Digital business models allow companies to create, deliver, and capture value in new ways using digital technologies. They involve moving from controlled value chains to complex networks and gaining a better understanding of customer needs through engagement. Key questions for companies include assessing the digital threat to their current model, identifying the best new model, their competitive advantages, and having leadership capable of digital transformation. Successful digital business models are ecosystem drivers that coordinate networks to create value for all participants.

1. Digital Business
Models
Tathagat Varma
Sr. Director, Technology Strategy & Business Operations, Walmart Global Tech
Doctoral Candidate (EFPM), Indian School of Business (ISB)

2. Disclaimer
These are my personal views.

3. What’s a Business Model?
HOW DOES A COMPANY
WORK?
HOW DOES IT RUN ITS
BUSINESS?
HOW DOES IT CREATE,
CAPTURE AND DELIVER
VALUE?

4. All models
are wrong!
All models are wrong, but some
are useful! – George Box

5. Why do
we need a
Business
Model?
From: Digital Business Models – Bernd W. Wirtz, 2019

6. Evolution of Business Models
From: Digital Business Models – Bernd W. Wirtz, 2019

7. Business Plan vs.
Business Model
https://www.businessmodelcompetition.com/general-information.html

8. Business
Model Levels
From: Digital Business Models – Bernd W. Wirtz, 2019

9. Components
of a Business
Model

10. How do we describe
a business model?
• Alexander Osterwalder
created Business Model
Canvas (BMC) as a visual tool
• It is a simple and powerful way
to describe how a company
intends to make money
• Nine blocks cover four main
area: customers, offer,
infrastructure and financial
viability.
https://www.123rf.com/photo_129012742_stock-vector-business-model-canvas-template-with-icons.html

11. What is Digital?
Technology-centric
view: it’s all about
technology!
Customer-centric view:
it’s all about how a
company engages with
customers
Business-centric view:
it’s an entirely new way of
doing business
Organization-Centric
View: it's all about the
new way of working
Process-centric view: it's
all about being agile and
lean
Data-centric view: it's all
about how a company
uses data
Strategy-centric view:
it's all about how a
business delivers value!

12. What’s a Digital Mindset?
“Being digital is about using data to make better and faster decisions, devolving decision
making to smaller teams, and developing much more iterative and rapid ways of doing
things. Thinking in this way shouldn’t be limited to just a handful of functions. It should
incorporate a broad swath of how companies operate, including creatively partnering
with external companies to extend necessary capabilities. A digital mind-set
institutionalizes cross-functional collaboration, flattens hierarchies, and builds
environments to encourage the generation of new ideas. Incentives and metrics are
developed to support such decision-making agility."
https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/what-digital-really-means

13. Drivers of
Business
Model
Innovation
From: Digital Business Models – Bernd W. Wirtz, 2019

14. Stages of
Development
in Digital
Business
Integration
From: Digital Business Models – Bernd W. Wirtz, 2019

15. Digital Business
Model (DBM)
Framework
• Digitization is compelling
companies to move their
business models on two
dimensions.
• They are moving from
controlled value chains to more
complex, networked systems.
• They are moving from less
familiarity with customer needs
and life events to a better,
closer understanding of them,
resulting in better customer
engagement.
From: What’s Your Business Model? – Peter Weill and Stephanie L. Woerner

16. Ecosystem Drivers outperform!
Ecosystem driver: organizer of
an ecosystem, a coordinated
network of enterprises, devices,
and customers to create value for
all participants, which is the
destination in a particular
domain (such as shopping),
ensuring great customer service;
includes complementary and
sometimes competitor products
From: What’s Your Business Model? – Peter Weill and Stephanie L. Woerner

17. Key questions for
transformation in
the digital
economy
Threat: How strong is the digital threat to your business
model?
Model: Which business model is best for your
enterprise’s future?
Advantage: What is your competitive advantage?
Connection: How will you use mobile technologies and
the internet of things (IoT) to connect and learn?
Capabilities: Are you buying options for the future and
preparing for the necessary organizational surgery?
Leadership: Do you have the leadership at all levels to
make transformation happen?
From: What’s Your Business Model? – Peter Weill and Stephanie L. Woerner

18. Components of a Digital Business Model
https://sloanreview.mit.edu/article/optimizing-your-digital-business-model/

19. Sources of
Competitive
Advantage in
Next-Generation
Enterprises
From: What’s Your Business Model? – Peter Weill and Stephanie L. Woerner

20. Digital
Business
Model
Innovation
From: Digital Business Models – Bernd W. Wirtz, 2019

21. A Businerss
Model
Innovation
Framework
From: Digital Business Models – Bernd W. Wirtz, 2019

22. B2C Digital
Business
Model:
4C-Net
From: Digital Business Models – Bernd W. Wirtz, 2019

23. Developing Hybrid Business Models
From: Digital Business Models – Bernd W. Wirtz, 2019

24. Drivers for
Developing
Hybrid Business
Models
From: Digital Business Models – Bernd W. Wirtz, 2019

25. B2B Digital
Business
Models:
4S-Net
From: Digital Business Models – Bernd W. Wirtz, 2019

26. Assessing
Your Digital
Business
Model
https://sloanreview.mit.edu/files/2013/03/a0741a07b2.pdf

27. Success
Factors of
Digital
Business
From: Digital Business Models – Bernd W. Wirtz, 2019

28. Recap