EIA2018Italy - Emad Saif - Business & Revenue Models
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This document discusses business model innovation through recognizing patterns. It presents 10 common revenue model patterns: one time payment, multi-sided platforms, micropayments, un-bundling, advertising, data reseller, pay per use, subscription, freemium, and bait & hook. Each pattern is defined in 1-2 sentences. Additionally, the document discusses product innovation patterns like performance, sustainability, and visual design, as well as customer innovation patterns like innovative sales channels and unserved markets. The key message is that the best innovators recognize patterns in business models and are able to experiment by pivoting their own model based on these recognized patterns.
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EIA2018Italy - Emad Saif - Business & Revenue Models
- 1. emadsaif BUSINESS & REVENUE Entrepreneurship Educator emadsaif.com | @esaif MODELS
- 3. emadsaif DAY 8 WEDNESDAY, 18 JULY BUSINESS MODEL & MARKETING STRATEGY WEEK 2
- 4. emadsaif Did you find the right business model?
- 7. emadsaif 66%Of startups drastically changed their original business models! PDA Security Software (Confinity) → Electronic Wallet Social Good Fundraising Site (The Point) → Online Deal Market Place Podcast Platform → Social Media Platform Gaming & Photo App (Burbn) → Photo App
- 8. emadsaif AGENDA BUSINESS MODEL TOOL INNOVATING BUSINESS & REVENUE MODELS +
- 10. emadsaif BUSINESS MODEL CANAVS Adaptation of BMC to be more “lean” and suitable for startups Ash Maurya Visual tool to create and analyze business models LEAN CANAVS Alexander Osterwalder
- 11. emadsaif Business Model How a startup / company creates, delivers and captures value Revenue Model How a startup / company makes money $$ Marketing Strategy How you reach and sell to customers
- 12. emadsaif
- 13. emadsaif Who we serve? - Users - Paying Customers - Early Adopters
- 14. emadsaif Who we serve?3 problems Alternatives
- 15. emadsaif Who we serve? - Users - Paying Customers - Early Adopters 3 features 3 problems Alternatives
- 16. emadsaif Who we serve? - Users - Paying Customers - Early Adopters 3 features 3 problems Alternatives - How we are different? - Worth buying?
- 17. emadsaif Who we serve? - Users - Paying Customers - Early Adopters 3 features 3 problems Alternatives - How we are different? - Worth buying? Sell to customers?
- 18. emadsaif Who we serve? - Users - Paying Customers - Early Adopters 3 features 3 problems Alternatives - How we are different? - Worth buying? Sell to customers? - Asset sale - Licensing - Subscription
- 19. emadsaif Who we serve? - Users - Paying Customers - Early Adopters 3 features 3 problems Alternatives - How we are different? - Worth buying? Sell to customers? - Asset sale - Licensing - Subscription Most significant costs
- 20. emadsaif Who we serve? - Users - Paying Customers - Early Adopters 3 features 3 problems Alternatives - How we are different? - Worth buying? Sell to customers?Evaluate progress? - Asset sale - Licensing - Subscription
- 21. emadsaif Who we serve? - Users - Paying Customers - Early Adopters 3 features 3 problems Alternatives - How we are different? - Worth buying? Sell to customers?Evaluate progress? - Asset sale - Licensing - Subscription Most significant costs Can’t be easily copied
- 22. emadsaif Who we serve? - Users - Paying Customers - Early Adopters 3 features 3 problems Alternatives - How we are different? - Worth buying? Sell to customers?Evaluate progress? - Asset sale - Licensing - Subscription Most significant costs Can’t be easily copied
- 23. emadsaif How do we innovate our business model ?
- 24. emadsaif
- 25. emadsaif Alex Osterwalder The best innovators are not necessarily the most creative people. The best innovators are those who are outstanding at pattern recognition!
- 27. emadsaif By Recognizing BUSINESS MODEL PATTERNS Product innovation1 Customer innovation2 3 Revenue innovation
- 31. emadsaif Product Innovation Performance Family Hub 2.0 • Voice Recognition • Controlling other appliances • Samsung Pay available • Connected to a smartphone
- 36. emadsaif Product Innovation Product Systems
- 37. emadsaif Product Innovation Product Systems
- 38. emadsaif Product Innovation Extra Service
- 39. emadsaif Product Innovation Extra Service
- 40. emadsaif Product Innovation Extra Service
- 41. emadsaif Product Innovation Extra Service
- 42. emadsaif Product Innovation Visual Design
- 43. emadsaif Product Innovation Visual Design
- 44. emadsaif Product Innovation Visual Design
- 45. emadsaif Product Innovation Visual Design
- 46. emadsaif Product Innovation Visual Design
- 47. emadsaif Product Innovation Visual Design
- 48. emadsaif Product Innovation Visual Design
- 49. emadsaif Product Innovation Visual Design
- 50. emadsaif Product Innovation Visual Design (User Interface)
- 53. emadsaif Performance Product Innovation Sustainability Customization Product System Extra Service Usability Visual Design
- 55. emadsaif Customer Innovation Unserved Markets
- 56. emadsaif Customer Innovation Innovative Sales Channels
- 57. emadsaif Customer Innovation Innovative Sales Channels
- 58. emadsaif Customer Innovation Innovative Sales Channels
- 59. emadsaif Customer Innovation Innovative Sales Channels
- 60. emadsaif Customer Innovation Innovative Sales Channels
- 61. emadsaif Resource Innovation Customer Service
- 63. emadsaif Innovative Sales Channels Customer Innovation Customer Service Unserved Markets Co-creation
- 65. emadsaif revenue Patterns One Time Payment Multi-sided Platforms Micropayments Un-bundling Advertising Data Reseller Pay Per Use Subscription Freemium Bait & Hook 1 2 3 4 5 6 7 8 9 1 0
- 66. emadsaif One Time Payment Multi-sided Platforms Micropayments Un-bundling Advertising Data Reseller Pay Per Use Subscription Freemium Bait & Hook
- 69. emadsaif $ One Time Payment • Revenue generating by a one time transaction of a product or service • Most basic form of revenue and also the most common
- 70. emadsaif One Time Payment Multi-sided Platforms Micropayments Un-bundling Advertising Data Reseller Pay Per Use Subscription Freemium Bait & Hook
- 72. emadsaif $ Bait & Hook $ • Basic product (hook) is offered cheaply or free • The complementary product or refill (bait) is sold expensively. • The basic product cannot be used without the complementary product. • Requires high product innovation, patents & strong brand
- 78. emadsaif One Time Payment Multi-sided Platforms Micropayments Un-bundling Advertising Data Reseller Pay Per Use Subscription Freemium Bait & Hook
- 80. emadsaif $ Multi-sided Platforms $ • Connecting 2 or more customer segments together with a clear value proposition for each segment • Revenue is generated typically as a % fee of one or more customers • Hard to build enough customer base (Chicken & the Egg)
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- 87. emadsaif One Time Payment Multi-sided Platforms Micropayments Un-bundling Advertising Data Reseller Pay Per Use Subscription Freemium Bait & Hook
- 89. emadsaif $ Pay Per Use • Customers are charged for how much product or service they use. • Can be effectively metered and billed to customers • Valuable in collecting customer preferences and habits
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- 96. emadsaif One Time Payment Multi-sided Platforms Micropayments Un-bundling Advertising Data Reseller Pay Per Use Subscription Freemium Bait & Hook
- 98. emadsaif Subscription $ • Customers signup for a periodic access to a product or service. • Great for creating reoccurring revenue • Need to be very competitive with great value to customers • Tough to accept when different than industry business model standard
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- 103. emadsaif One Time Payment Multi-sided Platforms Micropayments Un-bundling Advertising Data Reseller Pay Per Use Subscription Freemium Bait & Hook
- 104. emadsaif Freemium 6
- 105. emadsaif Freemium $ • Combines free and premium products • Free product offers basic features while premium offers more features • The focus is on converting free users to paying users and there is danger of no paying customers
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- 110. emadsaif One Time Payment Multi-sided Platforms Micropayments Un-bundling Advertising Data Reseller Pay Per Use Subscription Freemium Bait & Hook
- 112. emadsaif Micropayments $ $ • Similar to Freemium model but purchases are made within the free app. • Relies on hooking user to make purchases to save time and gain more options
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- 117. emadsaif One Time Payment Multi-sided Platforms Micropayments Un-bundling Advertising Data Reseller Pay Per Use Subscription Freemium Bait & Hook
- 118. emadsaif Data Reseller model8 (customer data monetization)
- 119. emadsaif Free Data Reseller $ • Offer product for free (sometimes paid) and make revenue by selling data to 3rd party. • Data can be raw, processed or insights • At risk of customer privacy issues & cyber attacks
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- 123. emadsaif One Time Payment Multi-sided Platforms Micropayments Un-bundling Advertising Data Reseller Pay Per Use Subscription Freemium Bait & Hook
- 125. emadsaif Free Advertising $ • Offer product for free (sometimes paid) and makes advertisement revenue from advertisers • Needs a huge customer base for advertisers to be interested and pay
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- 130. emadsaif One Time Payment Multi-sided Platforms Micropayments Un-bundling Advertising Data Reseller Pay Per Use Subscription Freemium Bait & Hook
- 132. emadsaif $ Un-bundling • Break down the product/service into smaller elements to make it more economical for customer. • Suitable for niche markets • Requires deep understanding of customer needs
- 133. emadsaif
- 134. emadsaif EliminateCreate ReduceRaise Fitness / Spa Table Seated Restaurants Room Space Price Modern Design Bed & Pillows Free WIFI Free Video on Demand Check-in Process
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- 137. emadsaif Bait & Hook Freemium Multi-sided Platforms Un-bundling Pay Per Use Micropayments Data Reseller Advertising Subscription One Time Payment
- 138. emadsaif There are even more Patterns
- 139. emadsaif to Innovative Business Models 3 SECRETS
- 140. emadsaif Recognize Patterns Pivot quicklyExperiment Product Innovation Customer Innovation Revenue Innovation