FEBRUARY 2021 - MADE IN AFRICA ISSUE

@SME360nigeria
30
SME360 Magazine
www.sme360.ng
BECOMING A DIGITAL ENTERPRISE:
THE 9 REVENUE MODEL
LANRE MESSAN
here are myriads of strategies
that work within the digital
ecosystem because of its
constantly evolving nature. However,
we cannot rule out the fundamentals
of understanding set up and structure
when it comes to keeping the entire
value stack alive.
In this article, I talk about the three
elements that a CEO should keep a
tab on and also the nine revenue
models you need to understand to
birth your digital enterprise.
A digital enterprise stands for more
than just using new technologies for
the sake of it. Rather, what truly
distinguishes and gives a digital
enterprise its competitive advantage
is its culture, strategy and way of
operating. Digital enterprises strive
continuously to enable new and
leaner operating models
underpinned by agile business
processes, connected platforms,
analytics and collaboration
capabilities that enhance the
productivity of the firm. A digital
enterprise relentlessly searches out,
identifies and develops new digital
business models, always ensuring that
customers and employees are at the
centre of whatever it does. There are
some areas that many companies will
need to reassess and reform if they are
to become digital enterprises. Three
key areas have been identified digital
business models (what companies
need to do); digital operating models
(how they can do it); and digital talent
and skills (who they need to work with
to succeed).
In the scheme of digital
transformation or enterprise
digitization, many businesses are
moving beyond viewing technology
merely as a cost and seeing it as an
important enabler of revenue
generation. A recent survey found that
45% of IT executives see growing
revenue by improving digital
capabilities as a top priority. In Africa,
the rate at which IT executives
integrate technology business process
is low, and this is largely because the
CEOs are yet to exist within that frame
of mind. Most CEOs believe that their
companies can implement a
successful digital transformation
simply by launching a digital business
unit and hiring a Chief Digital Officer.
The reality is successful digital
transformation demands a culture
sponsored by the leadership that
promotes innovation, encourages
risk-taking and empowers employees
at all levels of the economy.
Becoming a digital enterprise
requires at first level that you decipher
the problem gap otherwise known as
the job-to-be-done according to my
favourite Harvard Business School
Professor, Clay Christensen, vis-a-vis
the customer segment you want to
focus on as that will pave the way for
designing the framework of
operations. The truth is digital
technologies have enabled the
emergence of the following business
models: peer-to-peer networks,
freemiums, delivering outcomes
(mainly driven by the Internet of
Things),
and
crowd-funding/crowdsourcing as a
service, eCommerce/marketplace and
personalisation, among others.