Innovirtua vBusiness Simulator Strategy


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How to develop your virtual simulator presence and break even.

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Innovirtua vBusiness Simulator Strategy

  1. 1. vBusiness Simulator Strategy<br />13/04/2011<br />1<br />
  2. 2. Innovirtua Program<br />Phase 1 – Making the project reality<br />Phase 2 – Infrastructure and Logistics<br />Phase 3 – Marketing and Value Added<br />Phase 4 – Costings<br />Phase 5 – Breaking Even<br />Phase 6 – Sustainable Development<br />13/04/2011<br />2<br />
  3. 3. Reality Check<br />3 layers of IS Practice<br />Logistics Streams<br />Revenue Streams<br />Value Streams<br />Influence Diagram Analysis<br />Strategy Outline<br />13/04/2011<br />3<br />
  4. 4. 3 layers of IS Practice<br />13/04/2011<br />4<br />
  5. 5. Logistics Streams<br />Framework for a MMOW Economy<br />13/04/2011<br />5<br />
  6. 6. Business Models<br />Market Exchange – a B2B hub which facilitates business to business transactions<br />Business Trading Community – enables market participants to exchange information and communicate with one another<br />Buyer Aggregate/Virtual Mall – creates strategic partnerships and purchasing/development consortia so as to increase power of buyers. Creates external potential of retailers.<br />Classifieds – Sim provides a space for advertisements for the sale of goods and services<br />Metamediary – provides transaction clearing services<br />Search Agent/Bounty Broker – A firm provides personalised shopping or information services by means of intelligent agents, a premium is paid by customers for knowing where to find items.<br />Matchmaker – search agent for B2B activities<br />13/04/2011<br />6<br />
  7. 7. Portal Theory<br />The sim will provide users with content services or product, this attracts users to the sim.<br />Generalised Portal – an environment that offers broad and diffuse access to the community (Linden Labs)<br />Personalised Portal – Generalised Portal which is customisable creating high switching costs (Content Creators)<br />Specialised Portal – focused portal that creates a narrow community (Commercial Interests and 3rd parties)<br />13/04/2011<br />7<br />
  8. 8. Production<br />vBusiness allows producers and service providers to sell directly to users and customers without the use of an intermediary. This reduces costs through raising margin potentials.<br />They can also learn about their potential markets by having direct contact with them, allowing a move towards mass customisation.<br />Economies of scale and of learning are an important ingredient of success for potential residents and partners of BusinessLinksims.<br />The drawback is that intermediaries may glean knowledge of producer activities at an early stage and use vBusinessmethhods to undermine and compete very quickly.<br />By installing a community culture between trusted parties, we will be able to increase the rate of development whilst decreasing the time it takes for intermediaries to compete in new markets.<br />13/04/2011<br />8<br />
  9. 9. Production<br />In this we need to attempt to strike a balance of a number of producer types.<br />Manufacturer-Direct – a firm which produces tangible, physical product directly to users (probably a low number, if more than one in different markets)<br />Content Provider – producer of digital products (movies, software, music, avatar facilitators, all relevant content welcomed)<br />E-procurement – buying consulting services, materials or subcomponents through vBusiness means (see value chain integration)<br />Network Utility Provider – provides software that supports vBusiness applications (eg. Linden Labs, one per grid)<br />Brand Integrated Content – a firm which attempts to integrate advertising, branding and products or services more fully through vBusiness means (Business Link of which we only have one primary, see value chain integration)<br />13/04/2011<br />9<br />
  10. 10. Brand Integrated Content<br />Customers usage of BIC production is metered and so they pay as they go. Application Service Providers can be used as an example of this business model. There are 7 subtypes.<br />Service Providers – sells services to individuals (Sim Developers)<br />B2B Service Provider – sells services to businesses (kzero, Clever Zebra)<br />Value Chain Service Provider – uses vBusiness methods to provide logistics for one specific piece of the value chain (individuals within the community)<br />Value Chain Integration – uses vBusiness methods to integrate multiple links in the value chain with a possibility of exploiting the information flow between them (Business Link)<br />Collaboration Platform Providers – manages collaboration platforms and sells collaboration tools to improve development (what Linden Labs should be, what Business Link should aim to be)<br />Application Service Provider – rents software over the internet (Linden Labs)<br />Audience Broker – collects information on users and uses the information to help target their audience more effectively. (What Tony was always supposed to be, maybe VIO business group?)<br />13/04/2011<br />10<br />
  11. 11. Revenue Streams<br />There are a few applicable types of revenue generation techniques here:<br />Referral – gain a fee by referring a user to a member of the community<br />Subscription – a common billing method whereby a fee is charged periodically in return for services. An attractive approach as variable costs are low, also common for content creation.<br />Fee-for-Service – similar to subscription. However instead of paying periodically, customers pay for what they use.<br />Online Content Providers – within the commerce layer, deriving revenue from advertising or subscriptions<br />Online Digital Retailers – revenue from markup on production<br />Online Broker – revenue from commission or referral<br />Online Market Makers – revenue from commission<br />Application Service Providers – revenue from a fee for software service<br />13/04/2011<br />11<br />
  12. 12. Business Process Redesign<br />13/04/2011<br />12<br />
  13. 13. Value Streams<br />13/04/2011<br />13<br />
  14. 14. vBusiness Influence Diagram<br />13/04/2011<br />14<br />
  15. 15. vBusiness Strategy Outline<br />13/04/2011<br />15<br />