Google, Yahoo, Hi5, Facebook, MySpace, Twitter, Meebo, LinkdIn, YouTube, SecondLife, blogs and many more services are non-disposable components of the everyday life in the digital world.
No matter if they are called Virtual Worlds, eCommerce, Search Engines, Social Networking/Social Media, the virtual worlds mix with and shape people’s existence in ways never conceived just one decade ago.
People already have a digital identity and act in the Digital Economy probably even more than they do in their physical reality but the way people relate to their communities is changing along with technological innovation.
Over the past ten years, large and small companies across all industries have invested in their digital strategies. Further developing these strategies for enriched online connectivity is essential to the future success of both existing, traditional businesses and new companies entering the digital economy. But for all the hype and enthusiasm, few have figured out the right business model to succeed in the digital era.
The first digital decade (1994-2004) was characterized by innovation in the form of new technology that provided increased functionality to consumers and businesses.
The second digital decade is all about personalization and connectivity in ways previously not possible or imaginable.
The shift from innovation to humanization has led to a new Web 2.0 business model that feature both attractive and disruptive characteristics: low cost of entry, massive reach, ability to easily target customers with attractive demographics and widely dispersed around the world, ability to have meaningful interaction between participants, as well as possibility of replacing existing physical goods and services (newspapers, books, etc).
KPMG emphasizes that to understand the opportunities and generate revenue from them, compa
