Digital business #3

transcript

Brand Telefónica S.A.

Digital Business_

#3 Mg. Alejandro M. Salevsky

Lic. Juan Manuel Cascone

Global BI

Telefónica S.A.

Who we are_

Mg. Alejandro M. Salevsky

•MBA / BBA UCA

•Corporate & strategic finance professor (UCA)

•Global BI senior manager in Telefonica S.A. (NYSE: TAR)

•Innovation & new tech researcher fan

•asalevsky@gmail.com / @alesalevsky

Lic. Juan Manuel Cascone

•BBA UCA

•Corporate & strategic finance professor (UCA)

•Controller manager in Grupo Assa S.A.

•jmcascone@gmail.com

+ Keynote

guests_

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General structure

1.News

2.Concepts + real examples

3.Customer insight

4.Mini groupal or individual case to solve in class

And most important: interactive participation!!

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Session #3 - Agenda

1.News (non MECE!)

2.Key concepts overview_

3.Digital Business models

4.Activity: finding revenue sources

Global BI

Telefónica S.A. http://www.businessinsider.com/apple-reportedly-has-a-deal-with-china-mobile-2013-8

Global BI

Telefónica S.A. http://www.economist.com/news/business/21583687-media-companies-took-battering-internet-cash-digital-sources-last?fsrc=scn/tw_ec/counting_the_change

Global BI

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Session #3 - Agenda

1.News (non MECE!)

2.Key concepts overview_

3.Digital Business models

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Welcome to the

information era_

• Re-evolution

• A New economy

and a new society is

growing

• We are in a new

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Remembering some key

concepts of class #1_

• Long Tail_

• Technology adoption curve_

• Big Data_

• Generations_

Class #1

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Technology Adoption Cycle_

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The Long Tail_

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Generations_

Generation Historical

events

Family Social

events

Mass media

Techonolog

Personality

Boomers

(1945 – 1963)

End WWII,

French May,

revolution,

Kennedy

murder

Extended

family

Hippie

movement,

leftish parties,

feminism

The Beatles,

Elvis, Marilyn

Monroe

Vinyl, B/W TV,

Rebel + Hard

workers

X Generation

(1964 – 1979)

Moon landing,

Cold War

Nuclear family

/ divorce

Dictatorships

(LaTAM)

Michael

Jackson,

Madonna,

Queen,

Cassette,

cable TV,

Walkman

Sceptics

Y Generation

(1980 – 1995)

Berlin wall fall,

USSR fall

Divorce Neoliberalism,

end of two-

sided world

Kurt Cobain,

Axl Rose,

Jhonny Deep

DVD, Mp3 Individualism

Generation

Z1 (1996-

2002) Z2

(2003 – 2010)

11S, war on

terrorism,

crisis

Diverse and

ensembled

families

Terrorism,

climate

change

Lady Gaga,

Justin Beaver

Streaming

video, Apple

devices

Optimism

Source: “Entre Generaciones” Alejandro Mascó / http://www.lanacion.com.ar/1547175-generacion-z-la-vida-a-traves-de-una-pantalla

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Generations_

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Generations_

Source: “Entre Generaciones” Alejandro Mascó / http://www.lanacion.com.ar/1547175-generacion-z-la-vida-a-traves-de-una-pantalla

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Do not use this one

Big Data_

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Top digital companies and business models_

Company Key capability Revenue source

Google information intelligence Publicity

Digitalization of social

relationships and

interactions

Publicity

Amazon Long Tail monetisation

(individual customer

insights + logicstics)

Asset selling

Apple Innovation, communication

and ecosystem

Asset selling + Revenue

sharing

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Session #3 - Agenda

1.News (non MECE!)

2.Key concepts overview

3.Digital Business models_

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What is a business model?

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A business model is…

The extensive

answer to how

a company

creates profit

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A business model is…

how to acquire,

mantain and

transform an

asset into

cash flow.

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1 Capabilities

2 Value proposition

3 Delivery

A business model is about…

Assets: know how, goodwill,

machinery, etc

What, how much and to whom

Production, supplier,

communication, channels, etc

What you have.

What you offer

How you do it

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Activity: which is the main asset of…?

1 Capabilities

•Coca-Cola

•McDonald’s

•Unilever

•United Airlines

•Google

•Apple

•Groupon

•Twitter

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Platforms are a key asset in the digital world

1 Capabilities

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Seven Digital (and not so digital) revenue sources

2 Value

proposition

Asset selling / E-Commerce

Brokerage / Auction

Advertising (direct & indirect)

Subscription / Usage fee

Revenue Sharing

Subsidy (direct & indirect)

Freemium

Not exclusive at all!!!

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2 Value

proposition

Brokerage / Auction

Revenue Sharing

Freemium

Selling something

using a digital

platform and / or

selling digital

contents per unit

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2 Value

proposition

Brokerage / Auction

Revenue Sharing

Freemium

Selling something

using a digital

platform and / or

selling digital

contents per unit

Digital innovations

1. Business

intelligence for

retail

2. Digital platforms

3. Plus: creating

devices for

consumption

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2 Value

proposition

Brokerage / Auction

Revenue Sharing

Freemium

Intermediation

through consumers,

business and/or

business and

consumers by using

a digital platform

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2 Value

proposition

Brokerage / Auction

Revenue Sharing

Freemium

Intermediation

through consumers,

business and/or

business and

consumers by using

a digital platform

Digital innovations

1. Platform

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2 Value

proposition

Brokerage / Auction

Revenue Sharing

Freemium

Monetisation of

space, content or

usage thorugh third

party advertisement,

directly or indirectly

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2 Value

proposition

Brokerage / Auction

Revenue Sharing

Freemium

Monetisation of

space, content or

usage thorugh third

party advertisement,

directly or indirectly

Digital innovations

1. Intelligent

placement + ROI

revolution

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2 Value

proposition

Brokerage / Auction

Revenue Sharing

Freemium

Regular payments

(monthly typical) for

giving access to

digital contents or

digital service

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2 Value

proposition

Brokerage / Auction

Revenue Sharing

Freemium

Regular payments

(monthly typical) for

giving access to

digital contents or

digital service

Digital innovations

1. Platforms

2. Business

intelligence for

tailored offering

3. Digitalization

4. Digital

markeplace

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2 Value

proposition

Brokerage / Auction

Revenue Sharing

Freemium

Splitting revenue

with a third party

who is partially (or

totally) helping to

deliver a product or

service

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Global BI

Telefónica S.A. http://www.forbes.com/sites/petercohan/2013/08/16/how-steve-jobs-got-att-to-share-revenue/

―AT&T, the exclusive

U.S. operator for the

iPhone, agreed to an

unprecedented

revenue sharing

agreement — Apple

got about $10 a

month from each

iPhone customer’s

bill – which gave

Apple control over

distribution, pricing,

and branding.‖

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2 Value

proposition

Brokerage / Auction

Revenue Sharing

Freemium

Splitting revenue

with a third party

who is partially (or

totally) helping to

deliver a product or

service

Digital innovations

1. Platforms

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2 Value

proposition

Brokerage / Auction

Revenue Sharing

Freemium

Charging a very low

price for a basic

digital P&S and then

selling high markup

add-ons

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Global BI

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2 Value

proposition

Brokerage / Auction

Revenue Sharing

Freemium

Charging a very low

price for a basic

digital P&S and then

selling high markup

add-ons

Digital innovations

1. Devices

2. Digital

marketplace

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2 Value

proposition

Brokerage / Auction

Revenue Sharing

Freemium

Delivering a digital

service or app for

free and then

charging for add-ons

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Global BI

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2 Value

proposition

Brokerage / Auction

Revenue Sharing

Freemium

Delivering a digital

service or app for

free and then

charging for add-ons

Digital innovations

1. Platform

2. Long tail usage

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Session #3 - Agenda

1.News (non MECE!)

2.Key concepts overview

3.Digital Business models_

4.Activity: finding revenue

sources

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Telefónica S.A.

Finding revenue sources for digital business in the auto industry

http://www.wired.com/autopia/2013/08/google-glass-mercedes-benz/?mbid=social10837944

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Finding revenue sources for digital business in the auto industry

Discuss with your team and create two digital

business with two different revenue sources to

take advantage of the auto industrie’s new

paradigm

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Contact us!!!!

•BLOG:

www.digitalbusinessuca.wordpress.com

•Mail: asalevsky@gmail.com

•Twitter: @alesalevsky

Global BI

Telefónica S.A. Thank you!