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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.


Apply this pattern to your own business and create your next innovative business model!

Examples: Iconic Cases

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: Airbnb has put the traditional model of peer to peer hosting on an online platform. They managed to add mechanisms which increase the market place’s participants trust despite barriers such as geographic distance or language barriers, making it safe to rent out and book accomodations from and to strangers.
Learn more about Airbnb →

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: 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: 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 →



Apply this pattern to your own business and create your next innovative business model!