We've analyzed tons of disruptive players when we were writing our book on Digital Transformation. We discovered 7 similarities and call them "The 7 Metaphors of Digital Disruption". We saw that all the disruptors score high on these drivers of transformation while traditional players have trouble with these metaphors. The new players are attacking you on every level.
How can you defend your business from these new players in your market? You should learn how they operate and try to implement (elements of) the business models of disruptive companies.
We've made a presentation that guides you through ten business models of hyper disruptors that we found inspiring. We hope you do too. Please let us know your thoughts about it!
7. THE GLASS HOUSE
10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?
THE CHANGING RELATIONSHIP BETWEEN THE ORGANIZATION AND THE OUTSIDE WORLD.
8. THE PACKAGE
10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?
THE EVOLUTION OF UNBUNDLING AND HOW THIS CHANGES THE PRODUCTS
AND SERVICES YOU OFFER AND YOUR GO-TO-MARKET.
9. THE FROG
10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?
THE BY-PASSING THAT YOU ARE SUBJECT TO OR THAT YOU CAN PERFORM
YOURSELF, LEADING TO A CHANGE IN THE EXISTING VALUE CHAIN.
10. THE GATEKEEPER
10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?
THE CHANGE OF OPINION MAKING, OF LEADERSHIP AND THE ENTRANCE OF
NEW PLAYERS THAT DOMINATE THE ATTENTION OF THE PEOPLE.
11. THE TRAVELER
10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?
THE CHANGE OF LOCATION & PLACE, THE EMERGENCE OF HYBRID MODELS THAT MERGE
ONLINE & OFFLINE AND CREATE A CONSISTENT USER EXPERIENCE & CUSTOMER JOURNEY.
12. THE PARTICIPANT
10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?
THE IMPORTANCE OF THE CROWD AND THE POWER THAT IT REPRESENTS FOR THE
GOOD OR THE BAD OF THE ORGANIZATION.
13. THE CYBORG
10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?
THE REALIZATION THAT WE ARE JUST AT THE BEGINNING
OF THE DIGITAL REVOLUTION.
14. 10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?
THE SEVEN METAPHORS OF DISRUPTION
THE
GLASS
HOUSE
THE
PACKAGE
THE
FROG
THE
GATE
KEEPER
THE
TRAVELER
THE
PARTICIPANT
THE
CYBORG
15. 10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?
THIS IS YOU
16. 10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?
THIS IS DISRUPTIVE
17. 10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?
THIS IS HYPER DISRUPTIVE
18. THE HYPER DISRUPTOR
ATTACKS YOU ON EVERY
LEVEL. THE METAPHORS
REINFORCE EACH
OTHER IN EVERY WAY.
10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?
19. CAN YOU IMPROVE?
HOW WILL YOU IMPROVE?
10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?
20. CAN YOU IMPLEMENT
BUSINESS MODELS OF
THE HYPER DISRUPTORS
INTO YOUR BUSINESS?
10 HYPER DISRUPTIVE BUSINESS MODELS10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE?
23. 1. THE SUBSCRIPTION MODEL
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
The subscription model is a business model where a customer must pay a
returning subscription price to have access to the product/service.
PIONEERED BY
Newspapers & magazines
TYPES OF DISRUPTORS USING THE SUBSCRIPTION MODEL
Netflix, HelloFresh, Dollar Shave Club, Kindle, One
WHY?
The constant revenue stream from subscribers reduces uncertainty & often provides
payment in advance, while allowing customers to become greatly attached to using
the service and, therefore, more likely to extend the subscription. The revenue stream
from recurring subscriptions often is greater than the revenue from simple one-time
purchases. This is known as the lock-in mechanism.
24. 1. THE SUBSCRIPTION MODEL
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
Netflix One Medical Group
Dollar Shave Club
Kindle Unlimited
Hello Fresh
26. 2. THE FREEMIUM MODEL
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
The freemium model is a business model where the customer has free access
to the basic service but is charged for additional features.
PIONEERED BY
Software companies giving away free ‘lite’ floppy
disks of their products in the 80’s
TYPES OF DISRUPTORS USING THE FREEMIUM MODEL
Spotify, Dropbox, LinkedIn, The New York Times, Farmville
WHY?
The freemium model is used to build a large consumer base when the marginal cost
of producing extra units is low. Giving the service away for free results in acquiring a
lot of prospects very efficiently. The non-paying customers result in input of data,
feedback, notoriety, advertising opportunities, etc.
27. 2. THE FREEMIUM MODEL
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
THE FREEMIUM MODEL HAS NUMEROUS WAYS IN WHICH THE PRODUCT OR SERVICE
MAY BE RESTRICTED IN THE FREE BASIC USAGE:
• FEATURE LIMITED
Skype: Only two-way video calling on the free version
• CAPACITY LIMITED
Dropbox: Maximum 2GB cloud storage space
• CUSTOMER CLASS LIMITED
AutoDesk: AutoCAD is free for Students
• EFFORT LIMITED
FarmVille: Unlock levels faster
OTHER EXAMPLES OF FREEMIUMS ARE:
• ADD-FREE UPGRADES - HBO Premium Channels don’t show tv ads
• TIERED SERVICES - LinkedIn provides with more services when upgraded
• SOFT PAYWALLS - The New York Times let’s you read 20 articles per month for free
• IN-GAME PURCHASES - Candy Crush let’s you buy power ups to go on with the game faster
HARD PAYWALLS ARE NOT FREEMIUM SINCE THERE IS NO FREE BASIC USE!
28. 2. THE FREEMIUM MODEL
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
FREEMIUM
IS NOT
PREMIUM
Premiums have an upfront price before they can even be
used. It’s similar to licensed software, except that all
future upgrades to the premium are free once purchased.
Freemiums don’t have an
upfront price. However, the
customer will have to pay for
every upgrade.
29. 2. THE FREEMIUM MODEL
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
FREEMIUM
IS NOT
FREE TRIAL
Free trials are limited in time and give the consumer the
whole experience of the product or the service.
Freemiums are free forever but
will not give the potential
customer the full package of
the product or service.
30. 2. THE FREEMIUM MODEL
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
FREEMIUM
IS NOT
FREE
Free means free. There are no upgrades for users
whatsoever or they are free as well. The only way free
can be free, is when the users pay with their data, their
attention or if you’re called Instagram and get acquired
for a billion dollars by Facebook.
The goal of a freemium is to
convert at least 1% of the free
users into paying customers.
32. 3. THE FREE MODEL
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
The free model is a business model integrated by companies that don’t charge the end
users (directly). The data and the attention of the users is the currency.
PIONEERED BY
Search Engines
TYPES OF DISRUPTORS USING THE FREE MODEL
Google, Facebook, Snapchat
WHY?
By offering the product or service for free it is easy to gain a lot of users. The more
people that interact with the product, the more data that can be extracted from the
users. Besides data, the attention is also a big asset for these companies. The end user
normally is not ‘the customer’ of the free model company.
33. 3. THE FREE MODEL
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
Free model businesses can offer their service or product without charging the user
for two reasons:
- THE DATA OF THE END USER IS BEING SOLD
- THE ATTENTION OF THE END USER IS BEING SOLD
When a free model company combines its data with advertising opportunities,
the advertising will be much more targeted thus much more effective and,
needless to say, much more expensive.
35. 4. THE MARKET PLACE
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
The market place is a business model used by a company that only facilitates a
platform where parties economically interact with each other.
PIONEERED BY
Classifieds in newspapers
TYPES OF DISRUPTORS USING THE MARKET PLACE MODEL
eBay, Alibaba, Friendsurance, priceline.com, The Lending Club, etc.
WHY?
The market place is a business model that defines a company as a big supplier of a
product or service without that company having the good or the service. It only
facilitates the platform where people interact with each other in any (economical) way.
The market place business generates revenue by taking a percentage of any
transaction between people on their platform.
36. 4. THE MARKET PLACE
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
Priceline.com
Friendsurance
The Food AssemblyAlibaba
37. 4. THE MARKET PLACE
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
Other examples of companies that use the market place business model are
Lending Club (the world’s largest online marketplace connecting borrowers and
investors), Beatport (the marketplace where most of the dj’s sell and buy their
music), Upwork (supply & demand of freelancers).
IS ITUNES A MARKET PLACE TOO?
We would say it’s a freemium because you can use the basic product for free, which
is listening to music that you’ve bought. The iTunes store, however, could be seen as
a market place or as the paying extra service that upgrades the media player. It’s
up to you to decide.
Apple is a hyper disruptor and thus king in combining disruptive business models
that scores high on every earlier discussed metaphor or driver of disruption.
39. 5. ACCESS OVER OWNERSHIP
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
The access over ownership model is the business model that grants customers the use
of the product without buying it. “Everything as a service.”
PIONEERED BY
Sharing economy
TYPES OF DISRUPTORS USING THE ACCESS OVER OWNERSHIP MODEL
Zipcar, ParkCirca, Peerby
WHY?
Access over ownership companies generate revenue by using the power of the sharing
economy. Just like market place companies, the access over ownership model only
facilitates the actions between people thus making it needless for these companies to
invest in products or people.
40. 5. ACCESS OVER OWNERSHIP
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
ParkCirca
Peerby
Zipcar
42. 6. THE HYPER MARKET
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
The hyper market is the business model used by digital companies that act as hyper
stores, offering enormous amounts of products and or services.
PIONEERED BY
Amazon
TYPES OF DISRUPTORS USING THE HYPER MARKET MODEL
Amazon, Zalando, Coolblue
WHY?
Having large amounts of goods or services results in having great scale advantages.
These companies often sell products under the market price to expand territory. The
digital hyper market players are hyper disruptive since their main objective is to kill the
competition in a fierce pricing battle that you probably can’t win.
43. 6. THE HYPER MARKET
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
ZalandoCoolblue
45. 7. THE EXPERIENCE MODEL
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
The experience model is a business model used by a company that provides the
customers with an unseen (user) experience.
PIONEERED BY
Apple
DISRUPTORS USING THE EXPERIENCE MODEL
Tesla, KLM, Disney World, Tomorrowland
WHY?
Customers of experience model companies mostly are willing to pay more just because
of the special (user) experience they get when interacting with the company or the
product. Experience companies are often situated in or penetrating competitive
markets. In these markets you can either offer the lowest price or provide consumers
with the best experience.
46. 7. THE EXPERIENCE MODEL
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
Tesla KLM Disney World
Tomorrowland
48. 8. THE PYRAMID
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
The pyramid has nothing to do with Ponzi schemes. It’s the collective term for all companies that are
generating major parts of their revenue by affiliates & resellers. The company sits on top of the pyramid
and lets the revenue stream upwards with the least possible effort.
PIONEERED BY
William J. Tobin
TYPES OF DISRUPTORS USING THE PYRAMID MODEL
Amazon, online retailers (fitness, fashion, etc.)
WHY?
The pyramid business model is a cost-effective way of building your business because
you only pay your ‘sales people’ a percentage of the profit. Needless to say, companies
like this don’t have (a lot of) sales staff, which raises the certainty regarding cash flow.
Pyramid companies will often use people with high notoriety to sell their products.
49. 8. THE PYRAMID
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
Amazon
50. 8. THE PYRAMID
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
Fitness goods sold by affiliates & influencers
51. 9.THE ON DEMAND MODEL
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
52. 9. THE ON DEMAND MODEL
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
The on demand model generates revenue by the exponential need of people to have
things done right away. Speed and convenience matter the most.
PIONEERED BY
Uber
TYPES OF DISRUPTORS USING THE ON DEMAND MODEL
Uber, Operator, TaskRabbit
WHY?
The on demand company will provide (new) services that make the lives of its
customers easier. The on demand model is a business model that holds a high risk but
when executed properly and accorded to the right needs of a market, it will disrupt the
entire industry. People value time.
53. 9. THE ON DEMAND MODEL
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
Operator
Uber
TaskRabbit
Our On Demand Service Economy
55. 10. THE ECOSYSTEM
10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
The ecosystem is one of the most powerful, disrupting business model. Companies build an
entire universe of products and services in which customers gets lost without them knowing it.
PIONEERED BY
Apple & Google
TYPES OF DISRUPTORS USING THE ECOSYSTEM
Apple & Google
WHY?
The ecosystem business model only exists when companies can offer enough services
and or products that cause a high level of dependence of the customer. Once the
customer is dragged too far in the ecosystem, he can hardly get back out. The iPhone
breaks? Too bad that you already bought a MacBook & the Apple Watch. You just need
to buy another iPhone.
57. 10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS
1. THE SUBSCRIPTION MODEL
2. THE FREEMIUM MODEL
3. THE FREE MODEL
4. THE MARKET PLACE
5. ACCESS OVER OWNERSHIP
6. THE HYPER MARKET
7. THE EXPERIENCE MODEL
8. THE PYRAMID
9. THE ON DEMAND
10. THE ECOSYSTEM
59. 10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER?
THE SEVEN
METAPHORS
OF DISRUPTION
60. 10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER?
THE
GLASS
HOUSE
THE
PACKAGE
THE
FROG
THE
GATE
KEEPER
THE
TRAVELER
THE
PARTICIPANT
THE
CYBORG
THE SEVEN METAPHORS OF DISRUPTION
61. 10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER?
THE TEN
HYPER DISRUPTIVE
BUSINESS MODELS
62. 10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER?
1. THE SUBSCRIPTION MODEL
2. THE FREEMIUM MODEL
3. THE FREE MODEL
4. THE MARKET PLACE
5. ACCESS OVER OWNERSHIP
6. THE HYPER MARKET
7. THE EXPERIENCE MODEL
8. THE PYRAMID
9. THE ON DEMAND
10. THE ECOSYSTEM
63. 10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER?
HYPER DISRUPTORS
COMBINE DIFFERENT
BUSINESS MODELS
64. 10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER?
HYPER DISRUPTORS
ATTACK YOU ON EVERY
DRIVER OF DISRUPTION
65. DO YOU THINK YOU CAN
COMPETE WITH THESE
COMPANIES?
10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER?
66. IF YOU NEED HELP,
CONTACT US!
10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER?
67. 10 HYPER DISRUPTIVE BUSINESS MODELS
@DADOVANPETEGHEM @NICKVINCKIER
DADO@DEARMEDIA.BE NICK@DEARMEDIA.BE
DADO VAN PETEGHEM
Managing Partner
NICK VINCKIER
Strategy Consultant
+32 474 82 68 07 +32 474 39 12 82