BUSINESS MODELS IN THE DIGITAL TRANSFORMATION ERA
Companies that are adapting to new technologies and becoming digitalized, structured in new ways, are called digital organizations of the future. According to Chew (2015), they are called DOOTF (digital organizations of the future).
Digital transformation is profoundly changing how value is captured and created, the new companies with new and innovative business models are born, and existing companies must rethink their business models to become digital (Itala, 2015).
Digital transformation of a business means discussing various types of business transformation by introducing or adapting value-added services and using new technologies to generate a direct impact on the delivery of results and the customer experience, making it one of the company’s main guidelines. Channels and processes will also be transformed, and the need to look for new models and revenue streams based on customer requirements will become necessary and, consequently, it will be mandatory to change the company’s internal culture to include “digital” at the heart of everything that is being done (Llorente, 2016).
In more digitally mature companies, the ability to adapt or redesign the business is determined in large part by a digital strategy clearly supported by leaders who foster a culture capable of changing and inventing the new. In digital transformation, one of the most evident attitudes is the taking of risks as a cultural norm, causing the most advanced companies to seek new levels of competitive advantage. Another equally important aspect is the preparation to adapt to the challenges and functioning of the company, thinking about the retention and attraction of new talents as employees of all ages that seek compatible opportunities to work and develop in companies committed to digital progress (Kane et al., 2015).
In view of this process evidenced in the academic and business literature, the contributions are (a) to verify in which factors companies should focus on the digital transformation of their business, through bibliographic review and interviews with expert consultants in this area; and (b) to demonstrate how business models can analyze the scenarios of digital transformation through business models.
For Swanton and Lehong (2017), digital business is a creation of new business designs that blend the physical and digital worlds. This creates an unprecedented convergence of people, businesses, and things that change business models and create new revenue opportunities.
Turban et al. (2015) define a digital business as a company that uses digital technologies and networks in the activities of buying and selling products and services, customer service, collaboration with business partners, conducting communications and transactions within the organization.
For Burton et al. (2018), a digital business or enterprise is a business that exploits data and analysis. While data also exists in analog business, in digital it becomes foggy, riskier, and more valuable; and analytics underpin the new intelligent and improved mode of business. Even if the organization has not yet decided to adopt a digital business platform, data and analytics need to be explored to improve business results and put data and analytics at the center of the strategy.
In the digital age, connection economics describes value creation by increasing the density of interactions between companies, people, and things. This new connection economy will continue to accelerate, change the way companies invest in new products, physical assets, information technologies, and people.
For Dorner and Edelman (2015), becoming digital in some cases requires being open to reexamining your whole way of doing business and understanding where the new frontiers of value lie. For some companies, understanding these new frontiers may consist of developing entirely new businesses in adjacent categories, while for others it may mean identifying and pursuing new value groups in existing industries. In addition, going digital means being in tune with how customer decision-making is evolving in the broadest sense. Understanding how customer behaviors and expectations are developing inside and outside of your business and industry is crucial to anticipating trends that can create or destroy value.
One of the essential pillars is to reconsider how to use new features to improve the way customers are attended. This is based on the obsession with understanding each step of a customer’s buying journey, regardless of the channel, and analyzing how digital resources can design and deliver the best experience possible across the enterprise. Since supply chain interaction is a key to delivering the right product efficiently, the way the customer wants, using data and metrics can find information about the customers who, in turn, drive the marketing and sales decisions. This process involves a cyclical dynamic in which processes and capabilities are constantly evolving, based on customer input, promoting permanent loyalty to the product or service.
Swanton and Lehong (2017) detail that when it comes to digital business, targeting aspects of customer value creation, companies can optimize existing business models or transform themselves by creating a business model. An enhanced customer experience is not delivered simply by focusing on the customer interface but is delivered by focusing on multiple platforms in executing a customer-focused strategy.