New business models that were born thanks to the process of digitalization. Quality, efficiency, reversion of the rules, social impact. These were the main highlights of the conference organized yesterday, on Mach 30th, by Observatories Digital Innovation in Milan.
Ferruccio Resta (Rector of Polytechnical School of Milan), Alessandro Perego (Director of the Department of Engineering Department), Umberto Bertelè (honorary professor of Strategy and the Chairman of Observatories Digital Innovation of Polytechnical School of Milan), Vittorio Chiesa, Giuliano Noci and Andrea Rangone (professors in ordinary of Strategy and Marketing of Polytechnical School of Milan) talked about the so-called “innovation multiplier”: a phenomenon when the new technologies and infrastructures stimulate the change of the way of thinking and doing things. In other words, the new business models influence on the current economical situation, on the society organization and, therefore, on our lives.
The unpredictable consequences of digitalization
The digitalization for more than 50 years has been an inexhaustible source of new business models, which:
- Destroy the existing business models by offering the same functionality for lower price (e.g. WhatsApp has pushed out of the market the SMS services)
- Raise the standards for the existing services and often lead to the creation of hybrid models (Alibaba has acquired a large Chinese distributor while Walmart has bought an e-commerce startup)
- Disturb the equilibriums and redistribute the contract power (e.g. Amazon has stolen the profits from large international publishing houses because of its dominant position in the distribution and its nearly monopoly in the ebook sales)
A book about digitalization
During the conference hosted by Observatories Digital Innovation the new edition of Umberto Bertelè’s book “Strategia” was presented to the public.
Umberto Bertelè is an honorary professor of Strategy and the Chairman of Observatories Digital Innovation of Polytechnical School of Milan. His book “Strategia” (“Strategy”) focuses on the topic of digitalization.
And which might be the other consequences of digitalization in your opinion?