Change in Revenue Model
The shift from a cost-centric mentality to a value-driven approach has led to a change in the revenue model of organizations. Digitization has paved the way for new sources of income, such as digital products, subscription models, and data-driven services. More and more organizations are exploring ways to transform their existing products and services into innovative, digitally-oriented versions, enabling them to provide new value to their customers while generating new revenue simultaneously.
For example, traditional retailers launching online platforms to reach a broader audience and enhance customer engagement. This has led to new ways of interacting with customers and providing personalized experiences that were previously unthinkable (Read our blog on digitization and customer-centricity here).
Innovation through Technology
One of the keys to changing the revenue model through digitization is harnessing technological innovations. Organizations are investing in Artificial Intelligence (AI), the Internet of Things (IoT), (hyper)automation, and so on to create new business models and offer customer-centric solutions.
The digital revolution has led to a redefinition of the pace and nature of innovation, with a focus on continuously adapting and improving business processes and offerings. This also makes it increasingly challenging to keep up with competitors and market trends. Therefore, it's no surprise that more and more organizations are adopting agile approaches and business models (Read our blog on Agile ERPs here).
Sustainability and Responsibility as Value Creation
In addition to creating a competitive advantage and new business opportunities, sustainability also plays a role in the value creation that IT and digitization can offer to organizations. In a time when social awareness and environmental responsibility are becoming increasingly important, digital technologies can help achieve sustainable goals while generating value at the same time.
IT and digitization can assist in reducing your ecological footprint by streamlining processes and managing resources more efficiently. For example, implementing smart energy systems can lead to better energy consumption management and waste reduction.
Furthermore, digital platforms enable the promotion of transparency in supply chains, allowing responsible sources to be traced and ensuring that production processes are ethical and sustainable. This not only enhances your reputation but also meets the growing demand from consumers for sustainable products and services.