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What are the challenges to the digital business model?

by | Apr 21, 2021

Some of the initial challenges are trying to update a business model that has served your organization well for decades. Many stakeholders might have the perception that if it isn’t broken, it doesn’t require fixing. Also, the organization must endure disruption if it wants to create a viable business strategy for the digital era. As such, moving from a traditional to a digital business model isn’t always easy or straightforward but it is necessary.

In addition, a company may not have effective digital leadership or they don’t understand where to start and what technologies to choose. Take a look at the Kodak company, a well-revered American enterprise that unfortunately started fading away as digital business models and new technologies came into the marketplace. The digital business model did not fit with their traditional business model, and they were outpaced by other technology companies and their innovative offerings.