business model generation patterns by manpreet singh digital
DESCRIPTION
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 digitalTRANSCRIPT
Part 2Written by : Alexander Osterwalder & Yves Pigneur
Presented by : Manpreet Singh
Patterns
Idea
Architectural design ideas
Archetypal
Reusabledescription
Meaning - Similarities in business models• Characteristics• Arrangement of Business model blocks• Behavior
Objective – • Understand business model dynamics• Serve as a source of inspiration
Literatureconcepts
Language of Business model
canvas
Comparable Easy to understand Applicable
Concepts driving Patterns
Long Tail
Multi sided Platforms
Open Business Models
Different Imperatives• Economic• Competitive • Cultural
Private bankingThree businesses in one..
Face Trade offs
Eg. Zurich Based Pvt. Bank Maerki baumann
Unbundling TelcoTraditionally competed on network quality
Now network sharing deals withCompetitors or Equipment ManufacturersContent Providers
Realize key asset
Unbundled Patterns
Acquired from 3rd Parties
Customer base & trust
acq. overtime
Customer Acquisition &
retention
Long TailBusiness Model
Selling less of more•Focus on relatively Infrequent products•Require Low inventory & Strong platforms
# of products
# of
sal
es
focus
Transformation of book publishing industry• Old Model
• New model by lulu.com
LEGO’s New Long tail• Starwars, batman, Indiana jones• Lego factory using Lego digital designer
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
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/XboxSame Pattern, Different Focus• More players- more Developers• more Games – more hardware sale
Wii focus• Fun gamers• inexpensive machines• Remote & physical gestures
Apple’s evolution into a Platform Operator
Standalone iPod + iTunes iPhone + Appstore
Multi sided Platform Pattern
•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
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
The Connector : InnocentiveLink between “seekers” & “solvers”, Provided cash prizes ranging $5K to $1mn
3 Bridges of P&G•Technology Entreprenuers•Internet Platforms•Retirees
OBM Pattern
Thank You