IA Ondernemen met innovatieve apps. Sessie 2. Koen Pellegrims. Monetizing your app.

Post on 21-Oct-2014

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Koen Pellegrims

Finally.

A professional partner for

your corporate mobility.

Finally.

A professional partner for

your corporate mobility.

“WE NEED AN APP”

IS NOT A MOBILE STRATEGY

At Flow Pilots, we believe that the smart use of mobile technologies will be

a key driver in the success of modern companies.

That is why we don’t just develop apps. We carefully design, build, deploy

and manage the digital tools that help our customers increase revenues,

decrease costs or bring freedom and flexibility to their employees.

We don’t build apps,

we deliver real-time insights

We don’t build apps,

we revive the past

We don’t build apps,

we connect with customers

We don’t build apps,

we deliver instant information

We don’t build apps,

we connect people

Wat is een business

model?

A business model describes the rationale of how an organisation

creates, delivers and captures value

Customer Segments

Customer segments are justified only if

Their needs require a distinct offer

They are reached through different channels

They require different types of relationships

They have substantially different profitabilities

They are willing to pay for different aspects of the offer

For whom are we creating value? Who are our most important customers?

Value Proposition

A Value Proposition creates value

for a specific Customer Segment

through a distinct mix of elements

catering to that segment’s needs

Elements of a Value Proposition

Price

Newness

Performance

Customisation

Design

Cost reduction

Risk reduction

Accessibility

Convenience

Brand/status

What value do we deliver to the customers? Which one of our customer’s problem are we helping to solve? What bundles of products and services are we offering to each segment?

Channels

Channels have five distinct phases:

Awareness Evaluation Purchase Delivery After sales

Ow

n

Dir

ec

t Own people

Web sales

Ind

ire

ct

Own stores

Pa

rtn

er

Partner stores

Wholesaler

Through which channels do our Customer Segments want to be reached? How are we reaching them now? Are our channels integrated? Which ones work best? Which ones are most cost-efficient?

Customer Relationships

Customer relationships are

mainly driven by the need for

customer acquisition

customer retention or

up- and cross-selling

What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How costly are they? How are they integrated with the rest of the business model?

Types of relationships

Personal assistance

Dedicated personal assistance

Self-service

Automated services

Communities

Co-creation

Revenue Streams

A business model can involve

different types of revenue streams

Transaction revenues

Recurring revenues

Possible revenue streams

Asset sale

Usage fee

Subscription fees

Lending/Renting/Leasing

Licensing

Brokerage fees

Advertising (3rd party)

Non-monetary rewards

For what are our customers really willing to pay? For what do they currently pay? Are we capturing all value? How much does each Revenue Stream contribute to overall revenues?

Key Resources

Key resources can be

physical,

intellectual or

human

What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams?

Examples of key resources

Intellectual property

CRM system

Infrastructure

Shops or retailers

Workforce

Capital

Key Activities

Key activities are the most

important actions a company

must take to operate successfully

What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams?

Key Activities

Production/Development

Problem Solving

Infrastructure management

Partner management

Key Partnerships

We can distinguish four types

of partnerships:

Strategic alliances between non-competitors

Coopetition – alliances between competitors

Joint ventures to develop new business

Long term buyer-supplier relationships

Who are our Key Partners? Who are our Key Suppliers? Which Key Resources or Key Activities are we sourcing from our partners?

Motivation for partnerships

Optimisation and economies of scale

Reduction of risk and uncertainty

Acquisition of particular resources or activities

Cost Structure

Cost is important for any company,

but there is a clear distinction between

cost-driven and

value-driven business models

Key cost parameters

Fixed costs

Variable costs

Economies of scale

Economies of scope

What are the most important costs in our business model? Which Key Resources and Key Activities are most expensive?

efficientie waarde

Hoe creeër en capteer ik

“waarde”?

Hoeveel zou je aanrekenen

voor een griepvaccin?

Invested

stakes

No more

willingness to

pay!

Lawsuits

Government

interference

Illegal “value

propositions”

New business

models!

Why do your

customers buy

from you?

Why do you buy

from your key

partners/suppliers?

Why do you

oursource some

activities?

Why do external

channels sell your

product or service?

0%

20%

40%

60%

80%

100%

Product price

What is your value? Can you capture it?

Value flows

Watch out for

bypass paths!

Monetary flows

Patronen

Bait & hook

Long-tail

Multi-sided markets

Freemium

Co-creation

Open models

Free

B24b

Unbundling

Brokerage

Free basic

value proposition

Large base of free

users

Small base of

paying users

Paid

Premium

service

Paid premium

services

Cost of serving

paying users

Cost of serving

free users

Long-term

relationship

Focused on

conversion

In the free model at least one substantial Customer Segment is able to continuously benefit from a free-of-charge offer.

Key to free business models is the

low marginal cost of

serving additional free users

Key factors to consider are:

The average cost of serving a free user

The conversion rate to paying customers

“Bait”

product or service

Single customer

segment for “bait”

and “hook”

“Hook”

product or service

Recurring purchases

of “hook” products

or services

Cost of subsidising

“bait” product

Lock in

One-off purchase

of “bait” product

Substitutes often

protected by

patents

Where Gilette pioneered, mobile operators and printer manufacturers followed.

An attractive (or free) initial offering

triggers a profitable stream of future

revenues through related products or

services

Key factors to consider are:

The average cost of serving a free user

The conversion rate to paying customers

Successful companies choose one discipline and fully commit to it. An inside-out strategic option.

Customer intimacy

Operational excellence Product leadership

Operational excellence Customer intimacy Product leadership

Rules Process- and product focused “One size fits all” attitude Uniformity

Customer focused “Have it your way” attitude Variation

Concept- and future-oriented “Out-of-the-box” attitude Experimentation

Processes End-to-end supply chain optimisation Efficiency and reliability Just-in-time

Customer service Flexibility Accessibility

Product development Time-to-market and marcom Emphasis on “breakthroughs”

Organisation Central management Few delegated responsabilties Professionalism within

Decision power with customer contact Professionalism on the outside

Ad-hoc, organic, cellular Professionalism throught the organisation Limited structures

Management “Command and control” Standard procedures Cost control

Customer comes first “Lifetime value” Result-driven management

Individual innovation is rewarded Risk management Exposure management

Internal systems Integrated and “low cost” Transaction-oriented System equals process

Professional CRM Tight links between intenal and external information Analytics

People-centric communication Collaborative tools

Pick one. Be committed. Be relentless!

Verdienmodellen voor apps

Source:Forbes

We don’t build apps,

we create stronger

partnerships

We don’t build apps,

we increase revenues

We don’t build apps,

we connect past and present

We don’t build apps,

we increase security

We don’t build apps,

we increase customer loyalty

Hans Haagdorens

Innovatiecentrum Antwerpen

0494 04 74 04

hans.haagdorens@innovatiecentrum.be