Value Exchange Mapping (VEM) System works with the Business Model Canvas to provide a kind of “stereo vision” with respect to the business model. VEM captures the value exchanges among the players in a value network in the context of an organization’s business model. This provides a more comprehensive picture of the business model making it easier to identify opportunities for business model innovation.
2. We have developed a new tool called the Value Exchange Mapping (VEM) System that works
with the Business Model Canvas to provide a kind of“stereo vision”with respect to the business
model.
Specifically, a VEM captures the value exchanges among the players in a value network in the
context of an organization’s business model. This provides a more comprehensive picture of the
business model making it easier to identify opportunities for business model innovation. The
VEM mapping system is licensed under the Creative Commons and is available for download
and use.
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International
License.To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-nd/4.0/deed.en_US.
www.innodyn.net
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8. Linked In
Linked In
Free
Members
90%
Premium
Members
10%
Recruiters
Advertisers
Employers
Sales
Professionals
Developers
Targeted
Marketing Solutions
Talent
Management Solutions
Recruiter
Solutions
Targeted Sales
Solutions
Professional Profile
Company Pages
Linked In Groups
Premium services
(on top of basic)
Resume Builder
Linked In Updates
Linked In Connection
Management
Members
Linked In Today
Targeted Job
Recommendations
Targeted content
recommendations
InMail Access
View Profiles Outside
Network
Job Seeker Premium
Viewed Profile?
Other Advanced...
Content
Exposure
Sticky
Content
Platform
Apps
Access to
Platform
Content
Publishers
Value Exchange Map
Growth Strategist
Other Social
Platforms
Integration
Strong Same Side
Network Effects
Subscriptions
Basic Services
9. Cost Structure
Customer SegmentsCustomer Relationships
Channels
Key Activities
Key Resources
Key Partners
Revenue Streams
Value Propositions
Linked In
Web
Direct Sales
Force
Free
Members
Premium
Members
Recruiters
Advertisers
Employers
Sales
Professionals
Mobile Apps
Sign In with
Linked In
Sites
Premium
member
subscriptions
Developer
Apps
Advertising
solutions
Recruiters
solutions
Employer
solutions
Sales
solutions
Build & manage
professional
Identify Build & manage
business
contactsAccess to info &
knowledge to
advance career Career
management
Targeted access
to talent pool
Targeted access
of business
professionals
Company
exposure &
talent mgt.
Targeted sales
lead generation
Linked In
platform
Linked In
platform
development
Platform
operations
Direct sales
force
App
Developers
Content
Publishers
Sales &
marketing
Link In
members
Data center
infrastructure
Apps
Other social
media
platforms
Research &
development
Content
management &
monitoring
Promotions &
advertising
Sales &
marketing Research &
development
activitiesLinked In
platform
development
10. Angie's List
Affiliates
Consumer Review
Database
Angie's List Magazine
Big Deal Notifications
Call Center Support
Complaint Resolution
Sign-up Fees &
Subscription Fees
Free Listing
Advertising
Big Deal
Promotions
Storefronts & e-Commerce Services
Angie's List
6-12 Month Campaigns
Add Businesses
Subsidize
Subscription Fees
40% of Sale
60% of Sale
Reputation
Management Tools
Reliable & High Quality ServicesProducts from Reputable Businesses
Revenue from Delivery of Products/Services
General
Consumers
Homeowner
Consumers
More Customers
Home Service
Providers
Medical
Service
Providers
Auto Service
Providers
Other Service
Providers
Small
Businesses
More
Members
Commissions Per Sign-up
Value Exchange Map
Growth Strategist
11. Cost Structure
Customer SegmentsCustomer Relationships
Channels
Key Activities
Key Resources
Key Partners
Revenue Streams
Value Propositions
Angie's List
Homeowner
Consumers
General
Consumers
Home Service
Providers
Medical Service
Providers
Auto Service
Providers
Other Service
Providers
Hire the best
service
providers
Authentic &
detailed
reviews
Complaint
resolution
Live phone
support
Discounts
Advisory
information
Promote
business
Get quality
customers
Generate
revenue
Build &
manage
reputation
Direct via
Web
Live support
via call
center
Affiliates
Platform
Call center
Sales &
marketing
Phone support
Complaint
resolution
Platform
development &
maintenance
Generating
content
Platform
development
staff
Data &
Infrastructure
maintenance
Commissions
for member
Sign-ups
Sales
& marketing
staff
Sign-up fees
&
subscriptions
Advertising
e-Commerce
services
Commissions
on promotionsCall center
Business Model Canvas
Mobile
Apps
12. 37+ Million subscribers
Leader in category
S&P 500 (June 30th, 2013)
#629 Fortune 1000 (2013)
Revenue: $3,609.282
Gross Profit: $983.416
Operating Income: $49.992
Net Income: $17.152
Subscription revenue model
Long-tail business model
Broker/reseller model
General Info Business Model ThemesFinancial Picture (2012) Growth Trajectory
Increase subscriber base with
original content exclusive to
Netflix; expand into international
markets
Netflix is the leading Internet television network for movies and TV shows with nearly 38 million
members in 40 countries. For one low monthly price, Netflix members can watch as much as they
want, anytime, anywhere, on nearly any Internet-connected screen without commercials.NETFLIX
[Value Exchange Map]
Distribution
Rights
DVD's
Content
Providers
Ads
Right to Sell
Streaming
Content
Customers
VP
Streaming
Content
DVD
Content
Advertisers
Content
Production
Streaming
Content
Viewing
Behavior
Advertising Fees
DVD Jackets
Subscription
Subscription
% Sales
License Fees
% Sales
Production
Companies
Original Content
Intermediary
Parters
[Apple,
Sony, etc.]
DVD
Postage
DVD
Delivery
Reach
Customers
Growth Strategist
13. Cost Structure
Customer SegmentsCustomer Relationships
Channels
Key Activities
Key Resources
Key Partners
Revenue Streams
Value Propositions
Netflix
DVD
Customers
Streaming
Content
Customers
Advertisers
Self-service
via Web
Customer
homepage
Website
Video game
consoles
iOS Apps
Content hubs
(ex: AppleTV)
Mail
DVD plan
subscriptions Streaming plan
subscription Advertising
fees
Flat rate DVD
rental via
mail
No late fees
unlimited #
turns on DVD's
per plan
All you can
stream video
No commercials
Stream video on
a number of
devices
Broad exposure
of ads to
customers
Processing DVD
orders
Streaming
digital content
Content
licensing
Producing
original content
Technology
development
Customer
viewing
suggestions
Technology
infrastructure
Licensed
content
Original
content
Customer
viewing
behavior data
Knowledge of
what content
will be popular
Post office
Content
providers
Content
production
companies
DVD mailing
fees
DVD order
processing
costs
Content license
contracts
Cost of
producing
original content
Data equipment,
facilities &
staff
Business Model Canvas
14. 35+ million subscribers
Leader in category
Active in 48 countries
#851 in Fortune 1000 (2013)
Revenue: $2,334.472
Gross Profit: $1,615.532
Operating Income: $98.701
Net Income: $-54.773
Collective buying model
Broker/reseller model
Financial intermediary Model
General Info Business Model ThemesFinancial Picture (2012) Growth Trajectory
Expand goods business; physical
warehouses for faster shipping;
Groupon Reserve (capacity mgt);
POS Apps and merchant services
Groupon is a marketing service that helps businesses attract customers by offering deep
discounts on things to eat, see, and do in more than 500 markets worldwide. Groupons leverages
collective buying power to guarantee businesses a minimun number of customers.GROUPON
[Value Exchange Map]Growth Strategist
Launch Deals at 50-90%
Discount (Usually 50%)
Daily Deal
Guaranteed Number
of Customers
50% of Revenue
Merchant Consultation
(Design Deals)
Customer Intel
VP
Groupon
Join Deal Group &
Commit Payment
Deal Activates
(Minimum Number of
Customers Reached)
More Potential Customers
Heavily Discounted Products & Services
Capture
100% of
Payment
Groupon
Local Offers
Local Offers
Local Offers
Group of Buyers
Merchants
Deal
Cancels;
No One
Charged
ElsePayout Over 3
Months
Groupon customers will spend above
Merchant Value Capture Assumptions
Groupon customers will come back and
pay full price
Word of mouth referrals will generate new
customers
1
1
15. Cost Structure
Customer SegmentsCustomer Relationships
Channels
Key Activities
Key Resources
Key Partners
Revenue Streams
Value Propositions
Groupon
Consumers
Automated
Direct via Web
and email
Small
Businesses
Mobile Apps
Help businesses
attract new
customers
Guaranteed #
of customers
per daily deal
Daily deal
notifications
Commissions on
sale of daily
deals
Groupon Apps
& Web
platform
Sales &
marketing
Platform & app
development
Technology
operations
IT
development
staff
Sales &
marketing
staff
Discounts of
50%-90%
Groupon is
guaranteed
POS solution &
credit card
processing
Direct via Sales
& Marketing
Team
Merchant
center
POS & Credit
card processing
services
Reservation
system??
Credit card
clearing houses
16. Spotify
Value Exchange Map
Free service
Unlimited
service
Premium
service
Advertisers
Distributor /
aggregators
Large music
labels
Merlin
Network
ISP's
Platform
Operators
mobile
operators
Consumer
electronics
companies
Spotify
Reach customers
Royalty fees
Right to
distribute
music
Targeted exposure (free users)
Revenue from advertising
(Free users only)
$4.99/month
$9.99/month
Partners
Increase utility value
of product or service
Growth Strategist
Add
usersSubsidized
17. Cost Structure
Customer SegmentsCustomer Relationships
Channels
Key Activities
Key Resources
Key Partners
Revenue Streams
Value Propositions
Spotify
Free
Unlimited
Premium
Advertisers
Target by
demographics
Target by
location &
music genre
Tracking &
reporting
portal
Customers not
hostile to
advertisement
Distributor /
aggregators
Large music
labels
Delivery
platform
development
Content
licensing &
reporting
Merlin
Network
Mobile
Operators
Consumer
electronics
companies
ISP's
Huge catalogue
of big music &
Independent
Platform
Operators
Delivery
platform
Listen to music
on any device
Social media
integration
download &
listen to music
off-line
Unlimited
subscriptions
Premium
subscriptions
Advertising
revenue
(free users only)
IT
infrastructure
development
Analyze
customer
behaviors
Knowledge of
customer
listening prefs
Infrastructure
maintenance
Royalty
fees
Business Model Canvas
Direct via
Web
18. Whole Foods Market
Purchases
Lifestyle Grocery Brand (Customer Pull)
Affluent
Social
Shoppers
Healthy
Lifestyle
Shoppers
Values-based
Shoppers
Unique Shopping Environment
Happy, Friendly and
Knowledgeable Staff
Elagent/Artistic Stores
Coffee Bar, Bakery and
Eatery (Large Selection)
Customer-centric Attitude
Customer Service #1
In-store Cooking
Exhibition & Food Sampling
Samples Throughout Store
Fresh Juice Bar
Produce & other items
meticulously displayed
Eating/Socializing Areas
Grocery Products
Quality Standards & Values
Producers
Distributors
Supplier
Partners
Organic
Certifiers
Fair Trade
Certifiers
Other
Partners
Social
Responsibility
Certifiers
Sustainable
Practices
Certifier
Grocery Products
Purchases
Various Services
PurchasesSpecialty Service
Providers
Support
Whole
Foods
Market
Custom Services
Supply Chain
Compliance
to Standards
Consumers
Value Exchange Map
Growth Strategist
19. Cost Structure
Customer SegmentsCustomer Relationships
Channels
Key Activities
Key Resources
Key Partners
Revenue Streams
Value Propositions
Whole Foods Market
Healthy
Lifestyle
Shoppers
Affluent
Social
Shoppers
Values-based
Shoppers
Personal
interaction in
stores
In-Store
purchases
Producers
Distributors
Specialty
service
providers
Certifying
organizations
Online
purchases
Delighting
customers
Stores
Customer
centric
culture
Store design
Stocking
Products for
stores
Outsourced
services for
stores
Store
operations
High quality
products
(certified)
Building out
new stores
Purchasing
Supply chain
management
(win-win)
Store
Amenities
High quality
natural &
organic products
Delightful
shopping
experience
Certified
quality
standards
Local
community
support
Adhere to
Sustainable
practices
Progressive
organizational
culture & values
Business Model Canvas
