10 HYPER DISRUPTIVE BUSINESS MODELS

10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

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WE ANALYZED TONS OF

DISRUPTORS

10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

WROTE A BOOK ONDIGITAL

TRANSFORMATION

10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

YOU SHOULDCHECK IT OUTwww.digitaltransformationbook.com

AND DISCOVERED

7 SIMILARITIES

10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

THE SEVEN METAPHORS

OF DISRUPTION

10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

THE GLASS HOUSE

10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

THE CHANGING RELATIONSHIP BETWEEN THE ORGANIZATION AND THE OUTSIDE WORLD.

THE PACKAGE

10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

THE EVOLUTION OF UNBUNDLING AND HOW THIS CHANGES THE PRODUCTS

AND SERVICES YOU OFFER AND YOUR GO-TO-MARKET.

THE FROG

10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

THE BY-PASSING THAT YOU ARE SUBJECT TO OR THAT YOU CAN PERFORM

YOURSELF, LEADING TO A CHANGE IN THE EXISTING VALUE CHAIN.

THE GATEKEEPER

10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

THE CHANGE OF OPINION MAKING, OF LEADERSHIP AND THE ENTRANCE OF NEW PLAYERS THAT DOMINATE THE ATTENTION OF THE PEOPLE.

THE TRAVELER

10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

THE CHANGE OF LOCATION & PLACE, THE EMERGENCE OF HYBRID MODELS THAT MERGE

ONLINE & OFFLINE AND CREATE A CONSISTENT USER EXPERIENCE & CUSTOMER JOURNEY.

THE PARTICIPANT

10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

THE IMPORTANCE OF THE CROWD AND THE POWER THAT IT REPRESENTS FOR THE GOOD OR THE BAD OF THE ORGANIZATION.

THE CYBORG

10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

THE REALIZATION THAT WE ARE JUST AT THE BEGINNING OF THE DIGITAL REVOLUTION.

10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

THE SEVEN METAPHORS OF DISRUPTION

THE GLASS HOUSE

THE PACKAGE

THE FROG

THE GATE

KEEPER

THE TRAVELER

THE PARTICIPANT

THE CYBORG

10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

THIS IS YOU

10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

THIS IS DISRUPTIVE

10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

THIS IS HYPER DISRUPTIVE

THE HYPER DISRUPTOR ATTACKS YOU ON EVERY LEVEL. THE METAPHORS

REINFORCE EACH OTHER IN EVERY WAY.

10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

CAN YOU IMPROVE?HOW WILL YOU IMPROVE?

10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

CAN YOU IMPLEMENT BUSINESS MODELS OF

THE HYPER DISRUPTORS INTO YOUR BUSINESS?

10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

WHAT ARETHEIR

BUSINESS MODELS?

10 HYPER DISRUPTIVE BUSINESS MODELS

1.THE SUBSCRIPTION MODEL

10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

1. THE SUBSCRIPTION MODEL10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

The subscription model is a business model where a customer must pay a returning subscription price to have access to the product/service.

PIONEERED BYNewspapers & magazines

TYPES OF DISRUPTORS USING THE SUBSCRIPTION MODELNetflix, HelloFresh, Dollar Shave Club, Kindle, One

WHY?The constant revenue stream from subscribers reduces uncertainty & often provides payment in advance, while allowing customers to become greatly attached to using the service and, therefore, more likely to extend the subscription. The revenue stream from recurring subscriptions often is greater than the revenue from simple one-time purchases. This is known as the lock-in mechanism.

1. THE SUBSCRIPTION MODEL10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

Netflix One Medical Group

Dollar Shave Club

Kindle Unlimited

Hello Fresh

2.THE FREEMIUM MODEL

10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

2. THE FREEMIUM MODEL10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

The freemium model is a business model where the customer has free access to the basic service but is charged for additional features.

PIONEERED BYSoftware companies giving away free ‘lite’ floppy disks of their products in the 80’sTYPES OF DISRUPTORS USING THE FREEMIUM MODELSpotify, Dropbox, LinkedIn, The New York Times, Farmville

WHY?The freemium model is used to build a large consumer base when the marginal cost of producing extra units is low. Giving the service away for free results in acquiring a lot of prospects very efficiently. The non-paying customers result in input of data, feedback, notoriety, advertising opportunities, etc.

2. THE FREEMIUM MODEL10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

THE FREEMIUM MODEL HAS NUMEROUS WAYS IN WHICH THE PRODUCT OR SERVICE MAY BE RESTRICTED IN THE FREE BASIC USAGE:• FEATURE LIMITED

Skype: Only two-way video calling on the free version • CAPACITY LIMITED

Dropbox: Maximum 2GB cloud storage space • CUSTOMER CLASS LIMITED

AutoDesk: AutoCAD is free for Students • EFFORT LIMITED

FarmVille: Unlock levels faster

OTHER EXAMPLES OF FREEMIUMS ARE:• ADD-FREE UPGRADES - HBO Premium Channels don’t show tv ads • TIERED SERVICES - LinkedIn provides with more services when upgraded • SOFT PAYWALLS - The New York Times let’s you read 20 articles per month for free • IN-GAME PURCHASES - Candy Crush let’s you buy power ups to go on with the game faster

HARD PAYWALLS ARE NOT FREEMIUM SINCE THERE IS NO FREE BASIC USE!

2. THE FREEMIUM MODEL10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

FREEMIUMIS NOT

PREMIUMPremiums have an upfront price before they can even be used. It’s similar to licensed software, except that all future upgrades to the premium are free once purchased.

Freemiums don’t have an upfront price. However, the customer will have to pay for every upgrade.

2. THE FREEMIUM MODEL10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

FREEMIUMIS NOT

FREE TRIALFree trials are limited in time and give the consumer the whole experience of the product or the service.

Freemiums are free forever but will not give the potential customer the full package of the product or service.

2. THE FREEMIUM MODEL10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

FREEMIUMIS NOTFREE

Free means free. There are no upgrades for users whatsoever or they are free as well. The only way free can be free, is when the users pay with their data, their attention or if you’re called Instagram and get acquired for a billion dollars by Facebook.

The goal of a freemium is to convert at least 1% of the free users into paying customers.

3.THE FREE MODEL

10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

3. THE FREE MODEL10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

The free model is a business model integrated by companies that don’t charge the end users (directly). The data and the attention of the users is the currency.

PIONEERED BYSearch Engines

TYPES OF DISRUPTORS USING THE FREE MODELGoogle, Facebook, Snapchat

WHY?By offering the product or service for free it is easy to gain a lot of users. The more people that interact with the product, the more data that can be extracted from the users. Besides data, the attention is also a big asset for these companies. The end user normally is not ‘the customer’ of the free model company.

3. THE FREE MODEL10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

Free model businesses can offer their service or product without charging the user for two reasons:

- THE DATA OF THE END USER IS BEING SOLD

- THE ATTENTION OF THE END USER IS BEING SOLD

When a free model company combines its data with advertising opportunities, the advertising will be much more targeted thus much more effective and, needless to say, much more expensive.

4.THE MARKET PLACE

10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

4. THE MARKET PLACE10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

The market place is a business model used by a company that only facilitates a platform where parties economically interact with each other.

PIONEERED BYClassifieds in newspapers

TYPES OF DISRUPTORS USING THE MARKET PLACE MODELeBay, Alibaba, Friendsurance, priceline.com, The Lending Club, etc.

WHY?The market place is a business model that defines a company as a big supplier of a product or service without that company having the good or the service. It only facilitates the platform where people interact with each other in any (economical) way. The market place business generates revenue by taking a percentage of any transaction between people on their platform.

4. THE MARKET PLACE10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

Priceline.com

Friendsurance

The Food Assembly Alibaba

4. THE MARKET PLACE10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

Other examples of companies that use the market place business model are Lending Club (the world’s largest online marketplace connecting borrowers and investors), Beatport (the marketplace where most of the dj’s sell and buy their music), Upwork (supply & demand of freelancers).

IS ITUNES A MARKET PLACE TOO?

We would say it’s a freemium because you can use the basic product for free, which is listening to music that you’ve bought. The iTunes store, however, could be seen as a market place or as the paying extra service that upgrades the media player. It’s up to you to decide. Apple is a hyper disruptor and thus king in combining disruptive business models that scores high on every earlier discussed metaphor or driver of disruption.

5.ACCESS OVER OWNERSHIP

10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

5. ACCESS OVER OWNERSHIP10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

The access over ownership model is the business model that grants customers the use of the product without buying it. “Everything as a service.”

PIONEERED BYSharing economy

TYPES OF DISRUPTORS USING THE ACCESS OVER OWNERSHIP MODELZipcar, ParkCirca, Peerby

WHY?Access over ownership companies generate revenue by using the power of the sharing economy. Just like market place companies, the access over ownership model only facilitates the actions between people thus making it needless for these companies to invest in products or people.

5. ACCESS OVER OWNERSHIP10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

ParkCirca

Peerby Zipcar

6.THE HYPER MARKET

10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

6. THE HYPER MARKET10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

The hyper market is the business model used by digital companies that act as hyper stores, offering enormous amounts of products and or services.

PIONEERED BYAmazon

TYPES OF DISRUPTORS USING THE HYPER MARKET MODELAmazon, Zalando, Coolblue

WHY?Having large amounts of goods or services results in having great scale advantages. These companies often sell products under the market price to expand territory. The digital hyper market players are hyper disruptive since their main objective is to kill the competition in a fierce pricing battle that you probably can’t win.

6. THE HYPER MARKET10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

Zalando Coolblue

7.THE EXPERIENCE MODEL

10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

7. THE EXPERIENCE MODEL10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

The experience model is a business model used by a company that provides the customers with an unseen (user) experience.

PIONEERED BYApple

DISRUPTORS USING THE EXPERIENCE MODELTesla, KLM, Disney World, Tomorrowland

WHY?Customers of experience model companies mostly are willing to pay more just because of the special (user) experience they get when interacting with the company or the product. Experience companies are often situated in or penetrating competitive markets. In these markets you can either offer the lowest price or provide consumers with the best experience.

7. THE EXPERIENCE MODEL10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

Tesla KLM Disney World

Tomorrowland

8.THE PYRAMID

10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

8. THE PYRAMID10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

The pyramid has nothing to do with Ponzi schemes. It’s the collective term for all companies that are generating major parts of their revenue by affiliates & resellers. The company sits on top of the pyramid and lets the revenue stream upwards with the least possible effort.

PIONEERED BYWilliam J. Tobin

TYPES OF DISRUPTORS USING THE PYRAMID MODELAmazon, online retailers (fitness, fashion, etc.)

WHY?The pyramid business model is a cost-effective way of building your business because you only pay your ‘sales people’ a percentage of the profit. Needless to say, companies like this don’t have (a lot of) sales staff, which raises the certainty regarding cash flow. Pyramid companies will often use people with high notoriety to sell their products.

8. THE PYRAMID10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

Amazon

8. THE PYRAMID10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

Fitness goods sold by affiliates & influencers

9.THE ON DEMAND MODEL

10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

9. THE ON DEMAND MODEL10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

The on demand model generates revenue by the exponential need of people to have things done right away. Speed and convenience matter the most.

PIONEERED BYUber

TYPES OF DISRUPTORS USING THE ON DEMAND MODELUber, Operator, TaskRabbit

WHY?The on demand company will provide (new) services that make the lives of its customers easier. The on demand model is a business model that holds a high risk but when executed properly and accorded to the right needs of a market, it will disrupt the entire industry. People value time.

9. THE ON DEMAND MODEL10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

Operator

Uber

TaskRabbit

Our On Demand Service Economy

10.THE ECOSYSTEM

10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

10. THE ECOSYSTEM10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

The ecosystem is one of the most powerful, disrupting business model. Companies build an entire universe of products and services in which customers gets lost without them knowing it.

PIONEERED BYApple & Google

TYPES OF DISRUPTORS USING THE ECOSYSTEMApple & Google

WHY?The ecosystem business model only exists when companies can offer enough services and or products that cause a high level of dependence of the customer. Once the customer is dragged too far in the ecosystem, he can hardly get back out. The iPhone breaks? Too bad that you already bought a MacBook & the Apple Watch. You just need to buy another iPhone.

10. THE ECOSYSTEM10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS

1. THE SUBSCRIPTION MODEL2. THE FREEMIUM MODEL3. THE FREE MODEL4. THE MARKET PLACE5. ACCESS OVER OWNERSHIP6. THE HYPER MARKET7. THE EXPERIENCE MODEL8. THE PYRAMID9. THE ON DEMAND10. THE ECOSYSTEM

WHAT SHOULD

YOUREMEMBER?

10 HYPER DISRUPTIVE BUSINESS MODELS

10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER?

THE SEVEN METAPHORS

OF DISRUPTION

10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER?

THE GLASS HOUSE

THE PACKAGE

THE FROG

THE GATE

KEEPER

THE TRAVELER

THE PARTICIPANT

THE CYBORG

THE SEVEN METAPHORS OF DISRUPTION

10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER?

THE TEN HYPER DISRUPTIVE BUSINESS MODELS

10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER?

1. THE SUBSCRIPTION MODEL2. THE FREEMIUM MODEL3. THE FREE MODEL4. THE MARKET PLACE5. ACCESS OVER OWNERSHIP6. THE HYPER MARKET7. THE EXPERIENCE MODEL8. THE PYRAMID9. THE ON DEMAND10. THE ECOSYSTEM

10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER?

HYPER DISRUPTORSCOMBINE DIFFERENTBUSINESS MODELS

10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER?

HYPER DISRUPTORSATTACK YOU ON EVERYDRIVER OF DISRUPTION

DO YOU THINK YOU CAN COMPETE WITH THESE

COMPANIES?

10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER?

IF YOU NEED HELP,CLICK TO CONTACT US!

10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER?

10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?

READ OUR BOOK TO LEARN MORE!

www.digitaltransformationbook.com

10 HYPER DISRUPTIVE BUSINESS MODELS

@DADOVANPETEGHEM @NICKVINCKIERdado.vanpeteghem@duvalunion.com nick.vinckier@duvalunion.com

DADO VAN PETEGHEMManaging Partner

NICK VINCKIERStrategy Consultant

+32 474 82 68 07 +32 474 39 12 82

10 HYPER DISRUPTIVE BUSINESS MODELS

THAT SHOULD INSPIRE YOU