Increased digitalization has influenced various business activities including companies’ business models (BMs) by enabling various new forms of cooperation between companies and leading to new product and service offerings as well as new forms of company relationships with customers and employees. At the same time, this digitalization has put pressure on companies to reflect on their current strategy and explore new business opportunities systematically and at early stages. While research on digitalization in the context of BMs is now gaining increased attention, a research gap still exists in this field since the number of empirical insights is limited. The paper aims to discuss these issues. Qualitative empirical data collected from 12 key informants working in two distinctive industries, the media and automotive industries, were collected.
An investigation was carried out to examine the differences and similarities among how digitalization influences a company’s value creation, proposition and capture, as well as how firms cope with challenges presented by increased digitalization. The findings of the study show that, whilst digitalization is generally considered to be important, the value proposition itself as also the position in the value network determine the perceived available options for business model innovation (BMI) by digitalization. Moreover, the organizational capacities and employee competences were identified as future challenges that will be faced by both industries.
The findings of this study have revealed that representatives of the media and automotive industries perceive both the pressures and opportunities of digitalization regarding BMI; its application and exploitation, however, remain challenging. This study contributes to the existing body of knowledge by providing empirical insights in the context of digitalization and BMI.
It is becoming increasingly difficult to keep an overview in online retail in order to form an opinion about e-commerce models. Interlinked online and offline channels, new devices and the increasing dominance of marketplaces do not necessarily make things easier. Manufacturers and brands are increasingly looking for a platform strategy – and by that they no longer mean building their own e-commerce infrastructure, but rather questions about selling on Amazon, Tmall, Zalando & Co. Retailers feel increasingly grated in the mills of these platforms and now want to become a platform themselves. Many digital sales channels increase reach, minimize risk and maximize profits. The easiest and most effective way to use these channels is to maintain perfect content, real stocks and prices with plenty markets.
The renowned INTERNET WORLD EXPO, which takes place for the 24th time in Munich, is an information platform for every trader, who wants to secure the future of their business through digitalization.
February witnessed “24 Hours in Cyberspace” – the very first worldwide online event. Likewise in February, the Pokémon green and red games were released in Japan, while Deep Blue was the first chess computer to defeat a world chess champion, the Russian Garry Kasparow, in a game under tournament conditions. Also 24 years ago, the first INTERNET WORLD EXPO took place, being the first trade fair decidedly focussed on online trade. And just as e-commerce has evolved into commerce, now covering all channels and devices in a seamless customer journey, INTERNET WORLD EXPO has become the information platform for every trader wishing to secure the future of their business with the aid of digitalisation.
„Commerce e-xperience“, stands for exciting exhibitors, special lectures, held by the stars of digital trade, and many hands-on lectures. Your visit to the trade fair will help you prepare your e-commerce business, stationary trade or omni-channel business for the future.
The perfect commerce e-xperience on the Internet and at the POS is at the heart of the INTERNET WORLD EXPO 2020, Europe’s biggest Commerce Trade Fair in Munich. More than 19,000 visitors from the industry will be searching for products and impulses to help serve customers even better and faster on the Internet and in stores. To this end, over 450 exhibitors will be presenting new products, services and solutions. 250 renowned speakers from the industry will bring along ideas and plenty of fuel for discussion.
The INTERNET WORLD EXPO is the most important industry event for commerce (online and stationary) and multichannel trade. In 2019, a total of 19,153 visitors attended the trade fair.
The INTERNET WORLD EXPO is also a place for discussion and knowledge transfer. Well-known futurologists, renowned politicians, acknowledged entrepreneurs, influencers and icons of the advertising industry will pass on their experiences to the specialist audience in a total of 250 talks and discuss their views on the future of retail trade.
Empty shopping baskets that are stacked up in a stationary shop would be an awkward and unsettling sight. Yet, in online retail this is exactly the case, as many consumers abruptly cut short their virtual shopping tour. The reasons range from shipping costs to long delivery times through to a shortage of delivery options. Thus, logistics and fulfillment continue to be one the most important factors for successful commodities finalization.
The organizers of the INTERNET WORLD EXPO – the commerce e-xperience (March 10 to 11, 2020) in Munich, the leading trade fair venue for digital trade in the German-speaking region, asked their exhibitors from the areas of logistics, fulfillment and packaging what suggestions they can pass on to retailers in order that fulfillment and logistics, as major components of the customer journey in online trade, can again function smoothly in 2020 as well as during the next peak season.
The future of logistics should be shaped by innovative factors that are based on KI and augmented reality in order to ultimately also meet the high standards and demands of online customers. An optimum fulfillment process doesn’t have to cost a fortune.
900 billion US dollars gross value of goods: According to a study conducted by DHL Express, cross-border e-commerce should attain this record figure in 2020. For retailers, especially those involved in the cross-border movement of goods, transparency of all costs associated with a delivery and delivery times in the checkout process will be the decisive factor in conversion in 2020
This means, in order to satisfy customers who are becoming more and more demanding, that the logistics service for the actual product must be considered as an increasingly important distinguishing feature. So, it’s important to find logistics and fulfillment partners who understand this and can also help to keep an eye on the margin with scalable products. The top discipline will be return handling in international e-commerce. With, return rates as high as they are, for example, in the fashion industry, there are numerous hidden margin killers, which can quickly become a problem.
A megatrend in online retail in 2020 will also be delivery on a desired date. Consumers not only want their goods delivered as quickly as possible and via same-day delivery, but, most importantly, conveniently. For retailers, this means adapting their own online shop with offers for preferred delivery dates and working together with a service provider that makes these delivery preferences possible.
Even if the customer journey in the online shop was perfect from A to Z, the overall image of the company is clouded if the promised delivery time is not met. The demands of end customers are consistently maintained at the highest level by, among others, Amazon, so that, unfortunately, customers aren’t interested in excuses when logistics run inefficiently and delays occur.
Increasing consumer demands lead to accelerated dynamics in e-commerce logistics. Dealers need technical infrastructures that can be adapted quickly and flexibly to changing requirements, and that can be financed even when margins are under pressure. Excellence in e-commerce logistics will be seen as the outstanding distinguishing feature in the future.
The automation of logistics will be a huge challenge for online retail in 2020: Parcel volumes are growing massively from year to year, and the administration of conventional parcel services is becoming increasingly complex. More and more customers want to be able to track their parcels in real time and want an even simpler return procedure.
There are two ways to counteract this: to put internal logistics to the test and to fully make use of all optimization possibilities of the ERP system. As an alternative, especially for very small senders, there are fulfillment service providers who specialize in cushioning such peaks, like the Christmas trade. A positive side effect of streamlined logistics is that it carries very low or even no shipping costs. And this increases competitiveness. Especially vis-à-vis the big players. If this isn’t a motivating factor to bring logistics up to speed, then I don’t know what is.
Customer experience on the last mile is a topic that few have thus far paid much attention to, but which has great potential. Retailers should therefore think in terms of the entire buying cycle, not only to increase customer satisfaction but also to benefit from all touchpoints. Especially in the shipping process, there’s still a lot that can be optimized in terms of communication in order to impress customers and turn them into repeat buyers.”
The Christmas shopping season and bargain days like Cyber Monday and Black Friday once again gave retailers and shippers a taste of what to expect from the rapidly growing number of transactions – an annual stress test for both core processes and all those involved in the supply chain. After all, the revenues generated by online trade are continually increasing – and with them, the number of transactions. Global B2C e-commerce will almost double from 3.5 trillion US dollars in 2019 to 6.5 trillion US dollars in 2023. The number of packages shipped is growing at the same rate, according to, for example, the Pitney Bowes Parcel Shipping Index. It anticipates 200 billion parcels worldwide by 2025 – in 2018 it was 87 billion. And although Germany was still at three billion parcels in 2019, nine billion are expected to be shipped in 2028.
Advice, expert know-how, specialist knowledge and suitable solutions for logistics, fulfillment and packaging will be offered at the INTERNET WORLD EXPO 2020. Tickets are available for 39 euros (plus VAT) on the Website or directly in the Ticketshop. In addition to admission to INTERNET WORLD EXPO (for two days), the price includes electronic access to the recordings of all expert talks held at the EXPO.
Internet World EXPO – the E-Commerce Fair, is the leading fair for commercial issues in the German-speaking world. Founded in 1997 as the first specialist Fair for Online trade, the spectrum of topics has continuously extended, covering all E-Commerce relevant areas – Omnichannel, Multichannel, Payment, Marketing, Usability, Logistics, Software, und Social Media – to mention but a few. As a result of the convergence of online- and retail trade, Internet World EXPO has meanwhile become a must-attend event for all stationary traders and service providers. Internet World is a brand of the media- and advanced-training company, Neue Mediengesellschaft Ulm mbH, Munich. The company provides its target group of Internet professionals with knowledge from experts, cutting-edge news and important contacts through events such as Internet World Expo and various industry conferences, the Website internetworld.de and the fortnightly trade journal INTERNET WORLD Business.
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