Insights on the “Impact of Digitization”

Benefits to digital platform users

Insights on the “Impact of Digitization” – A Clive Angel Blogpost

Digitization of the traditional business landscape provides NEW opportunities for businesses to leverage and at the same time benefit:

Understanding the impact of digitisation

Digitisation will have many meaningful impacts on business and consumer behaviour.

Machine Learning

For example, to utilise machine learning to create unbiased and non-emotional data points. Used, to determine appropriate customer strategy. Resulting in, increased revenue as a consequence of an upward shift in the demand curve.

Customer-centric replacing Product-centric

Chiefly, it will transform a business from being product-centric into becoming customer-centric. Therefore converting product based supply chains into services driven platforms. Accordingly, increasing operational margins as focus shifts from costly production to the provision of high margin, instant services. Specifically, tailored to user needs.

Building a Customer-Centric Culture “Harvard Bus Review 2018”

Power of the Crowd

Henceforth, through digital platforms retailers will access the diverse and free expertise of the crowd. As opposed to, having to rely on the costly and specialized expertise of employees. Significantly, making information available immediately, at little cost from a diverse pool of opt-in experts. Rather, then having to rely on technicians with niche knowledge demanding high salaries.

The Power of the Crowd (


Network Effects

Leveraging of network effects. In order to, convert suppliers into customers and customers into suppliers thereby broadening the marketplace for all participants. Furthermore, making for the seamless exchange of feedback and information. In essence, the beginning of a vibrant self-servicing marketplace.

The Power of Network Effects Explained (


For more insights on the subject


Digitization shifts management’s focus from the product to the customer: Customer centric platforms will replace product focused pipelines. The benefits of a platform strategy are shared by all users of the platform and include the following:

Impact of Digitisation as a result of Digital Platforms

Key areas where the Impact of Digitisation can be demonstrated include,

  1. Marketplace effects – whereby platform economies aggregate supply and demand.
  2. Dynamic pricing – platform economies generate data points resulting in dynamic pricing.
  3. Network effects – platform economies deliver increased liquidity, product innovation, impact pricing strategies.
  4. Self-regulation – customers and suppliers curate behaviour, service quality, reliability and trustworthiness. Consequently,  providing reassurance for all users. Uniquely, in a digital marketplace, curation is essential to optimize value for all parties.
  5. Increased customer loyalty – platform economies create personalized and tailored experiences while increasing switching costs for customers.

Digitisation creates an “opensource” focus resulting in externally sourced diverse skills and expertise replacing internally focused specialized management teams resulting in the following business transformations:

Understanding the Impact of Digitisation on Management teams 

  1. Decentralized user-driven marketplaces will replace complex management structures.
  2. People willing to share their knowledge and expertise, the crowd. For the most part, will replace costly in-house core competencies.
  3. Automated data sets analysing information via machine learning will dominate decision-making. Resulting in, an informed and analytical basis for decisions making.
  4. Instantaneous real-time demand, as a result of customer engagement and feedback, will positively impact the cost of stockholding.

Digitisation impacts the product vs customer relationship in a business strategy:

Impact of Digitisation on business strategy

Product centric businesses are built around the organization of production and assembly lines. In short, critical thinking and order are key drivers of business decisions.

– whereas –

Customer-centric organizations are built around customer service and developing sustainable relationships. Accordingly, converting them into revenue.

Subscription services with add-ons and upsells are key drivers of a customer-centric business model.

Digitisation impacts management strategy, the business and its users:

In Summary the Impact of Digitisation

  1. Executive management becomes customer service champions. Moreover, the customer becomes the centre of business strategy.
  2. Management strategy shifts from focusing on product pipelines to becoming a user-centric platform marketplace. A platform economy is driven by network effects. Hence, all users of the platform benefit from each other’s input and feedback.
  3. Buyers have the potential to become sellers, sellers are converted to customers. Equally, all users have the opportunity to participate in curating platform behaviour and services.  Significantly, user-generated feedback further improves the quality and relevance of the customer service offering via the platform.
  4. Platform economics positively impact both customers and suppliers. Namely, previous once-off customers are transformed into loyal platform members benefiting from increased platform interaction.
  5. Platform owners shift from earning once-off, lumpy revenues into earning reliable annuity income streams.

BlogIdeasThe Impact of Digitization

Insights on the "Impact of Digitization"

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