Business Model Transformation: Embrace Value-Based Models For An Advanced Digital Economy
Digital disruptions are forcing enterprises to consider new ways of remaining relevant to customers; it has become difficult for businesses to grow amid the increasing customer expectations and respond faster to market demands. While many organizations have started their transition into the digital service ecosystem, they remain inefficient to handle the shifts in terms of competition and customer needs.
In fact, recent research from IDC shows that 44% of the CEOs think that the emergence of new business models will be highly impactful for their organization in 2021. Also, by 2022, 65% of the global economy will be digitized.
While the existing traditional business model is at risk, companies should find a way to grow in the same market and as well as expand in new markets.
Enter Digital Business Model. This innovative digital-led business model is about changing the fundamental way business is carried out and creating value by leveraging digital technologies. A well-structured digital operating model can help enterprises balance growth with risk and overcome technological hurdles. It also enables companies to upgrade their infrastructure to sustain an exponential rise in customer demand.
But when accelerating the journey toward digital destiny, companies face a set of challenges such as lack of organizational agility, poor ROI, disruptive competition, and uncertain regulatory environment that necessitate the need to adopt the digital monetization model.
To combat them, there are digital ways for the companies to deliver new value. There are 2 digital models for monetizing in new ways. These models help companies leverage pricing to deliver digital capabilities for different model transactions.
Transaction-based monetization
In this model, an intermediary matches the requirement of the buyers with the different types of services and products provided by the sellers and makes money through fees on transactions from the buyers or sellers. At the same time, the transaction-based pricing model is complex and its cost structure needs sophisticated design models and scalability. It is also difficult to have a consistent level of predictability and it takes time to figure out the price variations.
Subscription-based monetization
In this groundbreaking model, customers pay on a regular basis (daily, monthly, annual) to have access to a specific product/service on demand. It has a few subsets of models.
Pay-per-use
Customers pay to use and access the product/service on demand. This new model is characterized by a shift from upfront payment to periodic payments.
Dynamic pricing
Managing customers and service providers based on dynamic pricing in near real-time based on current market demands. It involves a few questions that need to be answered. How quickly the companies can change prices? How a price can be changed based on a combination of different factors?
It is based on the achievement of the given result. It ties the payment and contract renewals to measurable achievement and performance.
Mobolutions helps global companies to accelerate value in the digital economy. We have the potential to efficiently achieve technical integration with fulfilment processes, efficiency, and visibility – integration that includes supply chain, order orchestration, and delivery of the capabilities to the customers. We help you deal with increasing data volumes and different data analysis required as you shift from byte to Dollar conversion.
From selling transactions to developing relationship, we help enterprises build customer experience into the core of the customers’ ecosystem. It helps businesses develop stickiness to the customers. We also help you deal with and optimize the pricing constraints such as multi-currency, contract terms.
We have expanded our service portfolios to include a widening array of offerings to help enterprises’ transition into value-based pricing and get on with problem-solving technical solutions and integrated strategies.
