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: Brainpool founded an online comedy video on-demand-platfrom called ”MySpass” solely distributing its content online financed through advertising. The content is partly content from TV made available online or exclusive additional content.
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How they do it: For consumers, Dropbox made owning a local, physical harddrive for file storage and backup obsolete. The data storage capacity offered by Dropbox’s Cloud replaces the traditional paradigm of saving files on a system in customer’s offices or homes.
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How they do it: Salesforce digitizes a considerable degree of customer interactions and makes them accessible for data processing and analysis on its platform. Thereby, Salesforce’s customers can stay on top of their own customer’s needs in an unprecedented way.
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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.
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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.
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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