Digital business models

Essentially, the digital business model sets the blueprint for how a company does business on a digital platform. The longer a model proves itself, the more often it will be imitated by other companies. To use these models efficiently, they must be understood and implemented holistically and create added value for customers. Digital business models are about algorithms that are relevant for business via digital platforms. They are determined with the help of a software agent and are divided into four basic designs: 1. The one-algorithm model is mostly used at the beginning. It is subject to a single set of rules. 2. Networked digital agent models: A basic algorithm is extended by an additional software component. Networking of important platforms is also added. 3. Digital hub models: Here, the basis lies in the digital networking of software. The actual hardware, on the other hand, is sourced in real terms. 4. Agent-optimised business models: Digital networking optimises already existing models and is used primarily in communication and distribution.

Digital business models examples

With the first-and-fast-mover model, you stay one step ahead of your competitors and gain a competitive advantage. The temporary monopoly position is used profitably. The free model makes content available free of charge via the Internet. Revenues must therefore be generated via other means, for example through the advertising space that becomes free or an additional premium service for which a fee is charged. In the disruptive model, a product that dominates the market is gradually displaced. The new offer is usually inferior in quality, but convinces the consumer due to other features such as price. The open-business model takes the swarm behaviour of the animal kingdom as a model and cooperates openly with external partners. Predictive business models collect data and analyse it in order to be able to respond even more individually to customers in the future and predict their behaviour.

How do digital business models bring the desired success?

For long-term success after a digital transformation, consistent further development in the area of digital business models is essential. So-called open and free models in particular offer many advantages, but at the same time depend on clearly defined framework conditions to achieve the desired effect. The internet is always changing. It requires regular adjustments to business models, both in the technical and conceptual sense. Are smaller or medium-sized companies ready for digital business models? Digitalisation by far does not only affect large companies or corporations. Digital business models have the potential to fundamentally change entire economic sectors and markets. Modern technologies in particular inevitably lead to the establishment of digital business models. To remain economically successful and competitive, companies must see the digital transformation as an opportunity and recognise its added value. More and more small and medium-sized enterprises are recognising the opportunity to develop further through a digital business model. Even if the tried-and-tested business model still works, many entrepreneurs are already looking to the future with foresight and recognise the success factor, but also the challenges, of switching to a digital business model. Whether you want to develop a completely new business model or update the existing one – F&P will develop the optimal concept for you to successfully manage the transformation and align your business with the new digital age.

Why digital business models are worthwhile for small or medium-sized enterprises? Customers are now used to accessing services and products of all kinds at any time and are increasingly using search engines on the internet and social media channels to do so. Nowadays, customers are very well connected and informed, which increases their influence on the markets. The use of online marketing opens up new sales channels and increases the reach of advertising measures. Digitalised processes increase customer satisfaction and competitiveness and also shorten the value chain and make it more transparent, shorten process times and thus process costs. What opportunities lie in digital business models? Digital business models bring real added value to your company. These include: – Optimised customer experience – Added value for the customer through improved processes, products and services – Customer loyalty – Acquisition of new customers – Reduction of costs – Increased efficiency

F&P helps you to develop the right digital business models

You want an innovative concept and convincing results? Use our service for digital business models! Rely on our extensive expertise to use innovative technologies profitably. F&P is your competent partner. With our interim managers and consultants, we support you in developing and implementing the ideal concept for digital transformation. In doing so, we think and act in a solution-oriented way and never lose sight of our clients’ goals. With selected experts, F&P advises its clients on creating or changing existing business models. The many years of industry experience in all functional areas along the entire value chain and the implementation expertise make F&P one of the TOP consultancies in terms of digital business models. Contact us if you want to sustainably strengthen your competitiveness and secure the success of your company. Our tried and tested consultants look forward to hearing from you. Feel free to contact us and learn more about successful projects in our case studies.