Gigi Wang discusses innovative business models and trends in business model innovation over time. Some key points discussed include: - Historical business models like licensing, pay-per-transaction, and advertising have given way to more innovative models like crowdsourcing, user-generated content, and monetizing data. - New companies in different decades like Walmart, Toys'R'Us, FedEx, Dell, Home Depot, Amazon, and Ryan Air emerged with new business models suited to their times. - Business models must change and adapt over time as markets and technologies change. For example, HP shifted from making money on printer hardware to making money on ink refills as printer prices dropped.

1. Innovative Business Models
Gigi Wang
Board Member & Chair Emeritus
MITEF/Stanford Venture Lab
“Digital Business Innovations Path”
EU Future Enterprise Workshop
Brussels, 8 July 2014

2.  How to make money!!??? Not just generate
revenues, but be a profitable business.
 Many historical business models to reference.
Innovative models catch investors’ attentions.
 Historical: Buy, License, Pay per transaction, Advertising (pay
per click, pay per purchase, more), Franchising, Revenue share,
Value Added Services…
 Innovative: Transforms how things are traditionally done, takes
advantage of market opportunities, or identifies totally new
revenue streams
 The Digital World enables a whole new realm
Business Models

3. Business Model Trends
1950’s 1960’s 1970’s 1980’s 1990’s
Mass
production,
speedy service
Aggregation Specialization,
door-to-door
transportation
Built to order,
just in time
manufacturing,
direct to
consumer sales
Internet
revolution,
consumers as
storefronts,
online booking

4. Business Model Trends
1950’s 1960’s 1970’s 1980’s 1990’s
Mass
production,
speedy service
Aggregation Specialization,
door-to-door
transportation
Built to order,
just in time
manufacturing,
direct to
consumer sales
Internet
revolution,
consumers as
storefronts,
online booking
…and New Companies Emerged
1950’s 1960’s 1970’s 1980’s 1990’s
WalMart
Toys’R’Us
Fedex
Dell
HomeDepot
Amazon
Ryan Air
McDonalds
Toyota

5. Business Model Challenges
• Dutch company founded in 2009,
pioneer in augmented reality.
• Have tried different revenue models,
lastly advertising.
• Acquired by UK company in 2014.
• In 1998, no obvious way for
Internet Search to make
money.
• The invention of Google
Adwords changed everything.

6. • In 1992, HP LaserJet III
printer cost >$2000
• HP made money from the
hardware margin
• In 2014, HP printer cost
< $100
• HP makes money on the
ink
Business Models Can Change

7. Monetizing Data

8. Not A New Concept - Safeway
• Bar code scanners
originally installed
for operations.
• Then, aggregated
data analyzed and
sold as market
research as early as
1990.

9. Collaborative Consumption
• People can rent their homes,
apartments, or rooms to
anyone else
• Across 190 countries, over 15
million nights have been
booked
• Rent your car when you’re
not using it (in US)
• Services handles payment
and insurance elements

10. Crowdsourcing
 In a world with too little
time, too few resources,
harness the power of the
“crowd”
 … for Content, Processes,
Brainpower, and Funding,
more…

11. User Generated Content

12. Let the Crowd Evaluate
With the crowd/
community providing
ratings for the buyers
and sellers, eBay no
longer has to provide
the services to hold
funds in escrow until
the buyer validates
satisfactory receipt of
good.

13. Crowd Brain-Power

14. Crowd Funding
Pebble: > $10 million
Ouya: > $8.5 million

15. More Business Model Innovations
 Software as a Service
 Merchandising digital content
 Online music
 Flexible consumption models (freemium,
virtual goods)
 Digital money
 Many more to be imagined…

16. About Me
 Born in Taiwan, grew up in US. English is 3rd language
 Stanford University engineering, UC Berkeley business
 Started career at 3 Fortune 100’s – Exxon, AT&T, Pepsi
 Then joined founding team or early stage of >6 start-ups
(InterNex in Silicon Valley, Pacific Internet in
Singapore, truste.org, Ascend – now Alcatel, more)
 Currently:
o Managing Partner, MG-Team, LLC (international innovation,
entrepreneurship & business development services)
o Board Member & Chair Emeritus, MITEF/Stanford Venture Lab
(VLAB)
o Venture Partner, Silicon Valley, iGlobe Partners (venture capital)

17. Gigi Wang
Board Member, MITEF/Stanford Venture Lab
Managing Partner, MG-Team LLC
<Gigi.Wang@MG-Team.com>
THANK YOU!