future enterprise digital business innovation paths event_8july2014, brussels_i.2 wang
TRANSCRIPT
Innovative Business Models
Gigi WangBoard Member & Chair Emeritus
MITEF/Stanford Venture Lab“Digital Business Innovations Path”
EU Future Enterprise WorkshopBrussels, 8 July 2014
How to make money!!??? Not just generate revenues, but be a profitable business.
Many historical business models to reference. Innovative models catch investors’ attentions. Historical: Buy, License, Pay per transaction, Advertising
(pay per click, pay per purchase, more), Franchising, Revenue share, Value Added Services…
Innovative: Transforms how things are traditionally done, takes advantage of market opportunities, or identifies totally new revenue streams
The Digital World enables a whole new realm
Business Models
Business Model Trends 1950’s 1960’s 1970’s 1980’s 1990’s
Mass production, speedy service
Aggregation Specialization, door-to-door transportation
Built to order, just in time manufacturing,direct to consumer sales
Internet revolution, consumers as storefronts, online booking
Business Model Trends 1950’s 1960’s 1970’s 1980’s 1990’s
Mass production, speedy service
Aggregation Specialization, door-to-door transportation
Built to order, just in time manufacturing,direct to consumer sales
Internet revolution, consumers as storefronts, online booking
…and New Companies Emerged1950’s 1960’s 1970’s 1980’s 1990’s
WalMartToys’R’UsFedex
DellHomeDepot
AmazonRyan AirMcDonalds
Toyota
Business Model Challenges
• Dutch company founded in 2009, pioneer in augmented reality.
• Have tried different revenue models, lastly advertising.
• Acquired by UK company in 2014.
• In 1998, no obvious way for Internet Search to make money.
• The invention of Google Adwords changed everything.
• In 1992, HP LaserJet III printer cost >$2000
• HP made money from the hardware margin
• In 2014, HP printer cost < $100
• HP makes money on the ink
Business Models Can Change
Monetizing Data
Not A New Concept - Safeway
• Bar code scanners originally installed for operations.
• Then, aggregated data analyzed and sold as market research as early as 1990.
Collaborative Consumption
• People can rent their homes, apartments, or rooms to anyone else
• Across 190 countries, over 15 million nights have been booked
• Rent your car when you’re not using it (in US)
• Services handles payment and insurance elements
Crowdsourcing
In a world with too little time, too few resources, harness the power of the “crowd”
… for Content, Processes, Brainpower, and Funding, more…
User Generated Content
Let the Crowd EvaluateWith the crowd/ community providing ratings for the buyers and sellers, eBay no longer has to provide the services to hold funds in escrow until the buyer validates satisfactory receipt of good.
Crowd Brain-Power
Crowd Funding
Pebble: > $10 million
Ouya: > $8.5 million
More Business Model Innovations
Software as a Service Merchandising digital content Online music Flexible consumption models (freemium,
virtual goods) Digital money Many more to be imagined…
About Me Born in Taiwan, grew up in US. English is 3rd
language Stanford University engineering, UC Berkeley
business Started career at 3 Fortune 100’s – Exxon, AT&T,
Pepsi Then joined founding team or early stage of >6
start-ups (InterNex in Silicon Valley, Pacific Internet in Singapore, truste.org, Ascend – now Alcatel, more)
Currently:o Managing Partner, MG-Team, LLC (international
innovation, entrepreneurship & business development services)
o Board Member & Chair Emeritus, MITEF/Stanford Venture Lab (VLAB)
o Venture Partner, Silicon Valley, iGlobe Partners (venture capital)
Gigi WangBoard Member, MITEF/Stanford Venture Lab
Managing Partner, MG-Team LLC
THANK YOU!