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The rise of disruptive digital business models.
Darwinism goes digital – how will businesses adapt or die?
The rise of disruptive digital business models & © digital wellbeing labs 2012
I am a designernota business man
The rise of disruptive digital business models & © digital wellbeing labs 2012
33%
33%
33%
For a designer business models used to be simple
development
manufacture
retail
The rise of disruptive digital business models & © digital wellbeing labs 2012
Gillette - handle & razor bladeHP - printer & cartridgesVodafone - phone & airtimeAdobe - reader & Indesign etc.
The rise of disruptive digital business models & © digital wellbeing labs 2012
Embodiment of ownershipaccess to entertainment, personal media and communication
The rise of disruptive digital business models & © digital wellbeing labs 2012
The internet has enabled radically new (disruptive) b-modelseBayAmazonGoogle AdsenseAirbnb
The rise of disruptive digital business models & © digital wellbeing labs 2012
Demise of products we ownExplosion of services we use
SpotifyStreetcar / Zipcar Ecomodo
The rise of disruptive digital business models & © digital wellbeing labs 2012
Shifting value perceptionsTowards seamless accessibility and habitual choice
The rise of disruptive digital business models & © digital wellbeing labs 2012
What is more valuable?access vs ownershipmanaging value perceptions and creating mental models
The rise of disruptive digital business models & © digital wellbeing labs 2012
What is more valuable?access vs ownership
The rise of disruptive digital business models & © digital wellbeing labs 2012
What is more valuable?access vs ownership
The rise of disruptive digital business models & © digital wellbeing labs 2012
http://arstechnica.com/microsoft/news/2009/05/microsofts-next-apple-price-attack-zune-pass-vs-itunes.ars
The rise of disruptive digital business models & © digital wellbeing labs 2012
Shifting value expectationsThe face of free
The rise of disruptive digital business models & © digital wellbeing labs 2012
Customer perception of value
own use
how much can one own and consume ?
pay per use
subscribe
The rise of disruptive digital business models & © digital wellbeing labs 2012
The perceived value of free
App usage patternsThe rise of disruptive digital business models & © digital wellbeing labs 2012
Technology convergence affords ever new interactions between context, content and social relationships consequently value perceptions are in perpetual flux.
The rise of disruptive digital business models & © digital wellbeing labs 2012
Consumer behaviour continuous to change BandwidthAccessibilityTrustCustomisation
The rise of disruptive digital business models & © digital wellbeing labs 2012
Business models driven by the internet and reacting to this flux seem to follow evolutionary tendencies.
The rise of disruptive digital business models & © digital wellbeing labs 2012
usefulusabledelightful
The rise of disruptive digital business models & © digital wellbeing labs 2012
usefulusabledelightfulviable
The rise of disruptive digital business models & © digital wellbeing labs 2012
usefulusabledelightfulviableNow the business model is an integral requirement that shapes digital design.
The rise of disruptive digital business models & © digital wellbeing labs 2012
Ticket and seat reservation for Grunsteidl Alexander
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Additional information Booking references
HOLD THIS BAR CODE FIRMLY AGAINST THEREADER ON THE TICKET GATE
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Business Model integrationacross all customer engagements
online sales pdf (paper) ticket
The rise of disruptive digital business models & © digital wellbeing labs 2012
New UX design tools ?business model canvas
The rise of disruptive digital business models & © digital wellbeing labs 2012
www.businessmodelgeneration.com
Ecology Technology evolution
The rise of disruptive digital business models & © digital wellbeing labs 2012
Ecology
The rise of disruptive digital business models & © digital wellbeing labs 2012
Ecology
The rise of disruptive digital business models & © digital wellbeing labs 2012
Geography of Social Networks
The rise of disruptive digital business models & © digital wellbeing labs 2012
Network Economy
Value is added through social networks operating on large scales.
The rise of disruptive digital business models & © digital wellbeing labs 2012
Changing business modelssocieties & economies
huntergatherer
agrarian industrial information
The rise of disruptive digital business models & © digital wellbeing labs 2012
Emergent species requires a new ecology to operate in
The rise of disruptive digital business models & © digital wellbeing labs 2012
What does this map show?
The rise of disruptive digital business models & © digital wellbeing labs 2012
Coffee selling shops in London
The rise of disruptive digital business models & © digital wellbeing labs 2012
Coffee selling shops in London
The rise of disruptive digital business models & © digital wellbeing labs 2012
New business models driven by the internet
The rise of disruptive digital business models & © digital wellbeing labs 2012
Bike repair + cafeBookstore + cafeBookstore + restaurantFashion + barLaundry + cafeBank + design shopBank + work loungeBarber + nail studio + money transferInternet + cafe
Business opportunitiesthrough cross-breeding
The rise of disruptive digital business models & © digital wellbeing labs 2012
Introduction : What is evolution ?
The rise of disruptive digital business models & © digital wellbeing labs 2012
EvolutionThe process of change over generations.
The rise of disruptive digital business models & © digital wellbeing labs 2012
EvolutionThe diversity of models evolves by means of mutations, genetic drift and selection.
The rise of disruptive digital business models & © digital wellbeing labs 2012
Selection1_hereditary materials, genes2_produce more offspring than the environment can support.3_variations among offspring through mutations or reproduction
The rise of disruptive digital business models & © digital wellbeing labs 2012
Selection1_design patterns2_rapid growth
3_unexpected use cases and mergers
The rise of disruptive digital business models & © digital wellbeing labs 2012
A brief history of business models on the internet not necessarily affected by evolutionary forces.
The rise of disruptive digital business models & © digital wellbeing labs 2012
Period β experiments and visions
1979 book Future Cities: Homes and Living into the 21st Century
The rise of disruptive digital business models & © digital wellbeing labs 2012
Period β experiments and visions
The rise of disruptive digital business models & © digital wellbeing labs 2012
Period β experiments and visions
Apple NewtonThe rise of disruptive digital business models & © digital wellbeing labs 2012
Period 1emulate existing business models but apply to new infrastructure._the World Wide Web_Brochureware
The rise of disruptive digital business models & © digital wellbeing labs 2012
Period 1
The rise of disruptive digital business models & © digital wellbeing labs 2012
Web 1.0 vs CD-romWhen business models didn’t transfer.
The rise of disruptive digital business models & © digital wellbeing labs 2012
Period 1.com crash equivalent to a meteorite
The rise of disruptive digital business models & © digital wellbeing labs 2012
Period 2realisation of the networkemergence of social media.
_The semantic web
The rise of disruptive digital business models & © digital wellbeing labs 2012
abc
The rise of disruptive digital business models & © digital wellbeing labs 2012
Period 2realisation of the evolutionary nature, similar to the cambrian explosion
The rise of disruptive digital business models & © digital wellbeing labs 2012
Evolution is driven by death
The rise of disruptive digital business models & © digital wellbeing labs 2012
Period 2
Disappearing geographical borders, shrinking distances, instant communication lead to competition on a global scale.
The rise of disruptive digital business models & © digital wellbeing labs 2012
Period 3Seamless, continuous, integrated, fully mediated
The rise of disruptive digital business models & © digital wellbeing labs 2012
abc
The rise of disruptive digital business models & © digital wellbeing labs 2012
Period 3
NIN Nine Inch Nails
The rise of disruptive digital business models & © digital wellbeing labs 2012
Period 3
NIN Nine Inch Nails
TapTaprevenge
Free $ 5.00
music + game
The rise of disruptive digital business models & © digital wellbeing labs 2012
Period 3
NIN Nine Inch Nails
NIN access app
Free
music + social network
The rise of disruptive digital business models & © digital wellbeing labs 2012
Business models : Oh no ... not today
The rise of disruptive digital business models & © digital wellbeing labs 2012
Evolving business modelsBrokerage : charges a fee or commission for each transaction it enables.
Marketplace ExchangeBuy / Sell FullfillmentDemand collection system (priceline)Auction Broker Transaction Broker - 3rd party payment fullfilment - PaypallDistributorSearch AgentVirtual Market Place - hosting services at a price
Advertising: The advertising model works best when the volume of viewer traffic is large or highly specialised. PortalClassifiedsUse RegistrationQuery-based Paid Placement -, automate what you see, when.Contextual Advertising / Behavioral Marketing Content-Targeted Advertising - Googe adsenseIntromercials Ultramercials
Infomediary: analytical data of consumption or navigation habits and patternsAdvertising NetworksAudience Measurement ServicesIncentive Marketing - loyaltyMetamediary
Merchant model : curatorVirtual Merchant - e-Tailer online only eg amazonCatalog MerchantClick and Mortar (barns & Noble)Bit Vendor
Manufacturer (Direct) a company that creates a product or service to reach buyers directly and thereby compress the distribution channel.Purchase -- the sale of a product in which the right of ownership is transferred to the buyer.LeaseLicenseBrand Integrated Content
Affiliate : passing trafficBanner ExchangePay-per-clickRevenue Sharing (iTunes click thru)
Community : shared resourcesOpen Source - Instead of licensing code for a fee, open source relies on revenue generated from related services like systems integration, product support, tutorials and user documentation.Open Content - wikipediaPublic Broadcasting - user-supported model used by not-for-profit through voluntary donations. Social Networking Services - Social networking services can provide opportunities for contextual advertising and subscriptions for premium services. (FLickr, Friendsetr, Flickr)
SubscriptionUsers are charged a periodic -- daily, monthly or annual -- fee to subscribe to a service. It is not uncommon for sites to combine free content with "premium"Content Services : - NetflixPerson-to-Person Networking ServicesTrust Services : Internet Services Providers : AOL
Utility : pay as you go "on-demand" model is based on metering usage, or a "pay as you go" approach. Unlike subscriber services, metered services are based on actual usage rates. ISPsMetered Usage : Metered Subscriptions : slashdot
The rise of disruptive digital business models & © digital wellbeing labs 2012
Evolving business modelsdesigning customer engagementFrequency - repeat useDuration - dwell-time
creating a context of use to drive towards embedded b-models
The rise of disruptive digital business models & © digital wellbeing labs 2012
Darwinism : Is it all about the survival of the fittest? Are there successful niche opportunities?
The rise of disruptive digital business models & © digital wellbeing labs 2012
NichesOne Million Dollar page
The rise of disruptive digital business models & © digital wellbeing labs 2012
NichesI am rich AppValue?
The rise of disruptive digital business models & © digital wellbeing labs 2012
NichesRed Paperclip - 14 barters
http://oneredpaperclip.blogspot.com/
The rise of disruptive digital business models & © digital wellbeing labs 2012
NichesRed Paperclip - 14 barters
One red paper clipNovelty pen
Ceramic doorknobCamping stove 1,000-watt generator Beer keg with neon sign Snowmobile
Trip to Yakh A large van One recording contract One year rent-free in Phoenix Afternoon with Alice Cooper Kiss Snow globe Hollywood movie role House in Kipling
The rise of disruptive digital business models & © digital wellbeing labs 2012
Game ChangersSquare,small transaction processing services
The rise of disruptive digital business models & © digital wellbeing labs 2012
Game Changerswww.khanacademy.org
The rise of disruptive digital business models & © digital wellbeing labs 2012
Darwinism : In a connected world ... When ecologies are merged ...
The rise of disruptive digital business models & © digital wellbeing labs 2012
http://images3.realestate.co.nz/edi/genilnk001/photos/L11008-1.jpg
ecology
When foreign species are introduced in formerly closed ecologies, soon a dominant species will outcompete the native species. On a global scale this leads to fewer species, although ultimately from perspective of evolution this competition will determine the best suited solution.
The rise of disruptive digital business models & © digital wellbeing labs 2012
Dying species
The rise of disruptive digital business models & © digital wellbeing labs 2012
Network effect instantly distributes, recycles and accelerates ideas.No originality, reusing patterns
The rise of disruptive digital business models & © digital wellbeing labs 2012
Each ecological niche affords optimised solutionAcceleration to optimised solutions.
The rise of disruptive digital business models & © digital wellbeing labs 2012
Each ecological niche affords optimised solutionSolutions are homologue
Troodon & DinosauroidThe rise of disruptive digital business models & © digital wellbeing labs 2012
Are we still evolving at the same speed?
The rise of disruptive digital business models & © digital wellbeing labs 2012
1920 1930 1940 1960 1970 1980 1990 20001950
Are we in a period of optimisation & stagnation?A picture of you now, and compared to styles 15 years back will not show many differences.
The rise of disruptive digital business models & © digital wellbeing labs 2012
Are we in a period of optimisation & stagnation?Acceleration of evolution of ideas leads to converging solutions and stagnation of progress.Speed of development has slowed and will only be perceivable at an evolutionary pace in the long term future.
The rise of disruptive digital business models & © digital wellbeing labs 2012
We seem to have gained more choicesWith increasingly less variety
The rise of disruptive digital business models & © digital wellbeing labs 2012
Network effect instantly distributes, recycles and accelerates ideas.No originality, reusing patternsShould we become ignorant again?
The rise of disruptive digital business models & © digital wellbeing labs 2012
Evolution is inherently non-deterministicthree questions
The rise of disruptive digital business models & © digital wellbeing labs 2012
three questions_What b-models are about to emerge?
_How can products and services be designed to become more adaptive to evolutionary forces ?
_Will evolutionary business models kill the designer?
The rise of disruptive digital business models & © digital wellbeing labs 2012
Thank You!Alexander Grünsteidl
alexander @ method.comwww.method.com www.digitalwellbeinglabs.com
The rise of disruptive digital business models & © digital wellbeing labs 2012