What is the effect the Internet has on traditional business models? Why do some models thrive and other fail in this new world of online and social media? These are my slides for a one hour talk on i-beta-event in Heerlen, May 2011.

1. The business
of the Internet

2. Hello! My name is Bart.

3. I’m an entrepreneur.

4. And a geek.
(this is an actual screenshot from my laptop
while making this presentation)

5. I’m staffing Pakistani talent at
European software companies

6. I’m trying to build the world’s largest
online resource for public data

7. The next ±60 minutes. . .
What is a business model?
What is the Internet?
Internet and traditional business models

8. What is a business model?

9. What is a business model?
A
method
for creating
value .

10. What is a business model?
A
method
for creating
value .

11. What is the Internet?

12. PEOPLE

13. PEOPLE
= ‘users’, ‘visitors’, ‘customers’, . . .

14. Internet and
traditional
business
models

15. Business models by developmental stage
1. Authoritative stage 2. Subjective stage
3. Objective stage 4. Abductive stage

16. Business models by developmental stage
1. Authoritative stage 2. Subjective stage
. based on need
. monopoly, addiction
. obligate customers
3. Objective stage 4. Abductive stage

17. Business models by developmental stage
1. Authoritative stage 2. Subjective stage
. based on need . win/lose
. monopoly, addiction . only the company benefits
. obligate customers . get customer to spend money
3. Objective stage 4. Abductive stage

18. Business models by developmental stage
1. Authoritative stage 2. Subjective stage
. based on need . win/lose
. monopoly, addiction . only the company benefits
. obligate customers . get customer to spend money
3. Objective stage 4. Abductive stage
. complimentary relationship
. informing, communicating
. satisfy customers

19. Business models by developmental stage
1. Authoritative stage 2. Subjective stage
. based on need . win/lose
. monopoly, addiction . only the company benefits
. obligate customers . get customer to spend money
3. Objective stage 4. Abductive stage
. complimentary relationship . mutual ongoing relationship
. informing, communicating . marketing and sales dissolve
. satisfy customers . communities arise

20. 1. Balance of power shifts toward customers
2. Communication changes
3. Consequences for bad behaviour worsen
4. Information and its distribution are abundant
5. New opportunities for companies arise

21. 1. Shift of power
company
consumer

22. regulator
supplier
sales
customer
reviewer
marketing
R&D
support

23. 2. Changes in communication

24. 2. Changes in communication
faster, cheaper

25. 2. Changes in communication
faster, cheaper
easier to monitor

26. 2. Changes in communication

27. 3. Worsening consequences for bad behaviour

28. 3. Worsening consequences for bad behaviour

31. 4. Information and its distribution are abundant

32. 4. Information and its distribution are abundant
Redefine what you are for.

33. 4. Information and its distribution are abundant
Redefine what you are for.
Learn from the porn industry.

34. Did you really think you could watch a
presentation with Internet in its title and not
getting a referral to porn?

35. Did you really think you could watch a
presentation with InternetBusiness in its title
and not getting a referral to pornthe most
profitable business in the universe?

36. 5. New opportunities for companies

37. 5. New opportunities for companies
Manufacturer
↓
Wholesaler
↓
Retailer
↓
Final customer

38. 5. New opportunities for companies
e 3 Manufacturer
↓
e 7 Wholesaler
↓
e 14 Retailer
↓
e 39 Final customer

39. 5. New opportunities for companies
e 3 Manufacturer
↓
e 7 Wholesaler
↓
↓
e 39 Final customer

40. 5. New opportunities for companies
e 3 Manufacturer
↓
↓
↓
e 39 Final customer

41. 5. New opportunities for companies
e 3 Manufacturer
↓
↓
10% Payment/back-office
↓
e 39 Final customer

42. 5. New opportunities for companies
e 3 Manufacturer
↓
10% Affiliate marketeers
↓
10% Payment/back-office
↓
e 39 Final customer

43. Business models by developmental stage
1. Authoritative stage 2. Subjective stage
. based on need . win/lose
. monopoly, addiction . only the company benefits
. obligate customers . get customer to spend money
3. Objective stage 4. Abductive stage
. complimentary relationship . mutual ongoing relationship
. informing, communicating . marketing and sales dissolve
. satisfy customers . communities arise

44. Business models by developmental stage
1. Authoritative stage
. based on need
. monopoly, addiction
. obligate customers
3. Objective stage 4. Abductive stage
. complimentary relationship . mutual ongoing relationship
. informing, communicating . marketing and sales dissolve
. satisfy customers . communities arise

45. The Internet forces companies’ business models
away from the subjective stage.

46. So why do those in the authoritative stage survive?
...

47. People are lazy
Network effect

48. “It is not the strongest of the species
that survives, nor the most intelligent
that survives. It is the one that is the
most adaptable to change.”

49. Credits
(I couldn’t do this without you!)
Simon J. Hill (http://www.infoqual.net)
Hugh McGuire
(http://www.huffingtonpost.com/hugh-mcguire/
porn-knows-what-its-for-d_b_81522.html)
The Internet and Business
(http://ibiz.wikidot.com/)
Many anonymous photographers