While a number of companies with traditional business models have successfully executed a best-fit digital strategy to combat digital disruption, the majority are fairly far behind in evolving not just their value proposition but also the delivery mechanism.
From a customer engagement, operational excellence, and business transformation standpoint, there are four core business models that have been aggressively disrupted by the boom of digital.
With the creation of easy to use inbound marketing tools like C2, companies no longer rely on traditional agencies to populate customer data, segment it and sends personalized messages to it. All this can be done with a push of a button, as 800Flower.ae does for improving its conversion rate optimization. Emerging technologies in the advertising industry are bridging the gap between knowledge holder and buyer every day.
The likes of Sukoon, Airbnb, Uber, Amazon, Facebook and eBay have connected one market with the next, cutting out realtors, brokers, drivers, and middlemen. The beauty of this business model is the lack of creating by the internet companies in question. Airbnb owns no property, Uber owns no vehicles and Facebook creates no content. And yet, all are marketplaces that facilitate trade.
The likes of McKinsey and BCG have deviated away from core consulting and invested resources towards the execution of the strategy proposed. As services emerge promising the automate the regressive models they would sell in millions, a shift in business model become necessary. This shift towards digital savviness that imbues a quality and appreciation for the speed granted by software such as C2 speak to a wider change in behavior.
3D printing aside, lean technologies that allow for the creation of items in lesser quantities have been a core element lowering the barriers to entry for companies such as Dollar Shave Club. The prototyping phase and costs associated with it were cut down to unknowable extremes thanks to 3D printing. Robotics are the main “job killer” in the western world for humans and Internet of Things sensors embedded in GE’s turbine’s inform the global system that something needs to be repaired before an inspection engineer does.
The future revolves around digital business models, regardless of market size. The question remains to evolve of joining the ranks of businesses that are only remembered in business schools as case studies for failure.