Creation of a Digital Business Model Builder

Digitization forces industries to adapt to changing market conditions and consumer behavior. Exponential advances in technology, increased consumer power and sharpened competition imply that companies are facing the menace of commoditization. To sustainably succeed in the market, obsolete business models have to be adapted and new business models can be developed. Differentiation and unique selling propositions through innovation as well as holistic stakeholder engagement help companies to master the transformation. To enable companies and start-ups facing the implications of digital change, a tool was created and designed specifically for this demand: the Business Model Builder. This paper investigates the process of transforming the Business Model Builder into a software-supported digitized version. The digital twin allows companies to simulate the iterative adjustment of business models to constantly changing market conditions as well as customer needs on an ongoing basis. The user can modify individual variables, understand interdependencies and see the impact on the result of the business case, i.e. earnings before interest and taxes (EBIT) or economic value added (EVA). The simulation of a business models accordingly provides the opportunity to generate a dynamic view of the business model where any changes of input variables are considered in the result, the business case. Thus, functionality, feasibility and profitability of a business model can be reviewed, tested and validated in the digital simulation tool.