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What is a Good Business Model?

“A good business model begins

with an insight into human motivations

and ends in a rich stream of profits “

                                   By Joan Magretta
* From why business models matter (2002)
Concept of business model story
Beginning of Bible , Catholic
만일 속죄 금을 부과하면 무릇 그 명령한 것
을 생명의 대가로 낼 것이요
[출애굽기 2장 30절]

교회에서는 "모든 신자는 일년에 적어도 한
번은 고해성사를 받고 영성체 하여야 한다
"(교회법 제989조)는 교회법에 따라 꼭 고
해성사를 받도록 강력하게 권고하고 있다.
[카톨릭 신문]
Indulgence ? or Confession?
• 면죄부(indulgence) – 종교적 관점
카톨릭 교회가 신자에게 죄를 사하는 대상
으로 기부를 받고 교황의 이름으로 발행한
증명서

• 보석(release on bail) – 사회적 관점
보증금을 납부하고 도망하거나 기타 일정
한 사유가 있을 때에는 이것을 몰수하는 제
재조건으로 법원이 구속된 피고인을 석방
시키는 제도 (형사소송법 94~ 105조)
Online Redemption Dot Net
• 속죄(redemption) – 종교적 관점
어떤 사람이 지은 죄에 대하여 그 대가를 치
르고 속량 받는 일

• 개인회생제도 – 사회적 관점
재정적 어려움으로 인해 파탄에 직면한 개
인 채무자의 채무를 법원이 강제로 재조정
해 파산을 구제하는 제도
Scenario of OnlineRedemption.net


             Online Redemption . Net

                   Text 입력

                   Text 분석
  SMS/메일발송                                  Bad point
                                            변환/축적
                Bad Point Show

                                       No
   봉사신청             속죄?
                             Yes
                    봉사?
                                        기부되었습니다
                    기부?
Similar website 1
(http://MySecret.TV)
Similar website 2
(http://absolution-online.com)
Similar website 3
(http://ivescrewedup.com)
Similar website 4
(http://dailyconfession.com)
Similar website 5
(http://www.confession.co.kr)
Definition of Business Model
• By Timmers*
• An architecture
  - Product, Service, Information Flows
• Description
  - Various business actors & their roles
  - Potential benefits (for VBA*)
  - Sources of Revenues
   *VBA is Various Business Actors
   *From Business Models For Electronic Markets
View of Timmers’s definition.
• An architecture of
  Product                    Service             Information Flow

  Redemption Certification   Redemption          Confession Data
  Social Service             Bad point convert   Context Analysis



• Description
  Various Business Actor     Potential Benefit   Source of Revenue

  -종교단체와 자원봉사단체              -개인봉사확대             -자원봉사DB확보
  -속죄 메일 서비스                 -개인기부금조성            -기부금축적이자
  -자원봉사 등록 및 연결
Timmers’s Classification




 * Classification of internet business models
Definition of Business Model
• By Amit & Zott
• Business Models as a Unit of Analysis
  - Content
  - Structure
  - Governance of Transactions
• Designed so as to create value
• The exploitation of Business Opportunities

   *From Value Creation In E-Business
Source of Value Creation




 * the four sources of value creation in e-business
   that emerged from the data analysis
View of Amit & Zott’s Definition
                                                  • New links between participants
                                       Novelty    • Relies on personal security and
                                                    site trust




                                        Valu
      Efficiency                                                    Lock-in
                                         e
• The speed and facility                            • Manifested as switching costs
• Approach convenient and easy                      • Opportunities for Customization
• Cheap interconnectivity of virtual                  and Personalization
  community                                         • their individual needs a variety

                             Complementarities
                            • Combination of on-line and
                              off-line social service transaction
                            • Alliance capabilities of partners
Recently Business Model Definition
• By Ostenwalder, Pigneur, and Tucci
• A business model is a conceptual tool
 - That contains a set of elements and their relationships
 - Allows expressing the business logic of a specific firm
• It is a description of the value
 - A company offers to one or several segments of customers
 - of the architecture of the firm
 - its network of partners for creating , marketing and delivering
    this value and relationship capital
 - to generate profitable and sustainable revenue streams
  *From Clarifying Business Models : Origins, Present, and Future of the Concept
Origins, Present, and Future I
• Nine Business Model Building Blocks
• The components proposed by the different authors
Domains Addressed in Business
Models (part 1)




*From Clarifying Business Models : Origins, Present, and Future of the Concept
Domains Addressed in Business
Models (part 2)




*From Clarifying Business Models : Origins, Present, and Future of the Concept
References
•PAPERS
Thomas W. Malone, Peter Weill, Richard K. Lai, Victoria T. D’Urso ,
George Herman, Thomas G. Apel and Stephanie L. Woerner (2006)
“DO SOME BUSINESS MODELS PERFORM BETTER THAN OTHERS?”
Alexander Osterwalder, Yves Pigneur, Christopher L. Tucci (2005)
“CLARIFYNG BUSINESS MODELS: ORIGINS, PRESENT, AND FUTURE OF THE
CONCEPT”
Joan Magretta (2002) , “WHY BUSINESS MODELS MATTER”
Rapael Amit, Chrstoph Zott (2001), “VALUE CREATION IN E-BUSINESS”
Paul Timmers(1998), “BUSINESS MODELS FOR ELECTRONIC MARKETS”

•WEBSITE
http://MySecret.TV
http://absolution-online.com
http://ivescrewedup.com
http://dailyconfession.com
http://www.confession.co.kr

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Business model story

  • 1. What is a Good Business Model? “A good business model begins with an insight into human motivations and ends in a rich stream of profits “ By Joan Magretta * From why business models matter (2002)
  • 2. Concept of business model story
  • 3. Beginning of Bible , Catholic 만일 속죄 금을 부과하면 무릇 그 명령한 것 을 생명의 대가로 낼 것이요 [출애굽기 2장 30절] 교회에서는 "모든 신자는 일년에 적어도 한 번은 고해성사를 받고 영성체 하여야 한다 "(교회법 제989조)는 교회법에 따라 꼭 고 해성사를 받도록 강력하게 권고하고 있다. [카톨릭 신문]
  • 4. Indulgence ? or Confession? • 면죄부(indulgence) – 종교적 관점 카톨릭 교회가 신자에게 죄를 사하는 대상 으로 기부를 받고 교황의 이름으로 발행한 증명서 • 보석(release on bail) – 사회적 관점 보증금을 납부하고 도망하거나 기타 일정 한 사유가 있을 때에는 이것을 몰수하는 제 재조건으로 법원이 구속된 피고인을 석방 시키는 제도 (형사소송법 94~ 105조)
  • 5. Online Redemption Dot Net • 속죄(redemption) – 종교적 관점 어떤 사람이 지은 죄에 대하여 그 대가를 치 르고 속량 받는 일 • 개인회생제도 – 사회적 관점 재정적 어려움으로 인해 파탄에 직면한 개 인 채무자의 채무를 법원이 강제로 재조정 해 파산을 구제하는 제도
  • 6. Scenario of OnlineRedemption.net Online Redemption . Net Text 입력 Text 분석 SMS/메일발송 Bad point 변환/축적 Bad Point Show No 봉사신청 속죄? Yes 봉사? 기부되었습니다 기부?
  • 12. Definition of Business Model • By Timmers* • An architecture - Product, Service, Information Flows • Description - Various business actors & their roles - Potential benefits (for VBA*) - Sources of Revenues *VBA is Various Business Actors *From Business Models For Electronic Markets
  • 13. View of Timmers’s definition. • An architecture of Product Service Information Flow Redemption Certification Redemption Confession Data Social Service Bad point convert Context Analysis • Description Various Business Actor Potential Benefit Source of Revenue -종교단체와 자원봉사단체 -개인봉사확대 -자원봉사DB확보 -속죄 메일 서비스 -개인기부금조성 -기부금축적이자 -자원봉사 등록 및 연결
  • 14. Timmers’s Classification * Classification of internet business models
  • 15. Definition of Business Model • By Amit & Zott • Business Models as a Unit of Analysis - Content - Structure - Governance of Transactions • Designed so as to create value • The exploitation of Business Opportunities *From Value Creation In E-Business
  • 16. Source of Value Creation * the four sources of value creation in e-business that emerged from the data analysis
  • 17. View of Amit & Zott’s Definition • New links between participants Novelty • Relies on personal security and site trust Valu Efficiency Lock-in e • The speed and facility • Manifested as switching costs • Approach convenient and easy • Opportunities for Customization • Cheap interconnectivity of virtual and Personalization community • their individual needs a variety Complementarities • Combination of on-line and off-line social service transaction • Alliance capabilities of partners
  • 18. Recently Business Model Definition • By Ostenwalder, Pigneur, and Tucci • A business model is a conceptual tool - That contains a set of elements and their relationships - Allows expressing the business logic of a specific firm • It is a description of the value - A company offers to one or several segments of customers - of the architecture of the firm - its network of partners for creating , marketing and delivering this value and relationship capital - to generate profitable and sustainable revenue streams *From Clarifying Business Models : Origins, Present, and Future of the Concept
  • 19. Origins, Present, and Future I • Nine Business Model Building Blocks • The components proposed by the different authors
  • 20. Domains Addressed in Business Models (part 1) *From Clarifying Business Models : Origins, Present, and Future of the Concept
  • 21. Domains Addressed in Business Models (part 2) *From Clarifying Business Models : Origins, Present, and Future of the Concept
  • 22. References •PAPERS Thomas W. Malone, Peter Weill, Richard K. Lai, Victoria T. D’Urso , George Herman, Thomas G. Apel and Stephanie L. Woerner (2006) “DO SOME BUSINESS MODELS PERFORM BETTER THAN OTHERS?” Alexander Osterwalder, Yves Pigneur, Christopher L. Tucci (2005) “CLARIFYNG BUSINESS MODELS: ORIGINS, PRESENT, AND FUTURE OF THE CONCEPT” Joan Magretta (2002) , “WHY BUSINESS MODELS MATTER” Rapael Amit, Chrstoph Zott (2001), “VALUE CREATION IN E-BUSINESS” Paul Timmers(1998), “BUSINESS MODELS FOR ELECTRONIC MARKETS” •WEBSITE http://MySecret.TV http://absolution-online.com http://ivescrewedup.com http://dailyconfession.com http://www.confession.co.kr