The document discusses the product life cycle of marketing management. It begins by introducing the four stages of a product's life cycle: introduction, growth, maturity, and decline. It then provides examples like 3D TVs in the introduction stage and tablets in the growth stage. For each stage, it outlines the typical characteristics like low sales and high costs in introduction and rapidly rising sales in growth. Finally, it discusses implications of the product life cycle concept for assessing opportunities, threats, and adjusting marketing strategies.
This document discusses the product life cycle of Nestle. It begins by outlining the stages of the product life cycle: introduction, growth, maturity, and decline. It then provides details about Nestle's history since 1866 and its founder. It analyzes some of Nestle's major brands and how their life cycles have progressed, such as Maggi noodles being banned in 2015 but relaunched in 2016 after modifications. The conclusion emphasizes the importance of understanding a product's life cycle to design effective marketing strategies for each phase.
What is an innovation?
Why the case for innovation is even stronger today?
Product innovation
Explain why some product innovations are unsuccessful.
Examine the process of product innovation.
New Product Development (NPD) framework.
Evaluate the merits of NPD framework.
Why some innovations are popular/unpopular?
Marketing research involves collecting, organizing, analyzing, and communicating information to make informed marketing decisions. It helps complement marketing strategies by enabling educated decisions on target markets, branding, and products/services. Key steps include defining problems, collecting primary and secondary data, analyzing and interpreting data, reaching conclusions, and implementing findings. Online research assists with various phases using computer networks and the Internet. Market research agencies in India provide specialized services across industries.
This document provides an overview of the Business Model Canvas tool. It describes the 9 building blocks that make up the Business Model Canvas, including Customer Segments, Value Propositions, Channels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Key Partnerships, and Cost Structure. It then explains how to use the Business Model Canvas to map out a business model and identify relationships between different elements. The document also introduces other related tools like the Value Proposition Canvas and presents examples of how well-known companies like low-cost airlines and Skype have applied business model thinking.
The document discusses creating customer value propositions. It defines a customer value proposition as describing the experiences a target user will have when purchasing and using a product. It should compare the product to the next best alternative for the target user. The customer value proposition identifies: the timeframe of when value will be delivered; the key target user; how the user and alternative are profiled; the value experiences of benefits, trade-offs and parity; how value is quantified; and how the proposition guides product marketing activities. Developing an accurate customer value proposition requires understanding the target user and alternative in detail.
The document discusses secondary data sources for research. It defines secondary data as data collected for other purposes than the current problem. Secondary data has advantages of quick and cheap collection but disadvantages of potential inaccuracies or lack of relevance. The document outlines internal sources like accounting records and sales reports, as well as external sources including databases, government agencies, directories, and experts. It also discusses using secondary data for international research.
The document discusses the product life cycle of marketing management. It begins by introducing the four stages of a product's life cycle: introduction, growth, maturity, and decline. It then provides examples like 3D TVs in the introduction stage and tablets in the growth stage. For each stage, it outlines the typical characteristics like low sales and high costs in introduction and rapidly rising sales in growth. Finally, it discusses implications of the product life cycle concept for assessing opportunities, threats, and adjusting marketing strategies.
This document discusses the product life cycle of Nestle. It begins by outlining the stages of the product life cycle: introduction, growth, maturity, and decline. It then provides details about Nestle's history since 1866 and its founder. It analyzes some of Nestle's major brands and how their life cycles have progressed, such as Maggi noodles being banned in 2015 but relaunched in 2016 after modifications. The conclusion emphasizes the importance of understanding a product's life cycle to design effective marketing strategies for each phase.
What is an innovation?
Why the case for innovation is even stronger today?
Product innovation
Explain why some product innovations are unsuccessful.
Examine the process of product innovation.
New Product Development (NPD) framework.
Evaluate the merits of NPD framework.
Why some innovations are popular/unpopular?
Marketing research involves collecting, organizing, analyzing, and communicating information to make informed marketing decisions. It helps complement marketing strategies by enabling educated decisions on target markets, branding, and products/services. Key steps include defining problems, collecting primary and secondary data, analyzing and interpreting data, reaching conclusions, and implementing findings. Online research assists with various phases using computer networks and the Internet. Market research agencies in India provide specialized services across industries.
This document provides an overview of the Business Model Canvas tool. It describes the 9 building blocks that make up the Business Model Canvas, including Customer Segments, Value Propositions, Channels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Key Partnerships, and Cost Structure. It then explains how to use the Business Model Canvas to map out a business model and identify relationships between different elements. The document also introduces other related tools like the Value Proposition Canvas and presents examples of how well-known companies like low-cost airlines and Skype have applied business model thinking.
The document discusses creating customer value propositions. It defines a customer value proposition as describing the experiences a target user will have when purchasing and using a product. It should compare the product to the next best alternative for the target user. The customer value proposition identifies: the timeframe of when value will be delivered; the key target user; how the user and alternative are profiled; the value experiences of benefits, trade-offs and parity; how value is quantified; and how the proposition guides product marketing activities. Developing an accurate customer value proposition requires understanding the target user and alternative in detail.
The document discusses secondary data sources for research. It defines secondary data as data collected for other purposes than the current problem. Secondary data has advantages of quick and cheap collection but disadvantages of potential inaccuracies or lack of relevance. The document outlines internal sources like accounting records and sales reports, as well as external sources including databases, government agencies, directories, and experts. It also discusses using secondary data for international research.
This document discusses business model innovation (BMI). It defines BMI as reinventing a business itself by innovating two or more elements of its business model to deliver value in a new way. The document then covers the evolution of BMI principles, the relevance of BMI today to address disruption and competition, challenges companies may face with BMI like failure to scale up ideas, and provides examples of companies like Apple and Ikea that successfully applied BMI.
The Sustainable Business Model Canvas is a great tool to enable you to develop more sustainable and innovative business models. It allowsyou to maximise the sustainability impact of your venture whilst minimising negative externalities, and it is fast and easy to complete. Use this canvas together with the Threebility Sustainability Impact Canvas for best results.
Detailed Description: https://www.threebility.com/sustainable-business-model-canvas
Price is a key element of the marketing mix that generates revenue. It communicates the value of a product and is determined based on customer perceived value and costs. When setting prices, companies analyze factors like demand, costs, competition and select objectives like profit maximization. Appropriate pricing requires estimating demand curves and price elasticity to understand customer sensitivity.
This presentation aims to critically evaluate the Generic Strategies. Not all the time these strategies are sucessful, Even the big guns in the industry have falied in may occasions.
What is Pricing Strategy and what are the objectives and factors affecting the Pricing Strategy.
There are Certain types of Pricing Strategies as well. Each and every strategy has its own affect on the product and services offered by an organization.
DISTRIBUTION CHANNEL CONFLICTS AND METHODS OF CONFLICTS RESOLUTION.pptxDhruvKumarKurapaty
This document discusses distribution channel conflicts and methods for resolving them. It begins by defining channel conflict as occurring when manufacturers disintermediate channel partners by selling directly to consumers. It then identifies types of channel conflicts like vertical, multi-channel, inter-type, and horizontal conflicts. Common causes and effects of conflicts are outlined. Methods for resolving conflicts including negotiation, mediation, arbitration and litigation are presented. Best practices for preventing and managing conflicts like communication and trust-building are recommended. The document concludes with a case study of how Nike addressed channel conflicts with Amazon and internal departments.
This document discusses how markets become more competitive through government intervention like deregulation and privatization. It also discusses how increased trade and e-commerce between countries leads to more choices for consumers. Businesses respond to increased competition by developing new products, improving efficiency, increasing promotion, and finding new markets. The document also covers niche marketing, which targets small market segments, and mass marketing, which sells to the whole market. Niche marketing can charge higher prices but has higher costs, while mass marketing has more competition but lower costs due to economies of scale.
The document provides guidance for a 10 slide, 20 minute investor pitch that follows the 10/20/30 rule. It outlines the key sections to include: problem, solution, business model, underlying magic, marketing/sales, competition, management team, financials/metrics, and current status. The pitch should clearly explain the problem being solved, solution, business model, team, and use of funds while visualizing concepts and showing traction.
This document defines product concept and provides examples of its implementation. Product concept is a process where a product is continually evolved over time to better satisfy customer needs. Apple is given as a strong example, as they followed product concept closely in upgrading their iPhone models with new features and improved design based on customer demand. In contrast, Blackberry failed to adequately follow customer demands and product concept, limiting their features and user friendliness. The conclusion stresses the importance of innovation and independent decision making to create the best products and advance lifestyle.
The document discusses the product life cycle, which consists of four stages: introduction, growth, maturity, and decline. Each stage is characterized by different sales volumes, costs, profits, and marketing objectives. The introduction stage involves building product awareness at high costs and negative profits. Growth sees rapidly rising sales through expanded distribution and lower prices. Maturity reaches peak sales with efforts to maximize profits and defend market share. Finally, decline has falling sales and profits as the product is phased out.
Firms grow both organically and through acquisitions for several strategic and financial reasons. Strategically, firms seek to achieve economies of scale, improve market power, and diversify risks. Financially, growth can improve profits and shareholder returns. Firms may integrate horizontally within their industry, vertically along the supply chain, or diversify into unrelated businesses. Both large and small companies pursue organic expansion by developing new products and entering new markets.
Research design provides a framework for conducting marketing research projects by detailing the necessary procedures to obtain needed information. There are two main types of research design: exploratory and conclusive. Exploratory research formulates problems, identifies actions, develops hypotheses, and isolates key variables through methods like expert surveys, pilot surveys, and case studies. Conclusive research has clearly defined information needs, is formal/structured, uses large samples, and applies quantitative analysis and findings to decision making. Descriptive and causal research are also discussed.
The document discusses pricing strategies, methods, and tactics. It provides an overview of how economists, accountants, customers, and marketers view price. Key factors that affect price are discussed such as costs, competition, demand, and objectives. Common pricing methods include market-based pricing using customer value and competitors' prices, and cost-based pricing using full costs, markups, and contributions. Pricing strategies aim to achieve objectives over the medium-long term and include skimming, penetration, leadership, and discrimination. Tactics are short term and include loss leaders, wars, and promotions. Demand elasticity measures responsiveness to price changes.
The document discusses problem definition and design solutions in UX design. It emphasizes clearly understanding the problem being solved through defining the problem statement, scope, impacts, and desired outcomes. It provides examples of problems around vision issues and recommends defining the key problems, prioritizing them, and designing solutions through group activities and user interviews. The goal is to understand users and design products that simplify and improve their lives.
New Product Development Process And Strategy PowerPoint Presentation SlidesSlideTeam
Every organization needs to adapt to the ever-changing business environment. Sensing this need, we have come up with these content-ready change management PowerPoint presentation slides. These change management PPT templates will help you deal with any kind of an organizational change. Be it with people, goals or processes. The business solutions incorporated here will help you identify the organizational structure, create vision for change, implement strategies, identify resistance and risk, manage cost of change, get feedback and evaluation, and much more. With the help of various change management tools and techniques illustrated in this presentation design, you can achieve the desired business outcomes. This business transition PowerPoint design also covers certain related topics such as change model, transformation strategy, change readiness, change control, project management and business process. By implementing the change control methods mentioned in the presentation, you will be able to have a smooth transition in an organization. So, without waiting much, download our extensively researched change management framework presentation. With our Change Management Presentation slides, understand the need for change and plan to go through it without any hassles.
The document discusses the process of new product development, which includes market research, concept testing, prototype development, market testing, and product launch. It emphasizes the importance of market research to understand customer needs and identify opportunities. The development process then progresses through building prototypes, testing concepts with customers, and launching the new product in the market.
This document defines corporate entrepreneurship and discusses its importance for companies. It is defined as innovative activities within an organization that receive resources and support. There is a need for corporate entrepreneurship due to increased competition, changing business environments, and losing talented employees. The document outlines the corporate entrepreneurship process and strategies companies can use, including developing an entrepreneurial vision, encouraging innovation, and establishing venture teams. It also discusses types of innovation, creating an innovative environment, and preparing for and learning from failures. The goal of corporate entrepreneurship is to continuously renew and rejuvenate organizations.
The document discusses managing innovation as a core business process. It defines the innovation process as having main stages: (1) beginning with a problem or challenge, (2) generating ideas through collaboration, (3) combining and evaluating ideas, (4) developing ideas through prototypes or testing, and (5) implementing successful ideas. It also discusses developing an organization's innovation capability through factors like strategy, processes, linkages between groups, and learning. Finally, it emphasizes that a sustainable innovation process requires ongoing efforts to bridge different paces of change, address cultural and financial barriers, and properly plan and implement innovation tools.
Presented by Michael Miller, Director of Marketing Foodservice at Mondelez International.
diji•touch was born when a 46” LCD touch screen met a not-so-ordinary vending machine and the interactive vending machines are situated in hospitals, universities and transit locations - all experiencing high traffic, high repeat visit frequency and high dwell time.
diji•touch interactive vending machines are powered by BroadSign digital signage software.
Martim Smolka of the Lincoln Institute of Land Policy discusses value capture, a tool for recovering land value generated by public actions such as infrastructure investment or zoning changes.
This document discusses business model innovation (BMI). It defines BMI as reinventing a business itself by innovating two or more elements of its business model to deliver value in a new way. The document then covers the evolution of BMI principles, the relevance of BMI today to address disruption and competition, challenges companies may face with BMI like failure to scale up ideas, and provides examples of companies like Apple and Ikea that successfully applied BMI.
The Sustainable Business Model Canvas is a great tool to enable you to develop more sustainable and innovative business models. It allowsyou to maximise the sustainability impact of your venture whilst minimising negative externalities, and it is fast and easy to complete. Use this canvas together with the Threebility Sustainability Impact Canvas for best results.
Detailed Description: https://www.threebility.com/sustainable-business-model-canvas
Price is a key element of the marketing mix that generates revenue. It communicates the value of a product and is determined based on customer perceived value and costs. When setting prices, companies analyze factors like demand, costs, competition and select objectives like profit maximization. Appropriate pricing requires estimating demand curves and price elasticity to understand customer sensitivity.
This presentation aims to critically evaluate the Generic Strategies. Not all the time these strategies are sucessful, Even the big guns in the industry have falied in may occasions.
What is Pricing Strategy and what are the objectives and factors affecting the Pricing Strategy.
There are Certain types of Pricing Strategies as well. Each and every strategy has its own affect on the product and services offered by an organization.
DISTRIBUTION CHANNEL CONFLICTS AND METHODS OF CONFLICTS RESOLUTION.pptxDhruvKumarKurapaty
This document discusses distribution channel conflicts and methods for resolving them. It begins by defining channel conflict as occurring when manufacturers disintermediate channel partners by selling directly to consumers. It then identifies types of channel conflicts like vertical, multi-channel, inter-type, and horizontal conflicts. Common causes and effects of conflicts are outlined. Methods for resolving conflicts including negotiation, mediation, arbitration and litigation are presented. Best practices for preventing and managing conflicts like communication and trust-building are recommended. The document concludes with a case study of how Nike addressed channel conflicts with Amazon and internal departments.
This document discusses how markets become more competitive through government intervention like deregulation and privatization. It also discusses how increased trade and e-commerce between countries leads to more choices for consumers. Businesses respond to increased competition by developing new products, improving efficiency, increasing promotion, and finding new markets. The document also covers niche marketing, which targets small market segments, and mass marketing, which sells to the whole market. Niche marketing can charge higher prices but has higher costs, while mass marketing has more competition but lower costs due to economies of scale.
The document provides guidance for a 10 slide, 20 minute investor pitch that follows the 10/20/30 rule. It outlines the key sections to include: problem, solution, business model, underlying magic, marketing/sales, competition, management team, financials/metrics, and current status. The pitch should clearly explain the problem being solved, solution, business model, team, and use of funds while visualizing concepts and showing traction.
This document defines product concept and provides examples of its implementation. Product concept is a process where a product is continually evolved over time to better satisfy customer needs. Apple is given as a strong example, as they followed product concept closely in upgrading their iPhone models with new features and improved design based on customer demand. In contrast, Blackberry failed to adequately follow customer demands and product concept, limiting their features and user friendliness. The conclusion stresses the importance of innovation and independent decision making to create the best products and advance lifestyle.
The document discusses the product life cycle, which consists of four stages: introduction, growth, maturity, and decline. Each stage is characterized by different sales volumes, costs, profits, and marketing objectives. The introduction stage involves building product awareness at high costs and negative profits. Growth sees rapidly rising sales through expanded distribution and lower prices. Maturity reaches peak sales with efforts to maximize profits and defend market share. Finally, decline has falling sales and profits as the product is phased out.
Firms grow both organically and through acquisitions for several strategic and financial reasons. Strategically, firms seek to achieve economies of scale, improve market power, and diversify risks. Financially, growth can improve profits and shareholder returns. Firms may integrate horizontally within their industry, vertically along the supply chain, or diversify into unrelated businesses. Both large and small companies pursue organic expansion by developing new products and entering new markets.
Research design provides a framework for conducting marketing research projects by detailing the necessary procedures to obtain needed information. There are two main types of research design: exploratory and conclusive. Exploratory research formulates problems, identifies actions, develops hypotheses, and isolates key variables through methods like expert surveys, pilot surveys, and case studies. Conclusive research has clearly defined information needs, is formal/structured, uses large samples, and applies quantitative analysis and findings to decision making. Descriptive and causal research are also discussed.
The document discusses pricing strategies, methods, and tactics. It provides an overview of how economists, accountants, customers, and marketers view price. Key factors that affect price are discussed such as costs, competition, demand, and objectives. Common pricing methods include market-based pricing using customer value and competitors' prices, and cost-based pricing using full costs, markups, and contributions. Pricing strategies aim to achieve objectives over the medium-long term and include skimming, penetration, leadership, and discrimination. Tactics are short term and include loss leaders, wars, and promotions. Demand elasticity measures responsiveness to price changes.
The document discusses problem definition and design solutions in UX design. It emphasizes clearly understanding the problem being solved through defining the problem statement, scope, impacts, and desired outcomes. It provides examples of problems around vision issues and recommends defining the key problems, prioritizing them, and designing solutions through group activities and user interviews. The goal is to understand users and design products that simplify and improve their lives.
New Product Development Process And Strategy PowerPoint Presentation SlidesSlideTeam
Every organization needs to adapt to the ever-changing business environment. Sensing this need, we have come up with these content-ready change management PowerPoint presentation slides. These change management PPT templates will help you deal with any kind of an organizational change. Be it with people, goals or processes. The business solutions incorporated here will help you identify the organizational structure, create vision for change, implement strategies, identify resistance and risk, manage cost of change, get feedback and evaluation, and much more. With the help of various change management tools and techniques illustrated in this presentation design, you can achieve the desired business outcomes. This business transition PowerPoint design also covers certain related topics such as change model, transformation strategy, change readiness, change control, project management and business process. By implementing the change control methods mentioned in the presentation, you will be able to have a smooth transition in an organization. So, without waiting much, download our extensively researched change management framework presentation. With our Change Management Presentation slides, understand the need for change and plan to go through it without any hassles.
The document discusses the process of new product development, which includes market research, concept testing, prototype development, market testing, and product launch. It emphasizes the importance of market research to understand customer needs and identify opportunities. The development process then progresses through building prototypes, testing concepts with customers, and launching the new product in the market.
This document defines corporate entrepreneurship and discusses its importance for companies. It is defined as innovative activities within an organization that receive resources and support. There is a need for corporate entrepreneurship due to increased competition, changing business environments, and losing talented employees. The document outlines the corporate entrepreneurship process and strategies companies can use, including developing an entrepreneurial vision, encouraging innovation, and establishing venture teams. It also discusses types of innovation, creating an innovative environment, and preparing for and learning from failures. The goal of corporate entrepreneurship is to continuously renew and rejuvenate organizations.
The document discusses managing innovation as a core business process. It defines the innovation process as having main stages: (1) beginning with a problem or challenge, (2) generating ideas through collaboration, (3) combining and evaluating ideas, (4) developing ideas through prototypes or testing, and (5) implementing successful ideas. It also discusses developing an organization's innovation capability through factors like strategy, processes, linkages between groups, and learning. Finally, it emphasizes that a sustainable innovation process requires ongoing efforts to bridge different paces of change, address cultural and financial barriers, and properly plan and implement innovation tools.
Presented by Michael Miller, Director of Marketing Foodservice at Mondelez International.
diji•touch was born when a 46” LCD touch screen met a not-so-ordinary vending machine and the interactive vending machines are situated in hospitals, universities and transit locations - all experiencing high traffic, high repeat visit frequency and high dwell time.
diji•touch interactive vending machines are powered by BroadSign digital signage software.
Martim Smolka of the Lincoln Institute of Land Policy discusses value capture, a tool for recovering land value generated by public actions such as infrastructure investment or zoning changes.
Transit Value Capture Finance - A Global Review of Monetary Potential and Per...Dapo Olajide
In the face of urban transportation funding shortfalls, Land Value Capture is gaining global traction in urban finance as an innovative and ancillary method for funding capital intensive transit investments in cities. To fully understand its potential, a thorough examination of land value capture (LVC) and its application to funding transit investments was conducted for my Master’s professional project at the UBC School of Community and Regional Planning (SCARP).
The report covers the following areas:
• The definition and rationale behind Land Value Capture (LVC)
• The types of LVC instruments and examples
• The distinct advantages of each type of LVC instrument
• Global examples of transit projects that have been funded using LVC finance
• The assessment of the monetary performance of LVC instruments, using case studies from Hong Kong (MTR Rail plus Property program) and London, UK (London Crossrail Business Rate Supplements - BRS)
• The critical success factors for the successful implementation of LVC finance
The document summarizes Town Planning Schemes (TPS), a form of land readjustment used to expand urban infrastructure in Ahmedabad, India without compulsory land acquisition. Under TPS, land is pooled by the government from a designated area, with 30-40% used for public purposes and the remaining land returned to original owners, now available for urban development. Land value capture occurs through betterment charges and sale of government land. While not perfect in implementation, TPS is seen as an improvement over land acquisition and the concept of land readjustment remains valid with potential for streamlining.
Why Native Won (And the Roadmap for the Next $75 Billion)Sharethrough
**Given the choice between losing your phone forever (meaning you can't get a new one), or amputating your pinky finger, which would you choose?
In a statistically significant study, 46% of millennials (18-30 year olds) say "TAKE THE FINGER!"
This is a story about how intimate devices require integrated advertising — and what that means for the future of monetization.
I first presented this at the Sharethrough Native Ad Summit, July 2016
See all the rest of the speakers and videos here:
http://summit.nativeadvertising.com
These slides propose a business model for MDI Enterprises, a firm that makes automobiles powered by compressed air engines. These automobile are as clean as electric vehicles, but cheaper.
Why Native is the Undeniable Future of MonetizationSharethrough
This document discusses why native advertising is the future of monetization. It notes that click-through rates for traditional display ads have declined significantly since 2000 as users ignore banner ads. Native advertising integrates sponsored content seamlessly into users' experience through formats like promoted videos, posts, and articles. Major publishers have adopted native ads to generate revenue without hurting the user experience. The document introduces the Native Monetization Framework for helping brands and publishers utilize native advertising through both open formats for brand building and closed formats for direct response. It provides an example of how promoted videos on Sharethrough achieved an 18x higher brand lift than industry norms.
The focus of this project was to capture success of one of the most worldwide know company - Apple and track down its way to overcome its competitors. With the use of RBV Theory, Dynamic Capabilities Framework and Business Model Canvas.
The document discusses innovation and the S-curve model of adoption. It describes the four stages of the S-curve: startup, growth, maturation, and decline. It emphasizes that innovation is needed at each stage to jump to the next S-curve. The document provides tips for managing innovation, including pursuing big market insights, managing talent, knowing when to innovate, and getting ideas from customer needs rather than research. It also covers disruptive innovation, culture, leadership, and provides a case study of a company that successfully jumped to a new S-curve.
1This is a sample lecture on Marketing, Chapter 1 from the texbook Kotler, P. & Armstrong, G. (2012). Principles of Marketing. New Jersey: Prentice-Hall.
This sample lecture was prepared for Ashford Unversity, 2011.Upon completion of this lecture, a certificate of completion is available from Alpha & Omega Healthcare Management Consulting. For the certificate, please contact tripthimathew@alphanomega.info or DrMathewTM@gmail.com
A project done as part of the MOOC course of Business strategy on coursera.com. The document uses several strategic analysis tools accompanied with latest data to make strategic recommendations in future for Microsoft Corp.
The document provides an overview of Amazon's business model. It describes Amazon's mission, vision, values and core strategies. It outlines Amazon's three customer sets and how it captures attention through its website. It then details the evolution of Amazon's business model, including its expansion into ebooks/Kindle, diversification of revenue streams, and geographical growth. The document also examines Amazon's sales breakdown and international expansion. It concludes that Amazon has grown significantly by logically expanding its resources and channels.
How to choose the right business model? by @boardofinno - @nickdemeyBoard of Innovation
The different revenue model options, business model types and drivers why people pay. From Freemium, Broker to Razor-blade models. Ask the right questions to select your monetization strategy.
Everyone is talking about cloud computing and Software-as-a-Service (SaaS) these days. Almost every technology vendor has announced a cloud strategy – even the traditional software zealots. But what do cloud computing and SaaS mean for product managers? The impacts are more significant than you may think. From pricing and profitability measurement to sales and marketing, cloud is having a noteworthy influence on the day-to-day activities of product managers.
Digital strategies require cross-functional teams to maximize business benefits from data and technology. They involve understanding customers, competitors, innovation, data, and partnerships. Customers can provide competence and shape personalized experiences. Competitors may redefine industries or transform products to platforms. Data is an asset when converted to meaningful information and visualizations to guide decisions. Innovation starts by discovering customer needs and testing minimum viable products.
Jerry Chen, partner at Greylock and former VP of Cloud and Application Services at VMware, shares his Unit of Value framework for startups building a go-to-market strategy. He developed this strategy while managing product and marketing teams at VMware that shipped many “1.0” releases, including VMware VDI, Cloud Foundry, and vFabric, and continues to use the framework to evaluate companies as an investor.
The document provides tips for pitching a new product or business, including discussing the lean startup model, market size, product pricing, customer validation, and defining the product versus its value. It also discusses selling channels, revenue streams, the business model canvas, and types of innovations like resource-driven, offer-driven, customer-driven, and finance-driven. Additional tips suggest turning the pitch into a story, clearly explaining the product or service, its uniqueness, revenue model, and selling a vision.
This document discusses the importance of knowledge management for e-commerce. It defines e-commerce and knowledge management, and explains how KM helps e-commerce businesses by allowing them to react quickly to opportunities, ensure successful partnerships, and maximize performance. It outlines different types of knowledge and discusses strategies for increasing knowledge, such as improving infrastructure and social engagement. Overall, the document argues that applying a knowledge management approach is crucial for e-commerce companies to gain competitive advantages.
These slides discuss Network Effects, Platforms, Standards, and Complex Systems. All of these concepts continue to become more important as the digital economy progresses. From Uber to Instacart, and from smart phones to driverless vehicles, these concepts are playing an increasingly important role in the global economy. Their impact is most obvious when one thinks of the winner take all markets that are becoming increasingly common.
1. Digital disruptives are building digital business models around technology-enabled ecosystems and platforms.
2. These digital business models use data, automation, and connectivity to create new sources of value and differentiate themselves.
3. Successful digital disruptives design experiences with a digital-first approach, leverage data to power their business models, and open their operating models through platforms and partnerships to scale.
1) Mobile data is transforming industries and blurring boundaries as more services move online. This represents a shift from voice to data and retail to wholesale models.
2) Operators are losing relevance and profits as they focus on infrastructure while app-based companies control the customer experience and capture more value. Operators must transform by connecting ecosystems and capturing value in connected systems.
3) The transformation involves 3 phases - expanding infrastructure, increasing penetration of mobile data and digital services, and changing business models to focus on ecosystems and capturing value. Big data will be key to creating new vertical platforms and sponsored data can help drive this transformation.
The document discusses threats facing international travel agencies from online competition and strategies for survival. Rosenbluth International addressed these threats by becoming a corporate travel agency, offering innovative e-commerce applications to optimize savings for corporations. This led to increased market share and profits for the company, demonstrating how digital technologies can provide competitive advantages.
The document discusses digital business models and their key characteristics. It outlines Alexander Osterwalder's nine building blocks framework for business models. Some common elements of successful digital business models include providing value to customers through cost advantages, quality, convenience or variety. Models also beat competition through continuous innovation, lowest costs, bait-and-hook strategies, or network effects. Digital businesses tend to have unique characteristics like low costs per user, large network effects, and viral marketing approaches.
The document discusses digital media and e-business, including supply chain essentials and processes. It then discusses how enterprise resource planning (ERP) helped integrate business processes and data across departments. The rise of e-business and digital media is discussed, along with challenges around digital rights management, security, and interoperability across devices and platforms. Solutions from IBM and HP are presented for digital media exchanges and platforms to help media companies manage digital assets and supply chains more efficiently.
A revolution is under way where businesses and their systems are connecting to digital communities of existing and potential partners. In this world:• Sellers quickly find new business opportunities with a network of purchase-ready prospects
• Buyers efficiently discover new sources of supply and coordinate orders across their supply chains — all in real-time
• Companies can have transparency into payables and receivables to make better working capital decisions
In this session we will investigate the key elements that allow the emerging leaders to embrace the new world of Networked Business, and what steps you must take to continue to flourish.
E-commerce refers to commercial transactions that are conducted electronically on the internet. It involves buying and selling of goods and services, transfer of funds, and exchange of data digitally. There are four main types of e-commerce models: business to business (B2B), business to consumer (B2C), consumer to consumer (C2C), and consumer to business (C2B). Successful e-commerce requires focusing on key aspects like the customer experience, utilizing analytics, and prioritizing product reviews. Emerging frameworks include software as a service (SaaS), open source, and headless systems that provide flexibility. E-commerce has experienced rapid growth since the 1990s with the introduction of online stores
E-business refers to conducting business online through e-commerce. There are different models of e-business including business-to-business (B2B), business-to-consumer (B2C), consumer-to-business (C2B), and consumer-to-consumer (C2C). Companies use strategies like online marketing, sales, procurement, and customer service to succeed in e-business. Security and privacy are important for building customer trust in e-commerce transactions. Organizations can access the internet through intranets, extranets, portals, and kiosks.
Exercise on How to strengthen your business model?
WOMEN ENTREPRENEURS’ WORKSHOP
Organized by Mount Carmel College
(in Association with National Entrepreneurship Network)
“ BUILDING A BETTER MARKET AND MANAGING FINANCE”
The document discusses trends in e-business and technology that are important for managers to consider. It covers trends related to customers, such as demands for faster service and more integrated solutions. It also outlines trends for e-services, organizations, employees, and enterprise technology, such as a shift to integrated applications and multi-channel integration. General technology trends discussed include wireless applications, handheld devices, and infrastructure convergence. The document emphasizes that identifying and exploiting these trends is key to developing effective e-business strategies.
This document discusses different business and revenue models, including:
1. Unbundling businesses into customer relationship, product innovation, and infrastructure businesses.
2. Two-sided marketplaces that connect two groups of customers and generate revenue from one or both sides.
3. Freemium models that offer a basic free service to attract many users and generate revenue from premium upgrades.
4. Software as a Service (SaaS) models that offer software on a subscription basis and are highly scalable.
The document provides examples like eBay, Google, AirBnB, and Salesforce to illustrate different revenue models.
Electronic copy available at httpssrn.comabstract=2161742.docxtoltonkendal
Electronic copy available at: http://ssrn.com/abstract=2161742
Electronic Commerce Business Models:
A Conceptual Framework
By
Utkarsh Majmudar
Ganesh N. Prabhu
July 2000
Please address all correspondence to:
Prof. Utkarsh Majmudar
Visiting Faculty (Finance & Control Area)
Indian Institute of Management
Bannerghatta Road
Bangalore - 560 076
India
Fax: (080) 6584050
E m a i l ! utkarsh&qimbxmeUn
Copies of the Working Papers may be obtained from the FPM & Research Office
Electronic copy available at: http://ssrn.com/abstract=2161742
Electronic Commerce Business Models: A Conceptual Framework
Utkarsh Majmudar and Ganesh N. Prabhu
Abstract
The recent boom in the new economy of internet based commerce has created a large
number of firms with a variety of business models that aim to leverage the power of the
internet to further their business goals. In this paper we attempt to provide a
conceptual framework for understanding e-commerce business models on a number of
important dimensions - nature of consumer activity, nature of e-commerce activity,
target customers, targeting strategy, revenue generating modes, procfactfcerwce
delivery modes, payment collection modes, operating modes, market places,
advantage mechanisms and domination characteristics. We also examine means of
improving value proposition and net-friendliness for e-commerce activities and identify
areas where e-commerce models have not been explored or fully exploited so far.
Since the range of economic activities on the internet is vast and growing, newer
models and opportunities are likely to emerge through improvements in internet
technologies as well as innovations in their application to business contexts. Hence
any conceptual framework on e-commerce business models, including our own, can
never be comprehensive.
Electronic Commerce Business Models: A Conceptual Framework - 1 -
Electronic copy available at: http://ssrn.com/abstract=2161742
Electronic Commerce Business Models: A Conceptual Framework
Introduction
The recent boom in the new economy of internet based commerce has spawned a large
number of firms with a variety of business models that aim to leverage the power of the internet to
further their business goals. This paper provides a conceptual framework for understanding these
business models and their characteristics. The conceptual framework is shown in Figure 1.
Locating Electronic Commerce in the Internet Economy
We define electronic commerce as use of the internet medium for conducting economic
transactions. Electronic commerce is a part of a larger internet economy. Conceptually, the internet
economy can be divided into four layers (Barua etal., 1999). Each layer of the internet economy is
listed below with descriptions of the types of companies and names of some of the actual companies in
each category.
(a) Layer One: The Internet Infrastructure Layer. This layer includes companies with products and
services that help cr.
The document discusses internet marketing and new product development processes that can be digitized. It outlines several key topics related to speeding up new product development, including the importance of rapid prototyping and testing, getting early customer feedback, setting industry standards, and leveraging alliances to bring products to market quickly. Modular design approaches that allow parallel development help reduce time to market.
Similar to Biz model 4 method of value capture (20)
The document proposes a new online education model for low-income individuals and countries. It suggests allowing students to study online in short bursts while working, earning certificates for skills that lead to higher-paying jobs. Courses would focus on in-demand skills like accounting, marketing and programming, tested through practical assignments. Strategic partnerships would be formed with telecom providers, universities, job sites and companies committed to hiring graduates. The model aims to create a self-reinforcing network where more students attract more company partners and vice versa.
These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Ola Cabs, an Indian ride sharing company that has beaten Uber in India and is now challenging Uber on the global level. It has introduced a wide variety of low end vehicle service (two and three-wheelers), is expanding into last mile e-commerce deliveries, trucking, ambulance services, 2-wheelers for deliveries, and is linking with restaurants, ticket booking and used good marketplaces.
The slides summarize the business model for Ola Cabs including the value proposition, customers, method of value capture, scope of activities, and method of strategic control.
These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for PlugSurfing. PlugSurfing is creating a global network of EV charging stations that can be used with a single account thus eliminating the need for multiple passwords, credit cards, and other identifiers. It had created a network of 25,000 charging points by January 2016, mostly in Germany and the Netherlands. It already has a density of 17 charging points per square kilometer in central cities and 4 per square kilometer in suburbs. It has also begun expanding into France, Italy, and Belgium. The slides summarize the business model for PlugSurfing including the value proposition, customers, method of value capture, scope of activities, and method of strategic control.
These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Zomato, a food discovery site that is transforming the global restaurant business and that is a member of the WSJ’s billion dollar startup club. Not only does it connect users and restaurants, it is also helping restaurants manage their finances, food and equipment orders, and design restaurants. Its core business is helping users find, book, and evaluate restaurants and helping restaurants advertise their services to users and accept bookings. However, the global network that Zomato is building of users and restaurants is enabling Zomato to extend its business into all aspects of F&B.
These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Vishuo Biomedical, a Singaporean startup. This startup offers a data analytics bioinformatics platform that includes an integrated drug-gene-relation database and this platform is constantly updated as scientific advances are reported in academic journals. The platform analyzes genetic sequence data and provides visualization and reports for hospitals. Vishuo targets hospitals and research institutes with DNA sequencers but who need data analytic tools to interpret the DNA sequencing output. The slides summarize the business model for Vishuo including the value proposition, customers, method of value capture, scope of activities, and method of strategic control.
These slides describe my efforts to change engineering education. By focusing on group projects and presentations and real-world engineering issues that are applicable to much of industry, we can help students develop and demonstrate real-world skills. Industry will notice well done analysis of real-world issues and this has occurred in my two classes. The next steps are to work more closely with industry, focus more engineering classes on group projects and presentations, and to create new forms of resumes and transcripts. These resumes and transcripts should promote the students through linked presentations that demonstrate the real-world capabilities of students and that help engineering departments build brand images.
These slides analyze the value propositions for the members (more than 140) of Wall Street Journal's Billion Dollar Startup Club. Value propositions are important, because they are a major reason for the success of a product or a service. Many of these value propositions involved multiple dimensions of performance and large changes in user behavior. Young entrepreneurs should look for these types of value propositions.
These slides use concepts from my (Jeff Funk) course on Business Models at National University of Singapore to analyze the business model of Augmented Reality for travel. Augmented reality superimposes information on top of our sensory data. One way to do AR is to use a smart phone’s camera to view a world with information superimposed on the smart phone’s display. For travel, nearby places of interest can be provides along with ratings, reviews directions, public transport, and other information on them. This information can be obtained from Google Earth and other sources. The slides describe the value proposition, method of value capture, customers, scope of activities, and method of strategic control for two startups involved with AR and travel.
These slides use concepts from my (Jeff Funk) course on Business Models at National University of Singapore to analyze the business model of SCIO’s molecular sensor. This pocket sensor uses infrared light to determine the molecular makeup of fruits, vegetables, drugs, and other organic materials. As a replacement for bulky spectrometers, it can be used by scientists, engineers, and consumers to determine the sugar content, nutritional value, and other aspects of organic materials. The slides describe the value proposition, method of value capture, customers, scope of activities, and method of strategic control for SCIO.
Garena is an online game and social media platform provider based in Singapore. It started as an online game provider but has since expanded into multiple products and services. Its main platforms are Garena+ for online games, TalkTalk for game streaming, and BeeTalk for social media. It aims to leverage synergies between its platforms to increase network effects and retain customers. Moving forward, Garena will need to acquire more popular mobile games and explore strategies like partnerships or acquisitions to develop its own game development capabilities as the games market evolves.
These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Expliseat, a provider of ultralight airline seats. Made from titanium and carbon fiber, these seats have 40% the weight, 10% the number of parts, and are 5 centimeters thinner than existing seats. The lighter weight saves on fuel cost and the fewer parts reduce assembly and logistics costs, making the seat cost about the same as existing seats. The thinner seats can enable more legroom or more seats, depending on the airline’s preference. These slides describe the value proposition, customers, method of value capture, scope of activities and the method of strategic control for Expliseat.
These slides use concepts from my (Jeff Funk) course on Business Models at National University of Singapore to analyze the business model for Google Cardboard. Google Cardboard provides users with a virtual reality experience for a much lower price than that from Occulus Rift. It combines a fold-out cardboard mount with an Android smart phone to enable users to feel as though they are part of a video or game. It is light, does not require wires, and content will be available from YouTube and Google Play. Young males are expected to be the largest users of Google Cardboard. Google expects to make money from sales of content through Google Play. The slides describe the value proposition, method of value capture, customers, scope of activities, and method of strategic control for Google Cardboard.
These slides use concepts from my (Jeff Funk) course on Business Models at National University of Singapore to analyze the business model for Theranos. Theranos provides diagnostic testing for consumers that is faster and cheaper than the existing system. Its tests are done in easy to access pharmacies (e.g., Walgreens) as opposed to hard-to reach doctors’ offices. The tests use small bio-electronic integrated circuits (ICs) instead of large scientific instruments. These ICs utilize micro-fluidic channels that require a pin-prick of blood instead of a vial of blood, which makes the tests more appealing and faster than the traditional tests. The slides describe the value proposition, method of value capture, customers, scope of activities, and method of strategic control for Theranos.
These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Airware, a provider of operating systems for drones. Developing applications for drones involves high development costs and these costs can be reduced through the use of a well-designed operating system that is used in many types of drones. Just as Android, iOS, and Windows have reduced the development costs for application software in smart phones and personal computers, Airware’s operating system, or aerial information platform as they call it, can reduce the cost of implementing drones for agriculture, delivery, movie production, security, and the many other applications that have been proposed. Airware is trying to develop an eco-system of drone manufacturers, application developers, sensor manufacturers, and drone operators, each of which contributes towards low cost and high performance applications for drones. These slides describe the value proposition, customers, method of value capture, scope of activities and the method of strategic control for Airware.
These slides use concepts from my (Jeff Funk) course on Business Models at National University of Singapore to analyze the business model for a fictitious alliance between Qualcomm and Bosch. Together, these firms can create a dense network of wireless charging stations that can enable the use of inexpensive electric vehicles. The dense network of charging stations reduces the importance of range and thus the weight, volume, and cost of batteries that are needed to propel the vehicle. The slides describe the value proposition, method of value capture, customers, scope of activities, and method of strategic control for Q-Bo, a fictitious alliance between Qualcomm and Bosch.
This document provides an overview of an Internet of Things (IoT) company called Jasper and its business model presentation. The presentation covers Jasper's company introduction, value proposition, customer selection, scope of activities, value capture, competition, strategic control, and potential improvements. Jasper provides an IoT platform and cloud-based services to connect, manage, and monitor devices. It works with various industries including automotive, enterprise mobility, and connected devices. Jasper captures value through subscription and usage-based fees from its platform.
These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Slack, a supplier of collaborative tools for teams. These tools offer a new form of mail service that is very different from that of traditional e-mail programs such as Microsoft Outlook, G-Mail, and Yahoo-Mail. Slack designed its mail service for the cloud computing environment, as opposed to the traditional in-house computing environment. Accessing documents from the cloud is easier with Slack’s service than with Microsoft Outlook as is enabling apps for Slack’s service and reading messages. Reading messages is easier because they are organized by person (like instant messaging on smart phones) as opposed to time. By measuring usage, Slack can charge by active user thus reducing the risk of trying Slack, particularly for individuals, who are the main market for Slack. These slides describe the value proposition, customers, method of value capture, scope of activities and the method of strategic control for Slack.
Oscar Health Insurance aims to disrupt the traditional health insurance industry by leveraging technology. It provides a simpler, more intuitive customer experience through digital tools and a streamlined claims process. Oscar also offers additional services like telemedicine and integrates wearable devices and health data to encourage preventative care. By targeting younger, tech-savvy customers and those underserved by other plans, Oscar believes it can capture market share from established insurers and improve outcomes for customers.
Zenefits is a cloud-based HR software and benefits brokerage company. It provides a free HR platform that combines HR software and benefits brokerage services. Zenefits disrupts the traditional model by taking over the role of brokers and offering an integrated one-stop solution. It earns revenue through commissions from insurance carriers and fees from other HR services. Zenefits competes against traditional brokers and HR software companies by offering a free comprehensive platform and reducing costs for employers. The HR software market has strong growth potential as many companies lack sophisticated HR technology.
AI Transformation Playbook: Thinking AI-First for Your BusinessArijit Dutta
I dive into how businesses can stay competitive by integrating AI into their core processes. From identifying the right approach to building collaborative teams and recognizing common pitfalls, this guide has got you covered. AI transformation is a journey, and this playbook is here to help you navigate it successfully.
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Final ank Satta Matka Dpbos Final ank Satta Matta Matka 143 Kalyan Matka Guessing Final Matka Final ank Today Matka 420 Satta Batta Satta 143 Kalyan Chart Main Bazar Chart vip Matka Guessing Dpboss 143 Guessing Kalyan night
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
𝐔𝐧𝐯𝐞𝐢𝐥 𝐭𝐡𝐞 𝐅𝐮𝐭𝐮𝐫𝐞 𝐨𝐟 𝐄𝐧𝐞𝐫𝐠𝐲 𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲 𝐰𝐢𝐭𝐡 𝐍𝐄𝐖𝐍𝐓𝐈𝐃𝐄’𝐬 𝐋𝐚𝐭𝐞𝐬𝐭 𝐎𝐟𝐟𝐞𝐫𝐢𝐧𝐠𝐬
Explore the details in our newly released product manual, which showcases NEWNTIDE's advanced heat pump technologies. Delve into our energy-efficient and eco-friendly solutions tailored for diverse global markets.
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
The Most Inspiring Entrepreneurs to Follow in 2024.pdfthesiliconleaders
In a world where the potential of youth innovation remains vastly untouched, there emerges a guiding light in the form of Norm Goldstein, the Founder and CEO of EduNetwork Partners. His dedication to this cause has earned him recognition as a Congressional Leadership Award recipient.
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Tastemy Pandit
Know what your zodiac sign says about your taste in food! Explore how the 12 zodiac signs influence your culinary preferences with insights from MyPandit. Dive into astrology and flavors!
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...my Pandit
Explore the fascinating world of the Gemini Zodiac Sign. Discover the unique personality traits, key dates, and horoscope insights of Gemini individuals. Learn how their sociable, communicative nature and boundless curiosity make them the dynamic explorers of the zodiac. Dive into the duality of the Gemini sign and understand their intellectual and adventurous spirit.
Call8328958814 satta matka Kalyan result satta guessing➑➌➋➑➒➎➑➑➊➍
Satta Matka Kalyan Main Mumbai Fastest Results
Satta Matka ❋ Sattamatka ❋ New Mumbai Ratan Satta Matka ❋ Fast Matka ❋ Milan Market ❋ Kalyan Matka Results ❋ Satta Game ❋ Matka Game ❋ Satta Matka ❋ Kalyan Satta Matka ❋ Mumbai Main ❋ Online Matka Results ❋ Satta Matka Tips ❋ Milan Chart ❋ Satta Matka Boss❋ New Star Day ❋ Satta King ❋ Live Satta Matka Results ❋ Satta Matka Company ❋ Indian Matka ❋ Satta Matka 143❋ Kalyan Night Matka..
Discover the Beauty and Functionality of The Expert Remodeling Serviceobriengroupinc04
Unlock your kitchen's true potential with expert remodeling services from O'Brien Group Inc. Transform your space into a functional, modern, and luxurious haven with their experienced professionals. From layout reconfiguration to high-end upgrades, they deliver stunning results tailored to your style and needs. Visit obriengroupinc.com to elevate your kitchen's beauty and functionality today.
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Biz model 4 method of value capture
1. Methods of Value Capture
4th Session in MT5016
Biz Models for Hi-Tech Products
A/Prof Jeffrey Funk
Division of Engineering and Technology Management
National University of Singapore
2. Business Model
Value proposition: what to offer and how to
differentiate
Customer selection: whom to serve and not serve
Value capture: dominant sources of revenue
Scope of activities: what activities to carry out and
what relationships to have
Strategic control: how to sustain profitability (e.g.,
how to control architecture and standards)
3. What
percent of
total value
will a firm
try to
collect?
What
should be
their goal?
and its
collaborators?
Value Creation and Value Capture
4. Facebook
Do you think they
capture large amounts
of the value they
create?
With such large usage
of FB, lots of value
are apparently being
created
5. Old Manufacturing Uber
Microsoft’s OS YouTube
Google Facebook
Nest (IoT?)
IBM Linux Code Linux Kernel
Android Wikipedia
Blogs
In-house Community-Driven
Value Creation
ValueCapture
Eco-systemCompany
One reason they accept a low percent of the value:
users create the value!!
Source: Chesbrough
and Appleyard, 2007
6. Value Creation and Value Capture
How value is created
impacts on how much
value we need to capture
and how we capture it
Will an increasing number
of products depend on value
creation by communities?
For example, what happens
as the IoT diffuses?
7. Outline
Overview of Value Capture
Examples
◦ Computers
◦ Rolls Royce Jet Engines
◦ Infrastructure: Alstom Transport
◦ Internet of Things
◦ Media
past, present, future
can this tell us something about IoT?
Conclusions
8. Methods of Value Capture
Revenue Model Basic Idea
Commission Fees levied on transactions where fees are
based on level of transaction
Advertising End users subsidized by advertising
Markup Value added in sales (e.g., retail)
Production Value added in production
Referral Fees for referring customers to a business
Subscription Fees for unlimited use
Fee for Service Fee for metered service
Licensing License technology for use
Source: Afuah and Tucci, Internet Business Models and Strategies
9. Methods of Value Capture (more detailed ones)
Dominant
revenue model
Basic idea Variants
Commission Fees levied on transactions
based on the size of the
transaction
Buy / Sell Fulfillment, Market Exchang e,
Business TradingCo mmunity, Buyer
Aggregator, Distribution Broker, Virtual Mall,
Metmediary, Auction Broker, Reverse Auction,
Classifieds, Search Agen t, Bounty Broker,
Matchmaker, Peer-to-peer Content Provider
Advertising End-users subsidized by
advertising
Generalized Portal, Personalized Portal,
Specialized Portal, Attention / Incentive
Marketing, Free Model, Infomediary
Registration Model, Recommender System,
Bargain Discounter, Community Provider
Markup Value added in sales Virtual Merchant, Catalogue Merchant, Click
and Mortar, Bit Vendo r
Production Value added in production Manufacturer Direct, Content Producer, E-
Procurement, Networked Utility Provider, Brand
Integrated Content
Referral Fees fo r referring customers to
a business
Lead Generator
Subscription Fees fo r unlimited use ISPs/OSPs, Last Mile Operators, Content
Creators
Fee-for-service Fees fo r metered service Service Provider, B2B Service Provider, Value
Chain Service Provider, Value Chain Integrator,
Audience Broker, Collaboration Platform
Provider, Application Service Provider
Source: Afuah and Tucci, Internet Business Models and Strategies
Licensing Fee for use of technology Flat fee or per unit fee
10. Methods of Value Capture for Music Industry
Revenue Model Example
Commission Singers receive fees when their songs are
played on Spotify
Advertising Spotify provides music and ads
Markup Records, tapes, DVDs produced and sold
Production Records, tapes, DVDs produced and sold
Referral Some radio stations received money for playing
songs
Subscription Spotify and Apple provide music subscription
Fee for Service Individual songs can be downloaded for fee
Licensing Singers license their songs to music companies
11. At What Price?
After choosing one of the categories on
the previous slides, an additional issue is:
◦ how much to charge for each element of the
product or service?
Supply and demand curves help us think
about pricing and value capture
So does cost structure
14. How do firms
use pricing to
increase
captured value?
Multiple
channels?
Personalized
pricing?
Discount
coupons?
15. Price is Also Related to Cost Structure
What is your cost structure?
◦ Cost of delivered product or service
Internal costs
Materials and outside services
◦ R&D
◦ Sales
◦ Maintenance (if free to user)
Fixed costs vs. variable costs
◦ High fixed costs make volumes very important
◦ But can also provide barrier to entry
Higher margins are needed when cost of
sales, R&D, and maintenance are high
16. Gross margins
for different
types of disk
drives and
computers
What did this cause
mainframe and
mini-computer
suppliers to do?
computers
Source: The
Innovators
Dilemma,
Clayton
Christensen, 1997
17. Most Firms Emphasize
Existing Customers
Easier to make money from existing customers
than to find new customers
Suppliers of large disk drives, computers did this
◦ slow to find new customers who wanted smaller disk
drives and computers
Many other firms are doing this now: focusing on
extracting additional value from existing
customers
◦ Cable TV, mobile phones, Google, Amazon
◦ As an aside, lots of jobs for MBAs in these companies
What is one reason cable TV and mobile phone
companies can focus on extracting value?
18. May Lead to Disruption
An emphasis on existing customers and
extracting more value from existing
customers may lead to disruption
What technologies might disrupt
◦ Cable TV?
◦ Mobile phones?
◦ Google?
◦ Amazon?
19. Another Aspect of Pricing and Cost
Structure
Cross Subsidization is Common in Many Industries
More income from complements than original product
◦ blades than razors
◦ printer cartridges than printer machines
◦ copier toner than copier machine
◦ i-pods (MP3 players) than music (iTunes)
◦ peripherals than computers (IBM mainframe in 1970s)
20. Another Aspect of Pricing and Cost
Structure
More income from after-sale service than from
product, particularly when switching costs are high
◦ Software, elevators, escalators, nuclear fuel, power
generation equipment
More income from one customer than another
customer
21. Cross Subsidization Between Customers is Common
Industry Product Dual Customers Discount for
Real Estate Property sales Buyer, seller Buyer
Rentals Renter, owner Renter
Media Newspapers,
Magazines
Reader, advertiser Reader
Network television Viewer, Advertiser Viewer
Portals and Web
Publications
Web surfer,
advertiser
Web surfer
Shopping Malls Merchant, shopper Shopper
Payment
System
Charge/debit card Cardholder,
merchant
cardholder
22. What if Another Firm Begins Offering
Complements for Your Product?
Another firm begins offering inexpensive
◦ blades for your razors
◦ printer cartridges for your printers
◦ toner for your copiers
◦ MP3 players for your iTunes music site
Another firm begins offering inexpensive services for
your hardware
◦ Software, elevators, escalators, nuclear fuel, power generation
equipment
You might lose your key revenue stream and thus your
profitability
23. Outline
Overview of Value Capture
Other Examples
◦ Computers
◦ Rolls Royce Jet Engines
◦ Infrastructure: Alstom Transport
◦ Internet of Things
◦ Media
past, present, future
can this tell us something about IoT?
Conclusions
24. Computers (1)
Most of us buy computers at retail outlets
and retail outlets pay the computer
suppliers
But there has been a long evolution in
methods of value capture
◦ firms have modified methods of value capture
(and other aspects of biz model) many times
both to survive and find the most profits
Each “discontinuity” has involved a new
method of value capture
◦ Also differences between firms for the same
discontinuity
25. Computers (2)
Mainframe suppliers such as IBM used to
lease computers and software for a
monthly fee
◦ this low monthly fee and IBM’s large software
library created a barrier to entry for other
suppliers
Mini-computer suppliers found a niche in
mid-1960s by selling computers and
providing documentation for engineers
and scientists who developed their own
software
26. Computers (3)
PC suppliers in mid-1970s took mini-computer
method of value capture one step further
◦ More documentation in the form of more “open
system,” which enabled greater choice of software for
users
◦ Purchased microprocessors, other ICs, software from
other firms, sold computers through retail outlets
◦ Low development costs, no sales people, and higher
volumes enabled them to have lower margins
(remember previous slide)
Software suppliers tried various methods of
value capture
◦ Microsoft received licensing fee for each PC sold
27. Software
PC software
◦ IBM offered Microsoft a lump sum payment
for OS
◦ Microsoft wanted a licensing fee per PC
◦ What are the advantages and disadvantages
of each approach?
Now, service revenues are now greater
than licensing fees for packaged
software and software as service
Everything is moving to the cloud!
Even manufactured products are
changing with the Internet of Things
28. Implications for Electronic Products
Methods of value capture rapidly change
◦ Using the right method is critical
◦ Charging those with ability to pay is important
Current trend is for electronic products to generate
content revenues
◦ Apple iPod, iPhone, iPhone
◦ Amazon Kindle, Android Phones
◦ Revenues come from a variety of players in an eco-system
What about GoPro?
◦ Wearable camera for extreme sports enthusiast
◦ Lots of content is generated by users
◦ Can they promote their product with content?
◦ Can they collect revenues from content?
29. GoPro’s User Generated Content
User-generated
content is self-
evangelizing (saves
on marketing)
Deeper connection
with audience
Technology
empowers users to
create captivating
content
30. Outline
Overview of Value Capture
Examples
◦ Computers
◦ Rolls Royce Jet Engines
◦ Infrastructure: Alstom Transport
◦ Internet of Things
◦ Media
past, present, future
can this tell us something about IoT?
Conclusions
31. Rolls Royce Jet Engines
A leader in providing jet engines for
aircraft manufacturers
Where do its revenues come from, i.e.,
what is its method of value capture?
Most of its revenues used to come from
sale of engines
But over time, things have changed………
32. Rolls Royce Jet Engines
Where are revenues?
◦ Selling engines or spare parts?
◦ Servicing the engines?
Investment analysts estimate that some
engine suppliers
◦ get seven times more revenue from servicing
and selling spare parts as from selling engines
◦ More than 50% for Rolls Royce as of 2014
◦ Do they sell engines at a loss?
◦ The problem is that large margins attract
independent servicing firms (and engine-makers
after each other’s business)
Source: Economist, January 8, 2009. Britain's lonely high-flier http://productserviceinnovation.com/home/blog/ (August 20, 2014)
33. Rolls Royce’s New Method of
Value Capture
Instead of selling first engines and then parts
and service to airlines, Rolls-Royce
◦ receives a fee for every hour that an engine runs
◦ promises to maintain it and replace it if it breaks
down
“They aren’t selling engines, they are selling
hot air out the back of an engine,” says an
investment analyst (i.e., new value
proposition) More than half of its engines in
service are covered by such contracts, as are
about 80% of those it is now selling
34. This New Method of Value Capture
Requires New Capabilities
Rolls Royce continuously monitors performance of
its 3,500 jet engines around the world,
This data enables it to predict when engines are
more likely to fail, enabling more effective engine
changes
◦ fewer emergency repairs and fewer unhappy passengers
The data are equally valuable to Rolls-Royce
◦ Spotting problems early helps it to design and build more
reliable engines or to modify existing ones
◦ Aided improvements in fuel efficiency and extended the
operating life of engines tenfold (to about ten years
between major rebuilds)
35. Rivals – Barriers to Entry
How easy is it for rivals to service Rolls Royce
Engines?
How does Roll Royce do something that makes it
harder for rivals to service their engines
36. Can this method be applied to
other products?
Can we apply this idea to other products?
how about stand-up comedians or comedy
movies?
http://www.bbc.com/news/technology-
29551380
37. Outline
Overview of Value Capture
Examples
◦ Computers
◦ Rolls Royce Jet Engines
◦ Infrastructure: Alstom Transport
◦ Internet of Things
◦ Media
past, present, future
can this tell us something about IoT?
Conclusions
38. From the comments section
of Yahoo following a 90
delay on North-South line
on January 20, 2014 during
morning rush
What do you think of Joshua
Gunawan?
39. Alstom Transport (1)
Alstom is a leading provider of transport
equipment and (e.g., rail) solutions in the world
Problems with train downtime caused rail
companies to demand and pay for lower
downtimes
London Underground specified in a contract that
96 trains be available for service each day
This required Alstom to gradually take over
customer’s operational activities and to redesign
the system for lower downtime
Should Alstom charge for time and distance that
trains travel?
40. Alstom Transport (2)
Another change Alstom made to support
lower downtime of its transport division was
to create two customer-facing divisions:
◦ Alstom Systems provides turnkey solutions for
trains, signaling systems and maintenance services
◦ Alstom Services offers operational services, such as
train maintenance, technical support, product
upgrades and renovation
This change represents a form of
organizational capability. For example,
feedback from Alstom Services enables
Alstom’s Systems design better turnkey
systems
41. Similar Examples (1)
Many providers of
◦ mobile phone infrastructure providers (e.g.,
Ericsson)
◦ Elevators and escalators
◦ Electrical generating equipment
◦ Nuclear fuel
◦ Manufacturing equipment
are selling services (value proposition)
and getting paid more money (method of
value capture) for doing services than for
manufactured product
42. Similar Examples (2)
These providers of equipment and service
know the equipment and service better than
the customer – thus they do the service
One reason they know the equipment and
service is because they spend a lot on R&D
They spend a lot on R&D because they sell
systems to many customers
Related to method of strategic control
◦ Economies of scale in R&D
◦ Mentioned in session 2
43. Remember
Changes in business models often cause
the shares of firms to change……..
Change creates opportunities
44. Outline
Overview of Value Capture
Examples
◦ Computers
◦ Rolls Royce Jet Engines
◦ Infrastructure: Alstom Transport
◦ Internet of Things
◦ Media
past, present, future
can this tell us something about IoT?
Conclusions
46. Internet of Things
Enables new value propositions and enables new
sources of revenues from these value propositions
These value propositions and revenues go beyond
those offered by Rolls Royce
Value propositions for IoT were discussed in Session
3; for equipment and products, IoT enables
◦ Monitor
◦ Control
◦ Automation
How can revenues be obtained from this additional
value?
47. Method of Value Capture for IoT
Use data to better understand customer needs
◦ Amazon uses data from Kindle to make better
recommendations
◦ Retailers use data on customers in store (through iBeacon)
to make recommendations
Reduce costs
◦ Farms use data to reduce costs
◦ Owners of equipment can reduce costs by monitoring
equipment location (and recovering stolen or misplaced
items)
◦ Insurance companies can reduce costs by better
understanding and reducing risk
48. Example of Insurance
Auto insurance rates are function of
driving
◦ Fewer braking and less night-time driving
reduces rates
Medical insurance rates are function of
exercise amount
◦ More exercise, lower rates
◦ Is food monitoring next?
Both examples can help insurance
companies better understand risk, thus
reducing rates and increasing their
profits
Insurance industry manages more than
$30 trillion and had profits of $338
billion
http://www.economist.com/news/finance-and-economics/21646260-data-and-
technology-are-starting-up-end-insurance-business-risk-and-reward
49. Method of Value Capture for IoT (2)
Provide more value to customers
◦ Transport companies can provide better services if they
have better data on starting and ending points
◦ Equipment sellers can provide more uptime,
troubleshooting, and preventative maintenance for users
◦ This requires close cooperation between sellers and buyers
Selling data
◦ Who provides Nest (thermostat) with most revenues?
◦ Will similar things emerge with other mechanical
products?
◦ Will third parties (complex value chains) collect and sell
this data?
50. Data acquisition:
sensors, ICs
Data transport:
cellular, satellite,
Wi-Fi, Bluetooth,
Zigbee,
Data analysis
and
interpretation:
Big Data
Will Complex Value Chains Emerge?
(scope of activities, topic of Session 6)
Example of Usage-Based Insurance for Automobile
Decision
Making by User
Firms
Data acquisition:
Speeds,
acceleration,
location and thus
type of road
Data transport:
cellular
Data analysis
and
interpretation:
Characterize
Driving
Behavior
Decision
Making by User
Firms:
Determine rates
Will they capture most of the value?
51. How Should Third Parties be Paid?
Data transport providers are probably paid on a per
bit basis. But perhaps not?
How about data acquirers or data analysis providers?
◦ Fee for installing or operating system?
◦ Fee for how well system works?
◦ Fee for increases in performance or reductions in cost?
◦ Think of jet engines or transportation, medical, electricity
generation, manufacturing and other equipment
What if the data analysis firms the data analysis
people?
Will these complex value chains increase power of IT
firms and reduce power of equipment suppliers?
52. What does this tell us About
Internet of Things?
There will be change
As data becomes more important part of business
◦ Managing this data will become more important
Who will manage the data?
Will it be manufacturers of products, users of products, or
new entrants; new entrants include providers of
◦ Data acquisition, transport, analysis
Internet companies such as Google, FB, Apple (and
new entrants) have advantages
◦ Experience with managing data
◦ Power on Internet
53. What does this tell us About
Internet of Things? (2)
Winners will provide good value propositions and
methods of value capture
There will be many experiments to find the best value
propositions and methods of value capture
Market power is also important
Internet companies such as Google, FB, Apple (and
new entrants) have advantages
◦ Experience with managing data
◦ Power on Internet
Product manufacturers need to be innovative in their
value propositions, methods of value propositions
(and scopes of activities)
54. Outline
Overview of Value Capture
Examples
◦ Computers
◦ Rolls Royce Jet Engines
◦ Infrastructure: Alstom Transport
◦ Internet of Things
◦ Media
past, present, future
can this tell us something about IoT?
Conclusions
55. Evolution of Media Sector
It has become a data intensive industry
Technological change in how the data is managed
has caused large changes in the major players and in
the value chains
The music industry was mentioned at the beginning
of these slides
What about movies and videos?
Can the evolution of this industry tell us something
about the evolution of Internet of Things?
56. Income from Videos/Movies
Theater tickets from about 1900
Broadcast television ad revenues from late 1940s
Cable (from 50s) & satellite (from 90s) subscription
fees
Rental and sales income from VHS from late 1970s,
from DVDs in 1990s
◦ Rental stores pay movie companies fixed fee or percentage
of rental/sales income
◦ Netflix extended this model to mail delivery service and
Redbox extended it to rental kiosks in 2000s
Internet services
◦ Big changes occurring now
57. Internet Services
Growth in Internet has soared in 20th century with
desktops, laptops, smart phones, tablet computers
Many users are quitting cable and satellite (and
mobile phone) services, only relying on Internet
Will Internet become main method of delivery?
◦ Users watching streamed videos from Netflix
◦ Viewing YouTube or other videos for free
◦ Purchasing videos from Apple or Amazon
Let’s look at most successful firms in more detail
◦ Netflix, Google/YouTube
◦ Facebook, new services, and video ads
◦ Apple
◦ Twitter and Periscope
58. Netflix
Began renting DVD movies by mail in 1997 and
streaming services in 2007
Both services caused Blockbuster bankruptcy
Netflix’s service >1/3 of all U.S. Internet traffic
Most Internet service providers want Netflix to pay for
this traffic (net neutrality issue)
Some Internet service providers (e.g., in Australia)
cooperate with Netflix to acquire subscribers
◦ Internet service providers put Netflix app on set-top box
◦ Operators collect small payments (10-15%) from Netflix for
each subscriber Netflix gains through broadband provider’s
set-top box
◦ Will Netflix eliminate cable companies?
59. Netflix is more valuable than CBS
(NBC and ABC are owned by cable companies)
60. Google
Began with search engine
◦ Makes money through advertising
Now a major supplier of videos
◦ Through YouTube
Will it became a more important supplier of
entertainment, e.g., movies?
Will it become a dominant firms in IoT?
◦ Acquired Nest a few years ago
63. YouTube is Big Growth Engine
15-second TV-style
spots
◦ Included in user
videos like YouTube
◦ (And placed in FB’s
News Feed)
Digital video ads
are expected to
reach $7.8 billion in
2015
Will YouTube
replace cable
companies?
http://www.thestreet.com/story/13011347/1/how-facebook-is-challenging-google-for-your-video-viewing-attention.html
64. YouTube Created New Eco-System
YouTube has enabled new singers, comedians, and
other performers to succeed
◦ http://monetizepros.com/features/25-celebrities-who-got-
rich-famous-on-youtube/
◦ Many kids videos
They receive a portion of the ad revenues
◦ YouTube takes 45%
◦ Some sell downloads of videos, songs, or subscriptions
Some promote the new performers
◦ Performers endorse products, make public appearances
Promoting products with infomercials is also a big
business
◦ As is managing these infomercials
66. Facebook
Has experienced rapid growth in number
of users
One of most popular websites
◦ https://en.wikipedia.org/wiki/List_of_most_po
pular_websites
Question for FB has always been, how
can it make money from these users
FB uses data on users to help companies
target users with display ads
◦ gender, age, location, marital status,
languages, education, workplaces, and
interests
68. Digital Video Ads (on mobile phone)
Also Driving Share Price
95 million Americans
watched videos on FB
from desktop computers
in November 2014
NFL provides game
videos and splits ad
revenues with FB
Can FB challenge
YouTube?
FB is growing stronger
with other media (see
next slide)
http://www.thestreet.com/story/13011347/1/how-facebook-is-challenging-
google-for-your-video-viewing-attention.html
69. Big Source of Future Revenues?
FB hosts news articles from newspapers
◦ NY Times, National Geographic
◦ FB shares ad revenue with news sites
Hosting improves user experience
◦ Faster access to news, particularly important on
mobile devices
Reduces power of news sites
◦ Less time spent on news sites
Increases power of FB in media
70. Big Source of Future Revenues? (2)
Will FB host more types of content
including more video services in future?
Will these video services include full-
length movies, short comedy routines,
or new performers (like YouTube)?
Will this enable FB to challenge
YouTube, cable companies, and movie
companies?
Can FB or Google become a movie
producer?
◦ just like Amazon has become a publisher
71. Apple
Highest market capitalization in world
Most valuable brand name
Leading supplier of hardware for
accessing the Internet
◦ iPhone, iPad, iPod, MacBook
Its users are lead users for video and
other services
◦ Large purchasers of music, video, other
content
Gives Apple much power in any content
negotiations
72. Apple (2)
Recently introduced $10 a month music
streaming service (same price as
Spotify)
Video streaming services are emerging
◦ With HBO (14.99 a month, more expensive
than Netflix’s $7.99 a month service)
◦ With Showtime, expected soon
◦ Probably more will be announced
These services will continue to weaken
cable companies
Will Apple (or Google) extend its
domination to television hardware?
73. Twitter and Periscope
Another media giant? ($20B market cap)
Users send 140-character messages
called tweets
Registered users can read, post tweets
Unregistered users can only read them
Users access twitter through website,
SMS, or mobile app
Twitter makes money through ads, but
future is still unclear
Twitter recently acquired Periscope
74. Twitter and Periscope (2)
Recently introduced Periscope, personal
broadcasting
Users broadcast from phone by staring at
phone’s camera
Periscope app notifies others that you are
streaming live video of yourself
Lots of celebrities want to reveal more about
themselves
Text responses come almost immediately as the
streaming is started
How much advertising might this generate?
How might this change video industry?
75. Summary of Movie/Video Industry
Movie companies are still there (Universal, Disney,
Warner Brothers, Paramount) with some changes in
ownership
But broadcasting companies (CBS, NBC, ABC) are
much weaker and
◦ cable companies (both channels and delivery platforms)
may face same problems as Internet continues to grow in
importance
Will Netflix, Google, FB, and Apple become
stronger and dominant media industries?
76. Summary of Movie/Video Industry (2)
New value propositions, methods of value capture
(and scopes of activities) continue to emerge
◦ From Netflix, Google, FB, and Apple
◦ But also from other incumbents (e.g., Twitter) and
probably from new entrants
Power also matters
◦ Google, FB, and Apple use their power to enter new
markets
Will Google, FB, and Apple (and Amazon) become
leaders in media and in Internet of Things?
77. Conclusions (1)
New technologies, new markets, and new levels of
value (dis)integration often require new methods of
value capture
But there are no simple answers to the best methods of
value capture
Of course you want to maximize revenue, but without
losing customers and collaborators
One firm’s method of value capture depends on
◦ method of value capture by competition, collaborators
◦ customer needs
78. Conclusions (2)
Contrasting industries and analyzing whether
methods of value capture can be borrowed from
other industries is a good place to start
Also look for consistency among different
elements (customer selection, method of value
capture, value proposition, scope of activities) of
business model
79. For Your Presentations
Do not just tell me the sources of revenue for your firm
◦ Identifying these revenue streams is just one step in your
analysis
Analyze alternative methods of value capture. As stated
on previous slide
◦ Contrasting industries and analyzing whether methods of value
capture can be borrowed from other industries is a good place
to start
◦ Also look for consistency among different elements (customer
selection, method of value capture, value proposition, scope of
activities) of business model
Editor's Notes
As if we paid a movie theater for the amount of time we smiled or laughed while watching a comedy
What couldmicrosoft done differently?
What are the advantages and disadvantages of selling integrated solutions
Why is it difficult for individual’s to receive payments with credit card? How many of you own a credit card?