+1 useful book: “Wiley Business Model Generation”
Angel advised us to read a practical book, which made it possible to clarify and understand what the business model of our service should look like. The book is called Wiley Business Model Generation. In general, I want to note that in two years of "startup" we listened to a bunch of different theories on building a business model. And this is the first intelligible and almost visual material. In this topic, we want to share with the habractor readers the key moments of building a business model described in the book, and to hear the opinions of experts working in startups.
The concept of 9 components (blocks), proposed by Wiley and 470 enthusiasts from 45 countries, allows you to put the company's business model in a scheme on an A2 format Whatman.
The book contains patterns of business models, examples of how the constituent parts are glued and poured into some cool project. We note the most interesting (in our opinion) examples of different business models.
The Long Tail model assumes a variety of niche products, each of which is sold relatively infrequently. The cumulative sales of products of each niche can be no less profitable than traditional ones, in which a small part of the best-selling products (best sellers) brings most of the income. With this approach, the ability to access information about each product from potential consumers becomes critical.
An example is Lego, which transferred the bulk of Product Development to its own users. Besides the fact that users got the opportunity to develop Lego kits “for themselves”, the range of offered kits has significantly expanded.
The Free business model involves at least one consumer segment that has the ability to constantly use the product for free. This segment can be financed by another part of the business model or by another segment of consumers.
The model is illustrated by the Metro newspaper, which is completely free for readers, which significantly increased the pressure on the already long-suffering traditional newspaper business, while focusing on young readers who hadn’t especially read the newspapers before.
Basic features are free, additional - for $ 10. It is considered normal if 10% of consumers pay for additional features. The model is disassembled using the examples of the Skype, Red Hat, Rega (insurance), Bait & Hook of Free Mobile Phones, Razor & Blades: Gillette projects.
300 pages, 2010, well laid out, many beautiful pictures. In Russian (it seems) was not published, but there is a presentation on SlideShare with an emphasis on finding investments. There is also a wikipedia article.
PS By the way, hello hello and congratulations to the representatives of one of our Customer Segments , winners of the next CTF ( Positive Hack Days) More Leet Chicken. Positive Hack Days is an international forum on practical safety organized by Positive Technologies.
The concept of 9 components (blocks), proposed by Wiley and 470 enthusiasts from 45 countries, allows you to put the company's business model in a scheme on an A2 format Whatman.
The book contains patterns of business models, examples of how the constituent parts are glued and poured into some cool project. We note the most interesting (in our opinion) examples of different business models.
Long tail
The Long Tail model assumes a variety of niche products, each of which is sold relatively infrequently. The cumulative sales of products of each niche can be no less profitable than traditional ones, in which a small part of the best-selling products (best sellers) brings most of the income. With this approach, the ability to access information about each product from potential consumers becomes critical.
Lego
An example is Lego, which transferred the bulk of Product Development to its own users. Besides the fact that users got the opportunity to develop Lego kits “for themselves”, the range of offered kits has significantly expanded.
Free
The Free business model involves at least one consumer segment that has the ability to constantly use the product for free. This segment can be financed by another part of the business model or by another segment of consumers.
Newspaper Metro
The model is illustrated by the Metro newspaper, which is completely free for readers, which significantly increased the pressure on the already long-suffering traditional newspaper business, while focusing on young readers who hadn’t especially read the newspapers before.
Freemium
Basic features are free, additional - for $ 10. It is considered normal if 10% of consumers pay for additional features. The model is disassembled using the examples of the Skype, Red Hat, Rega (insurance), Bait & Hook of Free Mobile Phones, Razor & Blades: Gillette projects.
300 pages, 2010, well laid out, many beautiful pictures. In Russian (it seems) was not published, but there is a presentation on SlideShare with an emphasis on finding investments. There is also a wikipedia article.
PS By the way, hello hello and congratulations to the representatives of one of our Customer Segments , winners of the next CTF ( Positive Hack Days) More Leet Chicken. Positive Hack Days is an international forum on practical safety organized by Positive Technologies.