In its simplest form, a business model is about three things:
The first wave of the digital revolution didn’t change this for most businesses; it simply allowed them to become more efficient, and exploit new channels to market. Looking forward, this will not be enough: the business models most companies are working with now will have to be amplified, or modified, and in some cases reinvented altogether.
In the second and third phases of the digital revolution, new players will come to the market using digital to develop new ideas and new offerings for customers, and deliver them through a whole new business model. They will be flexible, and they will be fast, and they’ll become the leaders of tomorrow.
There will be companies who have either the courage or the culture to make significant change to their existing products, markets, or way of working. In some cases, this will mean setting up completely new businesses, and allowing old and outdated versions to die.
There will also be companies who adapt more slowly and wait until there are proven concepts in the market. This is likely to be the largest group, and it will include many of the leaders of today, especially those in stable sectors with relatively conservative and risk-averse cultures.