Many companies understand the opportunities presented by digital technologies, but lack a common language or framework to transform their organizations. Through extensive interviews and surveys, researchers at the MIT Sloan Center for Information Systems Research (CISR) have developed a framework to guide thinking about digital business models. The framework focuses on business design considerations and aimed to discover how much revenue is under threat from digital disruption and whether the company is focused on transactions or building a network of relationships to meet customers’ life event needs.
CISR analyzed 144 business transformation initiatives to determine the underlying factors that drive next-generation business models and they
found two common key dimensions:
Now, not every organization transforms in the same way because there is no one-size-fits-all approach to building digital business models. As companies evaluate their digital business model, they must answer several key questions. For organizations developing new digital business models best practices, the research suggest answering these 4 key questions is a good starting point:
Curious about the framework and Woerner's research? Join this Harvard Business Review webinar on Wednesday, May 30th to hear Woerner speak live with Oracle and share her research findings and insights about digital business models. http://ora.cl/oe8SH