Archive for the ‘Business model combo’ Category

Quechua is a French brand, founded in 1997 at the foot of the Mont Blanc. The Quechua brand is oriented towards the hiking, mountaineering, climbing, raid-trail and Nordic walking markets. It held 5th place among outdoor equipment manufacturers worldwide (by turnover) in 2007 and it has not stopped climbing the ladder of the world manufacturers.
The Quechua business model is built on a unique value proposition which includes the most suitable prices for customers, attractive innovations, and eco-friendly products. Its specialized staff has created a variety of value propositions with some technical design partners. Two such partners are The Institute for Training and Research on Mountain Medicine (IFREMMONT) and proMONT-BLANC, an international nongovernmental organization. Quechua combines with Institute for Training and Research on Mountain Medicine for many aspects of scientific research while it combines with proMONT-BLANC in a partnership on environmental issues. Quechua also combines business models by using prominent athletes as technical partners/advisors..
The Quechua value proposition is oriented towards the best bargain hunters, mainly middle class customers who represent the biggest segment of the population interested in outdoor activities. Its customers want the highest quality at the most reasonable price.
Quechua differs from the competition by virtue of its technical & design innovations and its inexpensive, eco-friendly products, thereby making the pleasure of hiking available to all!
Business Model Canvas, Osterwalder, Pigneur & al. 2010, CC BY-SA 3.0.
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Modern companies such as Zipcar are focusing on customers who need simple, individualized solutions for their temporary transportation needs. They want cost flexibility and a variety of cars for different occasions. There are many potential advantages to both the customer and the supplier when the transaction is based more on subscriptions than on one-time purchases. Modern companies such as  Zipcar want to have a lot of members since that will guarantee them predictable revenue streams. Zipcar subscribers also want to  be able to easily find the cars they hire. They can do so with Google maps, which displays all the locations of Zipcar pick-ups and drop-offs. This convenience makes Google maps the perfect distribution channel for Zipcar offers.  When a customer uses the car, he /she can employ Google maps for navigation and to discover where  the car can be returned once it is no longer needed.

I respect books as personal experiences, encounters with the creative mind of a writer. When I read books, it is a peaceful, even a spiritual, interlude. Books stimulate my imagination and inspire me to creative thinking. I like paper books, which has caused me to have some reservations about how widespread and popular online books might become. But some days ago, I watched a very thought-provoking IDEO video about the future of online books in the context of business model combining. It made me re-evaluate some of my opinions.

It was a five-minute video exploring the possibilities of digital books, and it examined three current concepts: the Nelson service, the Coupland service, and the Alice service. All three target groups of potentially interested users, but they differ in their offerings.

The Nelson service value propositions enable books to become the basis for critical thinking tools. They do so by combining all kinds of information, which can then be connected with a book’s content and author, providing multiple perspectives, references, and current conversations on that text. The layers of information beyond the book itself enable it to be seen in a much wider context, throughout history, the present time, and the future. If want to use the Nelson concept, we have to combine the books’ business models with the partners’ business models, the sources that have all the additional data connected with the books’ contents.

The Coupland service stimulates readers by connecting them into “book clubs” and other social layers where discussions, collaborations, suggestions, lists, and purchases can help each reader share and learn from others. The Coupland business model combines readers’ personal  business models.

The Alice service combines new ways for users to interact and affect the content of the books. Active participation allows each reader to utilize geographic location, communicate through the characters, and contribute to the storyline.

These kinds of services were used in the case of the book Business Model Generation, where readers co-created the content and style of the book. These concepts seem to indicate that the future of books will depend in large measure on support services which enable new value propositions, collaboration, co- creation of new contents, and new ways of learning. Those services will follow from new business models and business model combining.

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Techno cake presently has forty-nine members, and that number could, and most likely will,  increase with each talk. Techno cake can exist in the long run only if we have a sustainable business model that extends beyond just  profit.  This is the  reason that I created the prototype of the Techno cake business model and now, to further develop that prototype,  I need  to brainstorm with the current members of the movement.

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Business Model Canvas, Osterwalder, Pigneur & al. 2010, CC BY-SA 3.0.

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Syndicom, founded in 2000, is a leader in on-line collaborative communities for medical practitioners and medical device companies. Its business model has established a platform for a community of spinal surgeons who meet virtually and share information about patients to further the development of new therapies. Syndicom also offers medical device companies private, peer-to-peer medical education, collaborative product development, and real-time sales support.

Syndicom’s R&D team combines the business models of many surgeons into the Syndicom business model. They form a crowd source for the Syndicom value propositions for the R&D of service (for orthopedic, trauma and spinal cases) and peer to peer medical education. The surgeons involved are the same-time partners and customers of the Syndicom value propositions of products and services. Syndicom has its own offer as a value proposition for membership into Syndicom, R&D database information, and real-time service.

Companies which offer medical devices combine their business models into the Syndicom business model because by doing so, they can sell on-line to clinics or hospitals where surgeons work. The Syndicom network brings a value proposition to its members and can enable best client relations.

Syndicom’s cost structure is based on the key costs: the R&D of services cost, the platform management cost, and the platform maintainence cost. These are mostly fixed and are determined by the number of network members. Syndicom gets a revenue stream from membership fees, on line sale fees, and advertising fees.

Why should surgeons and medical device producers join the Syndicom business model? Surgeons can gain the opportunity to co-create new products/services, to use other services, and to profit from the know-how and experiences of other surgeons. Medical devices producers join the network because it offers them an on-line channel to many potential customers.

Business Model Canvas, Osterwalder, Pigneur & al. 2010, CC BY-SA 3.0.

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Presently, almost one out of three Slovenians is a Facebook user; among these, those thirty-four years old and younger represent seventy-five percent of our country’s Facebook users. Such statistics make it very evident that it is especially younger Slovenians who love this social network.

Alexander Osterwalder wrote a great post (SOCIAL MEDIA AND BUSINESS MODELS) about the value of social media for business. He drew a map (called the Business Model Canvas,) dividing social media into three areas on business models: co-creation, marketing as conversations, and open innovation. However, I think that , at present, Facebook would not be the best tool for open innovations.

I discovered that Slovenian companies and organizations which use Facebook, such as Toper (12,850 fans), Mi2 band (14,825 fans), and PerpetuumJazzile (38,346 fans) have used Facebook only as a marketing tool. They haven’t utilizedit for product or service co-creation, or for open innovations.

It is also interesting that a lot of car manufacturing companies worldwide haven’t used Facebook as a serious marketing tool.  BMW and Audi are exceptions; they both have large numbers of fans (BMW: 4.313.395 fans; Audi USA : 2.816.715 fans) currently on Facebook. They have developed strategies to use Facebook as a distribution channel for marketing BMW and Audi product offers. On the other hand, Volkswagen has only 251.552 fans and Renault merely 73.236 fans,) indicating that they have no such effective strategies whatsoever.

My research has also concluded that that biggest car manufacturers don’t use Facebook for co-creation and open innovations. However, I think that, with proper planning and execution, that social media site could also be a great tool for the co-creation of products such as cars and car equipment as well as a crowdsource for open innovations.

Even now, Facebook is a great distribution channel for my business. However, when we compare Facebook users in European countries, it becomes clear that the opportunity for major growth potential lies mainly in the Central European countries, Russia. My prediction is that the trend will go in the direction that we can see in Great Britain and Norway, where currently nearly one of every two citizens uses Facebook.

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Facebook will be the key distribution channel in Slovenia since its ad platform allows advertisers to target users with regard to age and geographical location. Companies can set ads to appeal to users based on specific age ranges, interests and/or connections on that network.
In the coming years, Facebook will surely develop into one of the most effective marketing channels, offering co-creation tools, and a forum for crowdsourcing for companies with the foresight and imagination to take advantage of the many opportunities offered.

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Robert Scoble is one of the most famous bloggers in the world. He attracts thousands of followers, friends, subscribers, and fans with his blog contents, videos, and photos on various social media sites.  He combines his business model with the Facebook, Twitter, YouTube, FriendFeed, Building43, Linkedin, Flickr, etc. business models.
Since he was engaged by Rackspace, he has opened social media doors for that enterprise to thousands of his contacts. The company invested  in his knowledge about social media marketing and the Rackspace business model has combined with Robert’s model. That kind of collaboration brings direct and/or indirect benefits to all involved.

Business Model Canvas, Osterwalder, Pigneur & al. 2010, CC BY-SA 3.0.

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A week ago, I talked with the manager of a medium-sized enterprise from the region where I live. He was very optimistic about the economic trends in Slovenia. He told me that his company has had a substantial increase of orders from abroad. As a result, he expects considerable growth in both income and added value in the future.  However, I think that possibility of growth for his company will need a longer period of time in order to affect the regional economy.

The main reason for this situation is that the company mentioned above is unwilling to collaborate with other local enterprises. Older companies which have old-fashioned opinions like to think they are self-sufficient or they work in limited business networks. Those enterprises don’t want to combine business models with any smaller companys’ business models. They mistakenly believe that they cannot share their companies’ value propositions or share in the value propositions in any other companies from the local region. If a company with an increase of orders starts to combine with the value propositions of the local enterprises, then it can increase incomes for commercial and value network services.

What do larger companies have to do to change this situation?

1. They have to eschew isolation, discard their outmoded ideas, and realize that businesses in today’s world flourish more through collaboration than competition.

2. They have to assess own business models.

3. They have to determine the areas suitable for changes.

4.  They have to determine appropriate scenarios.

5. They have to find possibilities for collaboration with the business models of complementary, local area partners.

6. They have to prepare prototypes of business models combining.

7. They have to implement combined business models collaboration in the involved companies.

Whenever I’ve checked my family electric bill, I have never known exactly what’s going on because the calculations are so very complicated. I have kept all my electric bills since 1998 and found that costs have risen very much during this period. I had pre-figured, fixed payments, and never checked the price structure. As a result, the illegal price increases on the part of the electric distribution companies, which are all virtual monopolies, escaped me. The Slovenian electric distribution companies increased prices 6% without any justification in 2008/2009. The High Court decreed that the companies had to pay back that 6 % to each customer. However, to date they haven’t done this.

In terms of Business Models Combining, this situation inspired an interesting initiative from the newly-formed Society for the Return of Overpaid Electricity, which was established by Rado Pezdir. Members of the Society demand the return of over-paid electricity fees and all customers were invited to join the society and to empower executives to request the return in their names. All services are free for the society members and, to date, over 73,000 customers have joined the Society for the Return of Overpaid Electricity, which has attracted the participation of a well-known law firm that has initiated the judicial process.

When the law firm filed the first action against the electric distribution companies, they responded and began to return some over-billings. This presents a classic model for Business Models Combining of individuals / households with a consumer protection society and a law firm. The society has managed to break monopolistic complacency and arrogance. Households have had the cost of electricity reduced, and the law firm has reaped a lot of priceless goodwill and very favorable public relations by forcing the electric distribution companies to return the money that was unlawfully obtained.

Combining customers against monopolistic companies is the most effective tool to achieve justice. It can give consumers an equivalent position in the negotiations for the correction of unfair performance of a value proposition which does not treat them fairly because of their position in the market. Having successfully taken on the electric companies, Rado Pezdir therefore has now announced a new consumer action to be taken against the monopolistic behavior of Slovenia banks.

Business Model Canvas, Osterwalder, Pigneur & al. 2010, CC BY-SA 3.0.

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Patrick van der Pijl intrigued me so much with his idea about a Visualized Business Model FIFA that I have started to research the main parties involved in this most important project: the South Africa World Cup 2010. There are a number of major interested parties participating in the project: FIFA, FIFA confederation members, and the South African government. Each of these main parties has contributed some parts to the jigsaw that, when assembled, forms the South Africa WC 2010 project business model. I think that we can find elements of business models combining in each of those major business models. Without the collaboration of all the interested parties, it’s impossible to imagine the creation of such an important event.

Of course, FIFA has been the most important player in constructing this fantastic value network. In the comments that follow, I will focus only the most important participants, such as the FIFA confederation, its member associations, and the South African government.  However, there have also been many more organizations’ business models which have been influential and have helped make the project a success: hundreds of merchandizing companies, clubs, pubs, and schools, to name but a few. In return, the South Africa WC 2010 business model helps those organizations’ business models – a win-win situation.

The South African World Cup 2010 (SAWC 2010) business model  is integrated with and dependent on the business models of FIFA, the FIFA confederation members association and the South African government. The Fifa business model contributes marketing, organizational, and legal licence support services for the South African World Cup 2010 business model. Fifa has effective distribution channels to target advertisers, soccer fans, sponsors, TV stations, banks, and soccer teams. It also has effective customer relations through some social media sites and the FIFA Awards. FIFA is in charge of all World Cup tournaments and is therefore the most important link in the WC business model chain.

The FIFA confederation member associations (FCMA) business model contributes the world’s best national teams, whose soccer players are the most important  tournament resource. Exciting matches featuring world-famous football stars are the magnet that draws an audience to watch soccer on TV and to visit South Africa and attend the matches there. The FCMA business model incorporates soccer fan associations which can organize local broadcast venues (pubs, restaurants. etc.). They help to promote soccer and SAWC 2010 at a local level, and they promote merchandising in the FCMA countries.

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The third business model which contributes elements into the SAWC 2010 business model is that of the South African government. The South African government Business Model (SAGBM) contributes an appropriate and reliable infrastructure for the tournament. Stadiums are the most important and most expensive investment for the South African government, which also provides appropriate transport and the necessary information/communication infrastructure. Moreover, it has to assure safety by supplying security.

The South African World Cup 2010 (SAWC 2010) business model can access FIFA’s business model services for a fee, and in return gets income from tickets sales, merchandise license fees, advertising & sponsoring, and TV & radio license fees.

SAWC 2010 allows the FIFA confederation member associations (FCMA) business model to promote soccer players, national teams, soccer on national level, and countries the national teams come from worldwide. The national teams all get WC compensation fees.

The South African government benefits from SAWC 2010 by the extensive worldwide promotion of the country, the new infrastructure required for the games, the increase in  business activity, the income from taxes, and the growth of tourism. The South African World Cup 2010 (SAWC 2010) gathers together millions of soccer fans and presents unforgettable matches. These matches inspire people of all ages, races, and genders  to go out and play the sport. Soccer also gives hope to countless poor people in underdeveloped countries when they see role models such as Pele and Maradonna, both of whom used the sport to escape from poverty.  SAWC 2010 provides an marvellous opportunity to combine business models of existing business or start-ups.

The South African World Cup 2010 (SAWC 2010) is great case of business model combining which can help businesses in so many ways at different levels.

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Business Model Canvas, Osterwalder, Pigneur & al. 2010, CC BY-SA 3.0.

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