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02 What Is A Business Model
 

02 What Is A Business Model

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    02 What Is A Business Model 02 What Is A Business Model Presentation Transcript

    • What is a Business Model?
      1
    • Definition of Business Model
      A business model is a conceptual tool containing a set of objects,concepts and their relationships with the objective to express thebusiness logic of a specific firm.
      Osterwalder, A., Pigneur, Y., and Tucci, C. L., “CLARIFYING BUSINESS MODELS: ORIGINS,PRESENT, AND FUTURE OF THE CONCEPT,” Communications of the Association for Information Systems, 15, May 2005.
      3
    • What a Business Model Describe
      A business model describes the rationale of how an organization creates, delivers, and captures value - economic, social, or other forms of value.
      4
      http://en.wikipedia.org/wiki/Business_model
    • Definition of Business Model
      The term business model is thus used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies.
      5
      http://en.wikipedia.org/wiki/Business_model
    • Nine Business Model Building Blocks
      6
    • Nine Business Model Building Blocks
      7
    • Nine Business Model Building Blocks
      8
    • A Model (Value Chain) in 80s
      9
    • Today’s Business Model
      11
    • 12
    • Summary of “what is a business model”
      13
    • More on “What Is a Business Model”
    • Value Proposition
    • Value proposition
      The proposed value bundled and then offered to potential value recipients.
      Sometimes hard to tell.
      16
      Alma-Tadema: Courtship the Proposal
    • Value proposition
      Is Google’s value proposition its search? And its recipients customers?
      Only its products and services?
    • Google’s Value
      No! It provides user data to "upstream" application developers
      18
    • Google’s Value Recipients
      Only its customers?
      No! users (a very large number of value propositions, often provided for free)
      network partners (revenues in return for relevant ads on their sites)
      Developers
      Employees, Google owners, etc.
      Other business, libraries, authors – the world!
      19
    • Google’s Value Source
      Only its revenue?
      No! create momentum for a new technology – cloud computing
      20
    • The functions of a business model
      Identify a market segment
      The entire world as a segment?
      Define the structure of the value chain (or canvas)
      21
    • Sample Business Models
      22
    • 23
    • Long Tail Business Model
      24
      Click Me!
      The Long Tail Eats the Head
    • Business Model Example – Xerox Rental
      Market segment – corporate and government
      Value proposition – high quality copies at a low monthly lease rate
      Value chain elements – entire copier system including supplies
      Cost & margin – modest profit on equipment, high on supplies
      Value network position – first mover, not require or pursue partners
      Competitive strategy – technical product quality and capability
      25
    • Business Model Example – 3Com
      Market segment – corporate PC
      Value proposition – file and printer sharing between PCs
      Value chain elements – focus on Ethernet protocol and add-on boards
      Cost & margin – high volume low cost
      Value network position – set IEEE 802 (LAN/MAN) standard
      Competitive strategy – compete on standard and new channels
      26