Mega Trend #: 2 New Business Models in the Age of Distributed Capitalism

lovingbangInternet and Web Development

Nov 3, 2013 (3 years and 11 months ago)

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17/1/2012


MEGA TRENDS 2020: ‘Shaping India’s Future’

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Mega Trend #: 2

New Business Models in the Age of
Distributed Capitalism



Prof. Shailendra Raj Mehta


IIM
-
Ahmedabad and Duke CE


Business Models are Important


Often
a new technology or market needs a new business model


There are lead markets


High
tech for the US


Miniaturization
for Japan


Low
cost innovation including bottom of the pyramid in India


Google and Apple succeeded because they created Technology +
Business Model (Search +
Adwords
) (iPod + iTunes
)


US universities prospered by changing the business model


Alumni control


“As against a 60 million job creation in the period 1999
-
2000 to
2004
-
05, just about a million jobs were created in 2004
-
05 to 2009
-
10.” (
Rangarajan
,
Kaul

et al. 2001).


Important in Entrepreneurship and New Job creation.


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MEGA TRENDS 2020: ‘Shaping India’s
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Innovative Business Models


Johnson 2010

Affinity

club

MBNA

Brokerage

Century

21
,

Orbitz

Bundling


Fast
-
food

value

meals,

iPod/

iTunes

Cell

Phone

Sprint,

Better

Place

Crowdsourcing


Wikipedia,

You

Tube

Disintermediation

Dell,

WebMD

Fractionalization

Time
-
sharing

condos,

Net

Jets

Freemium

Skype,

Linkedin
,

Pandora

Leasing


Xerox,

Luxury

cars,

Machinery

Link

Low
-
touch

Southwest,

Wal
-
mart
,

Xiameter

Negative

operating

cycle

Amazon

Pay
-
as
-
you
-
go

PG&E,

metered

ISPs

Razors/

blades

Gillette,

personal

printers

Reverse

auction

Elance
.
com,

OnForce
.
com

Reverse

razors

/

blades

iPod/iTunes,

Amazon

Kindle

Product
-
to
-
service

IBM,

Hilti
,

Zipcar

Standardization

Minute

Clinic

Subscription

club

Magazines,

Costco,

Netflix

User

communities

Angle’s

䱩st

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Business Model Definition

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MEGA TRENDS 2020: ‘Shaping India’s
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Customer Value
Proposition

Profit Formula

Key Resources

Key Processes

Target Customer

Revenue Model

People

Routines

Job to be Done

Cost Structure

Technology

Rules and
Metrics

Offering

Margin Model

Equipment

Norms



Resource Velocity

Information







Channels







Partnerships







Brand



From Johnson, Christensen et.al. HBR 2008

Indian Business Models


Bottom of the Pyramid


C.K.
Prahalad


But also “frugal engineering” or “
Gandhian

engineering”


India is the lead market for Bottom of the
Pyramid Innovation


Want to look at what has happened in the last
10 years


Link up to

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MEGA TRENDS 2020: ‘Shaping India’s
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12 Models


Direct Fit with Rifkin


Distributed Information and Energy


Government


Aadhar


Aakash


Indian Companies


Forus

Healthcare


Ekgaon


Mahindra
Reva


Tata Nano


Chotukool


Microfinance


Global Delivery Model


E
-
choupal


Social Sector


108 Emergency


MNCs


e
-
Shakti


Others


21 other models (33 in all)

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Government Sector


Aakash

Tablet


Create community learning solutions


40,000 print materials by IGNOU, 1600 videos (free)


IITs and
IISc
.
http://nptel.iitm.ac.in
/



MIT open course ware


Aadhar

Card


Clear Trip


ATM machines


Limited only by our imagination

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MEGA TRENDS 2020: ‘Shaping India’s
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Ekgaon


customized farming
recommendations


based
on local weather,
crop and soil conditions
using text and
voice,


delivered
to the most
basic and cheap
cellphones that dot the
rural countryside.


Cloud computing


Rs

250 a year


12,000 paying
subscribers

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MEGA TRENDS 2020: ‘Shaping India’s
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Reva



Electric Car


Created by the
Maini

Group


Taken over by Mahindra and Mahindra


Today, Mahindra
Reva

has one of the largest
deployed fleets of electric cars in the global
market and the accumulated data from more
than 100 million km of user experience.


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MEGA TRENDS 2020: ‘Shaping India’s
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Forus

Healthcare


The
large number of blind people who have what
may be called “avoidable blindness” on account
of a neglect of cataracts, glaucoma, refraction
problems, corneal problems and diabetic retinas.


Forus

has created a “a single, portable,
intelligent,
noninvasive
, eye
prescreening

device



tests
for all five of these conditions and if any
anomalies are found connects the patient to a
doctor via telemedicine.

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Formula


One visionary


L
ow cost highly skilled talent


S
imple, affordable, bundled technology, complete or
customized solution using technology


L
ow cost distribution using low cost sales force


C
ombination of high tech and low tech management


L
arge volumes, low prices


S
cale up fast while remaining very close to the customer


Appeal to the impulse to make a difference (CSR)


Good stakeholder management


Key Question


How will these new business models mix
and match to create new value in the future
?


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MEGA TRENDS 2020: ‘Shaping India’s
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