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This paper aims to examine how hybrid business models can help companies to survive in a constantly evolving digital world. The hybridization of business models is a promising approach to innovation.

The authors discuss the key elements of a successful business model hybridization along the Business Model Canvas (Osterwalder and Pigneur, 2010). In particular, the elements of value propositions, customer segments, channels and a company’s cost structures demonstrate the individual steps toward a hybridized business model. Using Paddy Power Betfair as an example, the authors showcase how the concept of a hybrid business model can be successfully implemented in practice.

By hybridizing its business model, Betfair not only expanded existing customer value propositions but also introduced new ways of co-creating value with customers. Simultaneously, the hybridization positively affects a company’s revenue model, hence evolving in new ways of capturing value.

To effectively hybridize and thus innovate a company’s business model, the two key factors are successful value creation and value capture. By hybridizing elements of existing business models, new value for customers can be generated. Companies capturing this additional value may achieve sustainable and successful business models and thereby gain a competitive advantage.