The Transformers of Digital: Why Leading Isn’t Always Best

*Updated 24 February 2025*

The Business Models of Innovation 

Businesses typically fall into one of four categories: innovators, transformers, improvers, and enablers (the ones who help others succeed—like us). While innovators take the first leap, transformers are the ones who truly revolutionise industries by refining and optimising business models. 

In this blog, we explore why transformers are often the ones who achieve long-term success, sometimes outshining the very innovators who paved the way. 

 

What Sets Transformers Apart? 

Being a transformer doesn’t mean you lack originality—it means you know how to scale, refine, and maximise impact. Take the car industry, for example. Karl Benz may have created the first automobile, but it was Henry Ford who transformed the industry by introducing the assembly line, making cars faster, more affordable, and accessible to the masses. 

Transformation is happening at an unprecedented rate. Consider ‘Too Good To Go’, an app designed to reduce food waste by allowing consumers to purchase unsold food from top eateries at discounted prices. The concept of reducing food waste isn’t new—initiatives like Pret a Manger’s partnership with charities have long existed—but Too Good To Go reimagined the model, targeting a new audience: young people and students looking for affordable meals. 

This is the power of transformation: taking a great idea and making it even better, broader, and more impactful. 

 

The Five Key Advantages of Transformers 

Like innovators, transformers hold a powerful position in digital transformation—except they benefit from a second-mover advantage. Nowadays, many successful startups are transformers. Here’s why they thrive: 

1. Lower Risk of Market Acceptance

Being second to market means you already know there’s demand. While innovators take a gamble, transformers step in when the concept has been validated. They focus on refining, rather than proving an idea’s viability.

2. Reduced R&D Costs and Time to Market

Since innovators have already tested the waters, transformers don’t need to spend as much time or money on research and development. They can build upon existing models, improving them at a faster and more cost-effective pace.

3. Leverage New Technological Advancements

Tech moves quickly. Innovators often struggle to keep up, but transformers can adapt faster. By waiting for technological advancements, they integrate new tools seamlessly and create superior versions of the original innovation.

4. Freedom to Choose Competitive Advantage

Transformers don’t need to invent the wheel; they just need to make it better. Whether it’s price, customer service, or unique features, transformers enter the market with clear differentiation strategies.

5. Learn from the Innovator’s Mistakes

The harsh reality for many innovators is that being first doesn’t always mean staying first. Transformers observe where pioneers fail and use that knowledge to avoid the same pitfalls. This adaptability is why many successful businesses today were not first to market. 

 

Adding Value is the Key to Success 

Transformers challenge existing players in the market by offering more value—whether to customers, employees, or stakeholders. They may not always create something entirely new, but they reimagine it in ways that resonate better with modern consumers. 

Let’s look at how this plays out in the banking industry. 

 

Spotlight: Banking’s Digital Transformation 

The financial sector has witnessed a revolution over the last decade, driven by digital-only challenger banks like Monzo, Starling, and Revolut. Unlike traditional banks such as HSBC, Barclays, RBS, and Lloyds, these digital disruptors have no physical branches—yet they’ve gained significant market share. 

Why? They transformed the banking experience. 

• Intuitive apps that make personal finance simple and engaging 

• Customisable spending insights to help users manage money better 

• Seamless bill splitting and direct payments 

• Innovative branding, including Monzo’s signature coral-coloured card 

These banks didn’t invent banking—but they made it smarter, faster, and more user-friendly. And they targeted an audience that values convenience and personalisation over legacy loyalty. 

Traditional banks are adapting in response, integrating real-time spending alerts and mobile banking tools. The competition is fierce, and the next wave of innovation will likely come from improvers—those who refine what transformers have created. 

 

What’s Next for Digital Transformers? 

We’re seeing transformation across industries—from AI-powered healthcare solutions to on-demand service platforms disrupting traditional models. 

If you’re thinking about launching a digital product or service, consider this: You don’t have to be first to be the best. The most successful businesses are those that adapt, refine, and deliver better experiences than what already exists. 

If this inspired you to rethink your approach to digital transformation, we’d love to hear your ideas.