Data-Driven Business Models for the Digital Economy by Dr. Rado Kotorov

Author:Dr. Rado Kotorov [Dr. Rado Kotorov]
Language: eng
Format: epub
Publisher: Business Expert Press
Published: 2020-04-20T16:00:00+00:00

Figure 8.1 Competitive dynamics matrix: Data products

Based on the Competitive Dynamix Matrix we can see that it is easiest to launch a new product that requires the formation of new habits when there is not an existing physical product. Personal measurement apps such as the apps that track sports activities or health care status are just two examples. Strava (strava.com) allows people to record their sports activities and track or benchmark their training and progress. People who train know how important such data is. But aside from stop watches there were no physical products to do this easily. With Strava and other similar apps one can track the activity with unprecedented detail—speed, distance, route map and segments, elevation, heart rate, and much more. The benefits are obvious and desirable and thus drive instant adoption. The learning experience is not obstructed by the habit replacement loop.

It is also easy to see why location information apps are easy to adopt. The ability to locate and find a route to a destination wherever you are and whenever you need it gradually wins over even the most habitual individuals. It often happens through the force of necessity, as sooner or later every person finds himself in a situation where he needs directions but does not have a physical map in his briefcase. Once Google rescues you from such a situation, you become a convert to the new way of doing things. Because life exposes us to many such AHA moments, the data products keep finding new user segments. My sister was a staunch opponent to using Facebook until she went on a charitable mission in Kenya. When she left, she wanted to stay in touch and share stories and pictures with the local community. The convenience of Facebook was undeniable and now we all suffer picture overload from this new staunch Facebook user. Even though she still prints pictures and shows them to people, her old habit coexists with the new habit.

There are many digital products that call for the formation of new habits but do not replace or make obsolete the old habits. Applications like Kisi create digital keys that unlock the doors in office buildings. There are many variations of Kisi. Some hotels deliver your room in their branded mobile apps. Thus, you do not have to see the concierge. These apps are replacing the plastic key cards and the traditional metal keys. But the adoption is slow, and the old habits coexists with the new habits in clearly delineated use cases. While many people use digital keys to get in the office building and to their office floor, many still prefer metal keys for their personal offices. While some people use the hotels’ apps to open their rooms, others like to stop by and get their key card from the concierge along with recommendations for nearby restaurants and other amenities. And not many people are replacing their home keys with digital keys. This is driven by the Need-to-Use as there is no compelling reason to make a universal switch to digital keys.

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