What's Your Digital Business Model?

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What is your digital business model? Many company leaders recognize the threats and opportunities presented by digital transformation but struggle with a common language and framework for assessment and direction. This practical book offers essential tools, self-assessments, motivating examples, and financial analyses to identify potential profit areas. Drawing on five years of research at the MIT Center for Information Systems Research, it presents a straightforward, powerful framework tested with senior management teams worldwide. The authors reveal that digitization shifts business models along two dimensions: from value chains to digital ecosystems and from vague customer needs to a clearer understanding. These dimensions yield four distinct business models—Supplier, Omni-channel, Modular Producer, and Ecosystem Driver—each requiring different capabilities. The framework aids companies in clarifying their current position in a digital landscape and outlines steps to transition to higher-value digital models. Addressing the urgent need to "go digital," this insightful book equips readers to confront threats, seize opportunities, and develop effective digital strategies.