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Digitization 11#
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.
Examples: Iconic Cases
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.
Learn more about Napster →
How they do it: Amazon’s first product category was books. The value proposition of having an online book store is the possibility to offer the customer a greater choice than any book store.
Learn more about Amazon Store →
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: AWS allows customers to scale their cloud computing capacities on a as-needed model. Instead of needing to own and administrate physical servers, every business can access Amazon’s servers through AWS.
Learn more about Amazon Web Services →
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.
Learn more about CDnow →
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 22 firms using this pattern.
Top Industries
Services
58% of firms using pattern
58% of firms using pattern
Entertainment
50% of firms using pattern
50% of firms using pattern
Information Technology
39% of firms using pattern
39% of firms using pattern
All Industries
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.
Top Co-Occurrences
Two-sided Market
7 pattern co-occurrences
7 pattern co-occurrences
Leverage Customer Data
6 pattern co-occurrences
6 pattern co-occurrences
Long Tail
5 pattern co-occurrences
5 pattern co-occurrences