The next-generation enterprise
Because almost every enterprise can use these digital technologies, they don’t necessarily offer a competitive ad- vantage. The key is differentiating your business by offering cus- tomers something new and compelling, enabled by the vehicle that digital offers, and creating a destination customers want to visit.
We call this process creating the next-generation enterprise.
First, they are moving from controlled value chains (à la Michael Porter circa 1980) to more-complex, net- worked systems.8 Second, they are moving from less familiarity with customer needs and life events to a better, closer understand- ing of them, resulting in better customer engagement.
- Supplier: producer that sells through other enterprises
- Omnichannel: integrated value chain that creates multi- product, multichannel customer experiences to address life events
- Modular producer: provider of plug-and-play products or services
- Ecosystemdriver: organizerofanecosystem,acoordinated network of enterprises, devices, and customers to create value for all participants, which is the destination in a particular domain (such as shopping), ensuring great customer service; includes complementary and sometimes competitor products
Looking at these dimensions in combination results in a two-by-two frame- work (the DBM framework) consisting of four distinct business models, each within a quadrant representing different capabilities and varying average financial performance (figure I-1).