7 Business models that Got Shot in 2011 (by @nickdemey @boardofinno)
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Lessons from failed business concepts. Need more Business Model Innovation? http://www.boardofinnovation.com/business-model-patterns/ Want to try the Business Model Kit? http://www.boardofinnovation.com/business-model-templates-tools/
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7 Business models that Got Shot in 2011 (by @nickdemey @boardofinno)
- 1. 7 business models that got Shot! in 2011 flickr cc rachelvn by boardofinnovation.com int. innovation consulting office
- 2. Last year we shared the most promising businesses... 400K views Link
- 3. Last year we shared the most promising businesses... 400K views This year we looked at the projects that got shot & are bleeding... Link
- 4. 7 business models that got Shot! flickr cc rachelvn in this presentation
- 5. Learn how our innovation consulting office can help to find new revenue. or continue presentation by Board of Innovation Boardofinnovation.com
- 6. by boardofinnovation.com int. innovation consulting office flickr cc rachelvn 1. 7 business models that got Shot!
- 7. 1. Southwest Airlines 1 2 3 4 5 6 7 Their gamble: Stop charging luggage fees ! Money left on the table almost 1 Billion $ in 1 year! *If only 50% of passengers would pay $20 to check in bags. source: http://bit.ly/rOQisX
- 8. 1. Southwest Airlines 1 2 3 4 5 6 7 In contrast: Ryanair plans to ask money to use the toilet! Their gamble: Stop charging luggage fees ! Money left on the table almost 1 Billion $ in 1 year! *If only 50% of passengers would pay $20 to check in bags. source: http://bit.ly/rOQisX
- 9. 1 2 3 4 5 6 7 1. Southwest Airlines In crisis times, discounters normally flourish! While American Airlines filed for bankruptcy in Nov 2011, Discounter Ryanair managed at least to keep things afloat! Discounter South West on the other hand, gambled and lost... A game of Russian Roulette gone bad...
- 10. 1. Southwest Airlines 1 2 3 4 5 6 7 When fuel cost peeked, those extra bucks might have helped them.... Stock prices collapsed almost 45% in October Ryanair South West *ouch*
- 11. 1. Southwest Airlines 1 2 3 4 5 6 7 IncIncHQHQ South West Airlines Basic Airline Service 5 Cheap ticket price 5 Upselling $20 Check in Bags Existing clients Passengers New Clients Visual Summary: Business Model PainsGet your visual toolkit here!
- 12. 1. Southwest Airlines 1 2 3 4 5 6 7 IncIncHQHQ South West Airlines Basic Airline Service 5 Cheap ticket price 5 Upselling $20 Check in Bags Existing clients Passengers New Clients Decided to cancel revenue stream But no significant gain in new clients People base decision purely on ticket price, not on the extraโs! Visual Summary: Business Model PainsGet your visual toolkit here!
- 13. If you wish, you can Download this Presentation as PDF @nickdemey Pay With A Tweet Go to case 2.
- 14. flickr cc rachelvn 2. 7 business models that got Shot! by boardofinnovation.com int. innovation consulting office
- 15. 2. Bitcoin 1 2 3 4 5 6 7 A virtual alternative currency based on a peer-2-peer network Milestone Feb 2011 *Hooray* 1 Bitcoin = 1 Dollar
- 16. 2. Bitcoin A virtual alternative currency based on a peer-2-peer network Feb 2011 1 Bitcoin = 1 Dollar Hyped in Jun 2011 1 Bitcoin = 29,57 Dollar 1 2 3 4 5 6 7
- 17. 2. Bitcoin Suddenly, out of nowhere Bitcoin faced serious hits... Source Wired, great article btw! 1 2 3 4 5 6 7
- 18. 2. Bitcoin Today, at the start of 2012 Bitcoin is still recovering at Intensive Care Letโs hope this decentralized P2P currency is able to get well soon... 1 2 3 4 5 6 7
- 19. 2. Bitcoin Bitcoin member Government Bitcoin member IncIncIncInc Company IncIncHQHQ Bitcoin Initiator Guidelines Product Service Bitcoins Bitcoins IncIncIncInc Exchange Agency Bitcoins 5 Dollars 1 2 3 4 5 6 7 Visual Summary: Business Model PainsGet your visual toolkit here!
- 20. 2. Bitcoin Bitcoin member Government Bitcoin member IncIncIncInc Company IncIncHQHQ Bitcoin Initiator Guidelines Product Service Bitcoins Bitcoins IncIncIncInc Exchange Agency Bitcoins 5 Dollars No central control or links via government People started trading fraudulent goods Database got hacked Value collapsed 1 2 3 4 5 6 7 Visual Summary: Business Model PainsGet your visual toolkit here!
- 21. flickr cc rachelvn 3. 7 business models that got Shot! by boardofinnovation.com int. innovation consulting office
- 22. 3. Netflix to Qwikster split flickr cc rachelvn 1 2 3 4 5 6 7
- 23. 3. Netflix to Qwikster split flickr cc rachelvn stock price Netflix: Jan 2010 - Jun 2011 +386% What could possibly go wrong? 1 2 3 4 5 6 7
- 24. 3. Netflix to Qwikster split flickr cc rachelvn for DVD & Streaming clients normally pay $9.99/m New pricing for this bundle $15.98/m Yes thatโs a +60% increase! 1 2 3 4 5 6 7
- 25. 3. Netflix to Qwikster split flickr cc rachelvn forget the *ouch* 1 2 3 4 5 6 7 +386% +25% was al that was left... Pricing crisis
- 26. 3. Netflix to Qwikster split flickr cc rachelvn By the time CEO Hastings cancelled the operation (sort of) Netflix lost almost 1.000.000 customers < Is this bad? 1 2 3 4 5 6 7
- 27. 3. Netflix to Qwikster split flickr cc rachelvn By the time CEO Hastings cancelled the operation (sort of) Netflix lost almost 1.000.000 customers I donโt know... What happened to MySpace popularity? Just thinking... 1 2 3 4 5 6 7
- 28. 3. Netflix to Qwikster split IncIncHQHQ Net๏ฌix (Streaming) IncIncHQHQ Qwikster Net๏ฌix Company Consumer Consumer Total Client base Movie Streaming service DVD by mail 5 $7.99/m 5 $7.99/m Combi (stream + DVD) service 5 $15.98/m 1 2 3 4 5 6 7 Visual Summary: Business Model PainsGet your visual toolkit here!
- 29. 3. Netflix to Qwikster split IncIncHQHQ Net๏ฌix (Streaming) IncIncHQHQ Qwikster Net๏ฌix Company Consumer Consumer Total Client base Movie Streaming service DVD by mail 5 $7.99/m 5 $7.99/m Combi (stream + DVD) service 5 $15.98/m Price raise of +60% for bundle Brand name โ-sterโ referred to other failed internet brands. #fail Almost 1.000.000 clients left *ouch* Netflix tried to split branding but had to cancel the operation 1 2 3 4 5 6 7 Visual Summary: Business Model PainsGet your visual toolkit here!
- 30. flickr cc rachelvn 4. 7 business models that got Shot! by boardofinnovation.com int. innovation consulting office
- 31. 4. Swoopo.com Make $1500 profit on the sale of 1 Macbook? ! Swoopo: example of a lucrative penny auction site ! Start bidding at $0.1 and ask people $0.6 to raise the price. ! No new bid? Product is yours! 1 2 3 4 5 6 7
- 32. 4. Swoopo.com After 2 -3 promising years, Swoopo had to shut down in March. Hundreds of copycats closed in 2011 ! The Penny auction model got shot and died this year. 1 2 3 4 5 6 7
- 33. 3 4. Swoopo.com 1 2 3 4 5 6 7 Visual Summary: Business Model PainsGet your visual toolkit here!
- 34. 3 4. Swoopo.com Customers organized themselves to trick the system. Some copy-cat sites never shipped goods (pure fraud) Reputation of penny- auction-sites got burned Naive customer lost many bucks. Many auctions had a negative outcome. Some sites used bots to bid against users. 1 2 3 4 5 6 7 Visual Summary: Business Model PainsGet your visual toolkit here!
- 35. flickr cc rachelvn 5. 7 business models that got Shot! by boardofinnovation.com int. innovation consulting office
- 36. 5. Dexia Where do I start? Oh boy.... ! The banking industry has been shot so many times and still they didnโt topple over completely. #PureRamboStyle #FriendlyFire ! The financial business models are way to complex to illustrate on 1 slide. As a Belgian I just want to highlight some fishy tactics in the Dexia case. #shame 1 2 3 4 5 6 7
- 37. 5. Dexia IncIncHQHQ Dexia Bank IncIncIncInc Banks 5 High risk loans 5 Expensive/Urgent Refund loan IncIncIncInc Banks Belgian Gov. Belgian ARCO Group 5 Short term loan 5 Expensive interest fees Gemeentelijke Holding Fishy Inc. 5 1.5 Billion Euro Loan 1.5 New Capital in Shares 5 8 Billion Shares Guarantee + cost โฌ4800/citizen Guarantee 5 45 Billion How to create money (1.5 Billion Euro) out of thin air?! Just give a loan to a โpartnerโ who will inject it back in the company. #wth The rescue plan for Dexia alone counts already for 5000 euro per Belgian. #shame 1 2 3 4 5 6 7 Visual Summary: Business Model PainsGet your visual toolkit here!
- 38. flickr cc rachelvn 6. 7 business models that got Shot! by boardofinnovation.com int. innovation consulting office
- 39. 6. HiGear.com (& AirBnb) Members can rent out luxury cars to each other. ! Many refer to Higear as the AirBnB* of cars. *Selected as 1 of the Business Models that Rocked 2010 See other slideshare. 1 2 3 4 5 6 7
- 40. 6. HiGear.com (& AirBnb) Members can rent out luxury cars to each other. ! Many refer to Higear as the AirBnB* of cars. Both start-ups got shot last year, Only 1 survived... 1 2 3 4 5 6 7
- 41. 6. HiGear.com & AirBnb IncIncHQHQ AirBnb Visitor Renter Community 5 6%-12% commission Matchmaking service Room for Rent Matchmaking service 5 Money 1 2 3 4 5 6 7 Visual Summary: Business Model PainsGet your visual toolkit here!
- 42. 6. HiGear.com & AirBnb IncIncHQHQ AirBnb Visitor Renter Community 5 6%-12% commission Matchmaking service Room for Rent Matchmaking service 5 Money In June, Some travelers trashed and vandalized 2 apartments of AirBnB members.After a huge PR crisis, AirBnb introduced a $50K insurance policy. But in the end, AirBnB survived! 1 2 3 4 5 6 7 Visual Summary: Business Model PainsGet your visual toolkit here!
- 43. 6. HiGear.com & AirBnb HiGear.com on the other hand... 1 2 3 4 5 6 7
- 44. 6. HiGear.com & AirBnb A Criminal ring stole 4 vehicles worth $400.000 *ouch* After a PR Nightmare Higear had to close down at the start of 2012. 1 2 3 4 5 6 7 Visual Summary: Business Model PainsGet your visual toolkit here!
- 45. flickr cc rachelvn 7. 7 business models that got Shot! by boardofinnovation.com int. innovation consulting office
- 46. 7. Nokia and RIM Apple, steady growth RIM (blackberry) Nokia, small decline 2007 1 2 3 4 5 6 7
- 47. 7. Nokia and RIM 2007 Oh, is that an iPhone in your pocket? 1 2 3 4 5 6 7
- 48. 7. Nokia and RIM *ouch* 1 2 3 4 5 6 7
- 49. 7. Nokia and RIM Feb 2011 Nokia CEO Elop shared his โburning platform memoโ โWhile competitors poured flames on our market share, what happened at Nokia? We fell behind, we missed big trends, and we lost time. At that time, we thought we were making the right decisions; but, with the benefit of hindsight, we now find ourselves years behind.โ Read full memo at Wired 1 2 3 4 5 6 7
- 50. 7. Nokia and RIM The total lack of business model innovation (almost) killed Nokia & RIM 1 2 3 4 5 6 7 Maybe some good news, Nokia decided to partner with Microsoft what halted the fall in stock price. #forNow... Visual Summary: Business Model PainsGet your visual toolkit here!
- 51. by boardofinnovation.com int. innovation consulting office flickr cc rachelvn Key lesson: Learn from failure Thanks for sharing this presentation! That would be #awesome! @Nickdemey
- 52. Order Business Model kit Our innovation consulting โข Design your business model โข Perfect for brainstorms! โข Used by Innovation teams โข Next gen business models โข Better revenue streams โข Disruptive & inspiring trends coffee@boardofinnovation.com @nickdemey @philderidder Explore kit! Learn more Pay With A TweetDownload as PDF >