How much do I want to read more? 6/10
Nice parallel to present yourself as a product.
Yet, everything is so basic. There's not much to be learned in there.
chapter 1 - Business Model Thinking: Adapting to a Changing World
Why Business Model Thinking Is the Best Way For You to Adapt to a Changing World?
a business model is the logic by which an organization sustains itself financially.
Our approach, however, asks you to consider yourself a one-person business.
Because they can’t change the environment they operate in, companies must change their business models.
As it turns out, these new business models them- selves disrupt and cause change. That creates new opportunities for some workers and unemployment for others.
People Must Change, Too
Once you see how a business model applies to where you work now — and where you fit within that model — you’ll be able to use the same powerful way of thinking to define, sharpen, and grow your own career.
chapter 2 - The Business Model Canvas
- Who is the Customer?
- What job does the Customer need to have done?
The Nine Building Blocks
- Customers: An organization serves Customers.
- Value Provided: by solving Customer problems or satisfying Customer needs.
- Channels: Organizations communicate and deliver Value in different ways.
- Customer Relationships: establish and maintain different kinds of relationships with Customers.
- Revenue: Money comes in when Customers pay for Value Provided.
- Key Resources: These are the assets needed to create and/or deliver the previously described elements.
- Key Activities: These are the actual tasks and actions required to create and deliver the previously described elements.
- Key Partners: Some activities are outsourced, and some resources are acquired outside the organization.
- Costs: These are expenses incurred acquiring Key Resources, performing Key Activities, and working with Key Partners.
Customers are the reason for an organization’s existence.
Some organizations serve both paying and non-paying Customers. Most Facebook users, for example, pay Facebook nothing for its services. Yet without hundreds of millions of non-paying Customers, Facebook would have nothing to sell to advertisers or market researchers. Therefore, non-paying Customers may be essential to a business model’s success.
“bundles” of services or products. The ability to provide exceptional Value is the key reason why Customers select one organization over another.
- Convenience: aving Customers time or trouble is an important benefit
- Price: Customers often choose a service because it saves them money.
- Design: Many Customers are willing to pay for excellent product and/or service design.
- Brand or status: helping their Customers feel distinguished or prestigious.
- Cost reduction: For example, instead of buying and continuously maintaining their own computer servers, companies are finding it less costly to use remote servers (cloud services).
- Risk reduction: Gartner, for instance, sell research and advisory services to help other companies predict the potential benefits of spending additional money.
- Create awareness of services or products
- Help potential Customers evaluate products or services 3. Enable Customers to purchase
- Deliver Value to Customers
- Ensure post-purchase satisfaction through support
Typical channels include:
- In-person or telephone
- On-site or in-store
- Physical delivery
- The Internet (social media, blogs, e-mail, etc.)
- Traditional media (television, radio, newspapers, etc.)
to acquire new Customers? Retain existing Customers? Or derive more Revenue from existing Customers?
in the early days of mobile communications, cell phone companies focused on acquiring Customers, using aggressive tactics such as offering free phones. When the market matured, they changed their focus to retaining Customers and increasing average Revenue per Customer.
- Outright sale: Customers purchase ownership rights to a physical product. Toyota.
- Lease or rent: or a fixed time, like a hotel room, apartment, or rental car.
- Service or usage fee: Telephone companies charge users by the minute. Doctors charge by the hour.
- Subscription fees: online game providers sell continuous access to services in the form of subscription fees.
- Licensing: Intellectual property holders can give Customers permission to use their protected property in exchange for licensing fees.
- Brokerage (matching) fees: Century 21 earn brokerage fees by matching buyers with sellers.
- Human: All enterprises need people
- Physical: Land, buildings, machines, and vehicles
- Intellectual: software, and patents or copyrights
- Financial: cash, lines of credit, or financial guarantees.
- Making: manufacturing products, designing/developing/delivering services, and solving problems.
- Selling: promoting, advertising, or educating potential Customers.
- Supporting: hiring people and doing bookkeeping
most organizations outsource payroll.
A wedding gown rental firm, a florist, and a photographer, for example, might share their Customer lists.
Once developed, a software program can be reproduced and distributed at low cost.
chapter 3 - The Personal Business Model Canvas
the Key Resource is you: your interests, skills and abilities, personality, and the assets you own or control.