Data-Driven Business Models for the Digital Economy

Book excerpt: Competitive success in the old economy was determined by accumulation, aggregation, and concentration of physical resources. Success in today's new digital economy is achieved by disaggregation and scale. The most strategic resource is data and the most important managerial tools are data management and analytics. Digital companies own no physical resources and manage less assets and people; and, yet, they achieve larger market share and higher market capitalizations. Using data to disaggregate every aspect of the business in order to manage based on micro-trends, the digital companies achieve unprecedented concentration of demand for their data products and services.