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This SME webinar will start at
5:00 pm Dubai 4:00 pm Riyadh 3:00 pm Cairo
For tweeting: #ICME2013
Session 3: Business Model (External)
Session by Linda Elawar
Hosted by Faher Afra
Business Model (External)
For tweeting: #ICME2013
Session Agenda
1. Business Model
2. Our focus today: External Elements
• Customer Segments
• Value Proposition
• Channels
• Customer Relationships
• Revenue Streams
3. Case Studies
4. Exercise: Identify your Unique Value Proposition
5. Final Thoughts
Business Model (External)
For tweeting: #ICME2013
Linda Elawar
Consulting Partner
potential.com
@lindaelawar
Your Presenter
Business Model (External)
For tweeting: #ICME2013
Mentoring
Focus
2-
Entrepreneurship
& Innovation
3- Business
Model (External)
•Entrepreneurship
•Innovation
•The Opportunity
Development
Streams
How will we execute
5- Starting UP
•Target Segment
•Value Proposition
•Channels & Client
Relationship
•Revenue
•Activities
•The Team & Resources
•Partnerships
•Costs
•Startup Costs
•Your Prototype
•Elevator Pitch
•Sales & Networking
Polishing the new
expansionary
business idea
Identifying
Unique Value
Proposition
Milestone
Attracting sales &
investments
Underlying
Components
Social Network and Learning
Management System to manage
each individual’s development
Blended Learning Programs
using Video Conferencing to
minimize costs
Practical and relevant
experience from regional
experts
Create an ecosystem that
links incubators, universities
etc..
6 Web
Sessions
Support to
Participants
Today’s Focus: Business Model (External)
Building the prototype
4- Business
Model (Internal)
1- Introduction
6- Team
Registration
Business Model (External)
For tweeting: #ICME2013
What was the old way to startup a business?
Have an
Idea
Write a
business
Plan
Pitch it
to
investors
Build
your
team
Make a
product
Sell as
much as
you can
Business Model (External)
For tweeting: #ICME2013
What was the result?
• It’s a roll of a dice.
• By the time you start selling your product, your business plan
would have all changed.
Business Model (External)
For tweeting: #ICME2013
How do we build businesses now?
Test it out
Business
Model Try to sell
Rapid
Prototype
ReDesign
based on
feedback
Reintroduce
Business Model (External)
For tweeting: #ICME2013
What is a Business Model?
It is a tool for describing and prototyping your business
Business Model (External)
For tweeting: #ICME2013
Business Model (External)
For tweeting: #ICME2013
The Business Model Canvas
Business Model (External)
For tweeting: #ICME2013
Session Agenda
1. Business Model
2. Our focus today: External Elements
• Customer Segments
• Value Proposition
• Channels
• Customer Relationships
• Revenue Streams
3. Case Studies
4. Exercise: Identify your Unique Value Proposition
5. Final Thoughts
Business Model (External)
For tweeting: #ICME2013
Our focus today: External Elements
Business Model (External)
For tweeting: #ICME2013
Customer Segments
Business Model (External)
For tweeting: #ICME2013
Customer Segments Examples
• Mass Market
• Niche Market
• Segmented
• Diversified
• Multi-sided Platform
Business Model (External)
For tweeting: #ICME2013
Value Propositions
Business Model (External)
For tweeting: #ICME2013
Value Propositions Characteristics
• Newness
• Performance
• Customization
• “Getting the Job Done”
• Design
• Brand/Status
• Price
• Cost Reduction
• Risk Reduction
• Accessibility
• Convenience/Usability
Business Model (External)
For tweeting: #ICME2013
Channels
Business Model (External)
For tweeting: #ICME2013
Channel Phases
• Awareness - How do we raise awareness
about our company’s products and
services?
• Evaluation - How do we help customers
evaluate our organization’s Value
Proposition?
• Purchase - How do we allow customers to
purchase specific products and services?
• Delivery - How do we deliver a Value
Proposition to customers?
• After sales - How do we provide post-
purchase customer support?
Business Model (External)
For tweeting: #ICME2013
Customer Relationships
Business Model (External)
For tweeting: #ICME2013
Customer Relationships Examples
• Personal assistance
• Dedicated Personal Assistance
• Self-Service
• Automated Services
• Communities
• Co-creation
Business Model (External)
For tweeting: #ICME2013
Revenue Streams
Business Model (External)
For tweeting: #ICME2013
Revenue Streams Types & Pricing
Types:
• Asset sale
• Usage fee
• Subscription Fees
• Lending/Renting/Leasing
• Licensing
• Brokerage fees
• Advertising
Fixed pricing
• List Price
• Product feature dependent
• Customer segment dependent
• Volume dependent
Dynamic pricing
• Negotiation( bargaining)
• Yield Management
• Real-time-Market
Business Model (External)
For tweeting: #ICME2013
Session Agenda
1. Business Model
2. Our focus today: External Elements
• Customer Segments
• Value Proposition
• Channels
• Customer Relationships
• Revenue Streams
3. Case Studies
4. Exercise: Identify your Unique Value Proposition
5. Final Thoughts
Business Model (External)
For tweeting: #ICME2013
Let’s look at three Generic BMs
Business Model (External)
For tweeting: #ICME2013
Bait & Hook
Economic logic: Selling a product at a loss or very low margin to
enable selling volumes of another higher margin product
Business Model (External)
For tweeting: #ICME2013
Case Study of Bait & Hook Model:
Business Model (External)
For tweeting: #ICME2013
Freemium
Economic logic: Giving away a basic version of your product to the
majority of users while offering one or more Premium versions to
paying users
Business Model (External)
For tweeting: #ICME2013
Case Study of Freemium Model:
Business Model (External)
For tweeting: #ICME2013
Connection Platform
Economic logic: Connecting two or more groups of either buyers or
vendors of a certain product/service at a small transaction fee per
interaction
Business Model (External)
For tweeting: #ICME2013
Case Study of Connection Platform Model:
Business Model (External)
For tweeting: #ICME2013
How would you start building the Perfect Business Model?
Business Model (External)
For tweeting: #ICME2013
Business Model (External)
For tweeting: #ICME2013
Business Model (External)
For tweeting: #ICME2013
Identify your Unique Value Proposition
1. Which customers are your targeting to serve?
2. Which customer needs do you plan to respond to?
3. Through which channels do you plan to reach your customer
segments?
4. What type of relationship do you expect to build and maintain
with your customers?
5. What value are your customers willing to pay?
Business Model (External)
For tweeting: #ICME2013
Final Thoughts
The entrepreneur always searches for change, responds to it, and
exploits it as an opportunity. – Peter F. Drucker
Business Model (External)
For tweeting: #ICME2013
Intel Challenge ME Facebook Page
Join and Like us on Facebook: Intel Challenge ME
Business Model (External)
For tweeting: #ICME2013
Intel Challenge ME Twitter
Follow us on Twitter: @ICME2013
Business Model (External)
For tweeting: #ICME2013
Sample of video cuts from previous sessions
Go to http://potential.com/resources/training-videos/ to watch video
clips on related sessions
Business Model (External)
For tweeting: #ICME2013
Thank You.

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3 business model (external)

  • 1. This SME webinar will start at 5:00 pm Dubai 4:00 pm Riyadh 3:00 pm Cairo For tweeting: #ICME2013 Session 3: Business Model (External) Session by Linda Elawar Hosted by Faher Afra
  • 2. Business Model (External) For tweeting: #ICME2013 Session Agenda 1. Business Model 2. Our focus today: External Elements • Customer Segments • Value Proposition • Channels • Customer Relationships • Revenue Streams 3. Case Studies 4. Exercise: Identify your Unique Value Proposition 5. Final Thoughts
  • 3. Business Model (External) For tweeting: #ICME2013 Linda Elawar Consulting Partner potential.com @lindaelawar Your Presenter
  • 4. Business Model (External) For tweeting: #ICME2013 Mentoring Focus 2- Entrepreneurship & Innovation 3- Business Model (External) •Entrepreneurship •Innovation •The Opportunity Development Streams How will we execute 5- Starting UP •Target Segment •Value Proposition •Channels & Client Relationship •Revenue •Activities •The Team & Resources •Partnerships •Costs •Startup Costs •Your Prototype •Elevator Pitch •Sales & Networking Polishing the new expansionary business idea Identifying Unique Value Proposition Milestone Attracting sales & investments Underlying Components Social Network and Learning Management System to manage each individual’s development Blended Learning Programs using Video Conferencing to minimize costs Practical and relevant experience from regional experts Create an ecosystem that links incubators, universities etc.. 6 Web Sessions Support to Participants Today’s Focus: Business Model (External) Building the prototype 4- Business Model (Internal) 1- Introduction 6- Team Registration
  • 5. Business Model (External) For tweeting: #ICME2013 What was the old way to startup a business? Have an Idea Write a business Plan Pitch it to investors Build your team Make a product Sell as much as you can
  • 6. Business Model (External) For tweeting: #ICME2013 What was the result? • It’s a roll of a dice. • By the time you start selling your product, your business plan would have all changed.
  • 7. Business Model (External) For tweeting: #ICME2013 How do we build businesses now? Test it out Business Model Try to sell Rapid Prototype ReDesign based on feedback Reintroduce
  • 8. Business Model (External) For tweeting: #ICME2013 What is a Business Model? It is a tool for describing and prototyping your business
  • 9. Business Model (External) For tweeting: #ICME2013
  • 10. Business Model (External) For tweeting: #ICME2013 The Business Model Canvas
  • 11. Business Model (External) For tweeting: #ICME2013 Session Agenda 1. Business Model 2. Our focus today: External Elements • Customer Segments • Value Proposition • Channels • Customer Relationships • Revenue Streams 3. Case Studies 4. Exercise: Identify your Unique Value Proposition 5. Final Thoughts
  • 12. Business Model (External) For tweeting: #ICME2013 Our focus today: External Elements
  • 13. Business Model (External) For tweeting: #ICME2013 Customer Segments
  • 14. Business Model (External) For tweeting: #ICME2013 Customer Segments Examples • Mass Market • Niche Market • Segmented • Diversified • Multi-sided Platform
  • 15. Business Model (External) For tweeting: #ICME2013 Value Propositions
  • 16. Business Model (External) For tweeting: #ICME2013 Value Propositions Characteristics • Newness • Performance • Customization • “Getting the Job Done” • Design • Brand/Status • Price • Cost Reduction • Risk Reduction • Accessibility • Convenience/Usability
  • 17. Business Model (External) For tweeting: #ICME2013 Channels
  • 18. Business Model (External) For tweeting: #ICME2013 Channel Phases • Awareness - How do we raise awareness about our company’s products and services? • Evaluation - How do we help customers evaluate our organization’s Value Proposition? • Purchase - How do we allow customers to purchase specific products and services? • Delivery - How do we deliver a Value Proposition to customers? • After sales - How do we provide post- purchase customer support?
  • 19. Business Model (External) For tweeting: #ICME2013 Customer Relationships
  • 20. Business Model (External) For tweeting: #ICME2013 Customer Relationships Examples • Personal assistance • Dedicated Personal Assistance • Self-Service • Automated Services • Communities • Co-creation
  • 21. Business Model (External) For tweeting: #ICME2013 Revenue Streams
  • 22. Business Model (External) For tweeting: #ICME2013 Revenue Streams Types & Pricing Types: • Asset sale • Usage fee • Subscription Fees • Lending/Renting/Leasing • Licensing • Brokerage fees • Advertising Fixed pricing • List Price • Product feature dependent • Customer segment dependent • Volume dependent Dynamic pricing • Negotiation( bargaining) • Yield Management • Real-time-Market
  • 23. Business Model (External) For tweeting: #ICME2013 Session Agenda 1. Business Model 2. Our focus today: External Elements • Customer Segments • Value Proposition • Channels • Customer Relationships • Revenue Streams 3. Case Studies 4. Exercise: Identify your Unique Value Proposition 5. Final Thoughts
  • 24. Business Model (External) For tweeting: #ICME2013 Let’s look at three Generic BMs
  • 25. Business Model (External) For tweeting: #ICME2013 Bait & Hook Economic logic: Selling a product at a loss or very low margin to enable selling volumes of another higher margin product
  • 26. Business Model (External) For tweeting: #ICME2013 Case Study of Bait & Hook Model:
  • 27. Business Model (External) For tweeting: #ICME2013 Freemium Economic logic: Giving away a basic version of your product to the majority of users while offering one or more Premium versions to paying users
  • 28. Business Model (External) For tweeting: #ICME2013 Case Study of Freemium Model:
  • 29. Business Model (External) For tweeting: #ICME2013 Connection Platform Economic logic: Connecting two or more groups of either buyers or vendors of a certain product/service at a small transaction fee per interaction
  • 30. Business Model (External) For tweeting: #ICME2013 Case Study of Connection Platform Model:
  • 31. Business Model (External) For tweeting: #ICME2013 How would you start building the Perfect Business Model?
  • 32. Business Model (External) For tweeting: #ICME2013
  • 33. Business Model (External) For tweeting: #ICME2013
  • 34. Business Model (External) For tweeting: #ICME2013 Identify your Unique Value Proposition 1. Which customers are your targeting to serve? 2. Which customer needs do you plan to respond to? 3. Through which channels do you plan to reach your customer segments? 4. What type of relationship do you expect to build and maintain with your customers? 5. What value are your customers willing to pay?
  • 35. Business Model (External) For tweeting: #ICME2013 Final Thoughts The entrepreneur always searches for change, responds to it, and exploits it as an opportunity. – Peter F. Drucker
  • 36. Business Model (External) For tweeting: #ICME2013 Intel Challenge ME Facebook Page Join and Like us on Facebook: Intel Challenge ME
  • 37. Business Model (External) For tweeting: #ICME2013 Intel Challenge ME Twitter Follow us on Twitter: @ICME2013
  • 38. Business Model (External) For tweeting: #ICME2013 Sample of video cuts from previous sessions Go to http://potential.com/resources/training-videos/ to watch video clips on related sessions
  • 39. Business Model (External) For tweeting: #ICME2013 Thank You.