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: Nintendo was one of the pioneers digitizing gaming experience and making multi-player gaming possible on a Nintendo device or TV screen. This allowed the company to introduce a completely new form of gaming experience, vastly different from traditional, offline games.
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How they do it: Skype is gradually replacing the traditional telecom market, and replacing it with its digital alternative. In 2014, Skype’s traffic was almost 40% the size of the entire conventional international telecom market — that is, for every ten minutes spent making international phone calls on every mobile and landline network in the entire world, four minutes are spent on Skype.
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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.
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How they do it: CDNow, a pioneering Internet retailer of CDs, started exploring streaming services initiatives after being acquired by Bertelsmann Group in 2000. After being acquired by Amazon two years later, it was absorbed into Amazon.com.
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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.
