Business Concept vs. Business Model

As we discussed in class a business concept simply describes the business, brand or product. Most business concepts include some of the following information: markets served, competitive advantages and/or unique features. For example, PayPal's is an online business that allows secure payments and money transfers to be made through the Internet. Click on the image on the left to learn more about new concept cell phones!


Next we are on to a pretty important topic--business models. Specifically we will focus on digital commerce and/or web-based business models. My favorite Internet Encyclopedia says, "In the most basic sense, a business model is the method of doing business by which a company can sustain itself -- that is, generate revenue. The business model spells-out how a company makes money by specifying where it is positioned in the value chain." Read more...

I'm sure you'll agree that revenue and sustainability are as important as anything, so I found some great resources for you. Please refer to Week 2 readings and videos, they are all excellent and to the point. Before I go, tell me this...

What is YouTube's business model?

What is Facebook's business model?

Seven Sources of Opportunity & Yahoo! CEO Analysis

Seven Sources of Opportunity
To me we laid the foundation for the entire course. Innovation involves finding a new and better way of doing something. I believe understanding Drucker's Seven Sources of Opportunity is a crucial step in developing a technical innovation or exploiting and digital commerce opportunity.

Yahoo! CEO Will Make Changes...If you ask me.
To me the selection of management savvy Bartz (less tech savvy) will bring about business changes for a maturing Yahoo! Probably mostly in the area of service reduction and a focus on value added services on the www and mobile platforms. She will lead Yahoo! into new partnerships with strategic partners (Microsoft?) which will allow them to expand their resources as they battle their neighbor Google for Mobile Commerce domination! Next they are challenged with maintaining their successful web-based services. Really it is an issue of where they want to dedicate their resources. A company like Yahoo! "spins a lot of plates" and it is very costly to continue "spinning several plates." Finally, they depend on a lot of advertising revenue, will the economy affect their advertising revenue? I would guess...Yes.

Here is a great analysis of the new Yahoo! CEO
http://blog.wired.com/business/2009/01/analysts-bartz.html

Even Google is Dropping Services
http://www.readwriteweb.com/archives/google_giveth_and_it_taketh_away.php