Transitioning to a Digital Enterprise

Moment

!3

Transforming an Incumbent Firm

Tesla Model 3 Tracker

“In the future, many people will no longer own a car,” Muller said. “But they can all be a VW customer in one way or another – because we will serve a much broader concept of mobility than is the case today.”

Business Model – Definition

How an organization interacts with its environment to define a unique

strategy, attract the resources and build the capabilities required to execute the strategy, and create

value for all stakeholders

Source: Corporate Information Strategy and Management: Text and Cases 8/e by Applegate, Austin, and Soule

Source: Raphael Amit and Christoph Zott (2012), “Creating Value Through Business Model Innovation”, MIT Sloan Management Review, Spring 2012 53(3).

WINTER 2018 , MIT SLOAN MANAGEMENT REVIEW

Business Model Scalability

❖ PATTERN A: Add new distribution channels

❖ PATTERN B: Explore ways to work around traditional capacity constraints

❖ PATTERN C: Shift capital requirements to partners

❖ PATTERN D: Leverage the work of partners

❖ PATTERN E: Implement platform models

December 2017 (16:4) | MIS Quarterly

Four Sharing Economy Models

Constantiou, I at al., (2017), “Four Models of Sharing Economy Platforms”, MIS Quarterly Executive”, 16(4), December 2017, 16 (4).

Constantiou, I at al., (2017), “Four Models of Sharing Economy Platforms”, MIS Quarterly Executive”, 16(4), December 2017, 16 (4).