Business Value Chains have been broken, What’s next?

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Business Value Chain is breaking-whats next

Nowadays Market Ecosystem has changed, now we are in a Digital World. Information Technology has transformed our ability to transact, Business Value Chains have been broken and every business value process is being unbundled, current hypercompetition is based on transient competitive advantages and disruption is all around us:

  • Wikipedia rendered encyclopedias extinct.
  • Gooble Maps replaced expensive navigation systems.
  • Skype dealt a big blow to phone companies.
  • Netflix drove large video rental chains to bankruptcy.
  • Kindle is changing book publishing.
  • Airbnb is driving hotel managers crazy.
  • Uber has taxi drivers up in arms.

Technology is helping to build new and cheaper services. Services closer to customers at anywhere and anytime. In addition, tech is supporting a new digital partner ecosystem emerging and disrupting business value chains in all industries.

Digitalization has a pulverizing effect on the previously integrated verticals in the different industries. Digital transformation is breaking up current business value chains. Digitalization means increasing possibilities to innovate modules without always considering the whole. Additionally innovation starts to happen faster, more often and in more creative ways than before.

Business Value Chain - Disruptive Value

Business Value Chain – Disruptive Value

 

The tightly integrated business stacks are breaking up into layers with modules loosely interconnected.  A collaborative ecosystem perspective where  different actors can be in charge of different innovate modules, or a set of modules in the horizontal layer of the industry. For example, the modules that together compose the user interface. We can talk about digital services consisting of layers of modules that can be innovated and combined to create new ones.

Business Macro Processes Value Chain Collaborative Ecosystem Map

We can simplify the Business Macro Processes Value Chain collaborative ecosystem map in 3 layers: Customer, Distribution and “Products & Services”.

Layered Business Macro Processes Value Chain - Bitnary.info

Layered Business Macro Processes Value Chain – Bitnary.info

New actors, products and services are constantly disrupting each of this layers every time and everywhere in nowadays global digital market.

Verticals in industries are now disintegrating, and this gives rise to new horizontal roles and a new strategic question: In which position should we compete?. The decision of assuming a different role is a crossroad every organization faces currently. For new entrants the question is in which horizontal to enter. So where would you like to be? Production? Distribution? Customer Management Level? Or somewhere in between layers?

The Digital Transformation Strategy Advisor’s tips to Adopt a Innovative and Agile Strategy to Manage the Continuous Business Value Disruption

Bitnary.info's Digital Strategy for your Challenges

Bitnary.info’s Digital Strategy for your Challenges

Market leaders focus too much on the high end of the market and ignore to innovate in simpler low-cost, more-risky solutions, which leaves room for new players to enter with innovations that extend the bottom of the market.

Market leaders cannot afford to ignore business innovation. Markets are rapid and dynamic, in the digital era actors needs to be set up to constantly change to the next thing. The notion of transient competitive advantage is increasing in importance as an explanation to which companies will be successful in the long run.

Companies need a business strategy that accepts that competitive advantages are often short lived. You need to have an innovative and agile strategy to manage the continuous change. The greatest breakthroughs occur when you actively understand consumer behavior and can orchestrate a distinctive role for your company within a complex ecosystem of partners, suppliers, and customers.

What’s next?…To succeed in the digital era you need rethink your approach using the Bitnary.info’s Main Principles to Succeed in the Digital Era as Business Organization.

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Digitalization and Digital Change - equivalent

Digitalization or Digital Change

What is the meaning of Digitalization? Digitalization is the integration of digital technologies into everyday life by the digitization of everything that can be digitized. ...