The impact of digital transformation is felt everywhere, from how businesses operate to how people interact with one another in society.
An excellent example of digital transformation is Uber, which has become the world’s leading taxi service despite not owning a single vehicle. This is a prime example of how digital platforms can revolutionise traditional business models.
However, the ripple effects of digital transformation go beyond just business models. They affect the core of societal norms and behaviours. For instance, digital platforms have enabled easy access and shared economies, driving a shift from traditional ownership to collective use.
Moreover, platforms like Facebook have redefined privacy in the digital age. A once sacrosanct concept is now fluid and malleable due to the ever-evolving boundaries of the digital world.
At the intersection of these changes lies the concept of “value.” In the digital realm, value is not just an economic metric but a multifaceted notion that encompasses tangible and intangible benefits.
These benefits could range from the emotional satisfaction of belonging to a digital community to the economic utility of a digital service. In the digital realm, value is a dynamic benefit crafted uniquely for every user and can include diverse benefits, such as benefits to the planet derived from sharing and decreasing overall consumption of resources.
As organisations embrace digital opportunities, they will need to design models that genuinely encapsulate this fluid concept of value. A digital business model’s success hinges on three pillars:
- Value Creation: Innovating solutions that resonate with evolving consumer behaviours and needs.
- Value Delivery: Leveraging digital channels effectively to ensure seamless, timely, and consistent delivery of value.
- Value Capture: Strategically capturing delivered value without eroding its perceived benefits.
Central to these pillars is the lifeblood of the digital age: data. Digital capabilities must be intricately woven with data capabilities. When harnessed effectively, data provides insights, drives personalisation, and underpins the dynamic value that digital platforms promise.
In conclusion, we must think from a consumer’s perspective as we continue our transition through the digital era. The blueprint for success in this digital age is to intertwine digital and data capabilities, always keeping the fluid concept of value at the forefront.
