After the Digital Business Model Discovery Event
Last week we attended the Digital Business Model Discovery Event hosted by The Global Center for Digital Business Transformation (DBT) – an IMD and Cisco initiative.
As some background – one of the early DBT Center papers was called “The Digital Vortex” – How Digital Disruption Is Redefining Industries, and we first informed readers about it in 2015. The Digital Vortex is the inevitable movement of industries toward a digital centre in which business models, offerings, and value chains are digitised to their maximum extent. As industries move toward the centre of the Digital Vortex, where disruption is most intense, digital technologies are enabling new digital business models, which give rise to rapid competitive change.
In January CXO Transform collaborated with the DBT Center to present this webinar with Remy El Assir and Andrew Tarling, in an effort to encourage leaders to attend a two-day digital business model discovery event at the IMD Executive Business School in Lausanne, Switzerland. After being over-subscribed, 100 executives from the likes of Procter & Gamble, Credit Suisse, Nestle, Accenture, ABB, and many other prominent brands attended the event last week, where Mike Wade, Jeff Loucks, James MacAulay, and Andy Noronha presented their research.
Ten Key Takeaways From Lausanne
The DBT Center Team provided immense value and ten of the key takeaways are listed below.
- An estimated 3.7 of the top 10 companies in each industry will be displaced by digital disruptors within five years
- 45% of survey respondents say digital disruption is not a CXO-level concern
- Value drivers are now more important that the value chain
- Value vampires are ready to suck the life out of complacent incumbents
- Value vacancies represent the upside of digital disruption and provide opportunities for start-ups and incumbents
- The most successful digital business models are combinatorial
- Digital response strategies are key to the survival of all companies
- Digital case studies provide valuable insights into the impact of combinatorial business models
- There is a structured approach for establishing value-driven digital business strategy
- What matters now is the (Digital) Value – not the (Traditional) Value Chain
While companies have been competing on cost and value for decades, digitally enabled business models allow disruptors to combine low costs and superior experiences in ways that previously could not have been accomplished. Combined with Platform value, which is a new source of competitive advantage, disruptors have been able to rapidly build new businesses that serve millions and disrupt established incumbents.
While start-ups come to market with a distinct set of advantages over incumbents, incumbents too have advantages over start-ups, but they must define clear digital response strategies to leverage those advantages. Read Combinatorial Disruption and Underdogs.
Digital Business Transformation Center Downloads
Below are some of the key reports published by the DBT Center since last year.
The Digital Vortex
Disruptor and Disrupted: Strategy in the Digital Vortex
New Paths to Customer Value: Disruptive Business Models in the Digital Vortex
Competing in the Digital Vortex: Value Vampires & Value Vacancies
Digital Business Transformation: A Conceptual Framework