Digital Business Model

Digital Business Model or Internet Business Model refers to the business, which is run in a fully digital way. There are different degrees of digitalization:

1. Are the client orders received in a digital way?
2. Are the order to suppliers submitted in a digital way?
3. Are the internal processes fully digital?
4. Are the goods to the clients delivered in digital form?

If all these four areas are digital, then the result is a highly scalable business (assumed there is enough market demand).

Following key types of business models exists:

• Traditional business models, they have a lot of manual processing. Scale effect was the key success factor for these businesses
• Digital Business Models are based on centralized data processing. Network effects were the key success factor for these businesses. They will disintermediate traditional business models
• Crypto Business Models or Blockchain Business Models are based on distributed data processing and network effects. They will disintermediate Internet Business Models

Digital Business Models came after the traditional business models, but they will be overtaken by the blockchain business models.