Business Model
Business Model
Business Model
Karanveer Singh
PRN
12020541103
2. Osterwalder and Pigneur stress the role of design in business to imagine ‘that
which does not exist’ and want to offer support in the form of design tools
and techniques.
4. Visualisation also allows for clearer discussions and changes because the
model becomes more concrete and tangible.
The Four-Box Business Model (Johnson,
2010)
Assumptions
Knowledge
Johnson positions business rules, behavioral norms and success metrics as part of the key
processes and also sees them as connecting the boxes of the business model and keeping
it in proper balance.
They ensure that the customer value proposition can be delivered in a repeatable and
predictable way while fulfilling the profit formula. This links the business model to the
day-to-day operations.
The Current Scenario
• Market demand
Market Drivers and
• Convergence of the information, telecommunication and TV industries
Conditions • Competition
Compete with
Resources & Finances required to deploy IPTV Services Satellite & Cable
by Telcos, the three possible types of leverage:-
IPTV as Mass Market Service
1) Bundling of video services with broadband & Voice
2) Offering VAS (e.g. Interactive services, VoD, PVR)
3) Attractive service portfolio - exclusivity or ‘long tail’ niche Leverage Current
channels Expertise & Customer Loyalty
Presence in Voice & Broadband Arena
IPTV Business Model (Utilizing STOF Framework) – TECHNICAL
DOMAIN
TECHNOLOGY DOMAIN (Area of Functionality)
ACCESS VIDEO
BACKBONE DEVICES BILLING ON CRM Content Layer
NETWORK
DEMAND
Influence
Infrastructure Meeting
SERVICE DESIGN
Transmission Requirements
Gradually increasing the capacity High End Encoding/Decoding equipment Integrating platforms
ISSUES
VALUE NETWORK
Co-Determine
Divide over actors according to
SERVICE REVENUE SOURCE
REVENUE RISK
COMPETITION PRICING MODEL
TARIFFS
Co-Determine
FINANCIAL PERFORMANCE : Available Models :
Result of COST & REVENUE FIXED COST :
• Flat Rate (Subscription)
PRICING depends on: • Technical & Service design
• Pay-per-View
• Market Competition • High availability : High end Servers
• Advertising (VoD)
• Operational Costs • Interactive Services: Network
• Customization & Personal Services
• Company Strategy Equipment
(Future scope)
Design Issues and Trade-offs (1 of 2)
Service Design
Service Design issues Service Domain Other Domains
Values added services New and unique services Large investments and risk of failure
Current portfolio Content through only available platform Requires cost-effective network and
advanced middleware complex
organization arrangement
Organizational Design
Organizational Design issues Organization domain Other domain
Financial Design
Financial Design issues Finance domain Other domain
In this scenario, consumers are already quite experienced with digital TV and they
are interested in new services.
CHALLENGES
The key critical design issue has to do with providing new value-added services.
Conflict with content oriented firms in case they open up long tail strategy for
value added services (e.g. :- PVR services).
MEASURES
Telecom operators can also agree to tolerate consumers copying contents and
avoiding advertisements if the value-added services manage to attract enough
new subscribers.
SCENARIO 4: BACK TO BASICS
In this scenario, regulators adopt strict anti-trust policies toward the big telecom
operators in the market.
Most consumers are satisfied with the television services currently provided by
cable and satellite companies.
Consumers have decided to use bundling services for reasons of convenience and
to facilitate easier configuration.
CHALLENGES
In this scenario, regulatory barriers and consumer indifference make it hard for
telecom operators to offer IPTV services.
Thirdly, they can create complementary programs and content on the television
and broadband platforms.