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Nicholas Chan
me@zynick.com
27th February 2014
Patterns
★
★
★
★
★

Unbundling Business Models
The Long Tail
Multi Sided Platforms
FREE as a Business Model
Open Business Models
Unbundled
Business Model
Private Banking (3 Business In One)
Advise
Other Product
Providers

Product R&D
Marketing
Platform
Management

Custom
Tailored
Wealth
Management
Services
Financial
Products

Brand/Trust

Transaction
Management

Intimate
Personal
Relationship

Wealthy
Individuals &
Families

Key Account
Management

Private Banks
Private Banks

Personal
Networks

Product IP

Sales Force

Transaction
Platform

Independent
Financial
Advisors

Transaction
Platform

Platofrm Management

Management & Advisory Fees

HR: R&D

Product & Performance Fees

HR: Private Bankers

Transaction Fees

Relationship Business

Product Innovation Business

Infrastructure Business
The Long Tail
Book Publishing Industry

Platform
Development
Logistics

Platform

Self Publishing
Services
Marketplace
for Niche
Market

Communities
of Interest
Online Profile

Niche Authors
Niche
Audiences

LULU.COM

Print on
Demand
Infrastructure
Sales Commissions (Low)
Platform Management &
Development

Publishing Service Fees
Multi-Sided Platforms
Google

Platform
Management,
Managing
Services,
Expanding
Reach

Targeted Ads

Advertisers

Free Search

Web Surfers

Monetizing
Content

Content
Owners

Search
Platform

Platform Costs

Keyword Auctions
FREE
Wii / PSP / Xbox

High
Performace
Console

Hardcore
Gamers
Game
Developers

Console
Audience

Platform Costs

Hardware Sales At A Loss
Royalties
FREE
as a Business Model
Flickr (2010)

Yahoo!

Platform
Management

Free Basic
Photo Sharing
Premium
Photo Sharing

Mass
Customized
Switching Costs

Flickr Platform

High-Volume
Users

Flickr.com

Brand

Casual Users

Yahoo.com

Platform Development

FREE Limited Basic Accounts

Storage Costs

Annual Subscription Pro Account
Open Source: Freemium with a Twist

(Linux)
Open Source
Devleopment
Community

Software
Support
Services
Software
Versioning &
Testing

Red Hat (Linux)
Software

Free (Linux)
Open Source
Based Software

Self-Service &
Direct Access
to Engineers

Self-Service
Users
Enterprise
Clients

Continuously
Upgraded,
Services, &
Guaranteed
Software
Redhat.com
Red Hat Global
Branches

Cost Structure Contains Elements
of a Service Company

Free Software
Professional Subscription
Skype

Software
Development

Payment
Providers
Distribution
Partners

Free Internet &
Video Calling

Mass
Customized

Cheap Calls to
Phones
(Skypeout)

Web Users
Globally
People Who
Want to Call
Phones

Telco Partners

Software
Developers
Software

Skype.com
Headset
Partnerships

Software Development

FREE

Complaint Management

Skypeout Pre-Paid or
Subscription
Hardware Sales
The Insurance Model: Freemium Upside Down

Insurance
Companies

Rescue
Operations

Sponsoring
Patrons

Rescue
“Insurance”

Patron
Membership

Rescue
Operations

Fleet of
Helicopters &
Planes

Sponsoring
Patrons
Other Rescue
Victims

Rega.ch
(Web) Paper
Publications

Fleet of Helicopters & Planes

Sponsorship Fee

Rescuing

Payments From Insurance
Companies
FREE Rescue Operations
Bait & Hook
Bait & Hook of Free Mobile Phones

Device
Manufacturers

Services

Free Phones

Contractual
Lock-In

Customers

Subscription

Network

Network

1 x FREE

Phones

N x Monthly Subscriptions

Services
Razor & Blades: Gillette

Manufacturers

Marketing

Razor Handle

Retailers

R&D

Blades

Built-In
“Lock-In”

Customers

Logistics

Brand

Retail

Patents

Marketing

1 x Handle Purchase

Manufacturing

Frequent Blade Replacements

Logistics, R&D
Open Business Models
The Connector: Innocentive

Major
“Seekers”

Platform
Management
Acquire Solvers
& Seekers

Innocentive
Platform with
Base of
“Solvers” &
“Seekers”

Access to a
Broad Network
of Scientiest
“Solvers”

Online Profiles

Connect
“Seekers” &
“Solvers”
Access to
Scientific
Challenges
With Cash
Rewards

“Seekers”
(Company)

“Solvers”
(Scientists)

Innocentive.com

Platform Management

Free Access to Challenges

Acquisition of “Solvers” &
“Seekers”

Fee to List Challenges to Solver
Commissions on Awards
Habis
me@zynick.com

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Business Model Generation

  • 2.
  • 3.
  • 4. Patterns ★ ★ ★ ★ ★ Unbundling Business Models The Long Tail Multi Sided Platforms FREE as a Business Model Open Business Models
  • 6. Private Banking (3 Business In One) Advise Other Product Providers Product R&D Marketing Platform Management Custom Tailored Wealth Management Services Financial Products Brand/Trust Transaction Management Intimate Personal Relationship Wealthy Individuals & Families Key Account Management Private Banks Private Banks Personal Networks Product IP Sales Force Transaction Platform Independent Financial Advisors Transaction Platform Platofrm Management Management & Advisory Fees HR: R&D Product & Performance Fees HR: Private Bankers Transaction Fees Relationship Business Product Innovation Business Infrastructure Business
  • 8.
  • 9. Book Publishing Industry Platform Development Logistics Platform Self Publishing Services Marketplace for Niche Market Communities of Interest Online Profile Niche Authors Niche Audiences LULU.COM Print on Demand Infrastructure Sales Commissions (Low) Platform Management & Development Publishing Service Fees
  • 11. Google Platform Management, Managing Services, Expanding Reach Targeted Ads Advertisers Free Search Web Surfers Monetizing Content Content Owners Search Platform Platform Costs Keyword Auctions FREE
  • 12. Wii / PSP / Xbox High Performace Console Hardcore Gamers Game Developers Console Audience Platform Costs Hardware Sales At A Loss Royalties
  • 14. Flickr (2010) Yahoo! Platform Management Free Basic Photo Sharing Premium Photo Sharing Mass Customized Switching Costs Flickr Platform High-Volume Users Flickr.com Brand Casual Users Yahoo.com Platform Development FREE Limited Basic Accounts Storage Costs Annual Subscription Pro Account
  • 15. Open Source: Freemium with a Twist (Linux) Open Source Devleopment Community Software Support Services Software Versioning & Testing Red Hat (Linux) Software Free (Linux) Open Source Based Software Self-Service & Direct Access to Engineers Self-Service Users Enterprise Clients Continuously Upgraded, Services, & Guaranteed Software Redhat.com Red Hat Global Branches Cost Structure Contains Elements of a Service Company Free Software Professional Subscription
  • 16. Skype Software Development Payment Providers Distribution Partners Free Internet & Video Calling Mass Customized Cheap Calls to Phones (Skypeout) Web Users Globally People Who Want to Call Phones Telco Partners Software Developers Software Skype.com Headset Partnerships Software Development FREE Complaint Management Skypeout Pre-Paid or Subscription Hardware Sales
  • 17. The Insurance Model: Freemium Upside Down Insurance Companies Rescue Operations Sponsoring Patrons Rescue “Insurance” Patron Membership Rescue Operations Fleet of Helicopters & Planes Sponsoring Patrons Other Rescue Victims Rega.ch (Web) Paper Publications Fleet of Helicopters & Planes Sponsorship Fee Rescuing Payments From Insurance Companies FREE Rescue Operations
  • 19. Bait & Hook of Free Mobile Phones Device Manufacturers Services Free Phones Contractual Lock-In Customers Subscription Network Network 1 x FREE Phones N x Monthly Subscriptions Services
  • 20. Razor & Blades: Gillette Manufacturers Marketing Razor Handle Retailers R&D Blades Built-In “Lock-In” Customers Logistics Brand Retail Patents Marketing 1 x Handle Purchase Manufacturing Frequent Blade Replacements Logistics, R&D
  • 22. The Connector: Innocentive Major “Seekers” Platform Management Acquire Solvers & Seekers Innocentive Platform with Base of “Solvers” & “Seekers” Access to a Broad Network of Scientiest “Solvers” Online Profiles Connect “Seekers” & “Solvers” Access to Scientific Challenges With Cash Rewards “Seekers” (Company) “Solvers” (Scientists) Innocentive.com Platform Management Free Access to Challenges Acquisition of “Solvers” & “Seekers” Fee to List Challenges to Solver Commissions on Awards