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E-book Digital Business Models : The New Value Creation and Capture Mechanisms of the 21st Century
Let’s stop the time, and rewind. Fifteen years ago, almost none of us had a smart-phone–the iPhone was first released in the United States on June 29, 2007. Tenyears ago, many of us owned a smartphone, and if we could do almost everything thatwe can do today via digital devices (the iPad was released in April 2010), most of usdid not.The digital devices were available; however, they were not as pervasive, and cer-tainly not ubiquitous. Most of the companies–Google, Spotify, Netflix, Airbnb, Uber,Strava, Slack, Twitter, Facebook, LinkedIn and YouTube, to name a few–that weregoing to shape our everyday interactions with one another, with ourselves and withcompanies and services had already been founded. Certainly, entrepreneurs toyedwith ideas and concepts, which are now well established; however, those conceptsand ways of interaction had not yet found their spot in our everyday life. We were–at least sometimes–still buying (and using) CDs and renting DVDs. We may stillhave called hotels to book a room and walked (or phoned) the restaurant for a pizza.We were running without knowing exactly how many kilometres we were runningand at which pace. Through our rapid adoption of digital devices and the lagging but corollary change ofbehaviour, we were expeditiously increasing the pace of the digital revolution. By2016, 3,668 billion smartphones were already circulating around the globe, and ac-cording to Statista, that figure has now doubled to a whopping 6,259 billion;1implyingthat around 84% of the world population (7.9 billion) is now digitally connected.Now, what about our behaviour? Well, it has also evolved, as we now spendmuch more time in front of our screens–between 1.5 and 7 hours per day on averagefor the western world!This is a cause for concern, and screen addictions are now a well-identified pathology.Consumer buying behaviour has also advanced. The 24/7 communication characteristicsof mobile technology have not added or withdrawn any steps in the consumer’s purchasejourney; consumers still undergo the need, research, purchase, experience, and sharingof experience stages. However, with a mobile phone, which acts now as a digital exten-sion of us, all these moments have now been merged into what some authors havedescribed as a digital ubiquitous moment of truth (Muzellec & O’Raghallaigh, 2018).2In the office, the pace of change was somehow slower. Decades of teaching andresearch in business schools taught us aboutlinear value chains, setting prices throughthe markup and estimating the value of a company through its potential market size.All of it is relevant and valuable in the real world; however, it is often not as useful inthe digital world.
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