HomeResearch & Knowledgeback to HomeDigitalback to Research & KnowledgeNew Paths to Customer Valueback to Digital

Report

New Paths to Customer Value

Disruptive Business Models in the Digital Vortex

By Michael R. Wade, Jeff Loucks, James Macaulay and Andy Noronha

16 pages

November 2015

Download full report

PRINTABLE PDF – Less than 1MB

Disruptive Business Models – Providing Customer Value

To understand the workings of digital disruption, the DBT Center examined the business models of more than a hundred top digital disruptors. Whatever their differences, all of them create at least one of three essential types of value for customers: cost value, experience value, and platform value.

Digital disruptors use these customer-value focused business models to undercut the price, improve the customers’ experience, or use platforms to expand their reach exponentially. Each of these three categories of value in turn supports five predominant business models, which are detailed in the report. The emphasis is on the customer – exploring the benefits to them – rather than the gains flowing to the innovator, as this notion of new customer value creation is the unifying trait of all disruptive business models. While the report gives examples for each of the 15 business models, it is worth noting that almost none of the disruptors mentioned employ just one of the business models presented; most are proficient at combinatorial disruption that undercuts incumbents in multiple ways.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Keep reading

Article

Hacking Digital 3: How to develop digital skills within your organization

Learning new digital tools, technologies, and business models presents both short-term and longer-term challenges. Here’s a quick guide to the essentials of getting your people up to speed and beyond.

Digital Technology Management

By Michael R. Wade, Didier Bonnet, Tomoko Yokoi and Nikolaus Obwegeser

in I by IMD

Article

Chief Digital Officer - How to design the role for success

The average Chief Digital Officer tenure is short. Learn how to design the CDO role for success by aligning priorities, governance, and leadership from the start.

Digital

By Michael R. Wade, Didier Bonnet, Tomoko Yokoi and Nikolaus Obwegeser

in I by IMD

Case Study

The power of brand-led differentiation: What Vanzetti Engineering learned from luxury brands (B) (Video case)

Luxury Marketing Strategy

By Stéphane J. G. Girod and Martin Králik

Podcast

What if Europe’s biggest risk isn’t war – but running out of power?

In this edition of Leaders Unplugged, IMD President David Bach and Vestas CEO Henrik Andersen discuss Europe’s energy risks and bold leadership.

Leadership Strategy Sustainability Technology Management

By David Bach and Felix Zeltner

in I by IMD

Article

Creating value in today’s economy: lessons from the best for private equity

PE firms are waking up to the fact that all the financial engineering in the world can’t substitute for non-working leadership. Check whether you are investing sufficiently in leadership scalability, and consult the tips on PE’s new value-creation...

Inside the Transition: The outlook for COP 30 and the road ahead

Join Knut Haanaes and Julia Binder with climate negotiator Paul Watkinson as they unpack global challenges and progress in the clean energy transition.

Change Management Disruption Innovation

By Julia Binder and Knut Haanaes

in I by IMD

Article

The Future of Supply Chain

This guide examines the industry priorities and outlines five strategic areas of focus for supply chain transformation in 2025 and beyond.

Strategy Supply Chain

in I by IMD

Case Study

The power of brand-led differentiation: What Vanzetti Engineering learned from luxury brands (A)

Luxury Marketing Strategy

By Stéphane J. G. Girod and Martin Králik

Article

Contrary to what you might have heard, Europe is a 21st-century success story

Listen to the critics and you would think Europe was finished. Too bureaucratic, they say. Cannot agree on migration. Moving at glacial pace while Silicon Valley races ahead. It has become such a tired narrative that we have almost started believi...

Economics Geopolitics Disruption

By Arturo Bris

in Monocle

6 October 2025

Article

What can we learn from Xiaomi’s monumental EV rise

Xiaomi’s rapid EV rise shows how future readiness and agility are reshaping the auto industry – a challenge traditional automakers can’t ignore.

Strategy

By Mark J. Greeven

in I by IMD

Hacking Digital 3: How to develop digital skills within your organization

By Michael R. Wade Didier Bonnet Tomoko Yokoi and Nikolaus Obwegeser
in I by IMD

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Digital

Technology Management

Browse all topics

The power of brand-led differentiation: What Vanzetti Engineering learned from luxury brands (B) (Video case)

By Stéphane J. G. Girod and Martin Králik
Case reference: IMD-2696 ©2025

Summary

This case series explores what companies can learn from luxury brands without becoming luxury brands themselves. The video B case features interviews with three Vanzetti Engineering executives: the marketing director, the CEO and owner and the chief commercial officer. With the shrinking of the automobile industry, the company has had to reposition itself in other industrial sectors where it is significantly smaller than the customers. Vanzetti Engineering embraced some of the codes of luxury branding according to what suited it and ignored others. The company discovered that although it was focused mostly on creating functional value, it had to dwell much more on emotional and societal value creation. The process of brand elevation required a complete cultural transformation, and one of the lessons from the case is that a brand is not a slogan but a way of being and of delivering value.

Reference IMD-2696

Organization Vanzetti Engineering

Industry Construction and Engineering;Manufacturing

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Luxury

Marketing

Strategy

Browse all topics

What if Europe’s biggest risk isn’t war – but running out of power?

By David Bach and Felix Zeltner
in I by IMD

Summary

In this edition of Leaders Unplugged, IMD President David Bach and Vestas CEO Henrik Andersen discuss Europe’s energy risks and bold leadership.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Leadership

Strategy

Sustainability

Technology Management

Browse all topics

Inside the Transition: The outlook for COP 30 and the road ahead

By Julia Binder and Knut Haanaes
in I by IMD

Summary

Join Knut Haanaes and Julia Binder with climate negotiator Paul Watkinson as they unpack global challenges and progress in the clean energy transition.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Change Management

Disruption

Innovation

Browse all topics

The power of brand-led differentiation: What Vanzetti Engineering learned from luxury brands (A)

By Stéphane J. G. Girod and Martin Králik
Case reference: IMD-2688 ©2025

Summary

Survey after survey shows that executives think their business is in danger of being commoditized. This means their company is not able to differentiate sufficiently to command higher market prices and profits. Luxury brands, by contrast, are the opposite of commodity. Their whole approach to branding is based on desirability. This case series explores what companies can learn from luxury brands without becoming luxury brands themselves. The written A case gives a short background on Vanzetti Engineering, which is facing intensifying competition in an evolving marketplace, and launches the first question for discussion.

Reference IMD-2688

Organization Vanzetti Engineering

Industry Construction and Engineering;Manufacturing

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Luxury

Marketing

Strategy

Browse all topics

Contrary to what you might have heard, Europe is a 21st-century success story