges and risks demands a meticulous approach towards planning, investment and governance.To effectively apply agile methodology, corporations must maintain a harmonious equilibrium between adaptability and consistency while also allocating resources towards the development of their staff.
Cloud computing is a way to store, handle and work with information on faraway servers.It gives many advantages such as saving money, expanding easily, and being adaptable to companies without having to buy expensive hardware or software tools.Like any business strategy, cloud computing has its pros and cons [29].

Economics and sustainable development
The advantages of Cloud computing [30] In summary, modernizing operations, cutting expenses, and improving efficiency are now common goals for firms using cloud computing.
The Internet of Things (IoT) is a network of interconnected gadgets and sensors that gather and send data.Businesses may obtain real-time data about their operations and make better decisions by utilizing IoT technologies.For instance, a manufacturer might employ IoT sensors to monitor the functionality of their machinery and enhance their production procedures [32].
The advantages of IoT [33] Artificial intelligence is data analysis and prediction or decision-making done using machine learning algorithms.AI may be used by busi-Економіка та сталий розвиток nesses to streamline operations, spot trends in data, and reach better conclusions.For instance, a business might utilize AI to examine client data and provide tailored goods or deals [35].
The advantages of AI [36]: The current business landscape demands that enterprises seek new approaches to im-prove their operations, streamline activities and promote informed decision-making.This study examines three methods: digital transformation, lean management, and agile methodologyeach with unique benefits and challenges -as potential solutions.Successfully incorporating these strategies into a business requires careful planning, financial investment, and efficient oversight to mitigate associated risks.Ultimately it is up to the enterprise to assess which method aligns best with their specific goals in order for them to achieve success within today's competitive environment.Now, let's consider how these approaches can be implemented by modern enterprises.How should be they analyzed and evaluated in terms of potential return and risk?Here we proposed the following steps: Step 1. Provide a brief company's overview.Apple Inc. a multinational technology corporation, engages in the production and distribution of smartphones, personal computers, tablets, wearables, and accessories.Established in 1976 by Steve Jobs and Stephen Wozniak as co-founders, Apple offers a broad range of products such as iPhone series devices along with its Mac line for desktops and laptops.Additionally, catering to consumer demands are iPad tablets while users can benefit from the Apple Watch for their wrist wear needs or access content through Apple TV.The company's services division is also experiencing rapid growth via iCloud cloud service offerings alongside digital streaming platforms like Apple Music & TV+ [38].
Step 2. Conduct the review of financial statements for the company.

Economics and sustainable development
The liquidity of Apple has witnessed a remarkable surge from $107.2 billion in 2019 to $191.8 billion in both 2020 and 2021 [39][40][41][42], as indicated by the increase in its cash and cash equivalents figures.This financial growth has facilitated uninterrupted investments into Research & Development (R&D) initiatives while concurrently advancing business operations expansions for the company's benefit.
Apple has exhibited steady progress and commendable financial achievements in the past two years, signifying its favorable prospects for forthcoming accomplishments.Nevertheless, just like any other enterprise, it is crucial to keep an eye on potential hazards and obstacles that could arise in the future -such as variations in market circumstances, rivalries among competitors or innovations affecting technology.
Step 3. Conduct the DuPont Analysis for the company in order to identify its investment potential and current financial position in a market.
The DuPont Analysis method is commonly used for assessing financial performance, which dissects the Return on Equity (ROE) into three constituent factors: Profit Margin, Asset Turnover, and Financial Leverage [43].The following illustrates each component's function and its applicability to Apple: • Apple's profit margin can be attributed to its premium pricing approach, effective management of supply chain operations, and a powerful brand image.This has enabled the company to maintain a profitability level that exceeds those observed in the industry at large.• Apple's efficient operations allow it to make effective use of its assets.The company's high asset turnover ratio is a result of its strong sales growth and effective inventory management.• According to the financial leverage ratio, Apple is moderately dependent on debt for financing its operations.The company's substantial cash reserves and consistent cash flow provide it with sufficient funds to support its expansion and investment endeavors without excessive reliance on borrowing.
According to the DuPont Analysis, Apple is in a robust financial position and has promising investment prospects.Its capacity for generating high profits, running operations effectively, and maintaining moderate financial leverage creates a solid foundation that can lead to future expansion and profitability.
Step 4. Propose an appropriate business modernization strategy and evaluate it in terms of potential return and risk.
We reckon that Apple ought to incorporate AI (Artificial Intelligence) into its modernization plan.AI technology enables machines to execute tasks typically associated with human intelligence, such as decision-making, language translation, visual perception and speech recognition.A thorough assessment of the possible benefits and drawbacks related to the implementation of AI at Apple are presented below: Overall, the benefits of adopting AI at Apple appear to surpass any potential risks.As a vital element in achieving commercial success, Artificial Intelligence has gained significant prominence and Apple's technological background provides it with an edge to capitalize on its potential for driving expansion and novelty.Prioritizing ethical concerns, ensuring smooth assimilation into current operations, and investing resources towards consumer adoption are indispensable measures for attaining maximum advantage from employing AI technology within the organization.

Conclusions
We conclude that all tasks of the study have been completed, in particular: analysis of the most popular and modern strategies for business modernizations in order to identify their corresponding pros and cons towards organizations and their operations in markets; reviewed financial statements and conduct the DuPont analysis for the Apple Inc. for two years in order to identify its investment potential and current financial position in a market; proposed an appropriate business modernization strategy for the company and evaluated it in terms of potential return and risk.
We had to add that the contemporary business environment requires enterprises to embrace commercial advancement and incorporate financial planning in their operational processes.The capacity to respond efficiently to dynam-ic market conditions necessitates an agile and adaptable approach, for which modernization presents a wide range of strategies and resources suitable for attaining success.
The significance of business finance in modernization is paramount.By practicing efficient financial management, corporations are empowered to make informed choices about investments, budgeting, and forecasting.Precise financial data enables companies to recognize prospective areas for enhancement and allocate resources appropriately, optimizing the utilization of their available capital.
Moreover, contemporary financial technologies have facilitated companies in refining their monetary procedures while augmenting swiftness and precision in financial reporting.The advent of cloud-based accounting systems, digital payment platforms as well as blockchain-based fiscal instruments has rendered managing finances more accessible and economical than ever before.
However, in the contemporary business environment, the significance of both corporate modernization and finance cannot be overstated.To stay competitive, companies must adopt novel technologies and strategies while leveraging financial management tools.This will not only ensure their survival but also enable them to flourish by achieving sustainable growth and long-lasting success.