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: Facebook digitized a lot of processes around social interaction ranging from communication to sharing photos and organizing in interest groups.
Learn more about Facebook →
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: 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: 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: 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 →
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