Digital Business Models (PDF)

A business model basically describes the way a company makes money. Yet, often we use digital services for free (e.g. Facebook, Google or WhatsApp) or for what seems to be a relatively minor price (e.g. Blablacar, Airbnb, and Amazon). Digital business models are different to traditional business models.

Digital Business Models explains the key challenges and characteristics of the various business models that are used by digital businesses. These companies can be a source of inspiration for traditional bricks-and-mortar companies that aim to go digital and/or revamp their traditional business model. Most businesses rely on some form of digital technology for their marketing communication, customer relationship management, supply chain or distribution, yet digital transformation entails a complete reassessment of the way value is created and captured. Digital Business Models details the successful customer acquisition tactics and the development of business ecosystems by digital players.

Using the relevant academic and managerial body of knowledge, the authors define the concepts, describe the various ways digital businesses create and capture value and propose some useful tools for managers to analyse a situation, formulate or implement a strategy. Different digital business types are evaluated, such as multisided platforms, digital merchants, subscription-based model, freemium, social media and sharing economy. Each chapter is illustrated with several examples and the appendix comprises four full-length case studies.

Sébastien Ronteau is an Associate Professor in Entrepreneurship at Audencia Business School. He is also in charge of the support for entrepreneurs. His research and teaching interests focus on digital businesses, business models, the launch of new ventures, strategic innovation and entrepreneurship-as-practice. His work has been published in Industrial Marketing Management, Entrepreneurship & Regional Development, Creativity and Innovation Management, and Internet Research.

Laurent Muzellec is a Professor in Marketing and Digital Business at Trinity College Dublin, Ireland. He is founder and director of Trinity Centre for Digital Business & Analytics. Laurent has published extensively on digital business model and corporate reputation in journals such as Industrial Marketing Management, Marketing Theory, the Journal of Advertising Research and the European Journal of Marketing. He teaches and consults on marketing and digital strategy at executive level (e.g. C-suite seminars and Executive MBA). He is also the founder and programme director of the MSc. in Digital Marketing Strategy.

Deepak Saxena is an Assistant Professor in Management Information Systems and Digital Strategy at Birla Institute of Technology & Science, Pilani, Rajasthan, India. He was a research Fellow with the Trinity Centre for Digital Business. He has worked in the area of digital transformation, in particular on enterprise systems. He has published in journals such as Journal of Information Science, Electronic Journal of Information System Evaluation, Electronic Journal of Business Research Methods, and Journal of Information Technology Teaching Cases. He has previously worked with the Indian Space Research Organisation, the Defence Research and Development Organisation, and the Council of Scientific and Industrial Research on digital transformation projects. He has taught at the American College Dublin and at Technological University Dublin.

Daniel Trabucchi is Assistant Professor in the area of Innovation Management at the School of Management of Politecnico di Milano, where he is also a member of LEADIN' Lab, the Laboratory for Leadership, Design and Innovation. He has two main areas of research and teaching: platform thinking and the human side of innovation (with strong focuses on engagement and agile methods to make innovation happen, within the research platform IDeaLs). He co-founded Symplatform, the symposium on digital platforms that aims to foster a constructive discussion among scholars and practitioners. He teaches in the area of Innovation, Design and Project Management.