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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: SAP pioneered ERP software, the integrated management of core business processes via software. Historically, ERP processes – such as finance, accounting, payroll or CRM-related processes – were done manually. With the advent of computing, SAP signed its first client in 1972, a German chemical company, for which it developed cutting-edge mainframe programs for payroll and accounting.
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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.
Learn more about CDnow →
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: With the iPod and the iTunes store, Apple digitized the music industry. Apple enabled users to download a greater choice of music than any physical store can have, anywhere and anytime. Having the music in electronic format eliminated cost of one additional copy of a song completely.
Learn more about Apple iPod/iTunes →
How they do it: Traditionally, encyclopedias were publications spanning many invididual book volumes, and were out of date within a short time after publication. Wikipedia contributed to the demise of Britannica’s publishing model and medium: The 2010 version of the 15th edition, which spans 32 volumes and 32,640 pages, was the last printed edition; digital content and distribution has continued since then. In 2005, Nature published a peer review comparing 42 science articles from Encyclopædia Britannica and Wikipedia and found that Wikipedia’s level of accuracy approached that of Britannica.
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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 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