For Today’s Modern Business, Implementing a Digital Business Model is Essential
It’s true. The 21st century business model must encompass a digital strategy, and it must be fluid and work within your existing model.
But how can this be done without disrupting business-as-usual?
Your fears are appropriate, and not without logic. It is the #1 fear that every CEO and business head deals with when considering switching to a digital business model.
D!igitalist Mag recently published an ebook entitled: “4 Ways To Digitally Disrupt Your Business Without Destroying It”, and within it are exceptional methods with which to painlessly implement a digital model within your business.
“For most organizations it’s no longer a matter of whether to adopt a digital business model but how to adopt it without damaging their existing business or customer base so much that they don’t survive the transition,” the author (undisclosed) writes.
4 Ways to Painlessly Digitally Disrupt Your Business
Don’t Shift Too Abruptly
In 2011, when Netflix infamously tried to get customers to switch from DVDs to streaming video by suddenly hiking prices 60% for plans that combined the two, the company lost 800,000 customers and its market capitalization plummeted 75%.
Don’t Be Afraid to Cannibalize
Although some companies’ legacy business models exist comfortably beside their new digital business models, many companies face watching their new creations nibble away at their existing customer base. The alternative is worse: watching competitors do it for you.
Manage the Declining Business Carefully
While you grow your new revenue model to attract new customers who are innovators and want to take advantage of new trends, you still have to manage your existing revenue stream, even though it’s shrinking.
Know When And How To Introduce The Digital Business Model
If your digital offering is superior to your legacy offering, it makes sense to pursue further disruption immediately. If it is inferior, introduce the digital offering gradually to keep pace with its maturation and/or its perception in the market and align market segmentation to the product’s evolution.
LinxSmart’s Business Apps Can Help Your Business Digitally Transform!
We build custom software for companies in scenarios where there is no off-the-shelf solution to the problem. We will analyze what issues your business faces and design a fully-customized Business App to work seamlessly within your unique business process.
Large, mid-sized or small business? It doesn’t matter. LinxSmart’s expert staff will design and develop custom software that will help your business to flourish.
Custom business software is all we do!