Functions of Business Models:
- articulate the value proposition: the value created for users by the offering based on the technology
- identify a market segment: the users to whom the technology is useful and for what purpose
- structure of the value chain: within the firm to create and distribute the offering
- cost structure and profit potential of producing the offering, given the value proposition and the value chain structure chosen
- value network linking suppliers and customers, including identification of potential partners and competitors
- competitive strategy: the innovative firm will gain and hold competitive advantage over rivals
Internet Revenue Models include the following:
- access to the internet
- advertising revenue: sponsorship revenue
- donations
- membership or subscription revenue
- sale or licensing of software or systems: Proprietary systems- software or networks that are the exclusive property of the firm that developed then and that cannot be used by others without permission
- software-based services
- syndication or licensing of content
- transaction revenue
- auction/reverse auction
- barter
- e-commerce
- value-added services
The Value Proposition
