Digital models use technology as the core of value creation and delivery, often disrupting traditional industries.

Key characteristics include scalability, network effects, and data-driven operations.

Common types: Subscription (e.g., Netflix), Freemium (e.g., Spotify Free), Platform (e.g., Uber), and Advertising (e.g., Google).

Focus on unique digital value propositions, leveraging data, and continuous innovation.

Strategic implications include predictable recurring revenue for subscriptions and network effects for platforms.

Challenges include intense competition, high customer acquisition costs, and managing data privacy.