The document summarizes the development of a new business model for Lucid Fusion, a new media marketing agency. It identifies challenges in relation to the current operating context and develops three potential future states for the company. Workshops were held to present the business model design process and develop models for each future state, labeled LF A, LF B, and LF Lab. The solution recommends implementing the LF B and LF Lab models, with strategies to focus value propositions, introduce new activities and products, and diversify partnerships to maximize recurring revenue over three years.

1. LUCIDFUSION { BUSINESS MODEL DEVELOPMENT }
Developed business model of a new media marketing agency
in relation to the current and future states to create, deliver,
and captures value.
CHALLENGE
Developed business model in relation to the current and future
operating context, stakeholders, and organization design in order
to create, deliver, and captures value.
METHODS
• Business Model Design Workshop
• Business Model Design Process
• The One Page Business Plan
• The Business Model Canvas
• Need finding
FINDINGS
• Company objectives for the next Three (3) years
LUCIDFUSION
A NEW MEDIA MARKETING AGENCY
• Vision and Mission of the company
• Three (3) potential future states
• Develop the business model for each future state
SOLUTION
Within the next 3 years grow Lucid Fusion into a global company
with annual revenue of $8,000,000 providing Digital Marketing,
Web Applications And e-Commerce for enterprise customers.
MY CONTRIBUTIONS: Business Model, Workshop Interviews,
Brainstorming, Strategies & Tactics, Budget and Timeline, and Design.
Ardy Sobhani 147 Fillmore St . San Francisco, CA 94117 . Phone: 949.838.4825 . E-Mail: ardy.sob@gmail.com 1

2. LUCIDFUSION
A NEW MEDIA MARKETING AGENCY
{ CURRENT STATE }
INTERNALORGANIZATION
Operations/Project Management
Business Development
Strategy/Marketing
Technology
{
Creative
Business to Business
PR
Branding 80% of business
Advertising
Marketing Strategy
Creative Concepting
VALUEPROPOSITIONS Media Buying and Placement REVENUESOURCE Business to Customer
Software Development
Web Development
Social Networking
Motion Graphics
Interactive 20% of business
Design
Joint Venture
CUSTOMERSEGMENTS
They are specialized in technology and healthcare.
Clients range from software giants and entrepreneurs
to major universities and celebrities.
Clients are varied as they are unique.
Ardy Sobhani 147 Fillmore St . San Francisco, CA 94117 . Phone: 949.838.4825 . E-Mail: ardy.sob@gmail.com 2

3. LUCIDFUSION
A NEW MEDIA MARKETING AGENCY
{ WORKSHOPS }
Recent acquisition offer triggered a closer analysis of
LucidFusion’s market valuation & what increases firm value.
Capture referrals to generate business versus business
development and traditional marketing approaches.
Financials / Operations.
WORKSHOPS OBJECTIVES Efficiencies will increase net profits as costs are reduced.
.
Increased recurring revenues.
Calibrated with LucidFusion to give
them tools & knowledge of the
business model.
Present the Business Model Design
Process.
Recurring revenue, as opposed to service fees, creates larger
Discuss the three (3) potential future multipliers and long-term income streams.
states.
Client needs and evolution of technology are driving new
Develop the business model for value propositions.
each future scenario.
“ MOBILIZE
UNDERESTAND
SCENARIO 1 - LF A
DESIGN
IMPLEMENT ” Reshape value propositions to focus on new recurring revenue.
SCENARIO 2 - LF B
Recurring revenue plus new revenue implications, external
companies commercialize products.
SCENARIO 3 - LF LAB
Internal / external - “people with ideas” and some companies,
LF Labs commercialize products.
Ardy Sobhani 147 Fillmore St . San Francisco, CA 94117 . Phone: 949.838.4825 . E-Mail: ardy.sob@gmail.com 3

4. LUCIDFUSION
A NEW MEDIA MARKETING AGENCY
{ SOLUTION }
YEAR 1
RECOMMENDATIONS
Expansion and building capacity.
Implement the LF B and LF LAB business Streamline value propositions.
models. Recurring revenue streams.
Business plan for LF Labs.
STRATEGIES & PLANS YEAR 2
Focus existing value propositions. Start up LF LAB & add idea generation
Introduce new activity and value proposition portal and diversify channels.
based on product development and
commercialization.
YEAR 3
Diversify partnerships and channels.
Internal and external audit.
Maximize capture of recurring & ongoing Determine whether to spin off LF LAB.
revenue.
CREATINGVALUE DELIVERINGVALUE CAPTURINGVALUE
Simplified and flexible value propositions Customer segments are focused on sports, Emphasize recurring revenue versus
emphasize capabilities rather than specific medical, and technology clients that gener- one-time service fees.
LF B products. ate potential for recurring revenue.
Operational efficiencies have been
Digital development community identified Business to People (B2P) delivery model captured to reduce costs.
as key partner. created as outgrowth of B2B and B2C.
Product development incubator, creation of New customer segment Co-creation may Royalties and equity participation.
utility-based apps, and commercialization be primary relationship.
Assumed profitable over the
are the primary value proposition.
New channel. long-run.
LF LAB LF Labs utilizes core infrastructure and
collaborative workspace.
capabilities provided by Lucid Fusion.
Ad hoc partnerships and value propositions.
Venture capital critical new resource.
Ardy Sobhani 147 Fillmore St . San Francisco, CA 94117 . Phone: 949.838.4825 . E-Mail: ardy.sob@gmail.com 4