Fast
Innovation
 made easy!
All businesses want
to innovate. Even old
ones in big markets.
It’s just that they find
there’s no time and
it’s too diffic...
There they are. 

Old businesses.
Ok. Except for 

Google that is.
if
   t inue
Con feel
  you ve...
      ha
 you




    No innovate
     to
        time
AND IT’s Too Difficult!
When we think about
innovation in 2010, is
there anything really
new going on? The
answer is yes. And
the answer is no. Le...
When we think about
innovation, we often
imagine new ways to
create, distribute and
realize transactions.
business models
...
yes, business model
thinking is new.

yes, business model
thinking is new. At
least...
yes, business model
thinking is new. For
most of us it is ;-)
When we think about
innovation, we keep
searching for new
trends and examples
that have relevance in
our markets. So that’...
it 

   To keep will 

         we
     ple, on 

 sim cus
     fo           of 

        ek inds 
   thre vation:
     in...
ill

   W e w e te n 

       uc
introd t new 

      r en
 diffe iness 
    bus els:
      mod




                    Bu...
ill

       we w en 

  And te wh
     tra        h

illus se whic
   to u iness 

      bus el:
       mod




          ...
simplifier #
   1




               Fast
    Innovation
     made easy!
There are unlimited
kinds of innovation.
These slides focus on
three of them.
Co-creation
Distribution 

Transaction
Why these?
To help explain, we
need a general model
of a company.
Something like this...
                                              Mission

                                            ...
This general model 

of a company was
designed by Prof. Dr.
Hans Strikwerda.

This general model 

of a company was
designed by Prof. Dr.
Hans Strikwerda. 

He is really famous.

This general model 

of a company was
designed by Prof. Dr.
Hans Strikwerda. 

He is really famous.
In the Netherlands.
This is him:
Now let’s put this
general model 

to work.
First one: co-creation
Innovate/co-creation
                                              Mission

                                              ...
Co-creation is
relevant today
because it is about
opening up your
company to the voice
of your customer.
Next one: distribution
Innovate/distribution
                                              Mission

                                             ...
Distribution is critical
today because it
determines whether
you actually deliver
added value to your
customers.
Last one: transaction
Innovate/transaction
                                              Mission

                                              ...
Transaction is always
interesting because it
is about how your
company is able to
make money, today
and tomorrow.
simplifier #
   2




               Fast
    Innovation
     made easy!
We focus on three
kinds of innovation.
Innovate/co-creation
Innovate/distribution 

Innovate/transaction
For each, we present
a number of new
business models.
In our research, we
have identified more
then twenty-five 

business models.
Advertising Business Model
After Sales Services Business Model
Bait-and-Hook Business Model
Beyond Advertising Business Mo...
We choose ten new 

business models.
Advertising Business Model
After Sales Services Business Model
Bait-and-Hook Business Model
Beyond Advertising Business Mo...
Why these?
Advertising Business Model
After Sales Services Business Model
Bait-and-Hook Business Model
Beyond Advertising Business Mo...
To help us visualize,
we use a standard
template for a
business model.
And here it is...
This template 

was developed by 

Dr. Alexander
Osterwalder.

This template 

was developed by 

Dr. Alexander
Osterwalder.

He described it in his
thesis.
This template 

was developed by 

Dr. Alexander
Osterwalder.

He described it in his
thesis. Back in 2004.
This is him:
First: 

innovate/co-creation
business models
Low-Budget
Innovation
business model
Most relevant for:
Fast moving consumer goods companies
Free /
          Local customer                         Customer        Co-created
                                       ...
Low-Budget Innovation in fast moving consumer goods companies used to mean bringing in the creative talents,
Innovation   ...
Beyond Advertising
business model
Most relevant for:
Traditional media and print companies
Customers in
            Commercial 
                       Facilitate sharing                 Trusted product/           ...
Beyond        Traditional media and print companies are looking for new revenue streams and have done so for
Advertising  ...
Markets Are
Conversations
business model
Most relevant for:
Professional services companies
Real-time            Modular 
         Find, follow,
              Media 
                                                ...
Markets Are   Product-focused professional services firms are finite. Economic turmoil leads to severe pressure on
Conversat...
Unlimited Niches
business model
Most relevant for:
Online retail companies
Platform
           Niche content                                                           Unlimited scope               ...
Unlimited   The long tail is a typical statistical reflection of niche markets. If storage costs are close to zero, the
Nic...
Next: 

innovate/distribution
business models
Localized Low-Cost
business model
Most relevant for:
Fast moving consumer goods companies
Independent                                            Simple, small and                        Higher incomes
           ...
Localized   Fast moving consumer goods companies looking for new market opportunities for their simple, small
Low-Cost    ...
Twisted Freemium
business model
Most relevant for:
Software development companies
Open source                                                                                      Self-service 

          ...
Twisted
   Freemium business models are relevant to many companies, amongst others software development
Freemium   compani...
In-Crowd Customers
business model
Most relevant for:
Travel, leisure and lifestyle companies
In-crowd
             Brand                               Selective         Status triggering    Extremely
               ...
In-Crowd   Travel, leisure and lifestyle companies are always on the look-out for status triggering products and
Business ...
Last: 

innovate/transaction
business models
One-Off Experience
business model
Most relevant for:
Social media companies
3rd party 
                                            Customers in
            Offline event                           Sof...
One-Off      Big in popularity and unknown for their profit, many social media companies are searching for ways
Experience ...
Sustainability-
Focused
business model
Most relevant for:
Fast moving consumer goods companies
Ecological                        Ecological impact              Sustainable                                     Customers...
Sustain-    If green status is what customers want, that’s what they’ll get. Fast moving consumer goods
ability 
   compan...
Community-Funded
business model
Most relevant for:
Entertainment and publishing companies
Media 
                                 Fund                         Community-                Community
                 ...
Community
 Entertainment- and publishing companies have traditionally been specifically good at talent
Funded
      identifi...
simplifier #
   3




               Fast
    Innovation
     made easy!
We focus on three
kinds of innovation.
Innovate/co-creation
Innovate/distribution 

Innovate/transaction
We present ten new
business models.
Innovate/co-creation
Low-Budget Innovation Business Model
Beyond Advertising Business Model
Markets Are Conversations Busi...
Innovate/distribution
Localized Low-Cost Business Model
Twisted Freemium Business Model
In-Crowd Customers Business Model
Innovate/transaction
One-Off Experience Business Model
Sustainability-Focused Business Model
Community-Funded Business Mod...
For each, we present
a number of trends
and examples in
relevant markets!
The latest trends are:
These trends have
been identified by a
global network of
trendspotters:
trendwatching.com !
This network was
founded by Reinier
Evers.
This network was
founded by Reinier
Evers. He is really
crazy about:
This network was
founded by Reinier
Evers. He is really
crazy about: online
business revolution. 

This is him:
Trends and examples

innovate/co-creation
business models
Low-Budget Innovation Business Model
Beyond Advertising Business...
Sorry... available in
live presentations
only!
Trends and examples 

innovate/distribution
business models
Localized Low-Cost Business Model
Twisted Freemium Business Mo...
Sorry... available in
live presentations
only!
Trends and examples

innovate/transaction
business models
One-Off Experience Business Model
Sustainability-Focused Busines...
Sorry... available in
live presentations
only!
Thank you.
Co-creation

                                 Business                               trends!
Distribution
     ...
This presentation 

was produced by
Ouke Arts.
This presentation 

was produced by
Ouke Arts. He
actually delivers 

this presentation. 

This presentation 

was produced by
Ouke Arts. He
actually delivers 

this presentation. 
In front of people.
This is him:
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Fast Innovation Made Easy - Co-Creation, Distribution and Transaction Business Models

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Fast Innovation Made Easy

We focus on three kinds of innovation: co-creation, distribution and transaction.

We present ten new business models.

Innovate/co-creation
* Low-Budget Innovation Business Model
* Beyond Advertising Business Model
* Markets Are Conversations Business Model
* Unlimited Niches Business Model

Innovate/distribution
* Localized Low-Cost Business Model
* Twisted Freemium Business Model
* In-Crowd Customers Business Model

Innovate/transaction
* One-Off Experience Business Model
* Sustainability-Focused Business Model
* Community-Funded Business Model

For each, we present a number of trends and examples in relevant markets (live presentations only).

PRODUCED BY Strategy Consultant/Graphic Facilitator Ouke Arts
MARKET ANALYSIS BY Strategy Boutique Thaesis
TREND RESEARCH BY Trend Firm trendwatching.com

Published in: Business, Education
  • References:

    Chan Kim, W. & Mauborgne, R. (2005). Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Boston: Harvard Business School Press.
    Hippel, E. von (2005). Democratizing Innovation. Cambridge: MIT Press.
    Godin, S. (2008). Tribes. We Need You to Lead Us. New York: Penguin Group.
    Friedman, T. (2005). The World Is Flat: A Brief History of the Globalized World in the Twenty-first Century. New York: Farrar, Straus and Giroux.
    Neumeier, M. (2009). The Designful Company. How to build a culture of nonstop innovation. Berkeley: New Riders.
    Shirky, C. (2008). Here Comes Everybody: The Power of Organizing Without Organizations. New York: Penguin.
    Jenkins, H. (2006). Convergence Culture. Where Old and New Media Collide. New York: University Press.
    McDonough, W. & Braungart, M. (2002). Cradle to Cradle: Remaking the Way We Make Things. New York: Farrar, Straus and Giroux.
    Moore, G.A. (1991). Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers. New York: HarperCollins Business Essentials.
    Anderson, C. (2006). The Long Tail: How Endless Choice is Creating Unlimited Demand. London: Random House Business Books.
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Fast Innovation Made Easy - Co-Creation, Distribution and Transaction Business Models

  1. 1. Fast Innovation made easy!
  2. 2. All businesses want to innovate. Even old ones in big markets. It’s just that they find there’s no time and it’s too difficult. This presentation can help.
  3. 3. There they are. 
 Old businesses.
  4. 4. Ok. Except for 
 Google that is.
  5. 5. if t inue Con feel you ve... ha you No innovate to time AND IT’s Too Difficult!
  6. 6. When we think about innovation in 2010, is there anything really new going on? The answer is yes. And the answer is no. Let’s start with what’s new.
  7. 7. When we think about innovation, we often imagine new ways to create, distribute and realize transactions. business models make these ideas work.
  8. 8. yes, business model thinking is new.

  9. 9. yes, business model thinking is new. At least...
  10. 10. yes, business model thinking is new. For most of us it is ;-)
  11. 11. When we think about innovation, we keep searching for new trends and examples that have relevance in our markets. So that’s still the same.
  12. 12. it 
 To keep will 
 we ple, on 
 sim cus fo of 
 ek inds thre vation: inno Co-creation
 Distribution Transaction simplifier # 1
  13. 13. ill
 W e w e te n 
 uc introd t new 
 r en diffe iness bus els: mod Business models simplifier # 2
  14. 14. ill
 we w en 
 And te wh tra h
 illus se whic to u iness 
 bus el: mod trends! Examples! markets! simplifier # 3
  15. 15. simplifier # 1 Fast Innovation made easy!
  16. 16. There are unlimited kinds of innovation.
  17. 17. These slides focus on three of them.
  18. 18. Co-creation Distribution 
 Transaction
  19. 19. Why these?
  20. 20. To help explain, we need a general model of a company.
  21. 21. Something like this... Mission Vision Strategy Opportunities and threats Design Value proposition Leadership Finance Communication Design Align Economies
 - Knowledge
 Internal
 Market - Scale Organization Alliances Competition Bottom line Result Costs Revenues
  22. 22. This general model 
 of a company was designed by Prof. Dr. Hans Strikwerda.

  23. 23. This general model 
 of a company was designed by Prof. Dr. Hans Strikwerda. 
 He is really famous.

  24. 24. This general model 
 of a company was designed by Prof. Dr. Hans Strikwerda. 
 He is really famous. In the Netherlands.
  25. 25. This is him:
  26. 26. Now let’s put this general model 
 to work.
  27. 27. First one: co-creation
  28. 28. Innovate/co-creation Mission Vision Strategy Opportunities and threats Design Value proposition Leadership Finance Communication Design Align Economies
 - Knowledge
 Internal
 Market - Scale Organization Alliances Competition Bottom line Result Costs Revenues
  29. 29. Co-creation is relevant today because it is about opening up your company to the voice of your customer.
  30. 30. Next one: distribution
  31. 31. Innovate/distribution Mission Vision Strategy Opportunities and threats Design Value proposition Leadership Finance Communication Design Align Economies
 - Knowledge
 Internal
 Market - Scale Organization Alliances Competition Bottom line Result Costs Revenues
  32. 32. Distribution is critical today because it determines whether you actually deliver added value to your customers.
  33. 33. Last one: transaction
  34. 34. Innovate/transaction Mission Vision Strategy Opportunities and threats Design Value proposition Leadership Finance Communication Design Align Economies
 - Knowledge
 Internal
 Market - Scale Organization Alliances Competition Bottom line Result Costs Revenues
  35. 35. Transaction is always interesting because it is about how your company is able to make money, today and tomorrow.
  36. 36. simplifier # 2 Fast Innovation made easy!
  37. 37. We focus on three kinds of innovation.
  38. 38. Innovate/co-creation Innovate/distribution 
 Innovate/transaction
  39. 39. For each, we present a number of new business models.
  40. 40. In our research, we have identified more then twenty-five 
 business models.
  41. 41. Advertising Business Model After Sales Services Business Model Bait-and-Hook Business Model Beyond Advertising Business Model Brokerage Business Model Clicks-and-Bricks Business Model Community-Funded Business Model Demonstrate-to-Sell Business Model Franchise Business Model Freemium Business Model In-Crowd Customers Business Model Localized Low-Cost Business Model One-Off Experience Business Model Low-Budget Innovation Business Model Markets Are Conversations Business Model Mass Customization Business Model Mass-Effect Business Model Membership Business Model Multiplier Business Model Open Source Business Model Pay-per-Unit Business Model Producer-to-Market Business Model Sustainability-Focused Business Model Twisted Freemium Business Model Unlimited Niches Business Model User Generated Content Business Model Web Services Business Model Yield Management Business Model
  42. 42. We choose ten new 
 business models.
  43. 43. Advertising Business Model After Sales Services Business Model Bait-and-Hook Business Model Beyond Advertising Business Model Brokerage Business Model Clicks-and-Bricks Business Model Community-Funded Business Model Demonstrate-to-Sell Business Model Franchise Business Model Freemium Business Model In-Crowd Customers Business Model Localized Low-Cost Business Model One-Off Experience Business Model Low-Budget Innovation Business Model Markets Are Conversations Business Model Mass Customization Business Model Mass-Effect Business Model Membership Business Model Multiplier Business Model Open Source Business Model Pay-per-Unit Business Model Producer-to-Market Business Model Sustainability-Focused Business Model Twisted Freemium Business Model Unlimited Niches Business Model User Generated Content Business Model Web Services Business Model Yield Management Business Model
  44. 44. Why these?
  45. 45. Advertising Business Model After Sales Services Business Model Bait-and-Hook Business Model Beyond Advertising Business Model Because we favor Blue Ocean Strategy Brokerage Business Model Clicks-and-Bricks Business Model Community-Funded Business Model Because we are Democratizing Innovation Demonstrate-to-Sell Business Model Franchise Business Model Freemium Business Model In-Crowd Customers Business Model Because we love to choose our Tribes Localized Low-Cost Business Model Because we know The World is Flat One-Off Experience Business Model Because we want The Designful Company Low-Budget Innovation Business Model Because we know Here Comes Everybody Markets Are Conversations Business Model Because we live in a Convergence Culture Mass Customization Business Model Mass-Effect Business Model Membership Business Model Multiplier Business Model Open Source Business Model Pay-per-Unit Business Model Producer-to-Market Business Model Sustainability-Focused Business Model Because we work Cradle-to-Cradle Twisted Freemium Business Model Because we are Crossing the Chasm Unlimited Niches Business Model Because we believe in The Long Tail User Generated Content Business Model Web Services Business Model Yield Management Business Model
  46. 46. To help us visualize, we use a standard template for a business model.
  47. 47. And here it is...
  48. 48. This template 
 was developed by 
 Dr. Alexander Osterwalder.

  49. 49. This template 
 was developed by 
 Dr. Alexander Osterwalder.
 He described it in his thesis.
  50. 50. This template 
 was developed by 
 Dr. Alexander Osterwalder.
 He described it in his thesis. Back in 2004.
  51. 51. This is him:
  52. 52. First: 
 innovate/co-creation business models
  53. 53. Low-Budget Innovation business model Most relevant for: Fast moving consumer goods companies
  54. 54. Free / Local customer Customer Co-created personalized Early adopters! communities! observation! products! samples! Global trend Customer Followers! trackers! participation! Customer Offline behavior Online channels! development 
 intelligence! labs! Lower product Higher 
 development new product costs! success rate! Designer: Ouke Arts (ouke.arts@gmail.com)
  55. 55. Low-Budget Innovation in fast moving consumer goods companies used to mean bringing in the creative talents, Innovation the marketeers and the producers who started searching for possibilities to develop new products. Business For executives, there was nothing left but to hope for the best. Those days are over now that’s 
 Model co-creation is introduced. Innovation has become something companies can do with their customers, instead of to them. 
 Based on customer observation and customer participation, fast moving consumer goods companies develop co-created products that are improved by early adopters with sample tests. Early adopters are connected to the much larger market share of followers. Although co-creation can take place in off-line development labs, connectivity between adopters and followers is almost exclusively taking place through online channels. Online is also where local customer communities and global trend trackers meet. Fast moving consumer goods companies need to become specialists in customer behaviour, in traditional consumption patterns, but more and more in social and individual lifestyle patterns as well. In a low-budget innovation business model, fast moving consumer goods companies are able to achieve a higher new product success rate with lower budget development costs. Now that’s called low-budget innovation.
  56. 56. Beyond Advertising business model Most relevant for: Traditional media and print companies
  57. 57. Customers in Commercial 
 Facilitate sharing Trusted product/ Research, mature 
 partners! and contributing! service advice! compare, review! markets! Public
 Facilitate On-demand Individuals! partners! interacting! interaction! Customers in Review portals! emerging 
 markets! Facilitation skills! Online channels! Content Online findability 
 Facilitators! management Facilitation fees! Commissions! costs! costs! Designer: Ouke Arts (ouke.arts@gmail.com)
  58. 58. Beyond Traditional media and print companies are looking for new revenue streams and have done so for Advertising some time. In the last decade, the number of subscribers has been declining and the market for Business advertisements has not performed much better. So what’s beyond the known horizon?
 Model Traditional media and print companies need to shift from a business model based on advertisers telling subscribers what to buy to a business model based on facilitating both customers and partners in trust building and on-demand interacting. The business model for media and print companies remains two-sided but with two separate value propositions. It offers customers in mature markets, which are reached through customer initiated research, comparison and review, trusted product and service advice. These are shared with - and contributed by - commercial partners. Second, it offers individuals on-demand interaction with public partners, for example governments, schools and hospitals. Media and print companies will become great in facilitating individuals and groups in sharing, contributing and interacting. All communication will be channeled online and independent review portals complement media and print companies in building trusted customer relationships. Their cost structure will shift dramatically, from paper and distribution to content management and online facilitating. Revenues will be generated from facilitation fees paid by commercial and public partners, and commissions from product and service retailers. What’s beyond the known horizon? Facilitation is the answer.
  59. 59. Markets Are Conversations business model Most relevant for: Professional services companies
  60. 60. Real-time Modular 
 Find, follow, Media 
 Engaged tracking and and beta interact 
 companies! customers! conversing! products/services! and collaborate! Product/service Non-engaged improvement 
 customers! and innovation! Social media Online social skilled 
 networks! employees! Lower 
 Higher recurrent product/service 
 revenues! failure costs! Designer: Ouke Arts (ouke.arts@gmail.com)
  61. 61. Markets Are Product-focused professional services firms are finite. Economic turmoil leads to severe pressure on Conversations fees in business-to-business markets like consultancy, advocacy, accountancy and corporate finance. Business 
 In times like these, it takes more than product development to stay in the game. Understanding that Model markets are not a static product of history and position, but a dynamic snap shot of conversations and interactions, is the first part towards new growth. 
 For professional services firms, the difference will be made by converting non-engaged customers into engaged customers. Product development will be obsolete. It will be replaced by customer relations and conversations. By sharing modular and beta products and services with your current and future customers, companies and their customers interact and collaborate in ongoing conversations. Not only will customers find and follow companies in online social networks, it will be the other way around as well. Employees have always been an important resource for professional service firms, and this importance will be especially true for social media skilled employees. Professional services companies will need to become active with real-time tracking and conversion, with a little help from media partners. This will lead to ongoing product and service improvement and innovation, resulting in lower failure costs and higher recurrent revenues. An involved customer is a loyal customer.
  62. 62. Unlimited Niches business model Most relevant for: Online retail companies
  63. 63. Platform Niche content Unlimited scope Many niche management 
 Mass-customized! providers! of niche content! segments! and promotion! User generated Content Niche content Service delivery! content! production tools! providers! Platform! Online channels! Platform Platform Platform Low volumes x development! management! promotion! unlimited items! Designer: Ouke Arts (ouke.arts@gmail.com)
  64. 64. Unlimited The long tail is a typical statistical reflection of niche markets. If storage costs are close to zero, the Niches number of products on sale is close to unlimited. Online retail companies use a business model Business adapted to this long tail, servicing many niche segments. Some online retail companies have even Model outsourced to fulfillment partners. By adding content production tools to their value proposition, an unlimited niches business model can be realized. Online retail companies offer niche content to many niche customer segments, by engaging in ongoing mass-customized customer relations. A second customer segment is the segment of niche content providers. Potentially, the combination of these two leads to an unlimited number of niches. New content is created and offered through online channels, which means online retail companies will have to focus on platform management and promotion next to service delivery. This platform is a key resource, as it is the place where supply and demand meet and it allows niche content providers to develop user generated content. The cost structure of online retail companies includes platform development, platform management and platform promotion. Revenue comes from low volumes of unlimited items. Because customers develop the content, if it needs to be low-cost and practical it will be.
  65. 65. Next: 
 innovate/distribution business models
  66. 66. Localized Low-Cost business model Most relevant for: Fast moving consumer goods companies
  67. 67. Independent Simple, small and Higher incomes Cost efficient product/service cheap product/ in emerging procurement! designers! service! markets! Lower customer expectations! Standardized Marketing 
 Minimum Lower-incomes in local micro and quality specifications! emerging markets! producers! management! Income Metropolitan generating/self- areas in 
 sustaining! mature markets! Energy efficient Brands! distribution via local vendors! Other areas in mature markets! Micro financed Low prices x 
 Low costs! local banks/ High volumes! foundations! Designer: Ouke Arts (ouke.arts@gmail.com)
  68. 68. Localized Fast moving consumer goods companies looking for new market opportunities for their simple, small Low-Cost and cheap products are considering the localized low-cost business model. 
 Business Model In essence, this business model is suitable for standardized products and services with minimum specifications and lower customer expectations that can be locally produced and globally branded. This business model will only be successful if the following two conditions apply. The first one depends on significant market presence in metropolitan areas in mature markets. This condition allows companies to leverage on their achieved brand value in emerging markets. The second condition is that the product or service has income generation or self-sustaining features. This condition opens the door to lower incomes in emerging markets. Future market expansion is possible to both other areas in mature markets and higher incomes in emerging markets. The company's most important activities will be cost efficient procurement, marketing and quality management. Design is in the hands of local product and service designers and standardized production is outsourced to local producers. Likewise, energy efficient distribution is done through local vendors. Fast moving consumer goods companies will focus even more on maintaining and managing their brand portfolio. Their low cost structure, micro financed local activities and low prices plus high volumes will result in profitable growth of global market share.
  69. 69. Twisted Freemium business model Most relevant for: Software development companies
  70. 70. Open source Self-service 
 Product support Free open source Self-service development and access 
 services! based product! customers! community! to platform! Product Continuously Paying 
 versioning 
 serviced product! customers! and testing! Open source Online platform! Local branches! product! Platform Sales 
 Professional development 
 Distribution costs! costs! subscription! costs! Designer: Ouke Arts (ouke.arts@gmail.com)
  71. 71. Twisted
 Freemium business models are relevant to many companies, amongst others software development Freemium companies. This business model is based around the idea of involving customers and development Business communities in the development process of a free open source based product. Model Free open source products are offered to self-service customers, who have access to a self-service platform. For these customers, self- reliance is part of the value proposition. Customers in need of a continuously serviced version of the product are willing to pay for a professional subscription. Now here’s the twist. Because the free open source version is being developed outside the software company, there is no relatively large budget needed for research and development. Key activities become product support services and product versioning and testing. This means lower development costs. Customers get to choose between ‘Free’ and ‘Premium’ versions of the product. Software companies need to facilitate relevant open source development communities by providing an online platform. This involves platform development and maintenance costs. To distribute the continuously serviced version, local branches are in place. This means sales and distribution costs are incurred.
  72. 72. In-Crowd Customers business model Most relevant for: Travel, leisure and lifestyle companies
  73. 73. In-crowd Brand Selective Status triggering Extremely customers in ambassadors! marketing! product/service! personalized! mature markets! Social 
 Social and Production/ and cultural cultural service delivery! agencies! experiences! Personal 
 in-crowd encounters! Brand! Offline networks! Production/ Ambassador
 Highest margin service delivery marketing costs! prices! costs! Designer: Ouke Arts (ouke.arts@gmail.com)
  74. 74. In-Crowd Travel, leisure and lifestyle companies are always on the look-out for status triggering products and Business services they can offer. To deliver status, these companies think in terms of experiences and Model individuals. The more personal, the more status they deliver. Which is also true for the uniqueness of the experience. Servicing in-crowd customers in mature markets, travel, leisure and lifestyle companies need to extremely personalize the relationship they have with these customers. Offline networks deliver the best results through personal in-crowd encounters. The most key resource for travel, leisure and lifestyle companies is their brand. The brand is both a social network navigator and a divider between in-crowd and crowd. The most influential members of a social network are potential brand ambassadors. Brand ambassadors become partners in selective marketing the status triggering products and services. Local social and cultural agencies are another key partner, who actually produce or service of social and cultural experiences. The extremely personalized customer relationship allows for the highest margin prices, which have to compensate for the relatively high ambassador marketing costs and production or service delivery costs. It is the kind of travel, leisure and lifestyle margins marketeers have for a long time dreamed of but haven’t been able to maintain in the past decade. The in-crowd business model is their new business model for this decade.
  75. 75. Last: 
 innovate/transaction business models
  76. 76. One-Off Experience business model Most relevant for: Social media companies
  77. 77. 3rd party 
 Customers in Offline event Software Instant see-hear-buy markets of organizers! development! consuming! product/service! abundance! Conversation Experience Offline pop-up One-off Instant
 engagement and seeking commerce! experiences! contributing! initiative! customers! Online retailers! Software platform! Online channels! Online presence Commissions Commissions
 Hosting costs! and findability pop-up instant online costs! commerce! retail! Designer: Ouke Arts (ouke.arts@gmail.com)
  78. 78. One-Off Big in popularity and unknown for their profit, many social media companies are searching for ways Experience to combine third party see-hear-buy products and services with their own ability to offer one-off Business experiences. Model The One-Off Experience business model stands for a smart connection between customers in markets of abundance and their experience seeking equivalents. This business model will only live up to its expectations if social media companies team up with offline event organizers, offline pop-up stores and online retailers. Developing software and engaging in ongoing conversations with their users is simply not enough to do the trick. This business model offers unique experiences to customers at a given place during a specific event. The software platform on which its online communication channels come to life will spark the engine of experience seeking customers. By instant contributions from these customers then and there, the door to the larger experience consuming market share will be opened. Events will have to be combined with commercial opportunism. The social media experience remains free, relevant products and services will have to bought the old-fashioned way. With money that is. Commissions from both pop-up stores and instant online retailers will bring in the revenue. These have to compensate social media companies for high hosting costs and presence and findability costs. These costs tend to rise along the popularity of the social media platform. If this is not absorbed by a parallel growth in revenues, the business model will not be sustainable.
  79. 79. Sustainability- Focused business model Most relevant for: Fast moving consumer goods companies
  80. 80. Ecological Ecological impact Sustainable Customers in organizations! research! products/services! mature markets! Green storytelling! Green marketing 
 Customers in Governments! Green status! emerging markets! Brand defining Product/service Retail stores! employees! design! Research 
 Sustainable Government Marketing costs! costs! premiums! grants! Designer: Ouke Arts (ouke.arts@gmail.com)
  81. 81. Sustain- If green status is what customers want, that’s what they’ll get. Fast moving consumer goods ability 
 companies are creating new products and services for customers in mature and emerging markets by Focused focusing on sustainability. 
 Business Model Fast moving consumer goods companies that are serious about sustainability research the ecological impact of their products and services. Facts are needed for research-based green marketing while creativity and locality is needed for green storytelling. Brand defining employees and green marketeers work together with product and service designers, ecological organizations and governments. These research and marketing efforts demand a sustainable premium on traditional low-cost prices. When the market response is insufficient, governments can provide grants for sustainability-focused companies. Customers are reached through regular channels such as retail stores. The relationship between company and customer is based on green storytelling: individualized, personal and local context are integrated in customer relationship management. This business model will be more successful if fast moving consumer companies are active in both mature and emerging markets. Given the lead in green ambitions in mature markets, market presence in these markets allows companies to leverage on their achieved brand value in emerging markets.
  82. 82. Community-Funded business model Most relevant for: Entertainment and publishing companies
  83. 83. Media 
 Fund Community- Community Believers! companies! management! funded products! membership! Community Producers! Suppliers! management! Buyers! Distributors! Online 
 Community community Retail stores! intelligence! platform! Supplier Marketing costs! Production costs! Distribution costs! Product sales! Interest! subscriptions! Designer: Ouke Arts (ouke.arts@gmail.com)
  84. 84. Community Entertainment- and publishing companies have traditionally been specifically good at talent Funded
 identification and development. In a community-funded business model, talent identification and Business talent development are radically democratized. Model Instead of talent identification and development, entertainment and publishing companies become exceptionally good at fund and community management. The most essential resource in this business model is the intelligence of a community. In this multisided business model, their are three distinctive customer segments: believers, suppliers and buyers. Believers become members through the online community platform and fund products that are produced by suppliers. These products can be visual, auditory or textual and are bought by buyers. Believers can be buyers can be suppliers and the other way around. Fysical products are distributed through retail stores, digital products through the online community platform. To boost product sales, entertainment and publishing companies partner with media companies, professional producers and distributors. This means marketing, production and distribution costs have to be covered by interest and supplier subscriptions next to product sales. This business model has a different tipping point in different markets.
  85. 85. simplifier # 3 Fast Innovation made easy!
  86. 86. We focus on three kinds of innovation.
  87. 87. Innovate/co-creation Innovate/distribution 
 Innovate/transaction
  88. 88. We present ten new business models.
  89. 89. Innovate/co-creation Low-Budget Innovation Business Model Beyond Advertising Business Model Markets Are Conversations Business Model Unlimited Niches Business Model
  90. 90. Innovate/distribution Localized Low-Cost Business Model Twisted Freemium Business Model In-Crowd Customers Business Model
  91. 91. Innovate/transaction One-Off Experience Business Model Sustainability-Focused Business Model Community-Funded Business Model
  92. 92. For each, we present a number of trends and examples in relevant markets!
  93. 93. The latest trends are:
  94. 94. These trends have been identified by a global network of trendspotters: trendwatching.com !
  95. 95. This network was founded by Reinier Evers.
  96. 96. This network was founded by Reinier Evers. He is really crazy about:
  97. 97. This network was founded by Reinier Evers. He is really crazy about: online business revolution. 

  98. 98. This is him:
  99. 99. Trends and examples
 innovate/co-creation business models Low-Budget Innovation Business Model Beyond Advertising Business Model Markets Are Conversations Business Model Unlimited Niches Business Model
  100. 100. Sorry... available in live presentations only!
  101. 101. Trends and examples 
 innovate/distribution business models Localized Low-Cost Business Model Twisted Freemium Business Model In-Crowd Customers Business Model
  102. 102. Sorry... available in live presentations only!
  103. 103. Trends and examples
 innovate/transaction business models One-Off Experience Business Model Sustainability-Focused Business Model Community-Funded Business Model
  104. 104. Sorry... available in live presentations only!
  105. 105. Thank you. Co-creation
 Business trends! Distribution Examples! Transaction models markets! simplifier # 1 simplifier # 2 simplifier # 3 PRODUCED BY Strategy Consultant/Graphic Facilitator Ouke Arts MARKET ANALYSIS BY Strategy Boutique Thaesis TREND RESEARCH BY Trend Firm trendwatching.com
  106. 106. This presentation 
 was produced by Ouke Arts.
  107. 107. This presentation 
 was produced by Ouke Arts. He actually delivers 
 this presentation. 

  108. 108. This presentation 
 was produced by Ouke Arts. He actually delivers 
 this presentation. In front of people.
  109. 109. This is him:

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