I often go to network meetings and I am told that digitalization is a good way to write new rules. But which ones are they and how does this affect the strategy for new innovation in business models?

I have been wondering about this for some time and have been observing some startups as well as my current innovation projects, which I supervise for customers. I have made some exciting findings.

Knowledge 1: Mass wins against class! New business models generally have to win the market. Let’s look at delivery services such as Lieferando, Foodora and co. as well as on the e-scooters around Voi, Tier and Lime. The current suppliers are trying to conquer the market with an almost blatant force. Often, providers with large corporations in the background or good investors win. It often applies: with loss in the market and persevere. Amazon, too, made a long loss with books or Home24 with furniture until the market was really big enough.

Knowledge 2: Scale before your own resources. I am often in large associations of service providers who implement such innovative projects. Little is done with its own resources. The reason is that you want to scale quickly. Fast scaling results in more flexibility and agility. Freelancers and interns can also be found at startups. In this way, such a business can be dismantled quickly.

Knowledge 3: Design before usability. Although in recent years usability was actually on the winning march, “cool sayings” and “great logos” were able to prevail again. “Change Mobility for Good” (animal) or “Don’t be evil” (Google) are in the minds of young people. In my view, this is a consequence of rapid scaling and growth. It is difficult to maintain a certain quality at such a speed. It should therefore be held against it with marketing.

Conclusion

In this article, I have refrained from expanding business models and limited myself to real disruptive innovations such as e-mobility or delivery services. I myself often play a part in such projects as a service provider in practice. These few statements simply represent my current opinion and certainly they are not complete.

I also have experience with such models as a founder. When we built the platform for corporate sales “Projektify“, we also worked with numerous freelancers and interns. The platform is still completely free and it took us 2 years to get a meaningful market share. For us it was: grow fast and persevere! In the meantime, we are an association and help volunteer founders.

Disruption is not easy and requires a high speed and some money reserves. You go to the market quickly and you have to assert yourself. Such speed is possible, especially through digital collaboration and rapid technology development. It remains exciting to see what disruption comes next on the market. Innovation is not easy, a recent study by Accenture, which has examined more than 500 companies and puts forward two exciting theories that underline my opinion: Real digital disruption can only be achieved with a high use of funds at the moment:

  • At a high level of sales, the German
    Top500 are only experiencing sluggish growth,
    if it is not possible to create new potential with innovations,
    to develop.
  • So far, it has not been possible to digitise
    significant sales growth.

Image source: https://pixabay.com/de/photos/unternehmer-idee-kompetenz-vision-1340649/

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I blog about the impact of digitalization on our working environment. For this purpose, I present content from science in a practical way and show helpful tips from my everyday work. I am a manager in an SME myself and I wrote my doctoral thesis at the University of Erlangen-Nuremberg at the chair of IT Management.

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