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					Business models
Business models

  Project Course 2009
    Karl Rönnholm
       What are business models?
       What are business models?
      abst act o o p opos t o s a t cu ated as
• An abstraction of propositions articulated as 
  claims and intentions (Keen, 2006)
                         g              y
• It describes the logic of a business system for 
  creating value that lies behind the actual 
  processes (Petrovic, et al.2001)
• Architecture for product, service, and information 
  flows, including a description of the various 
  actors and their roles, together with a description 
  actors and their roles together with a description
  of the source of revenues and potential benefits 
  (Timmer, 1998)
How to make money !
How to make money !
Amazon 
Amazon ‐ merchant
Dell 
Dell ‐ manufacturer
Google  affiliate  
Google ‐ affiliate
F‐Secure ‐ Subscription
mtv3 
mtv3 ‐ advertising
www.milliondollarhomepage.com
Why is Twitter valued to 680 M€?
     eb ua y t as o y 80 $
 In February it was only 180 M$
  Business model or Business plan
  Business model or Business plan
  Your business model helps you generically 
• Your business model helps you generically
  define the product or business that you are 
  proposing, your customers and the 
  proposing your customers and the
  transaction mechanism/s that will allow you 
  to make money before you begin creating
  to make money before you begin creating 
  your formal business plan. 
  Your business plan will describe your model in 
• Your business plan will describe your model in
  more detail. 
  (http://www.nciia.net/resource_folder/entreguides/gettingstarted/plan1.html)
  (http://www nciia net/resource folder/entreguides/gettingstarted/plan1 html)
                        Your tasks
• Create a business plan describing how the product 
  can be used as the basis for a profitable business. 
• Sections:
   –   Business model
   –   Market and competition analysis
   –   Feasibility analysis
       Feasibility analysis
   –   Profitability and financial planning
   –   Implementability
   –   Risk analysis
       Risk analysis
• Advice:
   – Follow the guidelines provided on the Venture Cup 
     website http://web.venturecup.fi/index.php?id 91
     website http://web venturecup fi/index php?id=91
• Upload this document as a PDF document (or alternatively a 
  Word document) with the name projectname‐
  businessplan.(pdf|doc)
A final question: 
A final question:


   Can you make money on a perfect 
          solution or product?
          solution or product?

				
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