Presentation on theme: "M ONETIZING THE B USINESS M ODEL MBA LITE F EBRUARY 17, 2014."— Presentation transcript:
M ONETIZING THE B USINESS M ODEL MBA LITE F EBRUARY 17, 2014
D AN Q UIGG B IO 25 Years Technology Executive Founder & CEO, Public Insight Corporation President & CEO, RIS Logic acquired by Merge Healthcare Founder & CEO, OmniVista acquired by Best Software General Manager, Best Analytics (acquired by Sage) KPMG Small Systems Co-Founder CEO - Public Insight Corporation Developers of 360-Public Goal of transforming public data into insight Kent State University Adjunct Professor of Entrepreneurship Awards and Groups Ernst & Young Entrepreneur of the Year Finalist Smart Magazine “Rising Star” Case Western Reserve Inaugural Leadership Award Leadership Cleveland Class of 2013 Follower of Jesus Christ
B USINESS M ODEL F RAMEWORK Source: Business Model Institute Our Focus
G OAL : B UILD E NTERPRISE V ALUE Value of an Organization Exit Value Functions: Growth Rate Recur Revenue Scalability Margins Risk Mkt Potential Entrepreneur Decisions: Capital vs. Bootstrapping Acceptable Cash “Burn” Founder Salaries
B EACHHEAD M ARKET E NTRY “Paying” Customers Not “Fun With Spreadsheets” Innovative – Not “Me Too” Primary, then Secondary Go For the Beachhead!
T HE C ORE Zook – Profit from the Core Core Adjacency
W HAT IS A C ORE ? The Core is something that allows you to deliver the benefits your customers value with much greater effectiveness than any other competitor.* What it is Not? IP First mover advantage Locking up suppliers Pivoting: Typically a change in core Average successful pivots 1.8 Not a change in primary market * Disciplined Entrepreneurship
S OURCES OF DIFFERENTIATION Zook – Repeatabillity Portfolio management and finance M&A, JVs, and partnering Regulatory management BU strategy and driving priorities HR management and culture Supply chain and logistics Production and operations Development and innovation Go-to-market Customer relationships Tangible assets Scale Technology and IP Brand Tied customer network Must have at least three
E XAMPLE SegmentProvidersConsumersThose Who Care K-12School DistrictsParents and Students Media Service Centers Consultants Unions State Higher EducationColleges and Universities Parents Students K-12 Trade Associations Consultants Libraries HealthCare Providers Insurance Companies PatientsNon-Profits Libraries Trade Associations Consultants GovernmentState and Local Entities ConstituentsState Media Planning Agencies BusinessBusiness/Labor MktsGeneral PublicLibraries Economic Develop. 2 1 Free
P RICING F RAMEWORK Goal of Lifetime Value Costs are Irrelevant Understand Value Pay Attention to Decision Process Understand Price Alternatives Different Types Will Pay Different Prices Be Flexible for Early Adopters and “Lighthouse Customers” It is Always Easier to Drop the Price Than Raise it
U NDERSTAND C OSTS OF C USTOMER A CQUISITION Source: Disciplined Entrepreneur Time HorizonsYear 1Years 2 and 3Years 4 and 5
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