Eight 21st century business models in action: 1.THE SUBSCRIPTION MODEL 2.THE FREEMIUM MODEL 3.THE FREE MODEL 4.THE MARKET PLACE 5.ACCESS OVER OWNERSHIP 6.THE EXPERIENCE MODEL 7.The On Demand model 8.THE ECOSYSTEM

1. New bottle old
drink business
models:

2. Objective
– To share some new/changed/changing business models with team for
– Increasing knowledge of team and
– Connecting observed running business models

3. Topic
– Book: Digital Transformation
– About Authors:
– Jo Caudron and Dado van peteghem: Founders of Duval
union consulting company (2009):
– Consulting for a new digital world businesses

4. Why it is important?
– The Glass House: The changing relationship between the organization and the
outside world.
– The Package: Unbundling of supply chain of products and services
– Out sourcing
– Removing steps from the existing channels
– Experience: Merging online and offline channels for user experience and
customer journey
– Mass: Common product appealing to mass with limited and accepted products

5. Questions are changing
– CAN YOU IMPROVE? To
– HOW WILL YOU IMPROVE?

6. 1.THE SUBSCRIPTION MODEL
– The subscription model is a business model where a customer must pay a returning
subscription price to have access to the product/service.
– PIONEERED BY
– Newspapers & magazines
– TYPES OF DISRUPTORS USING THE SUBSCRIPTION MODEL
– Netflix, HelloFresh, Dollar Shave Club, Kindle, One
– WHY?
– Payment in advanced as subscription fees
– Long term customers attachment
– Recurring subscription (Lock-in Mechanism): More revenue compared to one time fees

7. Some Examples:
– DTH services

8. 2.THE FREEMIUM MODEL
– The freemium model is a business model where the customer has free access to the
basic service but is charged for additional features.
– PIONEERED BY
– Software companies giving away free ‘lite’ floppy disks of their products in the 80’s
– TYPES OF DISRUPTORS USING THE FREEMIUM MODEL
– Dropbox, LinkedIn, The New York Times, Farmville, Google books
– WHY?
– To build large consumer base
– Acquiring lot of prospects efficiently
– Non paying customers: Data, feedback, advertising opportunities

9. FREEMIUM
IS NOT
PREMIUM
Freemiums don’t have an
upfront price. However, the
customer will have to pay for
every upgrade.
Premiums have an upfront price before they can even be
used. It’s similar to licensed software, except that all
future upgrades to the premium are free once purchased.

10. FREEMIUM
IS NOT
TRIAL
Freemiums are free forever but
will not give the potential
customer the full package of
the product or service.
Free trials are limited in time and give the consumer the
whole experience of the product or the service.

11. FREEMIUM
IS NOT
FREE
The goal of a freemium is to
convert at least 1% of the free
users into paying customers
Free means free. There are no upgrades for users
whatsoever or they are free as well. The only way free
can be free, is when the users pay with their data, their
attention or if you’re called Instagram and get acquired
for a billion dollars by Facebook.

12. 3.THE FREE MODEL
– The free model is a business model integrated by companies that don’t charge the
end users (directly). The data and the attention of the users is the currency.
– PIONEERED BY
– Search Engines
– TYPES OF DISRUPTORS USING THE FREE MODEL
– Google, Facebook, Snapchat
– WHY?
– Gain lot of users
– Data
– Revenue from targeted audience Advertising

13. 4.THE MARKET PLACE
– The market place is a business model used by a company that only facilitates a
platform where parties economically interact with each other.
– PIONEERED BY
– Classifieds in newspapers
– TYPES OF DISRUPTORS USING THE MARKET PLACE MODEL
– Quicker, eBay, Alibaba, Friendsurance, priceline.com, The Lending Club, etc.
– WHY?
– Defines as big supplier of a product or service without company having it
– Revenue by taking percentage
– Best Software and customer support

14. 5.ACCESS OVER OWNERSHIP
– The access over ownership model is the business model that grants customers the use of the
product without buying it (Sharing by owner). “Everything as a service.”
– PIONEERED BY
– Sharing economy
– TYPES OF DISRUPTORS USING THE ACCESS OVER OWNERSHIP MODEL
– Zipcar, ParkCirca, Peerby
– WHY?
– Power of sharing
– Access over ownership companies generate revenue by using the power of the sharing
economy. Just like market place companies, the access over ownership model only facilitates
the actions between people thus making it needless for these companies to invest in products
or people.

16. 6.THE EXPERIENCE MODEL
– The experience model is a business model used by a company that provides the
customers with an unseen (user) experience.
– PIONEERED BY
– Apple
– DISRUPTORS USING THE EXPERIENCE MODEL
– Tesla, KLM, Disney World, Tomorrowland
– WHY?
– Increases willingness for paying more after experience
– Edge over competitors (Features over experience)
– Emotional bond of customer with product

17. 7.The On Demand model
– The on demand model generates revenue by the exponential need of people to
have things done right away. Speed and convenience matter the most.
– PIONEERED BY
– Uber
– TYPES OF DISRUPTORS USING THE ON DEMAND MODEL
– Uber, TaskRabbit, etc..
– WHY?
– On time availability of product or service

18. Task Rabbit

19. 8.THE ECOSYSTEM
– The ecosystem is one of the most powerful, disrupting business model. Companies
build an entire universe of products and services in which customers gets lost
without them knowing it.
– PIONEERED BY
– Apple & Google
– TYPES OF DISRUPTORS USING THE ECOSYSTEM
– Apple & Google
– WHY?
– Multiple products which create high level of dependency of the customer
– Habit of using products by one vendor (Product loyalty to Brand loyalty)

21. THANK YOU