Digital Business Models

Digital business models increasingly distinguish between those organisations that create compelling customer experiences and those that don’t. Without the ability to deliver a value-creating online and mobile strategy, customers will seek out those competitors that deliver seamless and engaging digital experiences.

May 2013

Customers want to interact with companies anywhere and anytime – one recent study found that 72% of customers said they would replace some traditional channels with mobile apps given the choice.

But the stakes are high when designing a digital business model. For instance, Netflix angered many of its customers when it separated its delivery via mail and digital delivery – alongside big price hikes. The company’s share price dropped 79% between July and November 2011. But when companies get their digital business models right, the results can be remarkable. For example, Amazon sold more e-books than physical books for the first time in May 2011. Moreover a new study found that organisations in the top third in terms of digital customer experience had 8.5% higher net margins and 7.8% higher revenue growth than industry rivals.

Research shows that three components of a digital business model – content, experience, and platform – can combine successfully to create a unique customer value proposition:

(1) Content (What is consumed?)

Information: Product information, price and use details, etc.

Product: Digital products, such as e-books, e-saver accounts, movies, software.

(2) Experience (How is it packaged?)

Experience can include customer-facing digitised business processes, community and customer input, expertise for informed decision making, recommendations, tools, and interface.

(3) Platform (How is it delivered?)

Internal: Other business processes, customer data, technology.

External: Proprietary hardware, public networks, partners.

Referenced techniques


Types of Innovations

Innovations may manifest in a variety of forms and are a critical competitive capability of most firms. Case study evidence presented alongside practical implementation steps, assist business leaders to understand how different types of innovation help to build an innovation culture.


Innovation Management

The concept determines the critical factors of innovation management. It reviews the managerial practices of successful innovators and summarises the strengths and limitations of innovative approaches.


Digital Marketing

The concept explores how digital technology can increase the effectiveness of campaign management and product/marketing design and execution. It includes case studies that illustrate real-life digital technology scenarios and reviews benefits of adopting digital marketing.



The concept has been designed to assist managers and business owners to set groups of experts who drop out of mainstream company operations in order to develop something new in secrecy or at speed. This theory provides an overview on how skunkworks groups work and how to implement them in an organisation.

Leaders Edge Magazine Image
Subscribe for free to:

The Leading Edge

Join thousands of leaders benefiting from their bi-monthly copy of The Leading Edge on topics like Digital Business Models, to keep themselves at the cutting edge of leadership and management thinking.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Trusted by over 200 organisations

2000+ people are already learning with KnowledgeBrief

Coventry and Warwickshire Mind

"As the line manager of a senior team member enrolled in the Senior Leader apprenticeship, I've witnessed firsthand how the functions, skills, study elements, and learning have enhanced the knowledge of the individual. While I have seen how the course benefits the individual, it also has benefited the organisation through an improvement in the breadth of leadership skills, policies, procedures, and strategic effectiveness. I believe our partnership with KnowledgeBrief will strengthen our organisation, and I will be encouraging other staff to participate in the apprenticeship."


"KnowledgeBrief are best in class for their Leadership and Management training, highly professional and extremely knowledgeable coaches"

Wiltshire Council

"My Apprenticeship through Wiltshire Council with KnowledgeBrief has enabled me to have a wider understanding of management principles. The guidance given was invaluable to enable me to obtain my chartered management qualification with Distinction."

Wiltshire Council

"Throughout the course, I was guided and supported by skilled Personal Learning Advisors and attended informative workshops. By gaining my CMI qualification in leadership & management, I have been able to advance my career to the next level in management."

AVIS Budget Group

"They are incredibly easy to work with and focus entirely on what’s required for success in your organisation and for your employees."

CLIC Sargent

"I would recommend KnowledgeBrief to any organisation looking for impactful leadership and management training. "

AVIS Budget Group

"In every aspect of our relationship with KnowledgeBrief, from sales to accounts and the Professional Learning Advisors, we encounter passionate and engaged people."

Tata Chemicals Europe

"The benefits the programme brings to you in your role, and throughout the organisation are incredibly valuable. I would recommend the Level 5 to anyone in a management or leadership position."


"It doesn’t matter what stage you are at in your Leadership or Management career, a Level 3 or 5 course will make you a better leader."

JPI Media

"I recommend anyone who is in a management or leadership role to take the course. It’s both challenging and rewarding and can only augment your existing knowledge and skills. You will grow as a leader if you take this course."

Equip your employees with the skills to increase results

If you would like to discuss how we can create your Leadership and Management Training Programmes, please get in touch