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: Skype is gradually replacing the traditional telecom market, and replacing it with its digital alternative. In 2014, Skype’s traffic was almost 40% the size of the entire conventional international telecom market — that is, for every ten minutes spent making international phone calls on every mobile and landline network in the entire world, four minutes are spent on Skype.
Learn more about Skype →
How they do it: Napster was a pioneer in the are of digitizing music in form of the MP3 format. Its intial platform allowed its users to share those MP3s. Although the service was shut down due to copyright violations, a lot of digital music services emerged afterwards building on the success of Napster.
Learn more about Napster →
How they do it: Payback’s multi-brand loyalty and couponing program is a digital loyalty program. Customers can access coupons and rewards online from their computer or smartphone.
Learn more about Payback →
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: 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 →
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