When talking to potential partners and customers I'm asked about our specific 'pricing model' and our 'path to market' - typical Business Model issues.
To that I answer, straight-faced:
"We are extreme business-modelling. We'll have the answers when the time is right."
Be prepared to answer this: "What's your Business Model?"
Then find out that this widely used term is very seldom precisely defined, leaving popular (and perhaps faulty) descriptions to thrive. Confusing to say the least.
Update: Based on the overwhelming interest this post got, I updated and republished the version from 2005.
A business model is nothing else than a representation of how an organization makes (or intends to make) money. This can be nicely described through the 9 building blocks illustrated in the graphic below, which we call "business model canvas".
The last 2 weeks I had a couple of interesting meetings in Amsterdam and Zurich with business people who apply business model thinking in very different domains. These meetings are part of my quest to understand how people use the concept of business models (BM). It was also a pleasure to see how three of the five use my business model canvas (9 building block approach) to fit their professional needs.
Your mileage may vary but some of the themes in this slideshow “happiness as your business model” resonate so deeply with me it literally brought tears to my eyes.
Are we getting near an industry breakpoint for the broadcast media and television industry? Macro forces are forcing a collision between the Internet and the world of video and television content distribution. This transformation may last for a few good years until the industry fully reconfigure itself.
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