New business models in the digital world
No one disputes the fact that Digital Transformation is a phenomenon that is affecting us in all aspects, both business, social and personal. We are digital beings insofar as we consume digital services and use digital tools to work — in almost any kind of job —, consume and socialise. In fact, we hardly know how to live without carrying our digital appendage, the mobile phone, with us wherever we go. Our dependence on it has even been christened with a term that is beginning to catch on: nomophobia (no - mobile - phobia).
The truth is, however, that its direct impact is becoming even more evident in business (which has indirect repercussions on the social and personal spheres insofar as the services and products we consume are mutating as a result of this technological revolution).
In recent times, we have seen seemingly invulnerable Goliaths of the business world fall because of their inability to adapt to change and little Davids emerge as the new kings of the market.
What has happened? Essentially, new digital tools have revolutionised business processes, not only making them more agile and efficient but also permitting things that were previously impossible.
Not only do what we did before better, but we can do things that were previously unfeasible.
In other words, new business models have emerged, often replacing traditional ones. Let us review some of those that arose as a result of the digital revolution:
Subscription Economy
Subscription is not a new model per se. Who hasn't subscribed to a collectible — typically in September — that meant visiting the newsstand once a week to pick up an issue or a piece for a collection?
The novelty is that the same model has been reinvented to offer software, food, education or any consumer good. Even cars!
Netflix swept the market of giants such as Blockbuster, and Spotify brought about the dematerialisation of music (which is no longer on a physical medium but in the cloud). Virtually all video and music content for a monthly subscription.
Sharing Economy Platforms
Something similar has happened with the sharing of services. Digitisation has allowed for the efficient management of resources and their use, enabling Airbnb, Uber, Cooltra or Ubeeqo initiatives to offer accommodation, transport or vehicles at such competitive prices and with such a wide range of services that they have dealt a significant blow to the traditional hotel, taxi or car rental business.
Online Education and E-learning
The combination of advanced technologies in the provision of online courses and the spread of the culture of remote working — accelerated by the recent pandemic — has led to the abolition of borders to knowledge, and it is now possible to access knowledge and quality training from anywhere in the world. Inesdi is a good example of this.
Telemedicine and Digital Health
The provision of health services through digital platforms offering virtual consultations, remote patient monitoring, and remote wellness services has brought us closer to the universality of health services, although unfortunately we still have some way to go. Complex and costly tests are starting to require less travel. Care for groups with difficulties in accessing hospitals, such as the elderly, people with disabilities or, quite simply, those living in areas with a low population that do not justify the cost of hospital systems, can have access to quality medical care thanks to these technologies.
Business Models Based on Blockchain and Cryptocurrencies
Since its creation in 2008, blockchain technology has been taking slow yet steady steps in its entry to the digital market. Beyond cryptocurrencies — with their fluctuations and their impact on the financial market — and the speculative bubble of NFTs, the technology has extremely interesting applications that are in the process of expanding. A very relevant one involves smart contracts, which allow new formulas for business relations based on security, transparency, and decentralisation.
It will be interesting to see their impact in the near future on such traditionally stable systems as financial markets, the management of confidential information such as bank or medical records or notarial management.
Social and User Generated Content e-Commerce
Traditional markets controlled by large multinationals such as publishing and music are seeing how technologies that are highly complex yet perfectly affordable are allowing authors to publish their own books or musicians and singers to bring their own compositions to market, defying the economic barriers that have existed until very recently. It will be interesting to see which other markets are affected by — or should we say benefit from — this phenomenon.
Of course, social networks act as a loudspeaker for the dissemination of these initiatives.
Services based on Artificial Intelligence and Machine Learning
It is clear that an analysis of the impact of new technologies on business models had to include Artificial Intelligence and Machine Learning.
From chatbots to the specialised analysis of large volumes of data or the generation of content — to mention just a few of the many applications — they are having a direct and exponential impact on the products and services that are spreading around us.
These, however, are just a few of the many business models that are spreading around us. Others are also making spectacular inroads, such as financial technologies (Fintech and Insurtech), microfinance platforms (crowdfunding and crowdsourcing), and niche marketplaces.
All these new models are reshaping markets from top to bottom and, more interestingly, are offering opportunities for entrepreneurs both on an individual level and from relevant jobs appearing in organisations that are directly related to Digital Transformation.
If the key to creating a novel initiative lies in having a good idea and knowing how to implement it using the technological options available, the key to survival lies in the ability to adapt to change, to new technologies, and to market trends.