Business Models—Servitization and Platforms as the DNA Scissors for Transformation

Data is the foundational building block for digital business models. The nature of that data and the way its value is materialized (Data value can be materialised in a number of ways, including: tokens of exchange, a tool for hedging or insurance, and monetisation) shapes the DNADNA Science of enterpriseenterprise Business s that embrace such models. ServitizationServitization Business describes a model where, rather than having to buy products, customers are offered services that enable the use of products with additional value being generated from data insights into the way those products are used. Initially exploited in niche areas like aircraft engine provision, the servitizationservitization Business model has been popularized in the consumer market through platforms that bring the advantages of network effectsnetwork effects Economics created by market ecosystemecosystem Business s. Platforms will be increasingly adopted in B2B relationships; we will consider their impact in the next two chapters.