Every company in every industry will be dramatically affected by the digitization trend. How can your company remain competitive and achieve growth in this digital environment? Today, many industries are experiencing a wave of disruptions flushing over them. If they don’t act fast, they might just end up as the next Kodak case.
What is a digital business model? Well, it is so much more then a Facebook page and a presence online. If you have a digitized business model, it affects how your employees work, how you build your costumer relationships, and how your company exploits internal and external capabilities.
Two companies who I am following closely these days are Airbnb and Uber. These two companies have really taken a grasp on the idea of digital business models. There has been written great books on the field, but one of the best ones is Exponential Organizations “Why new organizations are ten times better, faster, and cheaper than yours (and what to do about it)” by Salim Ismail and Yuri van Geest.
One of the key takeaways from the book is that the core mechanism behind why some companies turn exponential is that traditional business structures have put an organizational/legal boundary around an asset or a workforce and sold access to that scarcity. However, just in the last few years, we now think about how we can tap into all that is around us, instead of owning it all. Uber dos not own their own cars. Airbnb don’t own their hotel rooms, and that is some of reasons why they are experiencing this extreme growth.
Some executives may see this trend as a threat while others see the possibilities. Digital disruption is creating an underling growth – for those who understand the possibilities.
Companies may ask themselves:
- How will digitalization affect our current business models?
- What doors will open in this new digital environment?
- What competence do we need to build to be a leader on the field of digital business models?
These and similar questions are topics we explore in the upcoming program “Digital business models” (the program will be held in Norwegian). This course is designed to guide business leaders on how they take on the challenge of competing in a digital environment.