Digital business model 2: Digital entity set-up as adjunct to the traditional business entity

Digital business set-up as adjunct to the traditional business entity

A new business unit would be set-up which focuses on the digital marketing, sales and digital engagement for services of the existing traditional businesses' physical capabilities and services. This business unit would have its own Digital and IT platforms but would have gateways to connect to the existing enterprise.

The advantages are that this entity can be modelled to be digitally lean from the beginning with agile capabilities. The disadvantages are that the traditional bureaucracy will have a strong hold and the time to market and time to benefit of this adjunct organisation would be slower though there would be reasonable corporate governance in place.

Question 1: Which traditional businesses adopted this business model?

Question 2: Why did they choose to adopt this business model?

Question 3: What are the reasons for the success and what are these companies doing to thrive and evolve?

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