Digital Business Model
The Covid-19 pandemic has almost changed people’s habits. Activities that previously could be done freely have now become completely limited. Although activities and activities are limited, for people who have an entrepreneurial spirit, this condition can be seen as an opportunity. For example, finding out what digital business ideas can do.
Digital business is a process in which business actors apply technology to their business in order to create innovations and business models that can improve their customer experience (user experience). In essence, business actors use business to create a business model that in addition to bringing profits, will also impress customers. That is why various digital business models were born which can later be adopted into various types of very promising digital businesses. Therefore, before knowing what businesses can be developed with this technology, it would be better to understand the models of digital business. Digital Business Models Digital business is divided into several models. From these models, it can be developed into more specific types of digital business, including the following:
- Free Business Model You are offering a product to use for free. However, your revenue will come from ads only without requiring a premium plan upgrade. Usually, this digital business model makes the user as an object to be sold (in this case it could be taking user data and adjusting advertisements from the data taken). Real examples of digital business with this free model such as social media Facebook or Google.
- Freemium Freemium is a combination of the words Free and Premium. So this business combines a free model but provides a premium package for users who want to upgrade their experience. Usually this application or product can be used for free with ad breaks in between. To remove ads and add features that are not available on the free plan, you must purchase the premium plan. An example that uses this business model is Spotify.
- E-Commerce It’s easy to understand this one business model. Unlike marketplaces, e-commerce has a one-sided approach. This means that there are no third parties selling goods through the platform. Companies sell their own stock. Examples of successful e-commerce are Amazon and Blibli.
- Marketplace This model is very popular because it collaborates with various parties to enliven sales on its platform. Unlike e-commerce, the marketplace business model has a peer-to-peer or two-sided approach. Businesses like this are already rife in Indonesia, such as Tokopedia, Shopee, BukaLapak and others.
- On-demand On-demand is a business model where companies offer virtual products for sale and can be used by users within a certain time span. Examples of this business model are Apple TV+, Amazon Video, Google Play Movies and TV and others.
- Sharing Model A business with a sharing model is a business that has services or provides services so that a product can be shared. These businesses are like Airbnb or rental businesses that you can book through the app.
- Ecosystem Digital business with ecosystem model is very profitable. This business provides various services for users to use and all of them can be connected into one and build a sophisticated ecosystem. Examples of companies that have done this are Amazon, Google, Tesla, Apple, Xiaomi and others.
- Subscription or Subscribe This business offers a subscription fee to enjoy all of its content with certain features within a set time. Netflix is an example of a company using a subscription business model. In addition, there are also Microsoft and other software companies that apply this method.
- Open-source For developers and tech-savvy maybe this term is very general. As the name implies, an open source digital business model provides its goods for free, is used for free and is even freely built together with the community. The main income can come from sponsorships, royalties and partnerships. Examples of companies that apply this model are Linux and Firefox.
- Experience Tesla is one of the companies implementing this business model. The goal is to produce goods that bring new experiences in an industry that previously did not include tech elements as part of its user experience.
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