The effect of the Internet on traditional business models

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What is the effect the Internet has on traditional business models? Why do some models thrive and other fail in this new world of online and social media?

These are my slides for a one hour talk on i-beta-event in Heerlen, May 2011.

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The effect of the Internet on traditional business models

  1. 1. The businessof the Internet
  2. 2. Hello! My name is Bart.
  3. 3. I’m an entrepreneur.
  4. 4. And a geek.(this is an actual screenshot from my laptopwhile making this presentation)
  5. 5. I’m staffing Pakistani talent at European software companies
  6. 6. I’m trying to build the world’s largest online resource for public data
  7. 7. The next ±60 minutes. . . What is a business model? What is the Internet? Internet and traditional business models
  8. 8. What is a business model?
  9. 9. What is a business model? A method for creating value .
  10. 10. What is a business model? A method for creating value .
  11. 11. What is the Internet?
  12. 12. PEOPLE
  13. 13. PEOPLE= ‘users’, ‘visitors’, ‘customers’, . . .
  14. 14. Internet andtraditional business models
  15. 15. Business models by developmental stage1. Authoritative stage 2. Subjective stage3. Objective stage 4. Abductive stage
  16. 16. Business models by developmental stage1. Authoritative stage 2. Subjective stage. based on need. monopoly, addiction. obligate customers3. Objective stage 4. Abductive stage
  17. 17. Business models by developmental stage1. Authoritative stage 2. Subjective stage. based on need . win/lose. monopoly, addiction . only the company benefits. obligate customers . get customer to spend money3. Objective stage 4. Abductive stage
  18. 18. Business models by developmental stage1. Authoritative stage 2. Subjective stage. based on need . win/lose. monopoly, addiction . only the company benefits. obligate customers . get customer to spend money3. Objective stage 4. Abductive stage. complimentary relationship. informing, communicating. satisfy customers
  19. 19. Business models by developmental stage1. Authoritative stage 2. Subjective stage. based on need . win/lose. monopoly, addiction . only the company benefits. obligate customers . get customer to spend money3. Objective stage 4. Abductive stage. complimentary relationship . mutual ongoing relationship. informing, communicating . marketing and sales dissolve. satisfy customers . communities arise
  20. 20. 1. Balance of power shifts toward customers2. Communication changes3. Consequences for bad behaviour worsen4. Information and its distribution are abundant5. New opportunities for companies arise
  21. 21. 1. Shift of power company consumer
  22. 22. regulator supplier sales customerreviewer marketing R&D support
  23. 23. 2. Changes in communication
  24. 24. 2. Changes in communication faster, cheaper
  25. 25. 2. Changes in communication faster, cheaper easier to monitor
  26. 26. 2. Changes in communication
  27. 27. 3. Worsening consequences for bad behaviour
  28. 28. 3. Worsening consequences for bad behaviour
  29. 29. 4. Information and its distribution are abundant
  30. 30. 4. Information and its distribution are abundant Redefine what you are for.
  31. 31. 4. Information and its distribution are abundant Redefine what you are for. Learn from the porn industry.
  32. 32. Did you really think you could watch apresentation with Internet in its title and notgetting a referral to porn?
  33. 33. Did you really think you could watch apresentation with InternetBusiness in its titleand not getting a referral to pornthe mostprofitable business in the universe?
  34. 34. 5. New opportunities for companies
  35. 35. 5. New opportunities for companies Manufacturer ↓ Wholesaler ↓ Retailer ↓ Final customer
  36. 36. 5. New opportunities for companies e 3 Manufacturer ↓ e 7 Wholesaler ↓ e 14 Retailer ↓ e 39 Final customer
  37. 37. 5. New opportunities for companies e 3 Manufacturer ↓ e 7 Wholesaler ↓ ↓ e 39 Final customer
  38. 38. 5. New opportunities for companies e 3 Manufacturer ↓ ↓ ↓ e 39 Final customer
  39. 39. 5. New opportunities for companies e 3 Manufacturer ↓ ↓ 10% Payment/back-office ↓ e 39 Final customer
  40. 40. 5. New opportunities for companies e 3 Manufacturer ↓ 10% Affiliate marketeers ↓ 10% Payment/back-office ↓ e 39 Final customer
  41. 41. Business models by developmental stage1. Authoritative stage 2. Subjective stage. based on need . win/lose. monopoly, addiction . only the company benefits. obligate customers . get customer to spend money3. Objective stage 4. Abductive stage. complimentary relationship . mutual ongoing relationship. informing, communicating . marketing and sales dissolve. satisfy customers . communities arise
  42. 42. Business models by developmental stage1. Authoritative stage. based on need. monopoly, addiction. obligate customers3. Objective stage 4. Abductive stage. complimentary relationship . mutual ongoing relationship. informing, communicating . marketing and sales dissolve. satisfy customers . communities arise
  43. 43. The Internet forces companies’ business modelsaway from the subjective stage.
  44. 44. So why do those in the authorative stage survive? ...
  45. 45. People are lazyNetwork effect
  46. 46. “It is not the strongest of the speciesthat survives, nor the most intelligentthat survives. It is the one that is themost adaptable to change.”
  47. 47. Credits(I couldn’t do this without you!) Simon J. Hill (http://www.infoqual.net) Hugh McGuire (http://www.huffingtonpost.com/hugh-mcguire/ porn-knows-what-its-for-d_b_81522.html) The Internet and Business (http://ibiz.wikidot.com/) Many anonymous photographers

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