From Digital Disruption to Business Model Scalability

This article discusses the terms disruption, digital disruption, business models and business model scalability. It illustrates how managers should be using these terms for the benefit of their business by developing business models capable of achieving exponentially increasing returns to scale as a response to digital disruption. A series of case studies illustrate that besides frequent existing messages in the business literature relating to the importance of creating agile businesses, both in growing and declining economies, as well as hard to copy value propositions or value propositions that take a long time to replicate, business model scalability can be cornered into four dimensions. In many corporate restructuring exercises and Mergers and Acquisitions there is a tendency to look for synergies in the form of cost reductions, lean workflows and market segments. However, this state of mind will seldom lead to business model scalability capable of competing with digital disruption(s).

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