Digital transformation enables existing businesses to leverage digital technologies for business model innovation. The process of digital transformation is not just about new distribution channels. It starts by better serving key customers, and it completes by developing a new business mindset required to succeed in the digital era.
Contents
- Busting some myths around digital distribution
- Dynamic thinking and dynamic markets
- Mastering the key customers’ key behaviors
- Digital business models
- Platform business models
- Digital distribution channels
- Digital platforms business models
- The upcoming era of Superplatforms
- Business model innovation
- Related Innovation Frameworks
Busting some myths around digital distribution
As any concept that successfully developed in the business world, digital transformation has been exaggerated and emphasized, and it has, in some contexts, lost meaning.
Digital distribution is not a digital transformation
Companies and practitioners might use the term “digital transformation” to mean that a traditional company advertises its products online. However, this is such a limited view that brings companies to talk about digital transformation when all they are doing is not even close to it.
Understanding digital distribution is the first step to digital transformation. But the process can’t be complete until the company hasn’t transformed its business model to those digital channels.
Technology does not imply digital transformation
While technology can be leveraged to have new insights about customers. Technology alone won’t help if a fundamental mindset shift won’t happen.
Therefore, technology, if properly used, it does help the process of digital transformation. Yet technology is an enhancer (which can also negatively affect your business), not the bonanza, or the primary driver of your business.
Digital transformation is not a side project
Many companies that approach the digital world are fooled to think that a little investment in time and resources will do. The problem with this approach is the lack of understanding of the core principles underlying digital business models.
Digital transformation is not digitalization alone
Imagine a successful printing publisher who starts publishing its content online. Even though the content is well adapted for physical printing and distribution, that is not thought for digital distribution.
The printing publisher comes to the conclusion that digital transformation won’t work because of that. Yet digitalization or digitizing something is not digital transformation!
Dynamic thinking and dynamic markets
Digital transformation implies a more dynamic thinking process. That’s because digital channels do add potential complexity to the mix. Thus, thinking about your business as a monolithic block might limit this process.
With digital channels and business models, it’s important to be aware of the core part of the business that needs to be controlled.
Mastering the key customers’ key behaviors

In the FourWeekMBA interview to David L. Rogers, he explained how:
Across all different industries and across, really about fifteen years or so of the digital era. And what I found was that five common behaviors kept driving when and where customers would bring their attention and their energy and their investment and spend their money:
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Access
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Engage
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Customize
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Connect
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Collaborate
Digital business models

Digital businesses by nature have born as native digital companies. As such they took for granted the process of digitalization that instead organizations born before of the Internet era, could not understand. That doesn’t mean those companies are superior or follow better business models.
It only implies that they learned to master the digital landscape, which is highly scalable and prone to take advantage of network effects.
Platform business models

Digital distribution channels

Digital platforms business models
Digital platforms are focused on creating ecosystems that enable interactions among key stakeholders. When those ecosystems thrive that is when you’ve built a successful business model.
The upcoming era of Superplatforms
As the digital world enables new business playgrounds (like Blockchain-driven businesses) the whole digital trasformation playbook evolves.
In the FourWeekMBA interview to IBM’s Jerry Cuomo highlighted:
The big trick in the business playbook is to design business processes that can be worked across a team.
Business model innovation

Read Next: Business Model Innovation
In this process of business model innovation, some macro-trends and business forces have been taking place.
Read Next: Business Model Innovation, Business Models.
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