A Business Model is Simply a description or

A Business Model is  Simply a description or

A Business Model is Simply a description or an account or a conceptual plan of how a business will make a profit What Do Businesses Do? 1. Spend time, effort and or money to create something 2. Find someone who is willing to pay for it 3. 2. > 1. Some Examples

Razor Blade Model Sell razors cheaply (below cost) Create a locked in customer base Sell blades well above cost Same model used by ink jet printer firms Sell printer cheaply (below cost) Create a locked in customer base Sell inks well above cost Other Examples Razors and Blades Ink-jet printers Keurig coffee maker Video game consoles

iTunes Key elements of a business model Whats the product or service? Who will pay for it, why, and how much (the value proposition)? How much it costs to make or deliver How much is left (profit) Who are partners, suppliers, competitors, complementors Structure and processes Marketing Distribution Operating / manufacturing Supply chain

Finance (sources of funds, returns to investors) Other Stakeholders The Internet Lots of new business models have been made possible by the Internet Amazon a refinement of a old model Google a completely new business model Top billing Click through Quibids.com Charging loosing bidders (penny auctions)

edX (MOOCs) Amazons First Business Model Vast potential customer base Efficient fulfillment High volume bargaining power, low delivery and product costs Exploiting the long tail go-to site -> customer base Virtuous circle Book sales

Amazons Evolving Business Model Diversification into related products Broadening into a generalized marketplace Making a market Providing a platform for small sellers Fire Phone Amazon Prime Spillover Amazon Web Services

Googles Business Model Initially just another search engine, (albeit a very good one). Gradually beat out earlier rivals (Yahoo, Lycos, Excite, Infoseek, AltaVistsa, and AskJeeves) How to make money from search? Subscription, user fee? Search Top billing Result Click Through Quibids Business Model Endless auction (hard to do in physical space) Winners pay But so do the (very many ) losers

So Quibids get paid multiple times edX Business Model Leverage a well known brand Take existing material Possibly add fancy post production (cost $500k) Put it on the web Sell this to other universities for $250k Plus 30% of all student fees above that A General Template Miller / Okumoto, Inc.

Business Model Example dunnhumby Retail Client (Vendor) Client Interface Team 1. 2. 3. Who are the members? What skills should they possess? What level of experience? 1.

2. Is this a dedicated group? What skills should they possess? Solutions Team Outside Partners 1. 2. 3rd Party data sources? 3rd Party software products? 1. 2.

3. What is Client economic benefit? What is Client strategic benefit? What is Vendor benefit? Client Team (labor + Overhead costs) Solutions Team (labor + Overhead costs) Outside partner(s) cost Product cost Product development cost Contribution Margin: Vendor Interface Team 1.

2. 3. 4. Are all levels represented? Contact points, times, & events? Expectations understood? Level of satisfaction understood? 1. 2. 3. Internal support points covered? Inside sales team Unofficial communication channel

Key Processes Activities 1. 2. 3. 4. 5. 6. Account status reporting Detailed SOW Development of Mfg relationship Relationship at every Client level? Vertical development process Other primary processes?

Cost Elements 1. 2. 3. 4. 5. (Level - Pilot) Client / Vendor Value Proposition 1. Present in a P&L format Vendor Supporters

Revenue Streams 1. 2. 3. Data base access fee? Incremental Inquiry fee? Aid in acquiring Mfg fees 2. Contribution rate Objective: e.g. (break-even / slight profit / slight loss) ? Miller / Okumoto, Inc. A Useful Template Summary

What the product or service is Who will pay for it, why, and how much (the value proposition) How much it costs to make or deliver How much is left (profit) Who are your: partners, suppliers, competitors, complementors Structure and processes Marketing Distribution Operating / manufacturing Supply chain Finance (returns to investors) Other Stakeholders

Recently Viewed Presentations

  • Volumetric Analysis - Weebly

    Volumetric Analysis - Weebly

    Volumetric Analysis Volumetric Analysis Volumetric analysis is the method of finding out the concentration of a solution. For example: Adding a solution of acid to a solution of base, in a measured way, until you have added enough to neutralise...
  • Physics 106P: Lecture 1 Notes

    Physics 106P: Lecture 1 Notes

    Steel from podium Painter homework problem. Get demo here have man stand at several places calculate force on each support. ... CCW rotation is positive ACT The picture below shows three different ways of using a wrench to loosen a...
  • La prima guerra civile: Mario e Silla - letteraturaestoria

    La prima guerra civile: Mario e Silla - letteraturaestoria

    La prima guerra civile (88-81 a.C.) Optimates e populares La Guerra Giugurtina Gaio Mario, homo novus riforma esercito La legione coortale I Cimbri e i Teutoni politica di Mario La guerra sociale (90-88 a.C.) guerra Mitridatica e inizio I guerra...
  • Seeing Chemistry in Action Wilson Ho University of California ...

    Seeing Chemistry in Action Wilson Ho University of California ...

    * * * * * * * * * Wilhelm Barthlott Paint & Roof Tiles Lotusan Paint Regular Paint STM Apparatus Scanning Tunneling Microscope STM in Vacuum Manipulation Mechanism Pd20 Chain Seeing LUMO of Mg-Porphine (Mukamel) (Ho) "Seeing is Believing"...
  • Spatial Networks Outline 1. 2. 3. 4. 5.

    Spatial Networks Outline 1. 2. 3. 4. 5.

    Conceptual model. Need for SQL extensions. CONNECT statement. RECURSIVE statement. Storage and data structures. ... DBMS decomposes a query into building blocks. Keeps a couple of strategy for each building block . Selects most suitable one for a given situation....
  • Looking Glass Self - Weebly

    Looking Glass Self - Weebly

    Looking Glass Self. Charles H. Cooley's term to explain how others influence the way we see ourselves. Film 1: Palin Interview Film 2: SNL Interview Spoof . Film 3:
  • Modernisering van de geneeskundige controle

    Modernisering van de geneeskundige controle

    71020034000 de rijcker piet. 61068230115 58021403303 de rijcker piet. kabamba lukoji robert. 43574675408 57011442172 kabamba lukoji robert. ... croix jaune-blanche/wit-geel kruis. jamoulle marc. 15324119004 47030417138 jamoulle marc. vanderborght luc. 38503654001 62030347381 vanderborght luc.
  • screen screen Lecturers desk Row A 13 9

    screen screen Lecturers desk Row A 13 9

    When Martiza was preparing her experiment, she knew it was important that the participants not know which condition they were in, to avoid bias from the subjects. This is called a _____ study. She also was careful that the experimenters...