The Explainer: What Is a Business Model?

If you have two minutes, watch this. screen-shot-2017-01-16-at-11-04-28-am

A quick explanation of a business model, and a business strategy. (An HBR Video based on articles by Joan Magretta and Andrea Ovans)

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SHIFT/SUBSCRIBE, SHIFT/SERVICE

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CEO Andrew Savikas gets it.  And so do an ever growing number of parvenu: Pandora, Spotify, Netflix, Zipcar, Salesforce.com, Box, Tata, VNU Media, Zendesk, apps, cloud computing, and even Dell with its 30+B market cap recognizes that selling low-margin hardware is much less attractive than offering a service arm.

How do owners of things, differ from, members of services? How do we SHIFT the business?

And how do we go from measuring # of units sold, to #/quality of recurring relationships? And how are we managing and monitoring those relationships?

Is pricing based on value? or are we still pricing based on cost?

Do we see how this shifts business from B2C, or B2B, or B2B2C — to a B2ANY?

Why did Google’s Chief Economist Hal Varian coin the phrase “marketing is the new finance”?

Why is Marketing, what used to be the business backbone (responsible for strategy, advertising, content, branding, targeting, direct mail, positioning, lead generation and so on) moving to include HR, technology, and finance?

Today, the Subscription Economy is fuelling massive changes across communications, media, technology, consumer services and other billion dollar industries that are embracing subscription revenue models.

What can we anticipate coming next?