This pattern relies on the ability to turn existing products or services into digital variants, and thus offer advantages over tangible products, e.g., easier and faster distribution. Ideally, the digitization of a product or service is realized without harnessing the value proposition which is offered to the customer. In other words: efficiency and multiplication by means of digitization does not reduce the perceived customer value.
How they do it: Netflix started out as a DVD rental service, realizing however that the consumption of digital content was growing. Hence it launched its online subscription service bringing the content to everyones home through the internet without needing physical storage such as DVDs anymore.
Learn more about Netflix →
How they do it: Cewe digitized the process of creating and ordering individualized products, utilizing your own fotos. Through their website, customers can create their products remotely at anytime and have them shipped to their home.
Learn more about CEWE Color →
How they do it: Airbnb has put the traditional model of peer to peer hosting on an online platform. They managed to add mechanisms which increase the market place’s participants trust despite barriers such as geographic distance or language barriers, making it safe to rent out and book accomodations from and to strangers.
Learn more about Airbnb →
How they do it: Facebook digitized a lot of processes around social interaction ranging from communication to sharing photos and organizing in interest groups.
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How they do it: Napster was a pioneer in the are of digitizing music in form of the MP3 format. Its intial platform allowed its users to share those MP3s. Although the service was shut down due to copyright violations, a lot of digital music services emerged afterwards building on the success of Napster.
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Below, the top industries for the pattern "Digitization" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 5 firms using this pattern.
Below, the pattern "Digitization" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
