New Business Models & Embedded Insurance Update
May 2022
IBM’s New Business Model and Embedded Insurance Team keeps you up-to-date with latest news, events, and point-of-views related to New Business Models and Embedded Insurance.
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A Breakdown of Industry Transformations and New Business Models
We often associate new technologies with industry transformations; however, new technologies do not have the power to transform an industry alone. Instead, new technologies must be accompanied by a business model that can deliver on the technology’s potential.
Generally speaking, business models describe the system in which a company generates and delivers values to its customers. In any given industry, a dominant business model emerges, and the strongest companies adhere to the model. Industry transformation occurs when the dominant business model is overturned by new entrants, who are often leveraging new technology.
An excellent example is HTML5 video, which allowed users to watch videos on the internet without a Flash plugin. YouTube and Netflix were both early adopters of HTML5. However, video streaming only revolutionized the entertainment industry after Netflix coupled the technology with a subscription-based business model. Then, the streaming wars began…
IBM’s New Business Models and Embedded Insurance team keeps an eye on the business models and technologies on the rise with a financial services spin. See here:
New Business Models Are Critical to The Continued Success of Mature Companies
“NBMs should be top of mind for our clients.
A business’ lifecycle can be represented by an S-curve. Each company will go through three phases: start-up, growth, and maturity, before hitting an inflection point. At the inflection point, companies can prosper, or they can decline.
It’s not a matter of if our clients will hit an inflection point but when, and how they are prepared to respond. Often, companies will do nothing, conduct BAU as revenue, and margins will decline and risk selloff at a major discount. Instead, companies must invest to reinvent themselves through new business models.”
- Brad Begin, Associate Partner at IBM iX
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Our Team
Yoann Michaux, Senior Partner — yoann.michaux@ibm.com
Brad Begin, Associate Partner — pbbegin@us.ibm.com
Amelie Dougherty, Senior Manager — amelie.dougherty@ibm.com
Stephanie Cheney, Manager — stephanie.cheney@ibm.com
Marissa Baker, Associate — marissa.baker@ibm.com
Lina Soufny, Associate — lsoufny@ibm.com
Hi there! 👋 Thanks for reading the New Business Model & Embedded Insurance Update. We would love your feedback. Feel free to email us at stephanie.cheney@ibm.com, marissa.baker@ibm.com, lsoufny@ibm.com
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