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: 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: 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: 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: Nokia digitized multiple products and services in their role as one of the most popular mobile phone and smartphone company in the early 2000s. E.g. they pioneered in bringing digital photography and tv to mobile phones. Further examples include the mobile music platform Nokia Music Store which allowed phone users to download music on their devices.
Learn more about Nokia →
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