New

1
Business
Models
for this
Decade beta

TREND RESEARC H BY Trend Firm trendwatching .com

MARKET ANALYSIS BY Strateg y Boutique Thaesis
BUSINESS MO DEL DESIGN BY Strateg y
C ons ultant/Graphic Facilitator O uke Arts
10 New Bus ines s Models for this Decade
1. Localized L ow - C ost Business Model beta

2. O n e - O ff Experience Business Model beta

3. Beyond Advertis ing Bus ines s Model beta

4. Markets Are C onversations Business Model beta

5. Low-Budget Innovation Business Model beta

6. C ommunity - Funded Bus ines s Model beta

7. Sus tainability - Focus ed Bus ines s Model beta

8. Twis ted Freemium Business Model beta

9. Unlimited Niches Business Model beta

10. I n - C rowd C ustomers Business Model bet a

Localized L ow - C ost

Business
Model
Localized Low- Cost Business
Model
Localized Fast moving consumer g oods companies looking for new market opportunities for their simple,
L ow - C ost sm all and cheap products are considering the localized low- cost busines s model.
Business
Model
In ess ence, this business model is s uitable for s tandardized
products and services with minimum specifications and lower
customer expectations that can be locally produced and g lobally
branded .

This bus ines s model will only be s uccess ful if the following two conditions apply. The firs t one
depends on significant market presence in metropolitan areas in mature markets . This condition
allows companies to leverage on their achieved brand value in emerging markets. The s econd
condition is that the product or service has income g eneration or self- sustaining features. This
condition opens the door to lower incomes in emerg ing markets. Future market expansion is
poss ible to both other areas in mature markets and higher incomes in emergin g markets .

The company's most important activities will be cost efficient procurement, marketing and quality
manag ement. Des ig n is in the hands of local product and s ervice des ig ners and s tandardiz ed
production is outs ourced to local producers . Likewis e, energ y efficient dis tribution is done throug h
local vendors. Fast moving consumer g oods companies will focus even more on maintaining and
managin g their brand portfolio. Their low cost s tructure, micro financed local activities and low
prices plus high volumes will result in profitable growth of global market s hare.
 Localized Low- Cost Business
The Business Model Canvas
Model
most relevant for fast moving consumer goods
Key Key companies Value Customer Customer
Partners Activities Proposition Relationships Segments

Independent Cost efficient Simple, small

product/service procurement and cheap Higher incomes
designers product/service in emerging
Lower markets
customer
expectations
Standardized Marketing Minimum
local micro and quality specifications Lower-incomes
producers management in emerging
markets

Key Income Channels Metropolitan

Resources generating/self- areas in
sustaining mature markets
Brands Energy efficient
distribution via
local vendors
Other areas in
mature markets

Cost Revenue
Structure Streams
Low costs Micro financed Low prices x
local banks/ High volumes
foundations

Designer: Ouke Arts (ouke.ar

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One - O ff Experience

Business
Model
One- Off Experience Business
Model
One - O ff Big in popularity and unknown for their profit, many s ocial media companies are s earching for ways
Experience to combine third party s ee- hear- buy products and s ervices with their own ability to offer one- off
Business experiences.
Model

The O n e - O ff Experience business model stands for a s mart

connection between customers in markets of abundance and their
experience s eeking equivalents.

This bus ines s model will only live up to its expectations if social media companies team up with
offline event org aniz ers , offline pop- up s tores and online retailers . Developing s oftware and
eng ag ing in ong oing conversations with their us ers is s imply not enoug h to do the trick. This
business model offers unique experiences to customers at a given place during a s pecific event. The
software platform on which its online communication channels come to life will spark the eng ine of
experience s eeking cus tomers . By ins tant contributions from thes e cus tomers then and there, the
door to the larger experience consumin g market s hare will be opened. Events will have to be
combined with commercial opportunism. The social media experience remains free, relevant
products and s ervices will have to boug ht the old- fashioned way. With money that is .

Commissions from both pop- up stores and instant online retailers will bring in the revenue. These
have to compensate s ocial media companies for hig h hos ting cos ts and presence and findability
cos ts . These cos ts tend to ris e along the popularity of the social media platform. If this is not
abs orbed by a parallel g rowth in revenues , the busines s model will not be s us tainable.
 One- Off Experience Business
The Business Model Canvas
Model
most relevant for social media companies
Key Key Value Customer Customer
Partners Activities Proposition Relationships Segments

Offline event Software 3rd party

see-hear-buy Customers in
organizers development Instant
product/service markets of
consuming
abundance

Offline pop-up Conversation

commerce engagement Experience
One-off Instant
and initiative seeking
experiences contributing
customers

Online retailers
Key Channels
Resources

Software Online
platform channels

Cost Revenue
Structure Streams
Hosting costs Online Commissions Commissions
presence and pop-up instant online
findability costs commerce retail

Designer: Ouke Arts (ouke.ar

ts@gmail.com) This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.

f f f QdbX]Tbb\^ST[VT]TaPcX^] To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/

or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105,
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Beyond
Advertis ing

Business
Model
Beyond Advertising Business
Model
Beyond Traditional media and print companies are looking for new revenue s treams and have done so for
Advertising some time. In the last decade, the number of subscribers has been declining and the market for
Business advertisements has not performed much better. So what’s beyond the known horiz on?
Model

Traditional media and print companies need to shift from a business

model bas ed on advertis ers telling s ubscribers what to buy to a
business model based on facilitating both customers and partners in
trust building and on- demand interacting .

The business model for media and print companies remains t wo - sided but with two s eparate value
propositions. It offers customers in mature markets , which are reached through customer initiated
research, comparis on and review, trusted product and s ervice advice. These are s hared with - and
contributed by - commercial partners. Second, it offers individuals on- demand interaction with
public partners, for example governments , schools and hospitals . Media and print companies will
become great in facilitatin g individuals and groups in s haring, contributing and interacting.

All communication will be channeled online and independent review portals complement media and
print companies in building trusted customer relationships. Their cost s tructure will s hift
dramatically, from paper and dis tribution to content manag ement and online facilitating . Revenues
will be g enerated from facilitation fees paid by commercial and public partners , and commiss ions
from product and s ervice retailers . What’s beyond the known horiz on? Facilitation is the answer.
 Beyond Advertising Business
The Business Model Canvas
Model
most relevant for traditional media and print companies
Key Key Value Customer Customer
Partners Activities Proposition Relationships Segments

Facilitate Trusted Research, Customers in

Commercial
sharing and product/service compare, mature
partners
contributing advice review markets

Public Facilitate On-demand

Individuals
partners interacting interaction

Review portals Customers in

Key Channels emerging
Resources markets
Facilitation Online
skills channels

Cost Revenue
Structure Streams
Facilitators Content Online Facilitation fees Commissions
management findability
costs costs

Designer: Ouke Arts (ouke.ar

ts@gmail.com) This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.

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or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105,
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Markets Are C onversations

Business
Model
Markets Are Conversations Business
Model
Markets Are Pro duc t - f o cus e d pro f es s i o nal services firm s are finite. Eco no m ic tu rm o il leads to severe pre s s u re

Conversations ofinance.
Business n f ees inInbtimes
us ines like
s - tothes
- b u se,ines s m arkets
it takes morelike c o ns
than ultanc y,development
product advo c ac y, acc oto
u ntanc
s tay yinand
thecgo ame.
rpo rate

Model Unders tanding that markets are not a s tatic product of his tory and pos ition, but a dynamic s nap
shot of conversations and interactions, is the first part towards new g rowth.

For profes s ional s ervices firms, the difference will be made by

converting non- eng aged customers into eng aged customers.
Product development will be obsolete. It will be replaced by
customer relations and conversations.

By s haring modular and beta products and services with your current and future cus tomers ,
companies and their cus tomers interact and collaborate in ong oing convers ations . Not only will
cus tomers find and follow companies in online social networks, it will be the other way around as
well. Employees have always been an important resource for profes s ional s ervice firms , and this
importance will be especially true for s ocial media s killed employees .

Professional services companies will need to become active with re a l -time tracking and conversion,
with a little help from media partners. This will lead to ongoing product and s ervice improvement
and innovation, resulting in lower failure costs and higher recurrent revenues. An involved cus tomer
is a loyal cus tomer.
 Markets Are Conversations Business
The Business Model Canvas
Model
most relevant for professional services companies
Key Key Value Customer Customer
Partners Activities Proposition Relationships Segments

Media Real-time Find, follow,

companies tracking and Modular and interact and Engaged
conversing beta products/ collaborate customers
services

Product/service Non-engaged
improvement customers
and innovation

Key Channels
Resources

Social media Online social

skilled networks
employees

Cost Revenue
Structure Streams
Lower product/ Higher
service failure recurrent
costs revenues

Designer: Ouke Arts (ouke.ar

ts@gmail.com) This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.

f f f QdbX]Tbb\^ST[VT]TaPcX^] To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/

or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105,
USA.

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Low-Budget
Innovation

Business
Model
Low- B udget Innovation Business
Model
Low-Budget Innovation in fast moving consumer goods companies used to mean bringin g in the creative talents ,
Innovation the marketeers and the producers who started searching for possibilities to develop new products.
Business For executives , there was nothing left but to hope for the bes t. Those days are over now that’s
Model co- creation is introduced. Innovation has become something companies can do with their
customers, instead of to them.

Based on customer observation and customer participation, fast

moving consumer goods companies develop co - c reated products
that are improved by early adopters with s ample tes ts.

Early adopters are connected to the much larg er market s hare of followers . Althoug h co- creation
can take place in off- line development labs, connectivity between adopters and followers is almos t
exclus ively taking place throug h online channels . O nline is als o where local cus tomer communities
and global trend trackers meet.

Fast moving consumer g oods companies need to become specialists in customer behaviour, in
traditional cons umption patterns , but more and more in social and individual lifes tyle patterns as
well. In a low-budget innovation business model, fast moving consumer goods companies are able
to achieve a higher new product success rate with lower budg et development costs. Now that’s
called low -budg et innovation.
 Low- B udget Innovation Business
The Business Model Canvas
Model
most relevant for fast moving consumer goods companies
Key Key Value Customer Customer
Partners Activities Proposition Relationships Segments

Free /
Local customer Customer Co-created personalized
samples Early adopters
communities observation products

Global trend
trackers Customer
Followers
participation

Key Channels
Resources

Customer
behavior Offline
Online
intelligence development
channels
labs

Cost Revenue
Structure Streams
Lower product Higher new
development product
costs success rate

Designer: Ouke Arts (ouke.ar

ts@gmail.com) This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.

f f f QdbX]Tbb\^ST[VT]TaPcX^] To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/

or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105,
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C ommunity -
Funded

Business
Model
Community- F unded Business
Model
Community Entertainment- and publishing companies have traditionally been s pecifically g ood at talent
Funded identification and development. In a community - funded bus ines s model, talent identification and
Business talent development are radically democratiz ed.
Model

Instead of talent identification and development, entertainment and

publis hing companies become exceptionally g ood at fund and
community manag ement. The most es sential res ource in this
bus ines s model is the intellig ence of a community.

In this multis ided business model, their are three distinctive customer s egments: believers,
s uppliers and buyers. Believers become members throug h the online community platform and fund
products that are produced by s uppliers . Thes e products can be vis ual, auditory or textual and are
boug ht by buyers. Believers can be buyers can be s uppliers and the other way around. Fysical
products are dis tributed throug h retail s tores , dig ital products throug h the online community
platform.

To boost product s ales, entertainment and publishing companies partner with media companies,
profess ional producers and dis tributors. This means marketing, production and dis tribution costs
have to be covered by interest and s upplier s ubs criptions next to product s ales . This bus ines s
model has a different tipping point in different markets .
 Community- F unded Business
The Business Model Canvas
Model
most relevant for entertainment and publishing
Key Key companies Value Customer Customer
Partners Activities Proposition Relationships Segments

Media Fund Community

companies management Community- membership
funded Believers
products

Producers
Community
Suppliers
management

Distributors Key Channels

Resources Buyers

Community
intelligence Online
community Retail stores
platform

Cost Revenue
Structure Streams
Marketing Production Distribution Product sales Interest Supplier
costs costs costs subscriptions

Designer: Ouke Arts (ouke.ar

ts@gmail.com) This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.

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or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105,
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Sus tainability -
Focus ed

Business
Model
Sustainability- F o c used Business
Model
Sustain- If g reen s tatus is what cus tomers want, that’s what they’ll g et. Fast moving cons umer g oods
ability companies are creating new products and services for customers in mature and emerg ing markets
Focused by focus ing on sus tainability.
Business
Model
Fast moving consumer g oods companies that are serious about
s us tainability res earch the ecolog ical impact of their products and
services. Facts are needed for research- based g reen marketing
while creativity and locality is needed for g reen storytelling .

Brand defining employees and g reen marketeers work tog ether with product and service des ig ners ,
ecological organizations and governments. These research and marketing efforts demand a
sustainable premium on traditional low- cost prices. When the market response is insufficient,
g overnments can provide g rants for s us tainability - focus ed companies . C us tomers are reached
throug h reg ular channels s uch as retail stores. The relations hip between company and cus tomer is
bas ed on g reen s torytelling : individualiz ed, pers onal and local context are integ rated in cus tomer
relationship management.

This business model will be more s uccess ful if fast moving consumer companies are active in both
mature and emergin g markets . Given the lead in green ambitions in mature markets , market
presence in these markets allows companies to leverage on their achieved brand value in emerging
markets .
 Sustainability- F o c used Business
The Business Model Canvas
Model
most relevant for fast moving consumer goods companies
Key Key Value Customer Customer
Partners Activities Proposition Relationships Segments

Ecological Ecological
organizations impact Sustainable
Customers in
research products/
Green mature markets
services
storytelling
Governments Green
marketing Customers in
Green status emerging
markets

Key Channels
Resources

Retail stores
Brand defining Product/service
employees design

Cost Revenue
Structure Streams
Research Marketing Sustainable Government
costs costs premiums grants

Designer: Ouke Arts (ouke.ar

ts@gmail.com) This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.

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or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105,
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Twisted Freemium
Business
Model
Twisted Freemium Business
Model
Twisted Freemium bus ines s models are relevant to many companies , among st others software development
Freemium companies. This business model is based around the idea of involving customers and development
Business communities in the development process of a free open source based product.
Model

Free open source products are offered to self- service customers,

who have access to a s e lf- s ervice platform. For these customers, self-
reliance is part of the value proposition. Customers in need of a
continuous ly serviced vers ion of the product are willing to pay for a
professional s ubscription.

Now here’s the twis t. Because the free open s ource version is bein g developed outside the software
company, there is no relatively larg e budg et needed for research and development. Key activities
become product s upport s ervices and product versionin g and testing. This means lower
development costs . C ustomers get to choose between ‘Free’ and ‘Premium’ versions of the product.

Software companies need to facilitate relevant open s ource development communities by providing
an online platform. This involves platform development and maintenance costs. To distribute the
continuous ly s erviced vers ion, local branches are in place. This means s ales and dis tribution cos ts
are incurred.
 Twisted Freemium Business
The Business Model Canvas
Model
most relevant for software development companies
Key Key Value Customer Customer
Partners Activities Proposition Relationships Segments

Open source Product Self-service

development support Free open
and access to Self-service
community services source based
platform customers
product

Product
versioning Continuously
Paying
and testing serviced
customers
product

Key Channels
Resources

Open source
product
Online platform Local branches

Cost Revenue
Structure Streams
Sales Distribution Professional
Platform costs costs subscription
development
costs

Designer: Ouke Arts (ouke.ar

ts@gmail.com) This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.

f f f QdbX]Tbb\^ST[VT]TaPcX^] To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/

or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105,
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Unlimited Niches

Business
Model
Unlimited Niches Business
Model
Unlimited The long tail is a typical s tatis tical reflection of niche markets . If s torag e costs are clos e to z ero, the
Niches number of products on sale is close to unlimited. O nline retail companies use a business model
Business adapted to this long tail, s ervicing many niche s eg ments. Some online retail companies have even
Model outs ourced to fulfillment partners . By adding content production tools to their value propos ition, an
unlimited niches business model can be realized.

O nline retail companies offer niche content to many niche customer

s eg ments, by eng ag ing in ong oing mass - cus tomiz ed customer
relations. A s econd customer s egment is the s egment of niche
content providers . Potentially, the combination of thes e two leads to
an unlimited number of niches.

New content is created and offered through online channels , which means online retail companies
will have to focus on platform manag ement and promotion next to s ervice delivery. This platform is
a key res ource, as it is the place where s upply and demand meet and it allows niche content
providers to develop user generated content.

The cost structure of online retail companies includes platform development, platform management
and platform promotion. Revenue comes from low volumes of unlimited items. Because customers
develop the content, if it needs to be low - c ost and practical it will be.
 Unlimited Niches Business
The Business Model Canvas
Model
most relevant for online retail companies
Key Key Value Customer Customer
Partners Activities Proposition Relationships Segments

Niche content Platform Mass- Many niche

providers management Unlimited customized segments
and promotion scope of niche
content

User generated Service Niche content

content delivery Content providers
production
tools

Key Channels
Resources

Platform Online
channels

Cost Revenue
Structure Streams
Platform Platform Platform Low volumes x
development management promotion unlimited items

Designer: Ouke Arts (ouke.ar

ts@gmail.com) This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.

f f f QdbX]Tbb\^ST[VT]TaPcX^] To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/

or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105,
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I n - C rowd C ustomers

Business
Model
In- Crowd Customers Business
Model
In - C rowd Travel, leisure and lifes tyle companies are always on the look- out for s tatus trig g ering products
Business and services they can offer. To deliver s tatus , these companies think in terms of experiences and
Model individuals . The more pers onal, the more status they deliver. Which is also true for the uniquenes s
of the experience.

Servicing in- crowd customers in mature markets, travel, leisure and

lifestyle companies need to extremely personaliz e the relations hip
they have with thes e cus tomers . O ffline networks deliver the best
results through personal in - c rowd encounters.

The mos t key res ource for travel, leis ure and lifes tyle companies is their brand. The brand is both a
social network navigator and a divider between in- crowd and crowd. The most influential members
of a s ocial network are potential brand ambass adors. Brand ambass adors become partners in
selective marketing the status trigg ering products and services. Local social and cultural ag encies
are another key partner, who actually produce or s ervice of s ocial and cultural experiences .

The extremely personaliz ed customer relations hip allows for the hig hes t marg in prices , which have
to compens ate for the relatively hig h ambass ador marketing cos ts and production or s ervice
delivery cos ts . It is the kind of travel, leis ure and lifes tyle marg ins marketeers have for a long time
dreamed of but haven’t been able to maintain in the past decade. The in - c rowd business model is
their new business model for this decade.
 In- Crowd Customers Business
The Business Model Canvas
Model
most relevant for travel, leisure and lifestyle companies
Key Key Value Customer Customer
Partners Activities Proposition Relationships Segments

Selective Status Extremely

marketing triggering personalized In-crowd
Brand
product/service customers in
ambassadors
mature markets

Production/
Social and service delivery Social and
cultural cultural
agencies experiences

Key Personal Channels

Resources
in-crowd
Brand encounters Offline
networks

Cost Revenue
Structure Streams
Ambassador Production/ Highest margin
marketing service delivery prices
costs costs

Designer: Ouke Arts (ouke.ar

ts@gmail.com) This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.

f f f QdbX]Tbb\^ST[VT]TaPcX^] To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/

or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105,
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10 New
Business Models
for this Decade beta

PRO DUC ED BY:

You’re holding a
handbook for Ha rd c o
Ouke Arts, Strateg y C ons ultant/Graphic Facilitator and chal
chan
and
gers
moddesi
lenge
, rs striving to defy
gn tomorrow
els
visionaries, game
outmoded business ver/
’s enterprises. It’s a
book for the… pape
akvaila
r b ac
E - mail ouke.arts@gmail.com, Twitter oukearts , Skype oukearts ble a
t
Amaz
on
THANK YO U: written
by
Alexander Osterw
alder & Yves
co-
Pigneur
create d
by
An amazing crowd
of 470 practitioners

Reinier Evers, Founder/CEO trendwatching .com designed

countries from 45

by
Alan Smith, The
Move ment

Theo Huibers, Founder/CEO Thaesis

THE BUSINESS MO DEL C ANVAS is described in

the book Business Model Generation