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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: As one of the first webmail services, Hotmail was a pioneer in digitizing traditional postal communication. It enabled users to set up a virtual inbox and send and receive email messages using the internet.
Learn more about Hotmail →
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: LinkedIn brought the possibility to network and search for relevant industry contacts to the internet. Through the LinkedIn network, users can communicate with potential business partners and identify new leads for collaborations, sales and recruiting. This allows reaching-out beyond your immediate physical reach or relying on trade fairs to meet potential new business partners.
Learn more about LinkedIn →
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: Facebook digitized a lot of processes around social interaction ranging from communication to sharing photos and organizing in interest groups.
Learn more about Facebook →
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