Data-Driven Digital Networks Power Winner-Takes-All Markets
The post-digital era is moving beyond digital transformation. The arrival of new funding models for innovation battle the crippling short-termism that plagues corporate boards and executives and stifles growth. Combating extreme pressure on EBITDA requires a new joint venture model for growth built on data-driven digital networks (DDNs). These DDNs aggregate curated data from hundreds of millions of users in networks, consolidate innovation dollars along value chains and attract top talent to determine next-best actions and create massive barriers of entry.
This shift, bigger than the $2.5 trillion digital transformation market in 2025, will create a winner-takes-all market where only a few DDNs will succeed and emerge in a battle of digital duopolies. The term “digital duopolies” describes how ultra-efficient capitalism will lead to two digital network and platform players in more than 50 markets across industries, value chains and geographic regions. In this report, Constellation shares how to partner, jointly invest and create a digital duopoly, using the example of a smart city–based consortium.
