Digital Business Models 101

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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.

Published in: Business

Digital Business Models 101

  1. 1. Business Model Canvas 101
  2. 2. The Basics
  3. 3. A Business is a System It seems like a whole. But you can deconstruct it.
  4. 4. The Business Model Canvas is a call-to-action. 
 Execution vs abstraction.
  5. 5. 50,98% of innovations come from business models* * * Science, technologie et industrie : Perspectives de lʼOCDE, 2008.
  6. 6. The Basics
 Business 101 1
  7. 7. Value DeliveringValue Creation Value Proposition 1 Business is a Journey KISS version. Goal: adding more value along the way
  8. 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. 9. The Basics
 Finance 101 2
  10. 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. 11. The Building Blocks3
  12. 12. DistributionInput Output Costs Revenue Process Customers activity + ressources channels + customer relationshipssuppliers + partners
  13. 13. Channels Key 
 Partners Value
 Proposition Costs Revenue Activity Customer
 Segments Ressources Customer
 Relationships
  14. 14. How to use it?4
  15. 15. Customers.
 How can you make their lives better? Channels Key 
 Partners Value
 Proposition Costs Revenue Activity Customer
 Segments Ressources Customer
 Relationships
  16. 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. 17. Channels.
 What interfaces will you use to communicate & sell? Channels Key 
 Partners Value
 Proposition Costs Revenue Activity Customer
 Segments Ressources Customer
 Relationships
  18. 18. Customer relationships.
 How will you interact? Channels Key 
 Partners Value
 Proposition Costs Revenue Activity Customer
 Segments Ressources Customer
 Relationships Customer
 Relationships
  19. 19. Revenue.
 What will they pay? Channels Key 
 Partners Value
 Proposition Costs Revenue Activity Customer
 Segments Ressources Customer
 Relationships Customer
 Relationships
  20. 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. 21. Activity.
 How will you build this VP? Channels Key 
 Partners Value
 Proposition Costs Revenue Activity Customer
 Segments Ressources Customer
 Relationships Customer
 Relationships
  22. 22. Key Partners.
 Who are your allies & suppliers? Channels Key 
 Partners Value
 Proposition Costs Revenue Activity Customer
 Segments Ressources Customer
 Relationships Customer
 Relationships
  23. 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. 24. 5 * source Principal Business Model
 Inspired by the great work of Elton Pickford
  25. 25. A * theorized by Chris Anderson in his book “The Long Tail“ The Long Tail*
 Eg: Amazon, eBay, Netflix, Lego
  26. 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. 27. B * Also see the book “Free“ by Chris Anderson (again) Multi-sided platforms*
 Eg: Viadeo, LinkedIn, Google, Sony, Microsoft, Apple, Facebook
  28. 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. 29. C Freemium*
 Eg: LinkedIn, Flickr, Evernote, Scoop.it * Also see the book “Free“ by Chris Anderson (again) Premium accounts Free accounts
  30. 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 * it’s also a multi-sides platform you could add advertisers & HR companies Customized
 messages 
 (auto+hand made)
  31. 31. D Inverted Freemium
 Eg: Axa, GMF Beneficiaries Subscribers
  32. 32. Website
 Phone
 Email
 Stores Insurance Ad + HR + webplatform Client 
 acquisition Platform Case study: GMF* Subscribers Beneficiaries 0 to excess 
 payment * it’s also a multi-sides platform you could add advertisers & HR companies On timeManagement 
 of the claims HR reimbursements Insurance premium Reinsurance
 companies
  33. 33. D Freebie marketing
 Eg: hp, Epson, Gillette
  34. 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. 35. E Open Business Model
 Eg: P&G
  36. 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. 37. Case studies6
  38. 38. Advanced Business ModelA
  39. 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. 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. 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. 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. 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. 44. Financial viability & projectionB
  45. 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. 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. 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. 48. BonusC
  49. 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.

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