Gartner Research

Digital Economics: Formulate and Monetize Your Digital Business Transformation Concepts

Published: 01 May 2019

ID: G00370188

Analyst(s): Chet Geschickter, Sanil Solanki

Summary

CIOs typically struggle to gain funding for transformational digital initiatives that deliver growth. CIOs can leverage the principles of digital economics to find game-changing monetization and business model options for digital business transformation.

Table Of Contents
  • Key Question
  • Opportunities and Challenges
  • How This Report Will Help

Foreword

  • Acknowledgments

Executive Summary

  • Section 1: Assess Catalysts for Change to Develop Innovative Digital Business Concepts
  • Section 2: Understand the Digital Business Impacts on Customer Economics and Operating Leverage
  • Section 3: Analyze Growth Opportunities and Select the Best Approaches to Monetize

Assess Catalysts for Change to Develop Innovative Digital Business Concepts

  • Think Beyond the Existing Business Model
  • Brookson — Case Example
  • Customers Bank/BankMobile — Case Example

Understand the Digital Business Impacts on Customer Economics and Operating Leverage

  • Customer Economics
    • Key Metrics in Customer Economics
  • Digital Lowers Customer Acquisition Costs
  • Digital Improves Customer Lifetime Value
    • Targeting and Segmentation
    • Customer Retention
  • Brookson Uses Customer Churn Analytics to Create a Retention Program
  • Starbucks Enjoys a High Customer Lifetime Value
    • Operating Leverage
  • Netflix Saves on Fulfillment Costs by Streaming, Then Plows Savings Into Technology Development — Case Example
  • Build Digital Offerings With High Operating Leverage
  • Successful Digital Businesses Initially Prioritize Growth Over Profits
    • LinkedIn Focuses on Registered Users Over Revenue to Reach Scale
    • Google Turns Billions of Free Searches Into Billions in Revenue
  • Typical Ways to Accelerate Growth
    • Freemium
    • Other Options to Accelerate Growth

Analyze Growth Opportunities and Select the Best Approaches to Monetize

  • Leverage Popular Monetization Options
    • Subscription
    • Advertising
    • Commissions
  • Conclusion

Further Reading

  • Related Content
  • Gartner Executive Programs Reports
  • Core Research
  • Books

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Log In

Become a client

Learn how to access this content as a Gartner client.

Learn More