THE IMPACT OF DIGITISATION ON BUSINESS MODELS
Digital transformation is the key driver to the current changes we are experiencing in the business world. It affects directly the way we conduct our businesses, the way we live and how we consume goods and services. Additionally, it has forced businesses to re-invent themselves to realise new ways of working, explore new business markets and reconsider their business models. There are plenty of business models that enable new forms of cohesion between organisations which consequently leads to new products and encourage relationships between the consumers and employees. Below are 4 business models that will be most affected by the digital transformation in the coming years;
- NETWORKING BUSINESSES
Anyone in business will tell you that “it’s not what you know but whom you know in business.” No matter how well versed you are in a particular field, you are better off when you are in situations where you have one foot in the door. One of the best ways a business can expand its connections is through a network. It’s not a new concept but one that has become paramount through digital transformation. Under this point of view we can mention the example of a major performer in this digital transformation: Boring Market, a company that offers a drilling used machinery marketplace, able to sell and move worldwide, breaking the typical rule that heavy equipment can be obtained just on a local basis. This company has understood the importance of networking and is opening to a worldwide market to enhance the performance and efficiency of the company. No matter what business you have, the marketplace will always have competitors. With a dynamic global economy, networking is a must as you are not only competing with businesses within your region but all over the world.
- PROBLEM-SOLVING ORGANISATIONS
Digitisation has revolutionised companies that are geared to offer solutions to their customers. These companies include management consultants, healthcare services, analysts, certifiers, engineers, law firms and the list goes on. Gone are the days when a customer had to visit physical offices to get these professional services. Today, consumers are drawn to companies that are one step ahead with technology. These firms have become more efficient through the use of digital tools, communication avenues and collaboration platforms. This has consequently reduced the manpower needed in such areas and in some cases, digital technologies can supplement the professionals.
- MANUFACTURING COMPANIES
The manufacturing industry is one sector that has greatly benefited from digitisation as seen through the use of robotics, sensors, automation, simulations and other digital platforms. These digital tools have allowed these companies to bring mass production and customisation. Companies can now have instant local production of goods and done at a relatively low cost. A must-do for these firms is for them to embrace digitisation fast and strategies on how the same can intertwine with the goals and objectives of the company.
- RESOURCE SHARING PLATFORMS
Digital transformation has taught companies the importance of sharing not only physical resources but bb also informational and human resources. Such firms that use this business model include contract manufacturing, IT, HR and facility management. The logic behind resource sharing lies in the ability to build global delivery at scale. Previously, manufacturers relied on mass production of goods but the 21st century enforces mass production of services. This is seen through data processing, machine to machine communication and sensor-based surveillance.
