Digital transformation: opportunities to create new business models

Abstract

PurposeAccording to IBM research, companies seeking opportunities in an era of constant customer connectivity focus on two complementary activities: reshaping customer value propositions and transforming their operations using digital technologies for greater customer interaction and collaboration. This paper aims to address this issue.Design/methodology/approachThe paper explains that businesses aiming to generate new customer value propositions or transform their operating models need to develop a new portfolio of capabilities for flexibility and responsiveness to fast‐changing customer requirements.FindingsThe paper finds that engaging with customers at every point where value is created is what differentiates a customer‐centered business from one that simply targets customers well. Customer interaction in these areas often leads to open collaboration that accelerates innovation using online communities.Practical implicationsCompanies focused on fully reshaping the operating model optimize all elements of the value chain around points of customer engagement.Originality/valueThe article explains how companies with a cohesive plan for integrating the digital and physical components of operations can successfully transform their business models.