Digital Transformation and Business models

1. In the chapter “Digital transformation and business models” Tiziano Vescovi analyzes the relationship between the digital transformation and the change of the business models, that is the influence of the digital technology adoption on the models of value creation of the company. In the chapter four main aspects are highlighted: a) different types of digital business models, b) the main areas of business change induced by digitalization of the company, c) difficulties and problems arose in changing the business model because of digital transformation, and d) the pathway to a digital business model.

Digital transformations are one of the basic ways that, in modern business environments, enable organizations to effectively adapt to new business conditions, through the digitization of their business models. Within the framework of digital business transformation, an overly complex set of activities is performed, which aim to ensure efficient adaptation of organizations to changes that occur in the markets in which they operate. The changes that are taking place within the digital transformation projects have resulted in substantial paradigm shifts in the ways of conducting business and executing processes in organizations. Digital transformation encompasses all business segments of organizations, their strategies, business models, organizational structures, and the activities they carry out. This paper presents the effects of successfully and unsuccessfully implemented digital transformations of Blockbuster and Nefflix companies, and the consequences that these companies' digitalization approach had on their businesses. Furthermore, emphasis was placed on identifying the errors that led to Blockbuster's closure and the positive elements that ensured Netflix's success.