With the economy and worldwide markets changing so much with every passing year, businesses are challenged to change their current models to stay relevant. And with The Fourth Industrial Revolution becoming increasingly likely, there are so many great opportunities for service organizations to take a step to the next level.
Despite the changes that we are anticipating in the coming years, having a digital business model and platform appear to be the keys to success. In fact, studies show that organizations that are committed to developing and nurturing their digital platforms and virtual networks are two to four times more valuable than companies ignoring the digital world.
Why is Leveraging Networks Necessary?
One of the great aspects of using digital networks and virtual platforms is the low cost of entry. Even companies with limited resources can efficiently leverage networks to ensure that a high return on investment is being achieved. Studies also show that by using a leveraged network based business model, you are going to achieve higher performance goals as compared to companies that are ignoring the importance of networks.
Network Orchestrators Have High Profitability Ratios
Network orchestrators, those who create a network where participants share and interact in the value creation, have high profitability ratios. It is so successful because of its multisided model and co-creation approach. These factors make the model more scalable, as compared to traditional organizational strategies. And that can benefit service organizations of all sizes as they look to the future.
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