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: To combine their no frills business model with courses such as yoga or spinning, McFit introduced virtual fitness courses. These are pre-recorded videos of personal instructors which are displayed on a large screen. The courses are available 24/7 and can be used flexibly by the members.
Learn more about McFit →
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: 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: 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: Nokia digitized multiple products and services in their role as one of the most popular mobile phone and smartphone company in the early 2000s. E.g. they pioneered in bringing digital photography and tv to mobile phones. Further examples include the mobile music platform Nokia Music Store which allowed phone users to download music on their devices.
Learn more about Nokia →
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.
Top Industries
40% of firms using pattern
31% of firms using pattern
29% 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
10 pattern co-occurrences
10 pattern co-occurrences
9 pattern co-occurrences