4 Digital Business Models You Should Know
Updated: Apr 15
Determining a digital business model is essential before designing your business. Without it, you will find it challenging to decide on the company's direction and the value you want to offer to consumers.
Digital business is a process where businesses use technology to create innovations and business models that can improve customer experience. The point is that business people use business to create business models and make profits.
What Are the 4 Types of Digital Business Models That You Need to know?
In online commerce, there are at least four digital business models. See the following explanation:
1. Business to Business
Business to Business is the sale of a product or service provided by one business and intended for another company, not consumers. For example, suppose you run a business that sells clothing. In that case, you make sales to existing stores or fashion businesses. It is called B2B because your business or service is intended for other companies, not directly to individuals or groups.
2. Business to Consumer
Consumer to Business is a business that provides services or sales of goods or services to individual or group consumers directly.
Consumers generally also don't take long to want to buy a business from Business to Consumer. However, most B2C consumers are retail only.
3. Consumer To Consumer
Consumer to Consumer is a type of e-commerce that includes all electronic transactions of goods or services between consumers. Generally, these transactions are carried out through third parties who provide an online platform to carry out these transactions.
4. Consumer to Business
Consumer to Business is the type of commerce in which consumers or end-users provide products or services to organizations or companies. Broadly, the definition of Consumer to Business is a model in which customers or end-users create content, products, or services that companies use to complete business processes.
What is An Example of a Digital Business?
In addition, there are many things you can do to start your own digital business by implementing the models mentioned above. Examples of these businesses are:
1. Build an Online Store
Building an online store is creating a website or platform as a means of buying and selling online, which can be a digital business model that you can try.
Because of the massive potential for e-commerce business in Indonesia, selling online is one of the best examples for digital companies.
2. Become a Reliable Content Creator
If you have a hobby of making videos, you should take advantage of this opportunity to become a content creator. The way you can do it is to create exciting videos with a specific niche.
3. Write Digital Content
Do you have writing skills? You can use your writing skills to generate more income by writing digital content in this digital era. What's more, many websites are now willing to pay you for a very high-quality article.
How Do You Create a Digital Business Model?
To start running a digital business, business people must at least know how to take advantage of digital technology and the steps they take. This is so that no errors occur when running it. The following steps are some of the things that need to be prepared before entering a digital business:
1. Learn Digital Business
2. Recognize Opportunity (Opportunity)
3. Conduct a Survey of Consumer Needs and Capabilities
4. Make a Business Plan
5. Setting the Right Strategy
6. Optimizing technology
What Are the Components of a Digital Business Model?
As business people, we must have a robust and intelligent strategy to optimize the benefits of social media as a place to market their services and products and interact with customers directly. Here are some critical components for optimizing digital business model through social media:
● Decide which social media you will use
● Create creative content
● The importance of communication
● The right promotion
The term digital business model describes a framework or thinking that underlies the running of a business. The business model will include objectives, products, what to offer, strategies, infrastructure, and other practices in the business's life.
Meta Description: Without a transparent digital business model you will find it difficult to determine the direction of the business. Here are the 4 digital bus digital business models.