How to innovate the traditional business model

The driving force of digital technology to organizational business model innovation is mainly reflected in three processes: value transfer, value creation and value realization.

1. value transfer: the so-called value transfer process of digital empowerment organization refers to accurate marketing and customer acquisition through digital technology. In the digital age, the connection between organizations and customers is more realized through mobile applications, Internet tools and digital channels, and digital technology reshapes the traditional customer relationship management. Organizations should be "customer-centric" and change from simple "value transmission" to "value creation". Digital customer acquisition mode can bring organizations stronger customer acquisition ability, higher customer acquisition efficiency, better customer experience, better customer relationship and longer customer life cycle, and can form a closer bond between organizations and customers.

2. Value creation: If the marketing and customer acquisition model solves the problem of how to find and choose customers, then the operation model is to solve the problem of how to create value for customers, which is the way to create value in the business model. Digital operation mode is the basis for organizations to realize ecological links with the outside world, and it is the self-transformation of organizations before joining the "ecological alliance". With the support of technology platform, digitalization breaks the "data island", "system axis" and "department wall" within the organization, so as to reduce the waste of information asymmetry and data closure within the enterprise and further improve the production efficiency and risk management and control ability of the end-to-end value chain. Digital operation mode is the upgrade of traditional mode, and the traditional operation management system should also be upgraded to digital operation management system. The significance of constructing digital operation mode is that it can not only maximize the efficiency of value chain, but also improve the ability of organizations to link everything.

3. Value realization: the profit model refers to the process that the business structure gradually formed by the organization in the market competition can bring positive cash flow, that is, the realization of organizational value. A good profit model can not only get a good value return in the short term, but also be a sustained and healthy process of value creation, transmission and acquisition in the long run. In the process of digital transformation, enterprises use long-term dialectical vision and more objective and meticulous management methods to reduce costs, increase efficiency and continuously improve on the basis of expanding business scale. A good digital profit model does not blindly pursue cost reduction, but doubles profits through digital investment. The digital transformation of enterprises is the recombination of production factors, and the cost and income structure should be set reasonably according to the actual situation, so as to seek the best state of organizational profitability with value as the guide.

In short, the essence of digital transformation is organizational change and the formation of a brand-new digital business model. We need to re-examine and design our business model with digital thinking, which is a necessary problem to adapt to the interconnected survival law in the digital age. We will provide organizational change, business model combing and innovation services for various enterprises in the process of digital transformation, and look forward to creating new dividends with various enterprises.