Digital Business Models 101

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    08-May-2015
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An introduction to the framework "Business Model Canvas" illustrated by concrete Business Models of digital champions such as Linkedin, Scoop.it, HelloMentor, Viadeo, HP, eBay, Google, GMF, AXA, P&G.

Transcript of Digital Business Models 101

  • 1.Business Model Canvas 101

2. The Basics 3. A Business is a System It seems like a whole. But you can deconstruct it. 4. The Business Model Canvas is a call-to-action. Execution vs abstraction. 5. 50,98% of innovations come from business models* * * Science, technologie et industrie : Perspectives de lOCDE, 2008. 6. The Basics Business 101 1 7. Value DeliveringValue Creation Value Proposition 1 Business is a Journey KISS version. Goal: adding more value along the way 8. DistributionInput OutputProcess Customers 1 Detailed version. Business is a Journey activity + ressources channels + customer relationships Goal: adding more value along the way suppliers + partners 9. The Basics Finance 101 2 10. ! Finance Business Journey value (input) actualisation of the added value (clients)potential added value (output) revenuecosts financial flows Goal: Capturing some of the value added (revenue - costs) 11. The Building Blocks3 12. DistributionInput Output Costs Revenue Process Customers activity + ressources channels + customer relationshipssuppliers + partners 13. Channels Key Partners Value Proposition Costs Revenue Activity Customer Segments Ressources Customer Relationships 14. How to use it?4 15. Customers. How can you make their lives better? Channels Key Partners Value Proposition Costs Revenue Activity Customer Segments Ressources Customer Relationships 16. Value proposition. Is there a real fit between the problem & the solution? Channels Key Partners Value Proposition Costs Revenue Activity Customer Segments Ressources Customer Relationships 17. Channels. What interfaces will you use to communicate & sell? Channels Key Partners Value Proposition Costs Revenue Activity Customer Segments Ressources Customer Relationships 18. Customer relationships. How will you interact? Channels Key Partners Value Proposition Costs Revenue Activity Customer Segments Ressources Customer Relationships Customer Relationships 19. Revenue. What will they pay? Channels Key Partners Value Proposition Costs Revenue Activity Customer Segments Ressources Customer Relationships Customer Relationships 20. Channels Key Partners Value Proposition Costs Revenue Activity Customer Segments Ressources Customer Relationships Customer Relationships Ressources. What asset do you need to build this VP? 21. Activity. How will you build this VP? Channels Key Partners Value Proposition Costs Revenue Activity Customer Segments Ressources Customer Relationships Customer Relationships 22. Key Partners. Who are your allies & suppliers? Channels Key Partners Value Proposition Costs Revenue Activity Customer Segments Ressources Customer Relationships Customer Relationships 23. Costs. What are the main sources of costs? Channels Key Partners Value Proposition Costs Revenue Activity Customer Segments Ressources Customer Relationships Customer Relationships 24. 5 * source Principal Business Model Inspired by the great work of Elton Pickford 25. A * theorized by Chris Anderson in his book The Long Tail The Long Tail* Eg: Amazon, eBay, Netflix, Lego 26. eBay.com Paypal Buying and selling first- or second- hand goods Platform creation & animation Platform Online profiles Case study: eBay Marketplace for niches Professional Sellers Anyone Niches segments Fees on the selling price Pay by postCosts of platform & HR 27. B * Also see the book Free by Chris Anderson (again) Multi-sided platforms* Eg: Viadeo, LinkedIn, Google, Sony, Microsoft, Apple, Facebook 28. google.com Free account Costs of platform & HR Platform management & services Platform Case study: Google Free research Advertisers Internautes Keywords bidding Content editor Content monetization FreeFree widgets 29. C Freemium* Eg: LinkedIn, Flickr, Evernote, Scoop.it * Also see the book Free by Chris Anderson (again) Premium accounts Free accounts 30. LinkedIn.com Free account with standard features Costs of platform & HR Platform management & services Platform Case study: LinkedIn* Occasional users Advanced users Keywords bidding FreeFree Advanced features * its also a multi-sides platform you could add advertisers & HR companies Customized messages (auto+hand made) 31. D Inverted Freemium Eg: Axa, GMF Beneficiaries Subscribers 32. Website Phone Email Stores Insurance Ad + HR + webplatform Client acquisition Platform Case study: GMF* Subscribers Beneficiaries 0 to excess payment * its also a multi-sides platform you could add advertisers & HR companies On timeManagement of the claims HR reimbursements Insurance premium Reinsurance companies 33. D Freebie marketing Eg: hp, Epson, Gillette 34. Distributors Inktjet printers Marketing + Fabrication + Logistics + R&D Marketing IP Case study: hp Ink cartridges * branding is always an asset but even more strategic in this kind of BM Fidelity Logistics Branding* R&D Clients Constraints Replacements of cartridges First buy 35. E Open Business Model Eg: P&G 36. R&D inside the company Case study: P&G * branding is always an asset but even more strategic in this kind of BM R&D inside R&D inside Innocentive (web) yourEncore.com IP from other firms Researcher outside the company Retired Researcher increase of R&D productivity: 85% tiny increase of R&D costs 37. Case studies6 38. Advanced Business ModelA 39. Channels Key Partners Value Proposition Costs Benefit Activity Customer Segments Ressources Customer Relationships Case study: Amazon Exercise: Map out the BM with at least 3 value propositions 40. Channels Key Partners Value Proposition Costs Benefit Activity Customer Segments Ressources Customer Relationships Case study: Facebook Exercise: Map out the BM with at least 3 value propositions 41. Channels Key Partners Value Proposition Costs Benefit Activity Customer Segments Ressources Customer Relationships Case study: Meninvest Exercise: Map out the BM with at least 3 value propositions 42. Channels Key Partners Value Proposition Costs Benefit Activity Customer Segments Ressources Customer Relationships Case study: Twitter Exercise: Map out the BM using their growth strategy (check their S1) 43. Channels Key Partners Value Proposition Costs Benefit Activity Customer Segments Ressources Customer Relationships Case study: Angrybirds Exercise: Map out the BM with at least 3 value propositions 44. Financial viability & projectionB 45. Channels Key Partners Value Proposition Costs Benefit Activity Customer Segments Ressources Customer Relationships Case study: Viadeo Exercise: Map out the BM & try to figure out their revenue Assumptions: 50M users, 15% premium users with 20% churn rate of PU //revenue split=50% premium user, 35% HR firms, 15% ads 46. Channels Key Partners Value Proposition Costs Benefit Activity Customer Segments Ressources Customer Relationships Case study: HelloMentor Exercise: Map out the BM Determine how many users they should get to be profitable (average 25, 15% fees). Assumptions: team of 10 employees (each costs 60K), 2K RE. 47. Channels Key Partners Value Proposition Costs Benefit Activity Customer Segments Ressources Customer Relationships Case study: scoop.it Exercise: Map out the BM Determine how many users they should get to be profitable (check their pricing). Same assumptions as before, highlight yours. 48. BonusC 49. Channels Key Partners Value Proposition Costs Benefit Activity Customer Segments Ressources Customer Relationships What about you? Exercise: Map out the BM of your project or someone from the class Determine how many users they should get to be profitable (check their pricing). Highlight your assumptions.