02 What Is A Business Model
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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
    View slide
  • 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
    View slide
  • 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