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How to write a good executive summary? (With examples and video-tutorial)

How to write a good executive summary? (With examples and video-tutorial)

These days, some of which I impart Masters in Digital Marketing classes are coming to an end and students must present their final projects Master. These projects can be in the form of research, in the form of Marketing Plan or as Business Plan. Most of my students choose the latter option. So tutorials in recent weeks are to finish finalize their projects, prepare executive summaries (Which although included at the beginning of a business plan is written at the end) and to prepare presentations to be performed before a court of the university.

During tutorials this week I realized that for many of these students perform executive Summary It is not as easy as it seems to me. So for them, I wrote this post.

What is an executive summary?

A executive Summary It is a document provided as an appendix of a business plan that aims to summarize in a two-page, our business plan.

This document is the one that will give our potential investors in a first contact. We never deliver our business plan directly for two reasons:

  1. Because our potential investor does not know if you're interested or not our business, and therefore do not want to read a document that can have more than 100 pages (you'll want most, spend 5 minutes to listen).
  2. Because we do not know our future investor (... could be a future competitor) and we're not delivering our business plan to anyone.

How can you make an executive summary easily?

The easiest and most effective way (or at least this is my opinion based on my experience) to make good executive Summary It is putting it in the form of FAQs (Frequently Asked Questions), ie, in the form of questions that may arise our potential investors and we will look to respond in three lines max per question.

What questions poses a potential investor?

These are some of the questions that our executive SummaryAt least, should respond:

  1. What problems have you encountered?
  2. What is the project about? (How will you fix the problem?)
  3. Where is the business? (How do you earn money?)
  4. How much money is needed to create it?
  5. How long it will reach breakeven (or neutral, or break even.. depending on where the investor is)? and What economic results will be obtained?
  6. What equipment is carried out?
  7. Why do you think you will succeed?

These same questions are surely the court to hear our final Master thesis will also consider well worth the students to take well prepared and be able to answer without hesitation.

In this video I explain how.

To see an example of Executive Summary including the questions, click here: Example executive summary

To see an example of Executive Summary written up no questions included, click here: Example executive summary 2

Both examples are both perfectly valid to present to a court of projects to present to potential investors.

How to write a good executive summary? (With examples and video-tutorial) Come.

I hope I have been helpful.

We talk to each other.

Do you really know what you want your client? Just ask!

September 9, 2020

September 9, 2020

The world is changing again. In fact, it is always changing, but the business models that were valid in the 2.0 era, that of social networks, the first decade of the 2000s, are now not robust enough to retain today's customers, who are much more sophisticated and knowledgeable about online tools and the possibilities of the internet. We have no choice but to evolve.

Index

The importance of generating value in the business model

In academic definitions of "What is a business model" that is found mostly an abstract concept that no one dares to define with specificity. Luckily we have Osterwalder (the same as in 2009 created the framework Canvas Business Model) that helps us clarify terms and business model defined as "the system that creates, delivers and captures value." On their website you will find more info about this model https://strategyzer.com/

So a good business model revolves around creating value and ability of the company to recover the value as billing and profit ... but how can we create value?

How do we generated value for a customer 10 years ago?

En la época del 2.0 había negocios que con solo formar parte de ellos ya se generaba valor, lo que se denominaba “las externalidades de red” (network externalities, en inglés). Eran el tipo de negocio de floreció desde 1998 hasta más o menos 2010 y que se regían por la llamada “Ley de Metcalfe” que postula que el valor de pertenecer a una comunidad incrementa al cuadrado del número de usuarios que forman parte de ella. Este es el caso de Facebook, de eBay, de todos los portales de citas, de Wallapop, y un sinfín más de negocios online. En 2004 escribí un artículo donde explicaba qué es la Ley de Metcalfe y qué es una Red de Metcalfe, si quieres leerlo lo encontrarás aquí: What is Metcalfe's Law.

The point is that in 2000 businesses operating in a network of Metcalfe are those who triumphed at that time and the value was generated by the market efficiency, the complementarity among the products offered, los lock-in’s who managed the sellers were faithful to the market and novelty The world is changing again. In fact, it is always changing, but the business models that were valid in the 2.0 era, that of social networks, the first decade of the 2000s, are now not robust enough to retain today's customers, who are much more sophisticated and knowledgeable about online tools and the possibilities of the internet. We have no choice but to evolve.

The world is changing again. In fact, it is always changing, but the business models that were valid in the 2.0 era, that of social networks, the first decade of the 2000s, are now not robust enough to retain today's customers, who are much more sophisticated and knowledgeable about online tools and the possibilities of the internet. We have no choice but to evolve. SoloStocks, from Infojobs, from eMagisterTo name a few of the businesses that create from IntercomBut also the most online companies created in the early 2000s and had good life until 2010 approx.

From a time, which can be between 2008 and 2010, many businesses began to go into decline. At first it was attributed to the crisis ... wear brand ... but the truth is that the online world was changing and we were starting to get into the web 3.0: Mobile internet, pervasive, intelligent devices, augmented reality, virtual reality, big data and new business models, many of them based on e-commerce and social interaction.

How to create value in today's world?

This question has no easy answer. Each company must analyze how ... but there are several fronts on which we can create value:

In the product: making it reliable, with the exact features you need the client that is easy to use, ...

How to offer the product: a good marketing process, a good process sales, extraordinary customer service, a clear billing process, ...

How we relate to the client: resolution of incidents flawlessly, quality technical support, confidence in our company, ...

... Surely you're asking in your case you do not see clear ... read on ...

How do you know what your customers consider value?

There is a term that is becoming fashionable that is the co-creation ... How can we apply the concept of co-creation with the challenge of knowing what a customer wants? Well, by asking customers own! Something that previously would not have done that would have seemed a weakness of business or weak leadership and vision of the direction ... but now, at the customer has great power (... and knows it) makes perfect sense in the world we do participate in finding new ways to create value.

Examples of value co-creation

LEGO - Example of co-creation of value creation product: through LEGO Ideas this company includes proposals to create new products and ensure that when the product reaches the market has accepted and at least a certain number of buyers will be with him. In addition, the person who proposed the idea gets a share of the profits and is cited in the boxes as the creator of the idea, and rewarding creativity and participation, while loyalty of users.

ALAIN AFFELOU - Example of co-creation of marketing value: This eyewear manufacturer has created Ideas4afflelou.es to propose challenges, receive new ideas and customer loyalty. The challenge today is marketing they have open and ask users how would like the "Black Friday" of Affelou this year 2018. Do you realize the change? It not that the marketing department does not have ideas, is that the ideas offered and voted by users ensure good customer orientation, while client loyalty and are innovative.

BANK SABADELL - Example of co-value creation from employees: since 2010 the Banco de Sabadell has BS Idea on the intranet of this entity, a community created by employees, regardless of position, they offer ideas for improvement to the bank's management. So far 21,000 have contributed ideas on evolution processes, product processing and new business lines.

So summarizing:

  1. The future of your company depends on your architecture value. That is, how to detect what your customers think it is worth, how you manage to generate that value and how you are able to recover as billing and profit.
  2. Forms of value creation on the internet that were valid 15 years ago, now they are no longer. We need new formulas.
  3. Do not cut and Ask your customers how think your company could generate more value for your business (if B2B) or how they think your company you might be more useful (if B2C) ... plus useful for loyalty, make this question is trendy… in addition to agile (takes a buzzword).

We're going talking

Montse.

Invitation to the International Congress of Adaptation of Business Models

In October, the International Congress of Business Model Adaptation will begin, on October 5, 6, 7 and 8. This is an event that we have created together Quadrant Alfa, The room Y The Human Branding. We think that in times like these, it is necessary to do everything in our power to help companies recover and achieve much more resilient business models (more resistant to disruptions such as that caused by COVID-19).

The congress is specially designed to help companies in 2 aspects:
To understand that a business model is made up of different components and that the adaptation of a component does not imply a radical change, so it is perfectly acceptable for most companies and managers.

Let's see a whole list of adaptation possibilities that we can carry out in each of the 9 components of a business model. We will highlight how companies adapted them during COVID-19 to inspire you and discover how you can adapt yours.

If you are in the southern hemisphere and in full confinement, knowing how European companies have adapted will help you stay ahead of your competitors and not suffer what we have suffered. If you are in the northern hemisphere, knowing what companies are doing will help you recover faster.

For this we have brought together 19 experts from 5 different countries who, in 4 days of 4 hours, will help us to make the task much easier and above all, to see more clearly how to implement the changes. The presentations will take half an hour to make everything much more agile and you will have time to ask specific questions. The congress is in Spanish.

As a reader of my website, you have a 10% discount on the price of any ticket if you use the discount code MONTSE10 when making the purchase.

You will find all the information here: https://www.adaptacion.online/

These are some of the expert speakers that we will have at the congress:

(If you buy the ticket, don't forget to write MONTSE10 in the section dedicated to the coupon, inside the shopping cart)

Keep in touch.
See you at the congress.

COVID-19: Digital adaptation or digital transformation?

From the Innova Institute de La Salle - URL we continue, as every week, analyzing different aspects with which COVID-19 is transforming companies and their environment. This week we reflect on whether it is really leading to the digital transformation of companies or if they are simply adapting to circumstances and everything will return to normal when the pandemic passes.

The areas that we have analyzed are the following:

  1. Education: The digital transformation in education responds to a process of media literacy adapting to the ways of learning and accessing the knowledge of new generations.
  2. Financial services: Financial services as they are known today are going to change, adapting to more digital models.
  3. Telecommuting for companies and workers: There is a clear difference between what telework is and what thousands of companies around the world have put into emergency practice to continue operating during the COVID-19 period.
  4. Ergonomics in teleworking: It is still unknown when the alarm state will end for COVID-19. For this reason, companies must propose to their workers to adapt their temporary work offices at home, in order to be able to work ergonomically in search of business results.
  5. Government online: Being the ultimate goal of a Government to ensure the general welfare of its entire population, it is difficult to imagine this task without real contact between its protagonists.
  6. Culture and tourism: Both tourism and culture have taken advantage of COVID-19 to maintain contact with users through the networks. Many institutions have understood that their value proposition at this time should be to entertain people in confinement, especially children, and a large part have offered online services aimed at entertaining and entertaining.
  7. SMEs - Commerce: Business development sees digital transformation as a way to improve its results by optimizing its processes and facilitating its management, which is reflected in profits, growth and advantages over those that do not make these investments.

The original article with each section well explained and reflected on whether it is adaptation or transformation has not yet been published on our blog, but some magazines have already echoed it. You can find it in the following publications:

Tic and SMEs: COVID-19: Digital adaptation or digital transformation?

Granada Companies: COVID-19: Digital adaptation or digital transformation?

Today's Economy: What will be the organizations response to COVID-19: Digital adaptation or digital transformation?

In the digital publication Contact Center Hub, they have made a summary with the section dedicated to telework: Teleworking before COVID-19: Digital adaptation or digital transformation? and they also quote us in another article Is teleworking here to stay?.

I hope this information is useful to you and that you also reflect on whether the changes they have implemented in your working life during these weeks have transformed you or you will return to your normal life when all this has happened.

If you want to leave your opinion, do not be shy ... under these lines you have the comments section, I will be happy to have a conversation about it.

A hug

Montse.

10 ideas to undertake in sustainable sectors

Continuing with the publications that we carry out from the Entrepreneurship Research group of the Innova Institute de La Salle-URL, this week we have been working to discover areas related to sustainability, in which there are possibilities of successful entrepreneurship. We have addressed this issue because we think that after the Covid-19 (what is already called the PostCovid-19) sustainability will be a much more considered feature in business models than it has been until now.

The areas in which we think there are opportunities are the following:

1. Agriculture and food industry: The world hiatus caused by Covid-19 is supplying a small truce that is allowing a regeneration of the planet. Environmental awareness has grown, consumption of resources is more responsible, there has been a notable improvement in environmental quality, and people have realized that protecting the environment contributes to a healthier and more balanced life.

2. Sustainable urban mobility: The high concentration of people in the means of transport and its improvable health conditions have made urban mobility one of the main sources of infection, increasing the risk of contracting the virus by between 4% and 6%. Consequently, the authorities and administrations of many countries have been forced to minimize its use and consider developing sustainable ventures in this sector.

3. The circular economy: The European Commission has just published the Action Plan for the Circular Economy. Proposed policies include increased product durability, the right to repair electronic devices, reduced use of plastics, and more accurate eco-labeling, among others. Following this path, the Innova Institute predicts that undertaking on issues related to the circular economy is a good opportunity for the PostCovid-19 scenario.

4. Integrated and efficient water management: Water scarcity already affects globally. What was once a problem for developing countries is now also a problem for developed countries. Water is not an infinite resource, but it is used as if it were. For this reason, the need for a comprehensive water treatment has been evident throughout its generation, use and recovery cycle. Despite everything, in 2030 there will still be 60% of the countries in the world that will not carry out this necessary comprehensive treatment system.

5. Logistics and supply chain: The companies that have provided a fast, safe and reliable service during Covid-19, and are also committed to sustainability, are those that will be strengthened after the pandemic and will generate confidence in customers in the PostCovid-19 era. These companies focus on innovation and quality, acting locally, but under collaborative logistics management models with other companies in the network. Thus, they meet the needs of small batches, with fast service and ensuring quality and traceability in the process.

6. Fashion, the second most polluting industry: The coronavirus has caused a huge general stoppage in the fashion industry, either due to the closure of stores or factories to protect their workers, by voluntarily turning to the production of garments for medical use or because its production depended mainly on China or Italy. Fashion, which produces more than 10% of the total CO² emissions on the planet, is the second industry that consumes the most water. Plastics have replaced natural fibers and polyester is used in 60% of production, generating two to three times more carbon than cotton without degrading in the ocean. Greenpeace indicates that the washing of garments throws the equivalent of 50 billion microfiber fragments into the sea.

7. Replacing oil derivatives: The Ellena MacArthur Foundation points out in a study that 40% of plastic packaging ends up in landfills, a third in the ocean and only 14% is recycled. This draws a critical scenario. Therefore, the search for replacement of biopolymers and the implementation of 100% functional strategies for recycling is a necessity for the industry. The startup Oimo, located in La Salle Technova, the La Salle-URL innovation park, is dedicated to the design of new ecological materials in Spain and the United Kingdom. With the aim of reducing the 14 million tons of plastic that ends up in the ocean, it has developed a water-soluble material as an alternative to plastic packaging. In this sense, the Innova Institute considers that sustainable entrepreneurship in alternative packaging to plastic will be reinforced in PostCovid-19.

8. Energy efficiency: The Covid-19 crisis has revealed that transformative changes are possible overnight. In terms of energy, it is demonstrated that there is no reason not to phase out fossil fuels and deploy renewable energy and energy efficiency technologies. It is in line with this concept that the European Union has developed a series of proposals to lead the economy towards energy savings.

9. Telecommunications technology: During the confinement of the Covid-19, the traffic on online platforms that allow the organization of meetings, the development of virtual classes and the establishment of communications and conversations has increased considerably. Some of them were already known —such as Zoom, Hangout and Whereby— and others have taken the opportunity to make themselves known or to implement complementary services.

10. The built space: The Covid-19 has promoted the development of teleworking, but it has also shown that this option has minimum conditions for its development. Previous experience makes it possible to recognize the collaborative economy models associated with these proposals such as shared offices, shared garages and coworking spaces. The strength of these movements has led communication companies such as ETB, Movistar and Mapfre Seguros to present their users with coworking spaces. However, minimum conditions must be ensured to optimize results, both the separation of environments between family and work, facilitating innovation when interacting with companies in the same sector, knowledge transfer or generating alliances and complements when spaces are given. with companies from different sectors.

The original article with all the sections well explained you can read it here: The Innova Institute analyzes how sustainable entrepreneurship could be for the PostCovid-19 era

I hope this information is helpful to you and allows you to reflect on the need for sustainability in future ventures.

Keep in touch.

Montse.

10 areas that take after CodId-19

How's the lockdown going?

I hope both you and your family are doing well. Here in Barcelona we are pulling ... starting now the third week.

As you already know, the success of an entrepreneurial project depends largely on 3 things: that the product or service is of quality, that there is a need in the market and that you make a good marketing plan. Due to COVID-19, the needs of people and companies have changed, so if we are able to detect them, we will gain a competitive advantage.

Last week we met a part of the La Salle Entrepreneurship and Innovation research team to jointly analyze the entrepreneurial opportunities that are emerging due to COVID-19. We detected 10 areas in which new opportunities to undertake are emerging once the pandemic ends.

These areas are:

  1. Telecommuting
  2. Online training
  3. Connections security
  4. Online access to healthcare
  5. 3d print
  6. Support services for the elderly
  7. Wellness at home
  8. Leisure and entertainment
  9. Access to culture
  10. Logistics

If you want to read the original article, you will find it here: (in English for now) https://blogs.salleurl.edu/en/10-areas-which-you-can-start-business-after-covid-19-pandemic-0

We sent the article to the La Salle-URL press department and it seems to have been very well received in various publications. I put below sites where you can find the article in Spanish and in some cases a little more summarized.

Here you will find a version in Spanish that has been published in Emprendedores magazine: Ten opportunities to undertake when Covid-19 is over

And here is another version that they have published in American Retail: Ten opportunities to undertake when Covid-19 is over

And another for Self-Employed and Entrepreneurs: Some activities where it will be easier to undertake after the COVID-19 crisis

Also Head Topics has published: Ten opportunities to undertake when Covid-19 is over

The magazine Innovación Económica has also published it: Ten post-pandemic business ideas

And curiously, the fashion magazine Harpers Bazaar, has also published it: Ten opportunities to undertake when Covid-19 is over

I hope the article is useful to you and that you also see opportunities that you can take advantage of.

This week we are working on another article dedicated exclusively to entrepreneurship on issues related to sustainability, I share it with the one that is finished.

Keep in touch.

A hug

Montse.

What are the dynamic capabilities and what they

What are the dynamic capabilities

Dynamic capabilities are the different skills, processes, procedures, organizational structures, decision rules and disciplines that allow the detection and capture of opportunities that appear in a company. This is the academic definition. Hope you understand it. If not, keep reading please.

Dynamic capabilities enable companies to create, deploy, and protect intangible assets that, in the long term, will enable superior business performance. Hence, it is important to detect in your company what these capabilities are and that you promote them. Firms with strong dynamic capabilities are much more entrepreneurial and better adapted to changes in the market.

Why do we call them dynamic capabilities?

Well, as opposed to non-dynamic capacities. The dynamics allow to change, to evolve the company. The rest of a company's capabilities allow it to operate normally, and obviously they are just as important as the dynamics. It's just that having dynamic capabilities in fast-moving environments like today has become a competitive advantage. Hence we are now talking about this ability.

Types of dynamic capacity

There are at least 3 dynamic capabilities that you should develop:

  1. The ability to know how to detect opportunities and threats.
  2. The ability to know how to take advantage of opportunities.
  3. The ability to maintain, combine and grow the tangible and intangible assets of our company.

In relation to the latter, one of the intangible assets of our company is the business model.

The adaptation of business models is the object of study of my doctorate: the ability to adapt a business model when this is necessary for the survival of the company. My general research question is “If everyone knows that when the market changes, companies also have to change to adapt. Why are there companies that do not change and die?

Obviously the answers are many and not all are the field of the "management” Some of them are explained from the point of view of people's psychological behavior (risk aversion, fear of change, fear of failure, etc.). In my case, I analyze the reasons from a business point of view, not from a psychological one.

At least there is

Returning to dynamic capacities, as I have already mentioned, in my research and in my professional work, I am focusing on the capacity of "Business Model Adaptation", that is, the capacity to change and adapt the business model of a company to adapt to changes in their environment.

At the moment in which we live, with Amazon and Alibaba spreading all over the world, COVID-19 disrupting the markets, in a world where the Earth is flat and the market is almost infinite, and where all information can digitize… it is clear that we must adapt and change.

On the other hand, I think it is essential that someone help companies to adapt, instead of trying to make companies disruptive and that they are the ones who break and transform the markets. It seems unrealistic to me to think that SMEs in our country are going to be able to survive by being disruptors... Some of them, obviously, but I think it is more appropriate to help them develop the capacity to adapt. It is clear that to adapt successfully you have to be creative and innovate... one thing does not take away the other.

Well, I won't go any further. In this article I only wanted to explain a little better what dynamic capabilities are (Dynamic capabilities), and that this reflection will help you think about which are those of your company or those of your person. Are you able to detect opportunities and threats? (or put another way, do you have time to detect opportunities and threats?) and are you able to recombine your company's resources to take advantage of those opportunities? Does day to day drag you and you can't stop the inertia of your business to adapt it? Do you dare to do it?

I hope I have gotten the reflection.

as I have already commented

You will find more information on dynamic capabilities here. It is a closed article by the best specialist in dynamic capabilities. Just by reading the abstract it will be useful to you. If you have a way to get the entire item, you'll love it.

If you want to know more about business models, there are two articles of mine that can help you:

  1. On the difference between strategy and business model
  2. Whether or not they have changed the types of business model
  3. as I have already commented

Let's keep talking

A hug

Tool that calculates the value of a website

Today we put online a calculator that can determine much is a website. We have done it because this is one of the questions that I am usually asked in class. Surely, if you have a website, you have also asked yourself "How much is my website worth?".

To find out how much your website is worth, first ask yourself some questions, and then we will indicate how much you could bill with an advertising-based business model and how much in an e-commerce based business model. With this we are able to make an initial evaluation of your website that can be useful in case you need to evaluate it.

How to calculate the value of a website? and How to calculate the turnover of a business online?

Every day I see business plans made by my students in predicting revenue from advertising or e-commerce totally exaggerated. This tool can help predict income of a portal based on their traffic. Thus, the performance of the financial plan in a business plan can go extrapolating growth of a website (which are a function of network externality of the business) and from these data and with the help of this tool, you can predict potential advertising revenue.

The issue of determining the growth of a portal based on network externalities of their business model is not easy. In a business where the growth model of its users is linear, usually it grows very slowly. In a business type marketplace (where supply and demand, such as Solostocks.com) They are growths of between 12% and 15% per month (geometric) in a business network type (eg Linkedin) growths are much stronger and can exceed 20% monthly geometric.
In this regard, when I worked in Intercom I wrote an article that may be of interest: Why free content raises the billing? (OGame)

Returning to the subject of calculating the income of a portal, if we are able to extrapolate the growth in the number of users of our online service, with this tool we can have a potential clue to the billing page. So you can help us get more realistic business plans when the portal business model is based on selling advertising.

By the way, I almost forgot ... if you want to know how much is a website worth, here is the link to the calculator:

Access the calculator

How much is my website worth?

We talk to each other.

What is the difference between Business model and strategy?

So when I help companies to adapt their business models to the current environment, as when I teach the subject of creating a Strategic Plan for the Internet, I realize that my interlocutors confuse these two terms: Business Model and Strategy. Also they confuse strategy with tactics ... but clarify these last two terms in another article. In this we are going to focus on What is the difference between business model and strategy? With these two clear concepts in mind, we can advance the conversion of our existing business more easily.

To go straight to the point and if you do not want to read the whole article, succinctly, "Business Model" refers to the logic of a company, how it operates and how it creates value for its shareholders. Instead, "Strategy" is the choice of business model with which the company will compete in their market. That is, the business model you use depends on the strategy you wish to make.

We will now develop a little more two concepts to fit you clearer:

What is a business model?

The origin of the term "business model" is found in Peter Druker in the 80s, but the term has evolved a lot the last 20 years with the emergence of internet and the need to adapt to this new business environment. An updated definition is:

"Business Model is the representation of architecture value of a business that shows how a company or organization can offer a value proposition to certain market segments, how to define the structure of the value chain is needed to provide this proposal and how it defines mechanisms capture the value that the company or organization will use to generate revenue. "

For if you do not clear:

The functions of a business model are:

  • Articulate the value proposition of the company. So, define what makes you unique offer.
  • Identify market segments that the company wants to attack.
  • Define the structure of the internal value chain that will need to deliver the value proposition and estimate the cost of maintaining the structure. That is, and with plain words, you need to deliver your value proposition and how much it will cost.
  • Define the architecture capture value and estimate the benefits you get when you capture the value. So, how do you get income and what will be.
  • What is your position on competition.

From my point of view, the best way to represent a business model is a Canvas (foot attached and link to the article picture). Although part of the competition is a little lame on Canvas and better treat a part (link at the bottom of the article on how to analyze competitors).

Business model

What is a strategy?

It is creating a plan that will take you to achieve your goals. It is not the plan, it is the decisions you will have to make to create the plan. These decisions also include a contingency plan, that is, what you will do in case your competition does something or something changes. The business model is part of that plan. In other words, first you decide what your strategy will be and then you choose the business model that suits you best. What happens is that many times it is easier to decide what your strategy will be when you put down the different business models that you can choose, hence the confusion. It also happens that sometimes, small companies have a business model, but they don't follow any strategy (this is bad, obviously ... but that's the reality).

I hope I've been helpful and you now have clearer What is the difference between Business Model and Strategy.

You will find more information on these links:

  • Evolution of Business Model definitions and components that form in this article Zott, Amit and Massa: What is a business model
  • My model of how to analyze competitors on the Internet: How to analyze competitors
  • On business models and how to use them to beat your competition in this article Ramon Casadesus and Joan Ricard: business models to compete
  • Link you will find a video explaining how to use a Business Model Canvas and a form for you to download it for free the official version of the model: Business Model Canvas

If you need personalized help to adapt your business model to strategy you decide, do not hesitate to contact me.

We talk to each other.

A hug.

Have they changed the types of online business model?

Adaptation of the business model of a company over time is a key to the survival of the company factor, medium and long term. But the types of business model Internet have changed since 1992 when the first website was created to this day?

Types of business modelEverything depends on classification we use.

With an overall ranking as the "4C" Wirtz, Schilke and Ullrich (2010) (the image along these lines) observed that typologies have not changed. Businesses that were created in the late 90s and businesses created in 2018, can be classified into one of four types:

  1. Oriented business creation / selection / compilation of content (online news, blogs, youtubers, etc.)
  2. E-commerce oriented businesses close transaction whether or not (Amazon, eBay and any online store)
  3. designed to give context to information business (this is the case of Google, for example)
  4. Business oriented to provide networking services (Facebook, Linkedin, etc.).

Although there are some whose model is hybrid, such as Youtube, which in turn gives context to content, but also includes social networking features. The same could be said of Instagram if we consider more than just a social network.

On the other hand, returning to the beginning of this article, lyou must continue to adapt its business model as time passes, este es el caso por ejemplo de Amazon, que empezó en 1994 como tienda online de libros, poco a poco fue incorporando su comunidad de lectores que enriquecían las fichas de los libros, luego pasó a comercio electrónico de todo tipo de producto y finalmente combina su comercio electrónico con un marketplace. Utilizando el modelo de las “4C” parece cómo si no hubiese cambiado, pero lo cierto es que dentro de lo que los autores del “4C” consideran comercio electrónico, hay todo un mundo de subtipos de modelo de negocio… pero profundizar en este tema lo dejaremos para otro artículo.

In case you are interested in topics of the archetypes of business models, I'll leave this table under these lines is what I use in class when I explain the model of the "4C" and key success factors of each type, so as the different sources of income that can use such businesses. (Yes, it's in English ... but this class impart English).

Types of business model

I hope the information is useful to you.

Here you find the article that the authors of "4C" explain their model: “4c” Business Model Archetypes

We're going talking.

Kisses.