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Digital transformation: opportunities to create new business models

Saul J. Berman (Vice President and Partner of IBM Global Business Services, the firm's global leader for strategy consulting and innovation and growth services (saul.berman@us.ibm.com) and the author of Not for Free (2011).)

Strategy & Leadership

ISSN: 1087-8572

Article publication date: 2 March 2012

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36813

Abstract

Purpose

According 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/approach

The 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.

Findings

The 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 implications

Companies focused on fully reshaping the operating model optimize all elements of the value chain around points of customer engagement.

Originality/value

The article explains how companies with a cohesive plan for integrating the digital and physical components of operations can successfully transform their business models.

Keywords

Citation

Berman, S.J. (2012), "Digital transformation: opportunities to create new business models", Strategy & Leadership, Vol. 40 No. 2, pp. 16-24. https://doi.org/10.1108/10878571211209314

Publisher

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Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited