New business and economic models in the connected digital economy

This article discusses business models as a systemic phenomenon as opposed to traditional reductionistic approaches of business disciplines. It presents the ways connectivity changes economic models due to the availability of consumption data as an economic resource, markets forming at consumption spaces and how industries could disrupt one another when connected through consumption technologies. The article further suggests that the challenges posed by connectivity result in the redrawing of traditional firm and market boundaries. It proposes more research into modularity, transaction costs, the future role of the firm and the necessary transformation of businesses to stay agile in a connected digital economy. © 2014 Macmillan Publishers Ltd.