Jan Bosch is a research center director, professor, consultant and angel investor in startups. You can contact him at jan@janbosch.com.

Opinion

Boost your digitalization: business model

Leestijd: 3 minuten

Digitalization allows companies to fundamentally improve the way they deliver value to customers from transactional to continuous. Transactional value delivery is where a mostly physical product is sold as-is and then deteriorates over time until it’s replaced with the next product. Continuous value delivery is concerned with using the installed base as an enabler to continuously deliver new value to customers through various ways including DevOps, DataOps, MLOps and A/B testing.

Although this may be obvious to many of you, many companies struggle with the fact that changing the way value is delivered necessitates a review of the business model used to capture part of that value for the company. The danger is that we monetize the offering using the traditional, transactional business model but then commit to a continuous cost structure where we’re expected to conduct R&D and other efforts to deliver continuous value over the lifetime of the product.

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