A third model is the ecosystem creator model in which you allow others to create value creating ecosystems on top. For example, instead of creating one app store, you can create a service to create and manage app stores. Snappy Ubuntu Core, which I launched in 2015, is an example of this model where you can create apps for devices, have a free community app store but can pay to run your own app store.
At the same time pre-digital 1.0 companies are moving their legacy systems and data to the cloud. They are launching their first mobile apps. They use some AI often for the first time. Many have packaged this all into a digital transformation model. Most of the time these exponential technologies are applied to the current business model without changing the core concept of doing business. This leads to the creation of a "Digital Blockbuster". A mobile app to order, AI to predict demand, Bitcoin to pay, drones to deliver,... However all are applied to DVDs so Netflix still bankrupts them.
Let's take car insurance for example. By creating a special webcam and ODB-II module [standard protocol which allows a device to be plugged into your car so the insurer can see your car data] car insurers are offering "digital insurance". They get basic data about how you accelerate, break, where you drive,... On top they can offer products for instance for high-risk market segments, e.g. young drivers, and manage the risk.
Unfortunately a car manufacturer like Tesla can offer a Netflix-type product by embedding pay per drive insurance inside the car control system and at time of purchase. They can offer insurance paid per kilometre/mile, with a low fixed monthly fee [to cover theft and other risks which can occur even if you do not drive] and influence your behaviour, e.g. pay 10% less if you switch on autopilot on highways, if you keep on driving this close to the car in front then you will start paying 25% more going forward,... Even claims can be handled easily with the car automatically booking a tow truck and getting emergency help in case of an accident where airbags had to be deployed. By including the insurance when you purchase the car, Tesla has almost no cost of sales, compared to competitors who can often pay 20-30% in advertisements. All of this preparing for a world in 3 to 5 years where car owners can send their Tesla into a robot taxi network to make some extra money or even no longer owning a car altogether and just subscribing to transport as a service. Neither of these models can be easily offered by car insurers and can be an existential threat to them.
The end result is that the whole "digital insurance" project most car insurers are working on, which will take 2 to 3 years to be fully rolled out, will be available at the same time that Tesla will start offering a superior insurance product and make the traditional market irrelevant. CEO's are going from a pre-digital 1.0 world to a digital 2.0. When they actually should be taking a jump and go directly to a 3.io world.
How to do this? Read about the basics in CEO 3.io - driving exponential change. Either get the Kindle version for $2.99 or answer 6 questions and download the book for free. Please leave the $250 version for others to buy :-)