Emerging business models in the digital economy

The concept of business models is the architecture of a business or the way a firm finds a systematic way to unlock long-term value through monetization strategies. There are different types of economies that support business, but conversations today mainly focus on the digital economy.

A digital economy is a range of economic activities that use digitized information and knowledge as key factors of production. The economy has introduced new and innovative business models that occasionally are parallel to traditional business models. Furthermore, these models from time to time complement and overlap, for example, payment services can be described under cloud computing or e-commerce. Reinforced by a continuously advancing information technology industry, business operations today are substantially large scale and executed over long distances.

Recognizing the changing patterns, the adaptation of existing business architectures is key to preventing a state of obsolesce.

This article analyzes a few considerations in the adaptation of business architecture. It’s imperative to note that success is based on the relevance of the strategy to the individual business. They include;

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