The businessof the Internet

Hello! My name is Bart.

I’m an entrepreneur.

(this is an actual screenshot from my laptopwhile making this presentation)

And a geek.

I’m staffing Pakistani talent atEuropean software companies

I’m trying to build the world’s largestonline resource for public data

The next ±60 minutes. . .

What is a business model?

What is the Internet?

Internet and traditional business models

What is a business model?

What is a business model?

A

methodfor creating

value.

What is a business model?

A

methodfor creating

value.

What is the Internet?

PEOPLE

PEOPLE6= ‘users’, ‘visitors’, ‘customers’, . . .

Internet andtraditional

businessmodels

Business models by developmental stage

4. Abductive stage3. Objective stage

2. Subjective stage1. Authoritative stage

Business models by developmental stage

4. Abductive stage3. Objective stage

2. Subjective stage1. Authoritative stage. based on need. monopoly, addiction. obligate customers

Business models by developmental stage

4. Abductive stage3. Objective stage

2. Subjective stage. win/lose. only the company benefits. get customer to spend money

1. Authoritative stage. based on need. monopoly, addiction. obligate customers

Business models by developmental stage

4. Abductive stage3. Objective stage. complimentary relationship. informing, communicating. satisfy customers

2. Subjective stage. win/lose. only the company benefits. get customer to spend money

1. Authoritative stage. based on need. monopoly, addiction. obligate customers

Business models by developmental stage

4. Abductive stage. mutual ongoing relationship. marketing and sales dissolve. communities arise

3. Objective stage. complimentary relationship. informing, communicating. satisfy customers

2. Subjective stage. win/lose. only the company benefits. get customer to spend money

1. Authoritative stage. based on need. monopoly, addiction. obligate customers

5. New opportunities for companies arise

4. Information and its distribution are abundant

3. Consequences for bad behaviour worsen

2. Communication changes

1. Balance of power shifts toward customers

company

consumer

1. Shift of power

R&Dsupport

marketing

sales

regulator

supplier

reviewercustomer

2. Changes in communication

faster, cheaper

2. Changes in communication

easier to monitor

faster, cheaper

2. Changes in communication

2. Changes in communication

3. Worsening consequences for bad behaviour

3. Worsening consequences for bad behaviour

4. Information and its distribution are abundant

Redefine what you are for.

4. Information and its distribution are abundant

Learn from the porn industry.

Redefine what you are for.

4. Information and its distribution are abundant

Did you really think you could watch apresentation with Internet in its title and notgetting a referral to porn?

Did you really think you could watch apresentation with InternetBusiness in its titleand not getting a referral to pornthe mostprofitable business in the universe?

5. New opportunities for companies

Manufacturer↓

Wholesaler↓

Retailer↓

Final customer

5. New opportunities for companies

e 3 Manufacturer↓

e 7 Wholesaler↓

e 14 Retailer↓

e 39 Final customer

5. New opportunities for companies

e 3 Manufacturer↓

e 7 Wholesaler↓↓

e 39 Final customer

5. New opportunities for companies

e 3 Manufacturer↓↓↓

e 39 Final customer

5. New opportunities for companies

e 3 Manufacturer↓↓

10% Payment/back-office↓

e 39 Final customer

5. New opportunities for companies

e 3 Manufacturer↓

10% Affiliate marketeers↓

10% Payment/back-office↓

e 39 Final customer

5. New opportunities for companies

Business models by developmental stage

4. Abductive stage. mutual ongoing relationship. marketing and sales dissolve. communities arise

3. Objective stage. complimentary relationship. informing, communicating. satisfy customers

2. Subjective stage. win/lose. only the company benefits. get customer to spend money

1. Authoritative stage. based on need. monopoly, addiction. obligate customers

Business models by developmental stage

4. Abductive stage. mutual ongoing relationship. marketing and sales dissolve. communities arise

3. Objective stage. complimentary relationship. informing, communicating. satisfy customers

1. Authoritative stage. based on need. monopoly, addiction. obligate customers

The Internet forces companies’ business modelsaway from the subjective stage.

So why do those in the authoritative stage survive?

. . .

Network effect

People are lazy

“It is not the strongest of the speciesthat survives, nor the most intelligentthat survives. It is the one that is themost adaptable to change.”

Credits(I couldn’t do this without you!)

I Simon J. Hill (http://www.infoqual.net)

I Hugh McGuire(http://www.huffingtonpost.com/hugh-mcguire/

porn-knows-what-its-for-d_b_81522.html)

I The Internet and Business(http://ibiz.wikidot.com/)

I Many anonymous photographers