Digital Business Models & Customer Value
Three major digital business model archetypes drive the customer value: Service, Marketplace or Ecosystem
Digital Flywheel & Ubiquity
Home
Digital Business Models & Customer Value
Digital trends and technologies are threat and opportunity for any company’s business model and customer value creation. Customers are expecting the advent of digital paradigms – e.g. subscription models, 24x7 service availability, etc. – in all industries and for all products. Traditional products and services are compared to their digital-only peers. Companies need to evolve their business model and put the end user at the top priority of strategic changes.
- Seamless omni-channel integration
- End-to-end personalized and interactive customer experience
- Data-driven activities internally, towards partners and the end user
- Shift from vertical integration to (open) ecosystems
Business Model Archetype
Servitization
Marketplace
Ecosystem
Focus
- Customized, asset-heavy solution
- Close, long-lasting relationship
- Vertically-integrated offering
- Broad product/service offerings
- Ability of matchmaking of products & customer needs
- E2E customer experience
- Broad, complementary product/service offerings
Why ?
Increase customer lifetime value
Increase existing customer base
Reach out to new, adjacent customer segments
How
Transform products into digital services: sale of access/rights instead of ownership of product
Offer product portfolio on established marketplace or setup new digital marketplace
Participate on platform as producer, business partner or ecosystem orchestrator
Servitization
- Customized, asset-heavy solution
- Close, long-lasting relationship
- Vertically-integrated offering
Increase customer lifetime value
Transform products into digital services: sale of access/rights instead of ownership of product
Marketplace
- Broad product/service offerings
- Ability of matchmaking of products & customer needs
Increase existing customer base
Offer product portfolio on established marketplace or setup new digital marketplace
Ecosystem
- E2E customer experience
- Broad, complementary product/service offerings
Reach out to new, adjacent customer segments
Participate on platform as producer, business partner or ecosystem orchestrator
Digital Business Models drive Customer Value!
New digital business models are created all the time, but can most often be described as the digitalization of the current business models. For the successful emergence of a digital business model, companies need to focus on one of three archetypes of digital business.
- Servitization: From products to service with continuous evolution, long-lasting customer relationships, vertical-integrated offering
- Marketplace: Digital platform to increase customer and partner base and create mutual value value
- Ecosystem: (Open) community integration to create an end-to-end customer experience beyond the individual company capabilities
Want to know more? Get in touch!
