A business model has 5 parts
Canvas
patterns
design
strategy
process
this presentation is about the canvas part of the business model generation By manpreet singh digital
5. Meaning - Similarities in business models
• Characteristics
• Arrangement of Business model blocks
• Behavior
Objective –
• Understand business model dynamics
• Serve as a source of inspiration
Language of
Business model
canvas
Literature
concepts
Comparable
Easy to understand
Applicable
8. Private banking
Three businesses in one..
Face Trade offs
Eg. Zurich Based Pvt. Bank Maerki baumann
Unbundling Telco
Traditionally competed on network quality
Now network sharing deals with
Competitors or Equipment Manufacturers
Content Providers
Realize key asset
10. Long Tail
Business Model
Selling less of more
# of sales
•Focus on relatively Infrequent products
•Require Low inventory & Strong platforms
focus
# of products
12. LEGO’s New Long tail
• Starwars, batman, Indiana jones
• Lego factory using Lego digital designer
13. Multi-sided platforms
bring together two or more distinct but
interdependent groups of Customers
•They are of value to one group only if the
other groups are also present
• Creates value by facilitating interactions
• They grows in value by network effect
Google's Business Model
• Extremely targeted text advertising globally
• Adwords
• Google search, Gmail, Picassa
• Adsense
14. As a multi-sided platform Google has a very distinct revenue model. It
makes money from one Customer Segment, advertisers, while
subsidizing free offers to two other segments: Web surfers and content
owners
Wii versus PSP/Xbox
Same Pattern, Different Focus
• More players- more Developers
• more Games – more hardware sale
Wii focus
• Fun gamers
• inexpensive machines
• Remote & physical gestures
17. •At least one substantial Customer Segment is able to continuously
benefit from a free-of-charge offer.
• One segment Finance both
Subdivided into three different patterns
• Advertising Based…………… Metro
• Freemium………………………..Flickr, Linked in, Slideshare, Skype
Key metrics to watch 1. Avg cost of serving a free user
2. Rate at which free user convert to Premium
Upsidedown Freemium……REGA
• Bait & Hook(loss leader)……………………..Gilette
18. Open Business Models
• Creates value by systematic collaborations
• May use “Outside IN” or “Inside OUT”
P&G: Connect & Develop
• C.E.O A.G.Lafley
•Increase ‘Innovation from outside’
from 15% to 50%
• R&D productivity had soared 85%
GlaxoSmithKline’s Patent Pools
3 Bridges of P&G
•Technology Entreprenuers
•Internet Platforms
•Retirees
The Connector : Innocentive
Link between “seekers” & “solvers”, Provided cash prizes ranging $5K to
$1mn