Posts Tagged ‘business model’

CupAd – Your Brand In Their Hand

November 22nd, 2010

The YouTube video about coffee cup advertising was made by the Light Brothers, Josh and Caleb. Two guys I’ve had the pleasure to get to know over the past several months. Their marketing company, CupAd, is a great example of taking an established practice, such as outdoor advertising or branded paper cups, and combining it with another concept, like an ad network, to create a whole new way of advertising that adds value to new group.

They provide free paper cups to local coffee shops. The cups are double walled so it saves on sleeves as well. This greatly reduces the overhead to the shop owners. In exchange CupAd is allowed to put advertising on the cups. Advertising which is seen by at least 6 other people and creatively gives the advertiser about 37 minutes of brand exposure as they finish their beverage. CupAd also allows advertisers to target geographically a particular demographic and then track the results via QR codes and text messaging codes.

 This business model allows CupAd to have the advertiser to pay for the production of the cups and provide them with a little profit. Not a bad gig and just wait until they build out their self-service website. Nothing like making money while you sleep.  

 

The innovation of change

October 12th, 2010

So yesterday I was listening to the analysis of a start-up and it was recommended that they change their business model and my first thought was “to what?” My mind then flashed back to a book I’d seen called, “Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers” written by Alex Osterwalder.

He starts off by defining a business model as something that “describes the rationale of how an organization creates, delivers, and captures value.” Then Alex introduces 9 building blocks that make up most business models. They include:

  1. Customer Segments-Who will use the product or service?
  2. Value Propositions-Why would they use the product or service?
  3. Channels-How is it delivered to the customers?
  4. Customer Relationship-How will relationships be developed and contact maintained?
  5. Revenue Streams-How does the company make money?
  6. Key Resources-What unique assets are required to create and deliver the product or service?
  7. Key Activities- What actions are needed to create and deliver the product or service?
  8. Key Partnerships- Who will help you do it all? (suppliers, outsourcing, distributors, etc.)
  9. Cost Structure- What are the main sources of cost required to create and deliver it?

They’re arranged into a tool titled “The Business Model Canvas” pictured below.

The remainder of the book gives examples of common patterns, strategy, and how to use the tool.

If you’re interested in more business model innovation you can check out a blog by Patrick Stähler who references some academic work that has been done. Another resource is a blog by Anders Sundelin-check out this visual representation of the evolution of business models.

What kind of new business models can you come up with and what is missing in this discussion?

The i’s have it!

August 20th, 2010

Last night I had a chance to catch up with two companies involved in the Boom Startup group that I mentioned previously. The first was iCount.com (formerly known as Voycit), a website that facilitates conversations with your elected officials. After verifying that you’re a registered voter you can get informed about what is going on in a particular topic, engage with your local representatives by voting on issues that come up.

Their business model is currently based on display ads, providing analytics to politicians, and allowing lobbyists to contact you for calls to action. They will be holding a contest to see who can invite the most people. An iPad will be given to the winner so sign-up as soon as you can.

The second company wasn’t presenting but was there in the audience and I had a chance to chat with them about their progress. iActionable.com is a website that offers an easy API plug-in that is gives you a customizable reputation system. Meaning you can have the power of game mechanics available to reinforce whatever behavior you want.

It can also keep track of users and what sort of things they’ve done. For example, if someone were to leave a comment or review on a site that was using iActionable you would be able to see what other subjects or products this person has made the past providing you with a little better context regarding their credibility.

They’re both ramping up and getting ready for the big investor day coming up in September. I wish them the best of luck to both of them.

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