Digital business models are becoming increasingly popular. No wonder, after all, a lot of money can be made this way. The possibilities are diverse and are already being used by many entrepreneurs and founders.

Digital business models and the way to get there

Digitization and especially digital business models have meanwhile achieved a particularly high priority for companies. This is particularly due to the fact that many new variants have emerged in terms of added value. The Internet in particular has long been integrated into existing business models. In some cases, however, this technology has even been used to create completely new digital business models and at the same time displace old options.

These not only determine the way companies work, they are also an essential decision-maker when it comes to generating profits. As a result, they automatically count as a key factor for the economic success of a company.

But how does a company decide which digital business model it wants to use at all? To answer this question, companies should analyze three aspects in particular.

  • offer (What can a company offer the customer?)
  • Customer benefit (How does the customer benefit from the offer?)
  • Value chain (Which options for designing a value chain are possible?)

Digital business models – these are the possibilities!

Some variants of digital business models have now proven to be particularly successful.

E-commerce

E-commerce is a very classic and widespread possibility for digital business models. Giants like Amazon or Zalando in particular have developed into successful retailers. But since smaller companies can easily transfer the typical offline principle of trading goods to the online world, this area is booming. Especially with regard to the competitiveness of companies, it is now almost fatal to forego the possibility of online shopping.

Platforms

But the use of platforms has also become enormously important as a variant for digital business models. After all, a marketplace is only made available here for supply and demand to come together, instead of producing or selling yourself.

Platforms that show the comparison of offers are particularly popular. Users benefit from the simplified search for companies and the simultaneous comparison. The key factor here is clearly the range. Well-known platforms make it almost mandatory for companies to appear online despite a fee and in direct comparison with the competition.

Pay per use

The pay-per-use model is so popular with users because they only pay for what is actually consumed. This digital business model is in great demand, especially with customers who refuse to pay fixed fees, but at the same time want to remain flexible in their use. Accordingly, it is also extremely attractive for companies looking for profitable sources of income, even though sales are comparatively difficult to calculate and plan.

Subscription model

Providers such as Sky, Netflix or ParShip have professionalized the subscription principle and thus made a wise choice when deciding on digital business models. With a fixed monthly fee from the customer, the revenues for companies are usually very stable and easy to plan. At the same time, such digital business models enjoy a high level of customer satisfaction, since the subscription is permanently available to the user.

Gambling or Coins

The gaming industry in particular was able to digitize itself successfully. For this purpose, the game of chance is displayed in the browser and credit or a virtual currency such as coins can be loaded. It charges as much as is needed to play. Some even now offer Casinos no deposit bonus at.

Freemium

Freemium is particularly popular as a variant of a digital business model in the app area. A basic service is offered free of charge, but a premium version is usually based on it. However, companies then only offer this extended service for a fee.

The regular version attracts many customers, some of whom are later also willing to pay for the expansion. Although there are of course fewer premium customers compared to the basic version, this number usually still allows the free option of cross-financing and still making profits at the same time.

If you want to find out more about digitization in companies, then please also read the following articles on these topics:

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Dr. Dominic Lindner
Author

I blog about the influence of digitalization on our working world. For this purpose, I provide content from science in a practical way and show helpful tips from my everyday professional life. I am an executive in an SME and I wrote my doctoral thesis at the University of Erlangen-Nuremberg at the Chair of IT Management.

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