business model generation patterns by manpreet singh digital

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 digital

1. Part 2 Written by : Alexander Osterwalder & Yves Pigneur Presented by : Manpreet Singh

2. Patterns

3. Idea Architectural design ideas Archetypal Reusable description

4. Meaning - Similarities in business models Characteristics Arrangement of Business model blocks Behavior Objective – Understand business model dynamics Serve as a source of inspiration Literature concepts Language of Business model canvas Comparable Easy to understand Applicable

5. Concepts driving Patterns Long Tail Multi sided Platforms Open Business Models

6. Different Imperatives Economic Competitive Cultural

7. Private banking Three businesses in one.. Face Trade offs Eg . Zurich Based Pvt. Bank Maerki baumann Unbundling Telco Traditionally competed on network quality Now network sharing deals with Competitors or Equipment Manufacturers Content Providers Realize key asset

8. Unbundled Patterns Acquired from 3 rd Parties Customer base & trust acq . overtime Customer Acquisition & retention

9. Long Tail Business Model Selling less o f more Focus on relatively Infrequent products Require Low inventory & Strong platforms # of products # of sales focus

10. Transformation of book publishing industry Old Model New model by lulu.com

11. LEGO’s New Long tail Starwars , batman, Indiana jones Lego factory using Lego digital designer

12. 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

13. 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/Xbox Same Pattern, Different Focus More players- more Developers more Games – more hardware sale Wii focus Fun gamers inexpensive machines R emote & physical gestures

14. Apple’s evolution into a Platform Operator Standalone iPod + iTunes i P hone + A ppstore

15. Multi sided Platform Pattern

16. 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

17. 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 : Innocentive Link between “seekers” & “solvers”, Provided cash prizes ranging $5K to $1mn 3 Bridges of P&G Technology Entreprenuers Internet Platforms Retirees

18. OBM Pattern

19. Thank You 