Old business models are being transformed digitally

August 6, 2015 Torben Rick


-

Old business models are being transformed digitally

The brick and mortar way of doing business is already becoming outdated. The old business models are being transformed digitally. Technology being an enabler is changing the fundamentals of business and the revenue stream of many organizations.

It’s really difficult to understand that a company like Blockbuster is out of business considering once upon a time it had approximately 60.000 employees and over 9.000 stores. But disruption is sweeping!

 

Complacency will kill the cat - Curiosity didn’t kill the cat

Transforming to a digital business

Netflix is one of the most prominent exsamples in the digital transformation space. The company’s business model or strategy is streaming videos by paid subscription. This is a radical innovation if one consider the fact that prior to Netflix, the only way to rent movies was through Cable companies and brick and mortar stores, where Blockbuster was a major player. There ability to create and capture value has led to incumbents including Blockbuster and “Mom and Pops” video rental services going out of business.

Netflix started as a mail order DVD rental service and gradually transitioned to a video streaming service. With 65 million subscribers – Netflix predict it will have 69 million subscribers by the end of the third quarter 2015 – Netflix has moved to a video nexus of unrivaled proportions in just eight short years.

The transformation journey

Hopefully there aren’t many leaders out there thinking that their organizations are immune to the Blockbuster scenario. Businesses need to think of proactively transforming themselves or they will be left behind. Being left out in the transformation journey will “kill” most organizations. So don’t get stuck in the jar!

 

Short URL & Title:
Old business models are being transformed digitally — http://www.torbenrick.eu/t/r/quy

Share it:
If you enjoyed this article, please take 5 seconds to share it on your social network. Thanks!

Torben Rick
Old business models are being transformed digitally

Read more...

Previous Article
The relentless evolution of technology
The relentless evolution of technology

The relentless evolution of technology From clunky phones to the sleek...

Next Article
Top 10 ways social media can facilitate change management
Top 10 ways social media can facilitate change management

Mastering the art of changing quickly is now a critical competitive...

Get the Latest People Performance & Human Capital Resources

Download