E5.003 (ReIMAGINE Your Business) DIGITAL BUSINESS MODELS & PLATFORMS - WILLIAM EASTMAN

Today we are going into new territory - an attempt to explain what we are doing as we are discovering it.
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INTRODUCTION
If there was ever a show where it was my brain on paper, it is today. We have never wrote about this topic because it is what we are developing and building as we go.

OBJECTIVES

1. ​What does it mean to use a digital business model?

WHAT YOU NEED TO KNOW
A digital business model is creating value by developing customer solutions using digital technology.
Defined

• A digital platform provides the core or additional value not possible using any other medium - Airbnb
• Usually delivering new products or services, not just enhancements - gaining a more intimate picture of the customer that allows for the development of new offers
• Digital models are used for both the development of new value, it also is how the value will be delivered.
• Customers are willing to pay for the addition value.

Digital Business Models

• ​Freemium: some or all of the services are free of charge. Used to manage onboarding of new customers and build\ needed for the Marketplace level.
• Marketplace: intermediary for other vendors / suppliers while selling the offer.
• Rent, not Buy: owning is not monetized, only consumption. This could include flat rate or volume based.

WHAT YOU NEED TO DO
Factors

• Knowledge of Customer
  • Partial > Complete
• Business Design
  • Value Chain > Econosystem

Options

• Suppliers
  • Partial & Value Chain
• Multichannel
  • Complete & Value Chain
• Modular
  • Partial & Econosystem
• Drivers
  • Complete & Econosystem

​"The World of Business at Your Fingertips" 

1. Follow the "ReIMAGINE Your Biz" Series all season.​
2. Join our private Facebook Group and go way beyond what is possible on radio
3. Get your business growth news everyday from IBGR.News​
4. DOWNLOAD the IBGR Growth App
5. RESEARCH anything related to Starting, growing, or Exiting a business on the IBGR Network

Source: Adapted from Peter Weill and Stephaine L. Woerner. “Thriving in an Increasingly Digital Ecosystem, “Sloan Management Review, June 16, 2015