To accelerate business operations, digital transformation involves the establishment of every element of the business model into digital technology and acquiring it to offer and enhance the basics of functioning and delivering value to customers.
By 2023, 70% of G2000 CEOs are committed to producing at least 40% of their digital sales by 2025.
What is a Digital Business Model?
Every company must determine exactly what sort of offerings they want to provide and how they want to improve the digital transformation. There are so many fascinating new technologies that are still emerging that make your strategies essential for building a digital company model. Digital technologies are driving a significant shift in the way businesses to operate and value is created.
Growth in the Digital Economy
In 2021, 44% of CEOs believe that the rise of new marketing strategies will have a significant influence on their company.
Information exchange, collaboration, securing, regulating, and other expenses are present in all economic systems and market transactions. Digital transformation will reduce these expenses and hence strengthen value, the more transactions, the greater the potential advantages.
Types of Monetization Models for Digital Business
Monetizing in New Ways:
- Transaction based – Fee
- Subscription
- Pay per use
- Outcome-based
- Dynamic Pricing
Monetizing through New Channels
- E-commerce
- Mobile Apps
- New distribution
Monetizing New Assets
- Data Monetization
- IP Monetization
- Virtual Objects
Transaction based Fee-Based Business Model:
Buyers and sellers for various aspects of services and products include marketing, services, information, income, and generates revenue by charging buyers or sellers’ transactions.
Subscription-Based Business Model:
Customers pay regularly (daily, monthly, or annually) to have significant exposure to a certain product or service.
Pay per use Based Business Model:
Customers are paid for the usage and access, but they do not have their own product/service on request.
Outcome-based Business Model:
Offers APIs as a service that provides 3rd party developers with business functionality and capabilities.
Dynamic Pricing Based Business Model:
The Dynamic pricing models of monetization are based on achieving a specific outcome such as revenue share earned, number of new accounts, etc.
Data Monetization:
Ad-based business models and datasales via APIs are two examples of data monetization.
IP Monetization:
Offers APIs as a service that provides 3rd party developers with business functionality and capabilities.
Virtual Objects
Connecting users and suppliers in dynamic prices in almost real-time depending on the current market requirements.
E-commerce
E-commerce is based exclusively on website-based end-to-end transactions. Everything is controlled through third parties and vendors, from product selection to payments.
Mobile Apps
Mobile applications are used to purchase products and/or services. We also may observe the increasingly widespread purchasing trend using social media applications in this area.
New distribution
It involves the transition to direct-to-consumer (B2C) business models or new distribution ideas such as C2C or B2B2X. (where X stands for any type of end-user).
Digital transformation is emerging and quickly. Entire enterprises will be put at risk if they don’t adapt promptly, while other industries emerge from nowhere immediately.
Therefore, managing efficiency and offering real-time solutions is one of the most essential competencies in a digital age. However, the future will be brilliant for those ready to risk and who are aware of the underlying principles of digital transformation and the influence of technology.