Most people recognize the vast impact technology has on our lives. It seems as if not one area has been left un-digitized.
This extends to the business world. Every company incorporates, and even relies on, technology to function. Without it, one would find themselves lagging behind the competition.
In this article, we’re going to be looking at what it means to be a “digital business.” We’ll cover what exactly this entails and why it’s becoming the go-to strategy for most companies.
Defining a Digital Business
When you think of this term, you might confuse it with an e-business. E-businesses simply use technology to replace a traditional process.
Let’s say that a company has an online form for booking appointments. Clients can fill out this document as opposed to pen-and-paper forms. While the online version is more convenient, it doesn’t necessarily create new value. At the end of the day, clients are still just booking appointments.
Digital businesses, on the other hand, focus on using technology to offer an innovative experience. They strive to create products, services, and processes that set them apart from the competition.
Examples of Digital Businesses
This isn’t just some popular trend that is nothing more than an idealized model. Real companies have implemented this strategy and found success.
Netflix is the perfect example of how this framework brings a valued user experience. The company once used technology to manage its inventory and mail DVDs to users. The service was more convenient than a traditional rental store but ultimately offered the same thing. Users rented DVDs, watched them, and returned them.
To set themselves apart from the competition, Netflix started its streaming platform. It was unlike anything users could find anywhere else. They could watch popular TV shows and movies anytime they wanted. It transformed the way people interacted with media and altered what they expected from companies like Netflix.
How Digital Businesses Accomplish Their Goals
The process of implementing this strategy requires involvement and commitment. Depending on the industry and target audience, approaches will differ.
Generally speaking, one will have to alter the company’s basic organization. It will require accepting that to incorporate digital solutions entails changes to standard practices. This will change how users interact with your brand; the goal is to ensure it’s a positive change.
The process also involves analyzing your target audience. Know who you’re trying to reach and what they are looking for in a brand. Don’t be content with them liking your services. You want them to find something new that they didn’t even know they were seeking.
As implementing this model is very intricate, many companies take advantage of professional agencies. These firms specialize in creating a competitive edge for digital business. They work closely with owners to determine the best way to offer customers a unique experience.
Why Digital Businesses Are Thriving
So what makes this model so effective?
Well, for one, digital businesses often find their solutions to be cost-effective.
Let’s consider Uber, another company that greatly benefited from this approach. Uber offers the same services as traditional taxis. However, by using technology, they don’t have to keep and maintain their own vehicles. This allows them to keep prices down and offer unique value to users.
Perhaps more significantly, the goal of this strategy appeals to nearly all audiences. Users are always looking for a new experience. They want to buy from companies that care about their wants and needs. In many cases, customers are even willing to pay a little more for a good user experience.
There’s no doubt that the digital business model is taking over. It allows companies to cater to users in a way that their competitors might not be. As more businesses implement this strategy, those who don’t might find themselves left behind.