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Koen Pellegrims
Finally.
A professional partner for
your corporate mobility.
Finally.
A professional partner for
your corporate mobility.
“WE NEED AN APP”
IS NOT A MOBILE STRATEGY
At Flow Pilots, we believe that the smart use of mobile technologies will be
a key driver in the success of modern companies.
That is why we don’t just develop apps. We carefully design, build, deploy
and manage the digital tools that help our customers increase revenues,
decrease costs or bring freedom and flexibility to their employees.
We don’t build apps,
we deliver real-time insights
We don’t build apps,
we revive the past
We don’t build apps,
we connect with customers
We don’t build apps,
we deliver instant information
We don’t build apps,
we connect people
Wat is een business
model?
A business model
describes the rationale
of how an organisation
creates, delivers and
captures value
Customer Segments
Customer segments are justified only if
Their needs require a distinct offer
They are reached through different channels
They require different types of relationships
They have substantially different profitabilities
They are willing to pay for different aspects of the offer
For whom are we creating value?
Who are our most important customers?
Value Proposition
A Value Proposition creates value
for a specific Customer Segment
through a distinct mix of elements
catering to that segment’s needs
Elements of a Value Proposition
Price
Newness
Performance
Customisation
Design
Cost reduction
Risk reduction
Accessibility
Convenience
Brand/status
What value do we deliver to the customers?
Which one of our customer’s problem are we helping to solve?
What bundles of products and services are we offering to each segment?
Channels
Channels have five distinct phases:
Awareness Evaluation Purchase Delivery After sales
Own
Direct
Own people
Web sales
Indirect
Own stores
Partner
Partner stores
Wholesaler
Through which channels do our Customer Segments want to be reached?
How are we reaching them now? Are our channels integrated?
Which ones work best? Which ones are most cost-efficient?
Customer Relationships
Customer relationships are
mainly driven by the need for
customer acquisition
customer retention or
up- and cross-selling
What type of relationship does each of our Customer Segments expect us to
establish and maintain with them?
Which ones have we established? How costly are they?
How are they integrated with the rest of the business model?
Types of relationships
Personal assistance
Dedicated personal assistance
Self-service
Automated services
Communities
Co-creation
Revenue Streams
A business model can involve
different types of revenue streams
Transaction revenues
Recurring revenues
Possible revenue streams
Asset sale
Usage fee
Subscription fees
Lending/Renting/Leasing
Licensing
Brokerage fees
Advertising (3rd party)
Non-monetary rewards
For what are our customers really willing to pay?
For what do they currently pay? Are we capturing all value?
How much does each Revenue Stream contribute to overall revenues?
Key Resources
Key resources can be
physical,
intellectual or
human
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships? Revenue Streams?
Examples of key resources
Intellectual property
CRM system
Infrastructure
Shops or retailers
Workforce
Capital
Key Activities
Key activities are the most
important actions a company
must take to operate successfully
What Key Activities do our Value Propositions require?
Our Distribution Channels? Customer Relationships? Revenue Streams?
Key Activities
Production/Development
Problem Solving
Infrastructure management
Partner management
…
Key Partnerships
We can distinguish four types
of partnerships:
Strategic alliances between non-competitors
Coopetition – alliances between competitors
Joint ventures to develop new business
Long term buyer-supplier relationships
Who are our Key Partners? Who are our Key Suppliers?
Which Key Resources or Key Activities are we sourcing from our partners?
Motivation for partnerships
Optimisation and economies of scale
Reduction of risk and uncertainty
Acquisition of particular resources or activities
Cost Structure
Cost is important for any company,
but there is a clear distinction between
cost-driven and
value-driven business models
Key cost parameters
Fixed costs
Variable costs
Economies of scale
Economies of scope
What are the most important costs in our business model?
Which Key Resources and Key Activities are most expensive?
efficientie waarde
Hoe creeër en capteer ik
“waarde”?
Hoeveel zou je aanrekenen
voor een griepvaccin?
Invested
stakes
No more
willingness to
pay!
Lawsuits
Government
interference
Illegal “value
propositions”
New business
models!
Why do your
customers buy
from you?
Why do you buy
from your key
partners/suppliers?
Why do you
oursource some
activities?
Why do external
channels sell your
product or service?
0%
20%
40%
60%
80%
100%
Product price
What is your value?
Can you capture it?
Value flows
Watch out for
bypass paths!
Monetary flows
Patronen
Bait & hook
Long-tail
Multi-sided markets
Freemium
Co-creation
Open models
Free
B24b
Unbundling
Brokerage
Free basic
value proposition
Large base of free
users
Small base of
paying users
Paid
Premium
service
Paid premium
services
Cost of serving
paying users
Cost of serving
free users
Long-term
relationship
Focused on
conversion
In the free model at least one substantial Customer Segment is able
to continuously benefit from a free-of-charge offer.
Key to free business models is the
low marginal cost of
serving additional free users
Key factors to consider are:
The average cost of serving a free user
The conversion rate to paying customers
“Bait”
product or service
Single customer
segment for “bait”
and “hook”
“Hook”
product or service
Recurring purchases
of “hook” products
or services
Cost of subsidising
“bait” product
Lock in
One-off purchase
of “bait” product
Substitutes often
protected by
patents
Where Gilette pioneered, mobile operators and
printer manufacturers followed.
An attractive (or free) initial offering
triggers a profitable stream of future
revenues through related products or
services
Key factors to consider are:
The average cost of serving a free user
The conversion rate to paying customers
Successful companies choose one discipline and fully commit to it.
An inside-out strategic option.
Customer intimacy
Operational excellence Product leadership
Operational excellence Customer intimacy Product leadership
Rules Process- and product focused
“One size fits all” attitude
Uniformity
Customer focused
“Have it your way” attitude
Variation
Concept- and future-oriented
“Out-of-the-box” attitude
Experimentation
Processes End-to-end supply chain
optimisation
Efficiency and reliability
Just-in-time
Customer service
Flexibility
Accessibility
Product development
Time-to-market and marcom
Emphasis on “breakthroughs”
Organisation Central management
Few delegated responsabilties
Professionalism within
Decision power with customer
contact
Professionalism on the outside
Ad-hoc, organic, cellular
Professionalism throught the
organisation
Limited structures
Management “Command and control”
Standard procedures
Cost control
Customer comes first
“Lifetime value”
Result-driven management
Individual innovation is
rewarded
Risk management
Exposure management
Internal systems Integrated and “low cost”
Transaction-oriented
System equals process
Professional CRM
Tight links between intenal and
external information
Analytics
People-centric communication
Collaborative tools
Pick one. Be committed. Be relentless!
Verdienmodellen voor apps
Source:Forbes
We don’t build apps,
we create stronger
partnerships
We don’t build apps,
we increase revenues
We don’t build apps,
we connect past and present
We don’t build apps,
we increase security
We don’t build apps,
we increase customer loyalty
Hans Haagdorens
Innovatiecentrum Antwerpen
0494 04 74 04
hans.haagdorens@innovatiecentrum.be

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IA Ondernemen met innovatieve apps. Sessie 2. Koen Pellegrims. Monetizing your app.

  • 2. Finally. A professional partner for your corporate mobility. Finally. A professional partner for your corporate mobility.
  • 3. “WE NEED AN APP” IS NOT A MOBILE STRATEGY At Flow Pilots, we believe that the smart use of mobile technologies will be a key driver in the success of modern companies. That is why we don’t just develop apps. We carefully design, build, deploy and manage the digital tools that help our customers increase revenues, decrease costs or bring freedom and flexibility to their employees.
  • 4. We don’t build apps, we deliver real-time insights
  • 5. We don’t build apps, we revive the past
  • 6. We don’t build apps, we connect with customers
  • 7. We don’t build apps, we deliver instant information
  • 8. We don’t build apps, we connect people
  • 9. Wat is een business model?
  • 10. A business model describes the rationale of how an organisation creates, delivers and captures value
  • 11.
  • 12. Customer Segments Customer segments are justified only if Their needs require a distinct offer They are reached through different channels They require different types of relationships They have substantially different profitabilities They are willing to pay for different aspects of the offer For whom are we creating value? Who are our most important customers?
  • 13. Value Proposition A Value Proposition creates value for a specific Customer Segment through a distinct mix of elements catering to that segment’s needs Elements of a Value Proposition Price Newness Performance Customisation Design Cost reduction Risk reduction Accessibility Convenience Brand/status What value do we deliver to the customers? Which one of our customer’s problem are we helping to solve? What bundles of products and services are we offering to each segment?
  • 14. Channels Channels have five distinct phases: Awareness Evaluation Purchase Delivery After sales Own Direct Own people Web sales Indirect Own stores Partner Partner stores Wholesaler Through which channels do our Customer Segments want to be reached? How are we reaching them now? Are our channels integrated? Which ones work best? Which ones are most cost-efficient?
  • 15. Customer Relationships Customer relationships are mainly driven by the need for customer acquisition customer retention or up- and cross-selling What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How costly are they? How are they integrated with the rest of the business model? Types of relationships Personal assistance Dedicated personal assistance Self-service Automated services Communities Co-creation
  • 16. Revenue Streams A business model can involve different types of revenue streams Transaction revenues Recurring revenues Possible revenue streams Asset sale Usage fee Subscription fees Lending/Renting/Leasing Licensing Brokerage fees Advertising (3rd party) Non-monetary rewards For what are our customers really willing to pay? For what do they currently pay? Are we capturing all value? How much does each Revenue Stream contribute to overall revenues?
  • 17. Key Resources Key resources can be physical, intellectual or human What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? Examples of key resources Intellectual property CRM system Infrastructure Shops or retailers Workforce Capital
  • 18. Key Activities Key activities are the most important actions a company must take to operate successfully What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? Key Activities Production/Development Problem Solving Infrastructure management Partner management …
  • 19. Key Partnerships We can distinguish four types of partnerships: Strategic alliances between non-competitors Coopetition – alliances between competitors Joint ventures to develop new business Long term buyer-supplier relationships Who are our Key Partners? Who are our Key Suppliers? Which Key Resources or Key Activities are we sourcing from our partners? Motivation for partnerships Optimisation and economies of scale Reduction of risk and uncertainty Acquisition of particular resources or activities
  • 20. Cost Structure Cost is important for any company, but there is a clear distinction between cost-driven and value-driven business models Key cost parameters Fixed costs Variable costs Economies of scale Economies of scope What are the most important costs in our business model? Which Key Resources and Key Activities are most expensive?
  • 22. Hoe creeër en capteer ik “waarde”?
  • 23. Hoeveel zou je aanrekenen voor een griepvaccin?
  • 24.
  • 26.
  • 27.
  • 28. Why do your customers buy from you? Why do you buy from your key partners/suppliers? Why do you oursource some activities? Why do external channels sell your product or service?
  • 29. 0% 20% 40% 60% 80% 100% Product price What is your value? Can you capture it?
  • 30. Value flows Watch out for bypass paths! Monetary flows
  • 31. Patronen Bait & hook Long-tail Multi-sided markets Freemium Co-creation Open models Free B24b Unbundling Brokerage
  • 32. Free basic value proposition Large base of free users Small base of paying users Paid Premium service Paid premium services Cost of serving paying users Cost of serving free users Long-term relationship Focused on conversion
  • 33. In the free model at least one substantial Customer Segment is able to continuously benefit from a free-of-charge offer. Key to free business models is the low marginal cost of serving additional free users Key factors to consider are: The average cost of serving a free user The conversion rate to paying customers
  • 34. “Bait” product or service Single customer segment for “bait” and “hook” “Hook” product or service Recurring purchases of “hook” products or services Cost of subsidising “bait” product Lock in One-off purchase of “bait” product Substitutes often protected by patents
  • 35. Where Gilette pioneered, mobile operators and printer manufacturers followed. An attractive (or free) initial offering triggers a profitable stream of future revenues through related products or services Key factors to consider are: The average cost of serving a free user The conversion rate to paying customers
  • 36. Successful companies choose one discipline and fully commit to it. An inside-out strategic option. Customer intimacy Operational excellence Product leadership
  • 37. Operational excellence Customer intimacy Product leadership Rules Process- and product focused “One size fits all” attitude Uniformity Customer focused “Have it your way” attitude Variation Concept- and future-oriented “Out-of-the-box” attitude Experimentation Processes End-to-end supply chain optimisation Efficiency and reliability Just-in-time Customer service Flexibility Accessibility Product development Time-to-market and marcom Emphasis on “breakthroughs” Organisation Central management Few delegated responsabilties Professionalism within Decision power with customer contact Professionalism on the outside Ad-hoc, organic, cellular Professionalism throught the organisation Limited structures Management “Command and control” Standard procedures Cost control Customer comes first “Lifetime value” Result-driven management Individual innovation is rewarded Risk management Exposure management Internal systems Integrated and “low cost” Transaction-oriented System equals process Professional CRM Tight links between intenal and external information Analytics People-centric communication Collaborative tools Pick one. Be committed. Be relentless!
  • 39.
  • 40.
  • 41.
  • 42.
  • 44.
  • 45. We don’t build apps, we create stronger partnerships
  • 46. We don’t build apps, we increase revenues
  • 47. We don’t build apps, we connect past and present
  • 48. We don’t build apps, we increase security
  • 49. We don’t build apps, we increase customer loyalty
  • 50. Hans Haagdorens Innovatiecentrum Antwerpen 0494 04 74 04 hans.haagdorens@innovatiecentrum.be