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

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