Venture Further workshop Business Models Docs... · • CSFs for delivering value proposition ......

Venture Further workshop

Business Models

Martin Henery

Risks in starting up running a business

bull Working in groups brainstorm the key elements that you think are necessary for a successful business

bull Where can it go wrong and why

bull What would the worst business in the world look like

2

Some reasons why businesses fail

bull Nothing new to say

bull Cash flow crises

bull No management accounts

bull Falling out

bull Lack of succession planning bull Poor management systems

bull Lack of adequate working capital bull Inability to recognise what

business the company is in

bull Inadequate board bull Improper organisational structure

bull Failure to delegate

bull Poor market selection

bull Rapid growth

bull Rapidly changing external market conditions

bull Inability to make use of essential business and management practices

bull Incorrect diagnosis of the key skills gaps to develop or fill

bull Not setting up tools to monitor and manage business

bull Insufficient (financial) planning

bull Excessive optimism

bull Inability to change

bull Lack of expertise

3

Details

Supply side

bull CSFs for delivering value proposition

bull Appropriate resources and activities given priority

bull Most important things a company must do in order to make its business model work

bull Appropriate relationship with

partners

ndash Strategic partners alliances ndash Co-opetition

ndash Joint ventures

ndash Buyer-Supplier relationships to assure reliable supplies

Demand side

bull Problem being solved

bull Trends

bull Channel to market

bull Competition

bull Entry point

bull Sales process

ndash Awareness raising gt evaluation gt purchase gt delivering gt post purchase and feedback

4

Bases for Competitive Advantage

Fig 22

bull Speed of innovation

bull lsquoStrategic alliancesrsquo or Partners

bull Organisationally superior

bull Business model

bull Proprietary elements

ndash Specialist knowledge

ndash Trade Secrets

ndash Unique Rights

ndash hellip Intellectual Property

5

How is money made and how does

the business work

Take Inputs ProcessManufacture Output

Costs ndash Fixed and Variable Revenue

Profit

Businesses need to make a profit Revenues gt costs

Sustainable Competitive Advantage Revenues gtgt costs

6

What can be done to avoid these issues httpwwwyoutubecomwatchv=QoAOzMTLP5s

Demand side

ndash Value proposition

ndash Customer segment

ndash Relationship

ndash Channel to market

ndash Revenue (money in)

Supply side

ndash Key resources

ndash Key activities

ndash Partners

ndash Costs (money out)

7

Apple and iTunes

8

The Business Model Canvas

9

Established business models (patterns)

bull The Digital Enterprise (see Rapparsquos website) The Long Tail (MySpace)

bull Multi-sided platforms (Metro Google)

bull Freemium (Flickr Real Player Skype)

ndash Variants

bull Open Source (Red Hat) bull The Insurance Model (Rega Rega Rega - slide 34)

bull Razor and blades (Gillette)

bull Open Business Models ndash Outside-in inside-out

10

10

11


Value Propositions 1 Targeted Ads 2 Free Search 3 Monitising Content

Channels bull Freemium Trojan Horse bull Free search engines

Customer Relationships

bull Acquire and Retain

(lower cost of marketing and identifying needs of customers) Identify and nurture latent needs ie Google + bull Create new types of customers ndash Google Drive bull Tools for advertisers to get a handle on ROI

Customer Segments 1 Advertisers 2 Web-Surfers 3 Content Owners

Revenue streams bull Keyword Auctions (1) bull Free (2 and 3)

Cost Structure bull Platform Costs

Key Partners

bull

Key Resources bull Search Engine bull Brand bull IP

Key Activities bull Platform Management bull Managing Services bull Expanding Reach

Business Model Canvas for hellipGoogle hellip 12 Adapted from Osterwalder

Value Propositions

1 Ad space in high

circulation

newspaper

2 Free city-wide

commuter paper

Channels

1 Ad Sales

Force

2 Public

Transport

Train

stations Bus

stops

Customer

Relationships

bull Acquistion

bull Retention

Customer

Segments

1 Advertisers

2 Commuters

Revenue streams

1 Fees for ad space in paper

2 Free Newspaper

Cost Structure

1 Distribution

2 Content design and print of a daily newspaper

Key Partners

bull Distribution

agreement with

public transport

networks

Key Resources

bull Brand

bull Distribution

network and

logistics

Key Activities

1 Distribution

2 Write and

Produce a

daily paper

Business Model Canvas for hellipThe Metro hellip 13 Adapted from Osterwalder

Value Proposition Provide procedures frameworks

and people to enable owner to

develop their business

(a) New salon owners () (Free

introduction to Case A ndash start of

relationship ndash pay next time)

(b) Owner()manager stylists

(free them up from tasks they

arenrsquot good at donrsquot want to do

but still want growth amp profits)

Case A could do this by

taking on direct responsibility

for certain operational areas

(or finding people to do that)

(c) Owner()manager (want to

learn about business and

develop as they grow their own)

Case A will provide mentoring

to assist personal

development (Premium area)

SMS suppliers

Opportunities for marketing new

systems using case studies of

enhanced profitability using their

systems and Case A

Channels lsquoPartnerrsquo with SMS

suppliers (iSalon

Shortcuts)

Social networks to

drive traffic to site

(Twitter facebook

LinkedIn)

Online mobile and f2f

Maybe concentrate on

lsquowarmrsquo contacts (no

cold calling ndash could

waste time)

SEO activities ndash drive

business to website

Relationships Existing clients

Blog providing forum for

commenting on industry

issues best practice

new ideas products

Customer acquisition

SMS gt client lists Word

of mouth networking

Complementary

partners

Specialist disc groups

eg LinkedIn ndash

recognised as

Industry Experts

Market segments

(a) New salon owners () (not

done this before but value help

and need to know the basics)

FREE


(want to free up their time to

focus on the things that only

THEY can do in the business)

(c) Owner()manager (wish to

free themselves to work on the

business rather than in it ndash

maybe more entrepreneurial)

Supplier of Salon Management

Systems (SMS)

Aiming at small end of market

Want owners () to get best out of

system Limit to level of

customisation they can provide

( Small independent saloon

owner-manager stylists usually

with 6 or more employees and no

more than 2-3 salons who are

interested in growing and

developing the business by

maximising profitability and

increasing revenue streams

Revenue streams

Annual licence fee (per property and dependant on package purchased)

Complementary products (click through ads or of sales made to clients)

Mentoring services (premium service ndash per consultation)

Responsibility for delivering key operational targets (paid on performance)

Key Costs Customer acquisition

Updating knowledge base

121 f2f meetings

Preparation for meetings including analysis amp presentation of data

Updating and customising materials

Developing new materials (some multi-media audio podcasts video)

Maintaining on-line platform

Legal costs (Copyright design rights trademarks CDAs etc)

Key Partners Habia (standard setting body

for the hair beauty nails and

spa industries) ndash presume

that material once badged

will be used by teaching

organisations

Suppliers of salon mgmt

systems (SMS)

[Strategic relationship with

industry leaders

iSalon amp Shortcuts]

Key colleges and training

institutes ndash provide

workshops and maybe

accredited delivery In

exchange for your time

students get exposure to

Case A business methods

(connect promising students

with clients) What branded

items can be given away

lsquoplacedrsquo during Fresherrsquos

week at college

Key Resources SOPs that cover the

lsquohow-torsquo of running a

business

On-line platform with

on-line documentation

amp multi-media material

(enhance learning)

Experienced business

advisors (different levels)

Contacts networks

within the industry

Complementary partners

Case studies (success)

Conversion software

Key Activities Developing and

maintaining up-to-date

procedures amp policies

Customisation

processes

Automated data

processing

Analysing data

Running quarterly

reviews

Scanning for potential

opportunities and

threats for clients

Client interaction (inc f2f)

Case A ndash Business Model ndash Proposed

The Supply Side ndash Delivering Value

15

How do I deliver the value proposition

16

Value Proposition

Women ndash aged 18-30 years

who are looking for new skills

job opportunities new

friendships aspirational role

models

those looking for more ethical

products but Green People

Channels

On-line

Retail

Raising awareness

Factory shop

Relationships

Engaged growing

customer base

informative positive

professional fun and

sassy confident

design led rich and

vibrant

Market segments

Disadvantaged who are

also unemployed

(They will possibly fall into

these categories ndash

homeless and mental

health issues Suffered

abuse long-term

unemployed (question of

stress and basic social

skills)

Women interested in

design eco-fashion

environment up-cycling

Recycled green ethical

clothing

Revenue streams

Retail ndash product sales

Training contracts

Donated fabrics

Donations

Key Costs Designers

Building website

Maintenance of website

Factory shop training premises

Updating social platforms

Key Partner Material fabric suppliers

Training commisioners

Designers

Key Resources High quality trainers

Designers able to pass

on designs and train

others

Good negotiators able to

capture new contracts

Individuals able to

convert fabrics to

scalable products

On-line platform

Key Activities High quality accredited

training opportunities

Design and conversion

of fabrics

Generating PR amp stories

Winning contracts

Maintaining and building

new relationships with

materials suppliers

Trend-watching ideas to

practice ndash good design

Factory shop

On-line amp social media

Case Bndash Outlined Business Model

Resources

bull Osterwalderrsquos Business Model Canvas

ndash httpwwwbusinessmodelgenerationcomdownloadsbusinessmodelg

eneration_previewpdf - Free Book (part of)

ndash Blog - httpwwwbusinessmodelalchemistcom

ndash Slideshare - httpwwwslidesharenetAlexOsterwalder

ndash Youtube - httpwwwyoutubecomwatchv=dtfNsuP2AQQ

18


Business Models

(additional material)

Martin Henery

The business model simplified httpwwwyoutubecomwatchv=QoAOzMTLP5s

Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20

The Demand Side ndash Creating Value

21

The basics of marketing

bull Segmentation

ndash Dividing the market in a meaningful way

ndash Identifying your customer amp what they value

ndash Characterise storyboard stereotypes

bull Targeting

ndash Which segment will you focus on

ndash Deciding on and adopting a specific strategy

bull Positioning

ndash How do you wish your offering to be perceived

ndash Create an image in the mind of the consumer

22

bull Identify and prioritise needs

bull Identify what benefits to supply

bull Understand how value is derived

ndash Use case

ndash Pricing


ndash Getting product to customer ndash How exchange can be made

bull Product service configuration

bull Product positioning and pricing

bull Targeting customer

Why is segmentation important

23

Entrepreneurial Marketing

bull Appreciate the importance of marketing throughout the business start up process

ndash To identify key market segments ndash To develop an effective marketing strategy

ndash Define the business and create sustainable value ndash Identify route to market

ndash Aligns and counterbalances the internal and external requirements and forces

bull Marketing as you go

ndash Highly responsive to market (close to customer)

Value Proposition makes that possible

24

Value Proposition

bull Determine the value proposition

ndash The value created to users by using the product or service

bull Creating and capturing value

ndash Value only arises when someone does something different as a consequence of using your product or service

Positioning Template

For (target customers) Who (has the problemneedpain)

Our product hellip(is new) Provideshellip (results)

Unlikehellip(competitors or substitutes)

25

26

Channels

bull Describes how a company communicates with and reaches its Customer

Segments to deliver a Value Proposition

bull Channels are customer touch points

ndash Raising awareness among customers about a companyrsquos products and

services

ndash Helping customers evaluate a companyrsquos Value Proposition

ndash Allowing customers to purchase specific products and services

ndash Delivering a Value Proposition to customers

ndash Providing post-purchase customer support

26

27


bull Describes the type of relationships a company establishes with its specific Customer Segments

bull Relationships can range from personal to automated motivated by the need for

ndash Customer acquisitions

ndash Customer retention

ndash Boosting sales (upselling)

27


28


29

30

Key Resources

bull Describes the most important assets required to make a business model work allowing the enterprise to create and offer its value proposition reach markets maintain relationships with customer segments and earn

revenues

bull These can be physical financial intellectual or human and can be owned

or lease by the company or acquired from key partners

30

31

Key Activities

bull Describes the most important things a company must do in order to make its business model work

bull Every business model calls for a number of key activities These are the most important actions a company must take to operate successfully

bull Like Key Resources they are required to create and offer a Value

Proposition reach markets maintain Customer relation ships and earn revenues And like Key Resources Key Activities differ depending on

model type

31

32

Key Partnerships

bull Describes the network of suppliers and partners that make the business model work

bull Companies create alliances to optimise their business models reduce risk and acquire resources

bull Different types of partnerships include

bull Strategic alliances between non-competitors

bull Coopetition strategic partnerships between competitors (Porter

video)

bull Joint ventures to develop new businesses

bull Buyer-Supplier relationships to assure reliable supplies

32


the business work



Profit



33

Making a Profit ndash Capturing Value

34

Cost Structure

bull Describes all costs incurred to operate a business model

bull Creating and delivering value maintaining Customer Relationships and

generating revenue all incur costs

bull Such costs can be calculated relatively easily after defining Key Resources Key Activities and Key Partnerships

35

35

Revenue Streams

bull Represents the cash a company generates from each Customer Segment

bull A business model can involve two different types of Revenue Stream

ndash Transaction revenues resulting from one time customer payment

ndash Recurring revenues resulting from ongoing payments to either deliver a

Value Proposition to customers or to provide post-purchase customer support

36

36

Costs and Revenues

bull Bad debts and depreciation bull Research and development bull Equipment and raw materials

bull Utilities rates taxes and VAT

bull Insurance and legal

bull Marketing (incl promotion)

bull Salaries and benefits bull Professional services

bull Transportation bull Stationary consumables

bull Establishing IPR

bull Interest bull Rental leasing charges bull Web hosting IT bull Travel and subsistence

bull Rent and service charges

bull Sales ndash Selling product billable hours

bull Licensing

bull Royalties

bull Leasing rentals

bull Delivery charges

bull Product insurance

bull Commission bonuses tips

bull After sales maintenance servicing

and upgrades

bull Consumables (razors and blades)

bull Installation consultancy and training

bull Interest rent and other forms of ROI

37

Unaudited Condensed Consolidated Statement of Income

(US Dollars In Thousands)

EBaY Three Months Ended

June 30

Source 2004 2005

Net revenues 773412 100 1086303 100

Cost of net revenues 146531 19 191840 18

Gross profit 626881 81 894463 82

Operating expenses

Sales and marketing 189150 24 287144 26

Product development 59978 8 71639 7

General and administrative 102940 13 129340 12

Payroll tax on employee stock options 5186 1 1560 0

Amortization of acquired intangible assets 15769 2 25794 2

Total operating expenses 373023 48 515477 47

Income from operations 253858 33 378986 35 38

38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue

Comparison financial performance of EBaY and Amazon

EBaY

39

Risks in starting up running a business

bull Working in groups brainstorm the key elements that you think are necessary for a successful business

bull Where can it go wrong and why

bull What would the worst business in the world look like

2





bull Falling out







bull Rapid growth









3

Details

Supply side





partners




Demand side


bull Trends


bull Competition

bull Entry point

bull Sales process


4


Fig 22




bull Business model



ndash Trade Secrets

ndash Unique Rights


5


the business work



Profit



6


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


7

Apple and iTunes

8


9





ndash Variants




10

10

11










Key Partners

bull




Value Propositions

1 Ad space in high

circulation

newspaper

2 Free city-wide

commuter paper

Channels

1 Ad Sales

Force

2 Public

Transport

Train

stations Bus

stops

Customer

Relationships

bull Acquistion

bull Retention

Customer

Segments

1 Advertisers

2 Commuters

Revenue streams


2 Free Newspaper

Cost Structure

1 Distribution


Key Partners

bull Distribution

agreement with

public transport

networks

Key Resources

bull Brand

bull Distribution

network and

logistics

Key Activities

1 Distribution

2 Write and

Produce a

daily paper




















to assist personal


SMS suppliers




systems and Case A


suppliers (iSalon

Shortcuts)

Social networks to


(Twitter facebook

LinkedIn)





waste time)


business to website





new ideas products



of mouth networking

Complementary

partners


eg LinkedIn ndash

recognised as

Industry Experts

Market segments




FREE










Systems (SMS)













Revenue streams







121 f2f meetings











organisations


systems (SMS)


industry leaders




workshops and maybe









week at college



business




(enhance learning)



Contacts networks

within the industry



Conversion software




Customisation

processes

Automated data

processing

Analysing data

Running quarterly

reviews


opportunities and

threats for clients




15


16

Value Proposition





models



Channels

On-line

Retail

Raising awareness

Factory shop

Relationships

Engaged growing

customer base



sassy confident

design led rich and

vibrant

Market segments


also unemployed



homeless and mental


abuse long-term



skills)

Women interested in

design eco-fashion



clothing

Revenue streams


Training contracts

Donated fabrics

Donations

Key Costs Designers

Building website






Designers




others



Individuals able to

convert fabrics to

scalable products

On-line platform




of fabrics


Winning contracts



materials suppliers



Factory shop



Resources







18


Business Models


Martin Henery


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39





bull Falling out







bull Rapid growth









3

Details

Supply side





partners




Demand side


bull Trends


bull Competition

bull Entry point

bull Sales process


4


Fig 22




bull Business model



ndash Trade Secrets

ndash Unique Rights


5


the business work



Profit



6


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


7

Apple and iTunes

8


9





ndash Variants




10

10

11










Key Partners

bull




Value Propositions

1 Ad space in high

circulation

newspaper

2 Free city-wide

commuter paper

Channels

1 Ad Sales

Force

2 Public

Transport

Train

stations Bus

stops

Customer

Relationships

bull Acquistion

bull Retention

Customer

Segments

1 Advertisers

2 Commuters

Revenue streams


2 Free Newspaper

Cost Structure

1 Distribution


Key Partners

bull Distribution

agreement with

public transport

networks

Key Resources

bull Brand

bull Distribution

network and

logistics

Key Activities

1 Distribution

2 Write and

Produce a

daily paper




















to assist personal


SMS suppliers




systems and Case A


suppliers (iSalon

Shortcuts)

Social networks to


(Twitter facebook

LinkedIn)





waste time)


business to website





new ideas products



of mouth networking

Complementary

partners


eg LinkedIn ndash

recognised as

Industry Experts

Market segments




FREE










Systems (SMS)













Revenue streams







121 f2f meetings











organisations


systems (SMS)


industry leaders




workshops and maybe









week at college



business




(enhance learning)



Contacts networks

within the industry



Conversion software




Customisation

processes

Automated data

processing

Analysing data

Running quarterly

reviews


opportunities and

threats for clients




15


16

Value Proposition





models



Channels

On-line

Retail

Raising awareness

Factory shop

Relationships

Engaged growing

customer base



sassy confident

design led rich and

vibrant

Market segments


also unemployed



homeless and mental


abuse long-term



skills)

Women interested in

design eco-fashion



clothing

Revenue streams


Training contracts

Donated fabrics

Donations

Key Costs Designers

Building website






Designers




others



Individuals able to

convert fabrics to

scalable products

On-line platform




of fabrics


Winning contracts



materials suppliers



Factory shop



Resources







18


Business Models


Martin Henery


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39

Details

Supply side





partners




Demand side


bull Trends


bull Competition

bull Entry point

bull Sales process


4


Fig 22




bull Business model



ndash Trade Secrets

ndash Unique Rights


5


the business work



Profit



6


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


7

Apple and iTunes

8


9





ndash Variants




10

10

11










Key Partners

bull




Value Propositions

1 Ad space in high

circulation

newspaper

2 Free city-wide

commuter paper

Channels

1 Ad Sales

Force

2 Public

Transport

Train

stations Bus

stops

Customer

Relationships

bull Acquistion

bull Retention

Customer

Segments

1 Advertisers

2 Commuters

Revenue streams


2 Free Newspaper

Cost Structure

1 Distribution


Key Partners

bull Distribution

agreement with

public transport

networks

Key Resources

bull Brand

bull Distribution

network and

logistics

Key Activities

1 Distribution

2 Write and

Produce a

daily paper




















to assist personal


SMS suppliers




systems and Case A


suppliers (iSalon

Shortcuts)

Social networks to


(Twitter facebook

LinkedIn)





waste time)


business to website





new ideas products



of mouth networking

Complementary

partners


eg LinkedIn ndash

recognised as

Industry Experts

Market segments




FREE










Systems (SMS)













Revenue streams







121 f2f meetings











organisations


systems (SMS)


industry leaders




workshops and maybe









week at college



business




(enhance learning)



Contacts networks

within the industry



Conversion software




Customisation

processes

Automated data

processing

Analysing data

Running quarterly

reviews


opportunities and

threats for clients




15


16

Value Proposition





models



Channels

On-line

Retail

Raising awareness

Factory shop

Relationships

Engaged growing

customer base



sassy confident

design led rich and

vibrant

Market segments


also unemployed



homeless and mental


abuse long-term



skills)

Women interested in

design eco-fashion



clothing

Revenue streams


Training contracts

Donated fabrics

Donations

Key Costs Designers

Building website






Designers




others



Individuals able to

convert fabrics to

scalable products

On-line platform




of fabrics


Winning contracts



materials suppliers



Factory shop



Resources







18


Business Models


Martin Henery


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39


Fig 22




bull Business model



ndash Trade Secrets

ndash Unique Rights


5


the business work



Profit



6


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


7

Apple and iTunes

8


9





ndash Variants




10

10

11










Key Partners

bull




Value Propositions

1 Ad space in high

circulation

newspaper

2 Free city-wide

commuter paper

Channels

1 Ad Sales

Force

2 Public

Transport

Train

stations Bus

stops

Customer

Relationships

bull Acquistion

bull Retention

Customer

Segments

1 Advertisers

2 Commuters

Revenue streams


2 Free Newspaper

Cost Structure

1 Distribution


Key Partners

bull Distribution

agreement with

public transport

networks

Key Resources

bull Brand

bull Distribution

network and

logistics

Key Activities

1 Distribution

2 Write and

Produce a

daily paper




















to assist personal


SMS suppliers




systems and Case A


suppliers (iSalon

Shortcuts)

Social networks to


(Twitter facebook

LinkedIn)





waste time)


business to website





new ideas products



of mouth networking

Complementary

partners


eg LinkedIn ndash

recognised as

Industry Experts

Market segments




FREE










Systems (SMS)













Revenue streams







121 f2f meetings











organisations


systems (SMS)


industry leaders




workshops and maybe









week at college



business




(enhance learning)



Contacts networks

within the industry



Conversion software




Customisation

processes

Automated data

processing

Analysing data

Running quarterly

reviews


opportunities and

threats for clients




15


16

Value Proposition





models



Channels

On-line

Retail

Raising awareness

Factory shop

Relationships

Engaged growing

customer base



sassy confident

design led rich and

vibrant

Market segments


also unemployed



homeless and mental


abuse long-term



skills)

Women interested in

design eco-fashion



clothing

Revenue streams


Training contracts

Donated fabrics

Donations

Key Costs Designers

Building website






Designers




others



Individuals able to

convert fabrics to

scalable products

On-line platform




of fabrics


Winning contracts



materials suppliers



Factory shop



Resources







18


Business Models


Martin Henery


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39


the business work



Profit



6


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


7

Apple and iTunes

8


9





ndash Variants




10

10

11










Key Partners

bull




Value Propositions

1 Ad space in high

circulation

newspaper

2 Free city-wide

commuter paper

Channels

1 Ad Sales

Force

2 Public

Transport

Train

stations Bus

stops

Customer

Relationships

bull Acquistion

bull Retention

Customer

Segments

1 Advertisers

2 Commuters

Revenue streams


2 Free Newspaper

Cost Structure

1 Distribution


Key Partners

bull Distribution

agreement with

public transport

networks

Key Resources

bull Brand

bull Distribution

network and

logistics

Key Activities

1 Distribution

2 Write and

Produce a

daily paper




















to assist personal


SMS suppliers




systems and Case A


suppliers (iSalon

Shortcuts)

Social networks to


(Twitter facebook

LinkedIn)





waste time)


business to website





new ideas products



of mouth networking

Complementary

partners


eg LinkedIn ndash

recognised as

Industry Experts

Market segments




FREE










Systems (SMS)













Revenue streams







121 f2f meetings











organisations


systems (SMS)


industry leaders




workshops and maybe









week at college



business




(enhance learning)



Contacts networks

within the industry



Conversion software




Customisation

processes

Automated data

processing

Analysing data

Running quarterly

reviews


opportunities and

threats for clients




15


16

Value Proposition





models



Channels

On-line

Retail

Raising awareness

Factory shop

Relationships

Engaged growing

customer base



sassy confident

design led rich and

vibrant

Market segments


also unemployed



homeless and mental


abuse long-term



skills)

Women interested in

design eco-fashion



clothing

Revenue streams


Training contracts

Donated fabrics

Donations

Key Costs Designers

Building website






Designers




others



Individuals able to

convert fabrics to

scalable products

On-line platform




of fabrics


Winning contracts



materials suppliers



Factory shop



Resources







18


Business Models


Martin Henery


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


7

Apple and iTunes

8


9





ndash Variants




10

10

11










Key Partners

bull




Value Propositions

1 Ad space in high

circulation

newspaper

2 Free city-wide

commuter paper

Channels

1 Ad Sales

Force

2 Public

Transport

Train

stations Bus

stops

Customer

Relationships

bull Acquistion

bull Retention

Customer

Segments

1 Advertisers

2 Commuters

Revenue streams


2 Free Newspaper

Cost Structure

1 Distribution


Key Partners

bull Distribution

agreement with

public transport

networks

Key Resources

bull Brand

bull Distribution

network and

logistics

Key Activities

1 Distribution

2 Write and

Produce a

daily paper




















to assist personal


SMS suppliers




systems and Case A


suppliers (iSalon

Shortcuts)

Social networks to


(Twitter facebook

LinkedIn)





waste time)


business to website





new ideas products



of mouth networking

Complementary

partners


eg LinkedIn ndash

recognised as

Industry Experts

Market segments




FREE










Systems (SMS)













Revenue streams







121 f2f meetings











organisations


systems (SMS)


industry leaders




workshops and maybe









week at college



business




(enhance learning)



Contacts networks

within the industry



Conversion software




Customisation

processes

Automated data

processing

Analysing data

Running quarterly

reviews


opportunities and

threats for clients




15


16

Value Proposition





models



Channels

On-line

Retail

Raising awareness

Factory shop

Relationships

Engaged growing

customer base



sassy confident

design led rich and

vibrant

Market segments


also unemployed



homeless and mental


abuse long-term



skills)

Women interested in

design eco-fashion



clothing

Revenue streams


Training contracts

Donated fabrics

Donations

Key Costs Designers

Building website






Designers




others



Individuals able to

convert fabrics to

scalable products

On-line platform




of fabrics


Winning contracts



materials suppliers



Factory shop



Resources







18


Business Models


Martin Henery


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39

Apple and iTunes

8


9





ndash Variants




10

10

11










Key Partners

bull




Value Propositions

1 Ad space in high

circulation

newspaper

2 Free city-wide

commuter paper

Channels

1 Ad Sales

Force

2 Public

Transport

Train

stations Bus

stops

Customer

Relationships

bull Acquistion

bull Retention

Customer

Segments

1 Advertisers

2 Commuters

Revenue streams


2 Free Newspaper

Cost Structure

1 Distribution


Key Partners

bull Distribution

agreement with

public transport

networks

Key Resources

bull Brand

bull Distribution

network and

logistics

Key Activities

1 Distribution

2 Write and

Produce a

daily paper




















to assist personal


SMS suppliers




systems and Case A


suppliers (iSalon

Shortcuts)

Social networks to


(Twitter facebook

LinkedIn)





waste time)


business to website





new ideas products



of mouth networking

Complementary

partners


eg LinkedIn ndash

recognised as

Industry Experts

Market segments




FREE










Systems (SMS)













Revenue streams







121 f2f meetings











organisations


systems (SMS)


industry leaders




workshops and maybe









week at college



business




(enhance learning)



Contacts networks

within the industry



Conversion software




Customisation

processes

Automated data

processing

Analysing data

Running quarterly

reviews


opportunities and

threats for clients




15


16

Value Proposition





models



Channels

On-line

Retail

Raising awareness

Factory shop

Relationships

Engaged growing

customer base



sassy confident

design led rich and

vibrant

Market segments


also unemployed



homeless and mental


abuse long-term



skills)

Women interested in

design eco-fashion



clothing

Revenue streams


Training contracts

Donated fabrics

Donations

Key Costs Designers

Building website






Designers




others



Individuals able to

convert fabrics to

scalable products

On-line platform




of fabrics


Winning contracts



materials suppliers



Factory shop



Resources







18


Business Models


Martin Henery


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39


9





ndash Variants




10

10

11










Key Partners

bull




Value Propositions

1 Ad space in high

circulation

newspaper

2 Free city-wide

commuter paper

Channels

1 Ad Sales

Force

2 Public

Transport

Train

stations Bus

stops

Customer

Relationships

bull Acquistion

bull Retention

Customer

Segments

1 Advertisers

2 Commuters

Revenue streams


2 Free Newspaper

Cost Structure

1 Distribution


Key Partners

bull Distribution

agreement with

public transport

networks

Key Resources

bull Brand

bull Distribution

network and

logistics

Key Activities

1 Distribution

2 Write and

Produce a

daily paper




















to assist personal


SMS suppliers




systems and Case A


suppliers (iSalon

Shortcuts)

Social networks to


(Twitter facebook

LinkedIn)





waste time)


business to website





new ideas products



of mouth networking

Complementary

partners


eg LinkedIn ndash

recognised as

Industry Experts

Market segments




FREE










Systems (SMS)













Revenue streams







121 f2f meetings











organisations


systems (SMS)


industry leaders




workshops and maybe









week at college



business




(enhance learning)



Contacts networks

within the industry



Conversion software




Customisation

processes

Automated data

processing

Analysing data

Running quarterly

reviews


opportunities and

threats for clients




15


16

Value Proposition





models



Channels

On-line

Retail

Raising awareness

Factory shop

Relationships

Engaged growing

customer base



sassy confident

design led rich and

vibrant

Market segments


also unemployed



homeless and mental


abuse long-term



skills)

Women interested in

design eco-fashion



clothing

Revenue streams


Training contracts

Donated fabrics

Donations

Key Costs Designers

Building website






Designers




others



Individuals able to

convert fabrics to

scalable products

On-line platform




of fabrics


Winning contracts



materials suppliers



Factory shop



Resources







18


Business Models


Martin Henery


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39





ndash Variants




10

10

11










Key Partners

bull




Value Propositions

1 Ad space in high

circulation

newspaper

2 Free city-wide

commuter paper

Channels

1 Ad Sales

Force

2 Public

Transport

Train

stations Bus

stops

Customer

Relationships

bull Acquistion

bull Retention

Customer

Segments

1 Advertisers

2 Commuters

Revenue streams


2 Free Newspaper

Cost Structure

1 Distribution


Key Partners

bull Distribution

agreement with

public transport

networks

Key Resources

bull Brand

bull Distribution

network and

logistics

Key Activities

1 Distribution

2 Write and

Produce a

daily paper




















to assist personal


SMS suppliers




systems and Case A


suppliers (iSalon

Shortcuts)

Social networks to


(Twitter facebook

LinkedIn)





waste time)


business to website





new ideas products



of mouth networking

Complementary

partners


eg LinkedIn ndash

recognised as

Industry Experts

Market segments




FREE










Systems (SMS)













Revenue streams







121 f2f meetings











organisations


systems (SMS)


industry leaders




workshops and maybe









week at college



business




(enhance learning)



Contacts networks

within the industry



Conversion software




Customisation

processes

Automated data

processing

Analysing data

Running quarterly

reviews


opportunities and

threats for clients




15


16

Value Proposition





models



Channels

On-line

Retail

Raising awareness

Factory shop

Relationships

Engaged growing

customer base



sassy confident

design led rich and

vibrant

Market segments


also unemployed



homeless and mental


abuse long-term



skills)

Women interested in

design eco-fashion



clothing

Revenue streams


Training contracts

Donated fabrics

Donations

Key Costs Designers

Building website






Designers




others



Individuals able to

convert fabrics to

scalable products

On-line platform




of fabrics


Winning contracts



materials suppliers



Factory shop



Resources







18


Business Models


Martin Henery


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39

11










Key Partners

bull




Value Propositions

1 Ad space in high

circulation

newspaper

2 Free city-wide

commuter paper

Channels

1 Ad Sales

Force

2 Public

Transport

Train

stations Bus

stops

Customer

Relationships

bull Acquistion

bull Retention

Customer

Segments

1 Advertisers

2 Commuters

Revenue streams


2 Free Newspaper

Cost Structure

1 Distribution


Key Partners

bull Distribution

agreement with

public transport

networks

Key Resources

bull Brand

bull Distribution

network and

logistics

Key Activities

1 Distribution

2 Write and

Produce a

daily paper




















to assist personal


SMS suppliers




systems and Case A


suppliers (iSalon

Shortcuts)

Social networks to


(Twitter facebook

LinkedIn)





waste time)


business to website





new ideas products



of mouth networking

Complementary

partners


eg LinkedIn ndash

recognised as

Industry Experts

Market segments




FREE










Systems (SMS)













Revenue streams







121 f2f meetings











organisations


systems (SMS)


industry leaders




workshops and maybe









week at college



business




(enhance learning)



Contacts networks

within the industry



Conversion software




Customisation

processes

Automated data

processing

Analysing data

Running quarterly

reviews


opportunities and

threats for clients




15


16

Value Proposition





models



Channels

On-line

Retail

Raising awareness

Factory shop

Relationships

Engaged growing

customer base



sassy confident

design led rich and

vibrant

Market segments


also unemployed



homeless and mental


abuse long-term



skills)

Women interested in

design eco-fashion



clothing

Revenue streams


Training contracts

Donated fabrics

Donations

Key Costs Designers

Building website






Designers




others



Individuals able to

convert fabrics to

scalable products

On-line platform




of fabrics


Winning contracts



materials suppliers



Factory shop



Resources







18


Business Models


Martin Henery


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39









Key Partners

bull




Value Propositions

1 Ad space in high

circulation

newspaper

2 Free city-wide

commuter paper

Channels

1 Ad Sales

Force

2 Public

Transport

Train

stations Bus

stops

Customer

Relationships

bull Acquistion

bull Retention

Customer

Segments

1 Advertisers

2 Commuters

Revenue streams


2 Free Newspaper

Cost Structure

1 Distribution


Key Partners

bull Distribution

agreement with

public transport

networks

Key Resources

bull Brand

bull Distribution

network and

logistics

Key Activities

1 Distribution

2 Write and

Produce a

daily paper




















to assist personal


SMS suppliers




systems and Case A


suppliers (iSalon

Shortcuts)

Social networks to


(Twitter facebook

LinkedIn)





waste time)


business to website





new ideas products



of mouth networking

Complementary

partners


eg LinkedIn ndash

recognised as

Industry Experts

Market segments




FREE










Systems (SMS)













Revenue streams







121 f2f meetings











organisations


systems (SMS)


industry leaders




workshops and maybe









week at college



business




(enhance learning)



Contacts networks

within the industry



Conversion software




Customisation

processes

Automated data

processing

Analysing data

Running quarterly

reviews


opportunities and

threats for clients




15


16

Value Proposition





models



Channels

On-line

Retail

Raising awareness

Factory shop

Relationships

Engaged growing

customer base



sassy confident

design led rich and

vibrant

Market segments


also unemployed



homeless and mental


abuse long-term



skills)

Women interested in

design eco-fashion



clothing

Revenue streams


Training contracts

Donated fabrics

Donations

Key Costs Designers

Building website






Designers




others



Individuals able to

convert fabrics to

scalable products

On-line platform




of fabrics


Winning contracts



materials suppliers



Factory shop



Resources







18


Business Models


Martin Henery


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39

Value Propositions

1 Ad space in high

circulation

newspaper

2 Free city-wide

commuter paper

Channels

1 Ad Sales

Force

2 Public

Transport

Train

stations Bus

stops

Customer

Relationships

bull Acquistion

bull Retention

Customer

Segments

1 Advertisers

2 Commuters

Revenue streams


2 Free Newspaper

Cost Structure

1 Distribution


Key Partners

bull Distribution

agreement with

public transport

networks

Key Resources

bull Brand

bull Distribution

network and

logistics

Key Activities

1 Distribution

2 Write and

Produce a

daily paper




















to assist personal


SMS suppliers




systems and Case A


suppliers (iSalon

Shortcuts)

Social networks to


(Twitter facebook

LinkedIn)





waste time)


business to website





new ideas products



of mouth networking

Complementary

partners


eg LinkedIn ndash

recognised as

Industry Experts

Market segments




FREE










Systems (SMS)













Revenue streams







121 f2f meetings











organisations


systems (SMS)


industry leaders




workshops and maybe









week at college



business




(enhance learning)



Contacts networks

within the industry



Conversion software




Customisation

processes

Automated data

processing

Analysing data

Running quarterly

reviews


opportunities and

threats for clients




15


16

Value Proposition





models



Channels

On-line

Retail

Raising awareness

Factory shop

Relationships

Engaged growing

customer base



sassy confident

design led rich and

vibrant

Market segments


also unemployed



homeless and mental


abuse long-term



skills)

Women interested in

design eco-fashion



clothing

Revenue streams


Training contracts

Donated fabrics

Donations

Key Costs Designers

Building website






Designers




others



Individuals able to

convert fabrics to

scalable products

On-line platform




of fabrics


Winning contracts



materials suppliers



Factory shop



Resources







18


Business Models


Martin Henery


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39



















to assist personal


SMS suppliers




systems and Case A


suppliers (iSalon

Shortcuts)

Social networks to


(Twitter facebook

LinkedIn)





waste time)


business to website





new ideas products



of mouth networking

Complementary

partners


eg LinkedIn ndash

recognised as

Industry Experts

Market segments




FREE










Systems (SMS)













Revenue streams







121 f2f meetings











organisations


systems (SMS)


industry leaders




workshops and maybe









week at college



business




(enhance learning)



Contacts networks

within the industry



Conversion software




Customisation

processes

Automated data

processing

Analysing data

Running quarterly

reviews


opportunities and

threats for clients




15


16

Value Proposition





models



Channels

On-line

Retail

Raising awareness

Factory shop

Relationships

Engaged growing

customer base



sassy confident

design led rich and

vibrant

Market segments


also unemployed



homeless and mental


abuse long-term



skills)

Women interested in

design eco-fashion



clothing

Revenue streams


Training contracts

Donated fabrics

Donations

Key Costs Designers

Building website






Designers




others



Individuals able to

convert fabrics to

scalable products

On-line platform




of fabrics


Winning contracts



materials suppliers



Factory shop



Resources







18


Business Models


Martin Henery


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39


15


16

Value Proposition





models



Channels

On-line

Retail

Raising awareness

Factory shop

Relationships

Engaged growing

customer base



sassy confident

design led rich and

vibrant

Market segments


also unemployed



homeless and mental


abuse long-term



skills)

Women interested in

design eco-fashion



clothing

Revenue streams


Training contracts

Donated fabrics

Donations

Key Costs Designers

Building website






Designers




others



Individuals able to

convert fabrics to

scalable products

On-line platform




of fabrics


Winning contracts



materials suppliers



Factory shop



Resources







18


Business Models


Martin Henery


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39

16

Value Proposition





models



Channels

On-line

Retail

Raising awareness

Factory shop

Relationships

Engaged growing

customer base



sassy confident

design led rich and

vibrant

Market segments


also unemployed



homeless and mental


abuse long-term



skills)

Women interested in

design eco-fashion



clothing

Revenue streams


Training contracts

Donated fabrics

Donations

Key Costs Designers

Building website






Designers




others



Individuals able to

convert fabrics to

scalable products

On-line platform




of fabrics


Winning contracts



materials suppliers



Factory shop



Resources







18


Business Models


Martin Henery


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39

Value Proposition





models



Channels

On-line

Retail

Raising awareness

Factory shop

Relationships

Engaged growing

customer base



sassy confident

design led rich and

vibrant

Market segments


also unemployed



homeless and mental


abuse long-term



skills)

Women interested in

design eco-fashion



clothing

Revenue streams


Training contracts

Donated fabrics

Donations

Key Costs Designers

Building website






Designers




others



Individuals able to

convert fabrics to

scalable products

On-line platform




of fabrics


Winning contracts



materials suppliers



Factory shop



Resources







18


Business Models


Martin Henery


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39

Resources







18


Business Models


Martin Henery


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39


Business Models


Martin Henery


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39


Demand side



ndash Relationship



Supply side

ndash Key resources


ndash Partners


20


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39


21


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39


bull Segmentation




bull Targeting



bull Positioning



22




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39




ndash Use case

ndash Pricing







23









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39









24

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39

Value Proposition









25

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39

26

Channels





services





26

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39

27







27


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39


28


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39


29

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39

30

Key Resources


revenues



30

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39

31

Key Activities





model type

31

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39

32

Key Partnerships






video)



32


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39


the business work



Profit



33


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39


34

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39

Cost Structure





35

35

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39

Revenue Streams






36

36

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39

Costs and Revenues











bull Licensing

bull Royalties






and upgrades




37




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39




June 30

Source 2004 2005

Net revenues 773412 100 1086303 100


Gross profit 626881 81 894463 82

Operating expenses








38

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39

copy

MHenerymsecacuk

EBaY

Amazon

0

10

20

30

40

50

60

70

80

Co

st o

f sa

les

Sa

les a

nd

Ma

rke

tin

g

Te

ch

no

log

y a

nd

co

nte

nt

(= R

ampD

)

Ge

ne

ral a

nd

Ad

min

istr

ative

Oth

er

op

era

tin

g e

xp

en

se

(in

co

me

)

To

tal o

pe

ratin

g e

xp

en

se

s

Inco

me

fro

m o

pe

ratio

ns

of net revenue


EBaY

39

Venture Further workshop Business Models Docs... · • CSFs for delivering value proposition ......

Documents

Transcript of Venture Further workshop Business Models Docs... · • CSFs for delivering value proposition ......