STRATEGIC IMPERATIVE
Rapidly monetizing new business models
As the world rapidly changes, so do customer expectations in how they buy and consume the products and services that make their lives easier.
Just in the past decade, we have seen a major shift from ownership to access, and from one-time purchases to subscriptions or consumption models. Take a look at these examples:
- Subscriptions: Netflix, Spotify, Amazon Prime
- Sharing platforms or marketplaces: AirBnB, Uber/Lyft, Turo
- Pay-per-use and usage-based pricing: WeWork, Amazon Web Services
- Product-as-a-Service: Xerox, Volvo, Peloton
- Digital platforms: eBay, Amazon Marketplace, Etsy
Forward-thinking companies have started to introduce new and innovative business models to take advantage of these market opportunities. Multiple studies show the “sharing economy” to be growing rapidly, with CAGRs of between 20 and 32%, resulting in a valuation of USD $794B by 2028.
Valuation of the “sharing economy” by 2028
CFOs need to stay on top of emerging technologies to help capitalize on new business models
Once again, innovative CFOs are in the forefront of identifying opportunities and capitalizing on them, capturing additional value for their companies, investors and shareholders.
A wide variety of monetization opportunities exist already and more are being developed as technology becomes available to support their creation. CFOs are in the best position to ensure those new technologies and systems are adopted that are vital in turning these opportunities into benefits such as:
Increased revenue opportunities through diversification of revenue streams or new markets
Access to new markets by identifying untapped opportunities and targeting niche segments
Scalability and flexibility to adapt to changing business needs and grow the company
Market disruption through innovative business models and first-mover advantage
Competitive advantage through differentiation and improved positioning that attracts more customers