business models, technology roadmaps & exit strategies
TRANSCRIPT
Business Models, Go To Market Strategies & Exit Strategies
GeneratorTHE
powered by
Business Models
aplanforthesuccessfuloperationofabusiness,identifyingsourcesofrevenue,theintendedcustomerbase,products
4Basic Types of Business Models
MANUFACTURER
Distributor
Retailer
Franchise
But, you need a bit more granularity than that…
The LICENSING MODELSignoverrightstocommercialisation toanotherparty
The Add-On ModelCompetitivelypricedcoreoffering
Numerousextrasthatdriveupthefinalprice
The Advertising ModelOfferadvertisersaccesstohighlytargetedconsumerniches(oftenintheabsenceofsellingtheirgoodsorservices)
The AFFILIATE MODELSomeonewhohelpssellaproductinreturnforcommission,eveniftheyneveractuallytakeownership(orevenhandle)theproduct
The BAIT AND HOOK MODELDisproportionateamountsofthevaluearecapturedoncomponents,refills,etc.
Switchingcostsresultsinmonopolisticpricing
The FREEMIUM MODELGiveawaysomethingforfreeinreturnforyourpersonaldetailssotheycanthenmarkettoyousoyouwillbuyfromtheminthefuture
The LOW COST MODELDrivesignificantvolumesofcustomersbychargingaverylowprice
The LOSS LEADER MODELYoulosemoneysellingatthatprice,butitenablesadifferentlucrativeopportunity
The PREMIUM MODELYouchargesomuchforit(eithervanityornecessitydrivers)thatyourprofitmarginsareastronomicalandcoverthefactthatyourcustomerbaseisquitelimited
The PAY AS YOU GO MODELActualusageismeteredandyoupayonthebasisofwhatyouconsume
The RECURRING REVENUE MODELSecurethecustomeronalongtermcontractsothattheyareconsumingyourproductorservicewellintothefuture
The DEMAND AGGREGATION MODELAssembleallthesellersandbuyersforsomestuffinthesamevirtuallocation
The PERSON-TO-person exchangesConnectonepersonthathassomethingsomeoneelsewantswiththepersonwhowantsit
The ONE-OFF EXPERIENCE MODELNowism offeringuniqueexperiencestocustomersatagivenplaceduringaspecificevent
Socialmedia+offlineeventorganisers,pop-upstores,onlineretailers
DisruptionItishappeningeverywhere• Education► TEDEd• Finance► Bitcoin,ApplePay• Technology ► Nest•Media► Spotify,Netflix• Telco►WhatsApp•Medical► Automata• Travel► Airbnb
So… what’s your business model?
GO TO MARKET STRATEGIES
AND TECHNOLOGY ROADMAPS TOO
A go-to-marketstrategy (GTM strategy)isanactionplanthatspecifieshowacompanywillreachcustomersandachievecompetitiveadvantage.ThepurposeofaGTM strategy istoprovideablueprintfordeliveringaproductorservicetotheendcustomer,takingintoaccountsuchfactorsaspricinganddistribution.
WHAT…Who…How…Where…
…tosell
Go-To-Market Strategy1. Definemarketvalueproposition2. Identifyprimarytargetmarket3. Reviewexistingmarketchannels4. Createdetailedchannelapproach
8Basic building blocks
Business Summary
Product Strategy
Channel Strategy
Marketing Strategy
Customer experience
Technical requirements
Evaluation
Timeline & Execution
Readyfireaim
Strategic objectiveso Createawareness,firstcustomersoMaximizemarketshareo Defendmarketshare(againstcompetitors)oMaximumprofitability
Technology Roadmaps
Technology roadmapsAplanningprocessforaspecificproductorservicetoidentify
o Technicalprocesseso Technologygapso Opportunities&riskso Criticalrequirements,targetso TechnologyalternativesoMilestonesformeetingthosetargets
7Basic building blocks
Business & technical assets
Cost/complexity drivers
Product hypothesis
Product requirements
Product planning
Timeline
Risk & mitigation strategies
High level example1. Productthatisthefocus
oftheroadmap2. Criticalsystem
requirements&theirtargets
3. Majortechnologyareas4. Technologydrivers&
theirtargets
Energy-efficientvehicle
MPG,reliability,safety,costTargets:100mgpby2017&150mpgby2025
Materials,enginecontrols,sensors,modeling,simulation
High level example5. Technologyalternatives6. Recommendtechnology
topursue7. Createthetechnology
roadmapreport
Technologyalternativesthatcansatisfythesetargetsidentifiedwithestimatedtimelineforhowitwillmaturewithrespecttothetechnologydrivertargets.Identifydecisionpointsforwhenitwillbedroppedfromfurtherconsideration.
Technology roadmapsAplanningprocessforaspecificproductorservicetoidentify
o Technicalprocesseso Technologygapso Opportunities&riskso Criticalrequirements,targetso TechnologyalternativesoMilestonesformeetingthosetargets
EXITSTRATEGIES
An exitstrategy isacontingencyplanthatisexecutedbyaninvestor,trader,venturecapitalistorbusinessownertoliquidateapositioninafinancialassetordisposeoftangiblebusinessassetsoncecertainpredeterminedcriteriaforeitherhasbeenmetorexceeded
Merger & Acquisition (M&A)• Win-winforborderingcompanieswithcomplementaryskills,assets,resources• Largecompanycanmorequicklygrowrevenueoraccesscustomersthancreatenewproductsorganically
Initial public offering (IPO)• Offeringsaleofstockinthebusinessonpublicmarkets(liketheASX)
Sell to another person• Offeringsaleofstockinthebusinessonpublicmarkets(liketheASX)
Sell to Your Employees• Anemployeestockoptionplancandirectpayrollintoatrusttopurchaseinvestments,likecompanystock
Milking the cow• Distributeprofitsasdividendstoinvestors• Payoffinvestors• Hiresomeoneelsetorunit
Liquidation & close• Closethebusinessdoorsandliquidateassets
Exit Tips• Mostofthetime,companiesaresold,notbought,andrequireanactivesalesprocess
• Dealscanunraveliftheydragon– coldfeetphenomenon• Everystepshouldhaveadeadline
• Establishtrustandopencommunication–frictionistheenemy• Cleanhousebeforethevisitorsarrive
Exit Tips• Don’tgetgreedy– holdingoutforallincreasesyourchancesofgettingnone
• Planfortheexitearly– theendgameshouldbepartofyouroveralloperatingstrategy
• Negotiatetoughbutfair– rememberthatyoumaybeworkingfortheacquirerwhenthedustsettles
Strategy for your exit strategy• DealStrategy – who?When?How?Why?• Positioning&Pitch – makingthemwantyou• Packaging&Valuation – thewholenineyards• ProcessManagement – Setmeetings,generatemomentum,managecommunications• Execution – getheatonthedeal
WANT TO KNOW MORE?GET IN TOUCH!
www.monash.edu/[email protected]/monashGENERATOR
7InnovationWalkAG01-04(ClaytonCampus)[email protected]