The worldwide spending on digital transformation (DX) is projected to reach 1.78 trillion U.S. dollars in 2022. This spending is necessary, since digital transformation must be more than the digitalization of existing business processes, but the creation of completely new digital business models. With this being said, how can a “business model” be defined and how can the effects of the digital transformation on it be better understood? More about digital business models and the role of IP in the Industry 4.0 can be learned in the Certified University Course on “IP in the Industry 4.0 ” at CEIPI.
A business model describes the ways in which companies generate revenue and make profits, therefore it is vital to understand the core elements when defining a digital business model. The evolution of digital business models follows consistent patterns due to the digital transformation. Understanding those patterns makes it possible that digital business models can be systematically developed. Finally, digital patents can be systematically created and used to protect those digital business models.
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Constructing a successful digital transformation strategy involves; assessing the business model carefully for pin-pointing ways your business generates revenue and makes profit, competitive advantages, market position, and customer relations. An example for digital business model transformation is Netflix, by converting their mail order business model to online streaming by subscription, today it is one of the most successful entertainment media companies of all time.
Learn more about the digital transformation of Netflix and the role of IP from our blogpost here.