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DEM: a way for companies to fulfill their digital transformation

DEM: un moyen pour les entreprises de mener à bien leur transformation numérique.

  • EditeurBearingpoint
  • Version PDF - 28 pages - 2016 - Anglais

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"One key feature of the most successful players in the digital era has been their ability to disrupt businesses through a platform-based model. This means they have been able to transform into aggregators in order to develop, connect and manage a various ecosystem of aggregated actors including buyers, sellers and third-party partners like developers or service providers, to innovate and create new offers, like Amazon marketplace or Apple with its ITunes platform did. In fact, according to Massachusetts Institute of Technology, in 2013, 14 of the top 30 global brands by market capitalization were platform-oriented companies. And according to IDC, there will be more than 100 new digital industry platforms from non-tech companies as early as 2016.

However, as digital platform model tends to become the new standard of digital transformation success, businesses increasingly need more flexibility by partnering more comprehensively with other industry and cross-industry businesses in order to produce an agile and constantly evolving set of products and bundles of services that deliver increased value to customers. This is where a Digital Ecosystem Management becomes relevant. The idea is to be able to propose to aggregate these products and services to offer tailor-made bundles to the customers. While digital platform based newcomers have disrupted numerous established companies during the past 10 years, new flexible digital platforms will fuel the acceleration of disruption during the next three to five years, leaving less and less time for established companies to react to change.

In fact, digital is driving many uses cases in various industries focused around digital ecosystem management issues. For example, automotive industry is currently trying to shift from a traditional business model of supplying cars to a new business model of offering in-car bundled digital services. Another interesting example is the digitalization of utilities industry. This digitalization will have a huge impact on the business model of utilities players, automating the way of doing meter-reading, enabling the creation of new services thanks to the data collected, and creating opportunities to propose bundled offers with an ecosystem of partners. As well, retail and CPG players are also experiencing their digital transformation and we already find a few interesting initiatives from these players using digital to foster different business models, shifting for example from a B2B2C business model to a B2C business model, to address new markets, through a digital platform and an ecosystem logic."

DEM: a way for companies to fulfill their digital transformation