Contents

1. Why New Business Models?

Business Model: Connecting Internal Inputs to Economic Outputs

Six Components of a Business Model (see slide)

Rapidly Changing Global Scenario

Fundamental Management Changes Engendered by Internet

Changes That Call for New Business Models

Intellectual Assets – the Major Value Driver in the New Economy (see slide)

Knowledge-based Enterprise versus Industrial Enterprise

Corporate Management versus Venture Management

Top 10 Forces Behind New Business Models

Business Case: Direct Model of Dell Computer Corporation (see slide)

2. Innovative Value Proposition

The Best Technique to Win the Customer Over

Business Case: Amazon.com

The Tao of Value Innovation

Customer Intimacy: the Three Routes (see slide)

3. Innovative Market Segmentation

The Normal Curve of New Concept Adoption (see slide)

Psychographic Classification of Customers

Differentiating with Different Types of People

Business Case: Segmentation by Customer by Dell Computers

4. Innovative Value Creation Structures

State-of-the-Art Value Chain (see slide)

Extended Enterprise

Core Competencies

Virtual Integration

Shift from Functional to Cross-functional Paradigm (see slide)

Employee Empowerment  (see slide)

Strategic Alliances  (see slide)

Customer Partnership  (see slide)

5. Innovative Revenue Models

Business Case: Xerox Corporation

Utilizing Intellectual Property by Small Technology Businesses

Customer Training: Traditional and New Business Models

Business Models on the Web: Nine Basic Categories

6. Innovative Competitive Strategies

Four Types of Marketing War Fare

Sustainable Competitive Advantage  (see slide)

Entrepreneurial Organization

Differentiation Strategies

7. Innovative Growth Strategies

Managing Your Venture at Different Growth Stages

Strategy Pyramid (old) versus Strategy Stretch (new)

Achieving Top-line Growth and Bottom-line Results

Business Case: Thermo Electron Corporation  (see slide)

Business Case: Bunsha - a Japanese Company Division Concept

Fast Company

 Sample Ten3 SMART Lesson (Slide + Executive Summary)

Six Components of the Business Model

According to Henry Chesbrough and Richard S. Rosenbloom

1. Value Proposition - a description of the customer problem, the solution that addresses the problem, and the value of this solution from the customer's perspective.

2. Market Segment - the group to target, recognizing that different market segments have different needs. Sometimes the potential of an innovation is unlocked only when a different market segment is targeted.

3. Value Chain Structure - the firm's position and activities in the value chain and how the firm will capture part of the value that it creates in the chain.

4. Revenue Generation and Margins - how revenue is generated (sales, leasing, subscription, support, etc.), the cost structure, and target profit margins.

5. Position in the Value Network - identification of competitors, complementors, and any network effects that can be utilized to deliver more value to the customer.

6. Competitive Strategy - how the company will attempt to develop a sustainable competitive advantage and use it to improve the enterprise's competitive position in the market.

Business Model vs. Revenue Model

A Business Model is the umbrella term used to describe the method – position in the value chain, customer selection, products, pricing – of doing business.

A Revenue Model lays-out the process by which a company actually makes money by specifying how it is going to charge for the services provided.

New Business Models

Traditional corporations are overstructured, overcontrolled, and overmanaged, but underled. Today, top managers should rather concentrate of that handful of real managerial leadership tasks that will bring success in the future. Thus, a new business model is emerging, a model where most of key missions of the organization are distributed to the myriad individual pieces and unity comes from the vigor of people and the free flow of knowledge.

... and much, much more!