Digital business #3

Brand Telefónica S.A.

Digital Business_

#3 Mg. Alejandro M. Salevsky

Lic. Juan Manuel Cascone

2

Global BI

Telefónica S.A.

Who we are_

Mg. Alejandro M. Salevsky

•MBA / BBA UCA

•Corporate & strategic finance professor (UCA)

•Global BI senior manager in Telefonica S.A. (NYSE: TAR)

•Innovation & new tech researcher fan

•[email protected] / @alesalevsky

Lic. Juan Manuel Cascone

•BBA UCA

•Corporate & strategic finance professor (UCA)

•Controller manager in Grupo Assa S.A.

•[email protected]

+ Keynote

guests_

3

Global BI

Telefónica S.A.

General structure

1.News

2.Concepts + real examples

3.Customer insight

4.Mini groupal or individual case to solve in class

And most important: interactive participation!!

4

Global BI

Telefónica S.A.

Session #3 - Agenda

1.News (non MECE!)

2.Key concepts overview_

3.Digital Business models

4.Activity: finding revenue sources

5

Global BI

Telefónica S.A. http://www.businessinsider.com/apple-reportedly-has-a-deal-with-china-mobile-2013-8

6

Global BI

Telefónica S.A. http://www.economist.com/news/business/21583687-media-companies-took-battering-internet-cash-digital-sources-last?fsrc=scn/tw_ec/counting_the_change

7

Global BI

Telefónica S.A. http://www.businessinsider.com/samsungs-smart-watch-2013-8

8

Global BI

Telefónica S.A.

Session #3 - Agenda

1.News (non MECE!)

2.Key concepts overview_

3.Digital Business models


9

Global BI

Telefónica S.A.

Welcome to the

information era_

• Re-evolution

• A New economy

and a new society is

growing

• We are in a new

era_

10

Global BI

Telefónica S.A.

Remembering some key

concepts of class #1_

• Long Tail_

• Technology adoption curve_

• Big Data_

• Generations_

10

Class #1

+

+

+

+

11

Global BI

Telefónica S.A.

Technology Adoption Cycle_

12

Global BI

Telefónica S.A.

The Long Tail_

13

Global BI

Telefónica S.A.

Generations_

Generation Historical

events

Family Social

events

Mass media

idols

Techonolog

y

Personality

Baby

Boomers

(1945 – 1963)

End WWII,

French May,

Cuban

revolution,

Kennedy

murder

Extended

family

Hippie

movement,

leftish parties,

feminism

The Beatles,

Elvis, Marilyn

Monroe

Vinyl, B/W TV,

Radio

Rebel + Hard

workers

X Generation

(1964 – 1979)

Moon landing,

Cold War

Nuclear family

/ divorce

Dictatorships

(LaTAM)

Michael

Jackson,

Madonna,

Queen,

Cassette,

cable TV,

Walkman

Sceptics

Y Generation

(1980 – 1995)

Berlin wall fall,

USSR fall

Divorce Neoliberalism,

end of two-

sided world

Kurt Cobain,

Axl Rose,

Jhonny Deep

DVD, Mp3 Individualism

Generation

Z1 (1996-

2002) Z2

(2003 – 2010)

11S, war on

terrorism,

crisis

Diverse and

ensembled

families

Terrorism,

climate

change

Lady Gaga,

Justin Beaver

Streaming

video, Apple

devices

Optimism

Source: “Entre Generaciones” Alejandro Mascó / http://www.lanacion.com.ar/1547175-generacion-z-la-vida-a-traves-de-una-pantalla

14

Global BI

Telefónica S.A.

Generations_

15

Global BI

Telefónica S.A.

Generations_

Source: “Entre Generaciones” Alejandro Mascó / http://www.lanacion.com.ar/1547175-generacion-z-la-vida-a-traves-de-una-pantalla

16

Global BI

Telefónica S.A.

Do not use this one

Big Data_

17

Global BI

Telefónica S.A. 17

Top digital companies and business models_

Company Key capability Revenue source

Google information intelligence Publicity

Digitalization of social

relationships and

interactions

Publicity

Amazon Long Tail monetisation

(individual customer

insights + logicstics)

Asset selling

Apple Innovation, communication

and ecosystem

Asset selling + Revenue

sharing

19

Global BI

Telefónica S.A.

Session #3 - Agenda

1.News (non MECE!)

2.Key concepts overview

3.Digital Business models_


20

Global BI

Telefónica S.A.

What is a business model?

21

Global BI

Telefónica S.A.

A business model is…

The extensive

answer to how

a company

creates profit

22

Global BI

Telefónica S.A.

A business model is…

how to acquire,

mantain and

transform an

asset into

cash flow.

23

Global BI

Telefónica S.A.

1 Capabilities

2 Value proposition

3 Delivery

A business model is about…

23

Assets: know how, goodwill,

machinery, etc

What, how much and to whom

Production, supplier,

communication, channels, etc

What you have.

What you offer

How you do it

24

Global BI

Telefónica S.A.

Activity: which is the main asset of…?

1 Capabilities

•Coca-Cola

•McDonald’s

•Unilever

•United Airlines

•Google

•Apple

•Groupon

•Twitter

25

Global BI

Telefónica S.A.

Platforms are a key asset in the digital world

1 Capabilities

26

Global BI

Telefónica S.A.

Seven Digital (and not so digital) revenue sources

2 Value

proposition

1

2

3

4

5

6

7

Asset selling / E-Commerce

Brokerage / Auction

Advertising (direct & indirect)

Subscription / Usage fee

Revenue Sharing

Subsidy (direct & indirect)

Freemium

Not exclusive at all!!!

27

Global BI

Telefónica S.A.


2 Value

proposition

1

2

3

4

5

6

7


Brokerage / Auction



Revenue Sharing


Freemium

Selling something

using a digital

platform and / or

selling digital

contents per unit

28

Global BI

Telefónica S.A.

29

Global BI

Telefónica S.A.

30

Global BI

Telefónica S.A.


2 Value

proposition

1

2

3

4

5

6

7


Brokerage / Auction



Revenue Sharing


Freemium

Selling something

using a digital

platform and / or

selling digital

contents per unit

Digital innovations

1. Business

intelligence for

retail

2. Digital platforms

3. Plus: creating

devices for

consumption

31

Global BI

Telefónica S.A.


2 Value

proposition

1

2

3

4

5

6

7


Brokerage / Auction



Revenue Sharing


Freemium

Intermediation

through consumers,

business and/or

business and

consumers by using

a digital platform

32

Global BI

Telefónica S.A.

33

Global BI

Telefónica S.A.

34

Global BI

Telefónica S.A.


2 Value

proposition

1

2

3

4

5

6

7


Brokerage / Auction



Revenue Sharing


Freemium

Intermediation

through consumers,

business and/or

business and

consumers by using

a digital platform

Digital innovations

1. Platform

35

Global BI

Telefónica S.A.


2 Value

proposition

1

2

3

4

5

6

7


Brokerage / Auction



Revenue Sharing


Freemium

Monetisation of

space, content or

usage thorugh third

party advertisement,

directly or indirectly

36

Global BI

Telefónica S.A.

37

Global BI

Telefónica S.A.

38

Global BI

Telefónica S.A.

39

Global BI

Telefónica S.A.


2 Value

proposition

1

2

3

4

5

6

7


Brokerage / Auction



Revenue Sharing


Freemium

Monetisation of

space, content or

usage thorugh third

party advertisement,

directly or indirectly

Digital innovations

1. Intelligent

placement + ROI

revolution

40

Global BI

Telefónica S.A.


2 Value

proposition

1

2

3

4

5

6

7


Brokerage / Auction



Revenue Sharing


Freemium

Regular payments

(monthly typical) for

giving access to

digital contents or

digital service

41

Global BI

Telefónica S.A.

42

Global BI

Telefónica S.A.

43

Global BI

Telefónica S.A.

44

Global BI

Telefónica S.A.


2 Value

proposition

1

2

3

4

5

6

7


Brokerage / Auction



Revenue Sharing


Freemium

Regular payments

(monthly typical) for

giving access to

digital contents or

digital service

Digital innovations

1. Platforms

2. Business

intelligence for

tailored offering

3. Digitalization

4. Digital

markeplace

45

Global BI

Telefónica S.A.


2 Value

proposition

1

2

3

4

5

6

7


Brokerage / Auction



Revenue Sharing


Freemium

Splitting revenue

with a third party

who is partially (or

totally) helping to

deliver a product or

service

46

Global BI

Telefónica S.A.

47

Global BI

Telefónica S.A.

48

Global BI

Telefónica S.A. http://www.forbes.com/sites/petercohan/2013/08/16/how-steve-jobs-got-att-to-share-revenue/

―AT&T, the exclusive

U.S. operator for the

iPhone, agreed to an

unprecedented

revenue sharing

agreement — Apple

got about $10 a

month from each

iPhone customer’s

bill – which gave

Apple control over

distribution, pricing,

and branding.‖

49

Global BI

Telefónica S.A.


2 Value

proposition

1

2

3

4

5

6

7


Brokerage / Auction



Revenue Sharing


Freemium

Splitting revenue

with a third party

who is partially (or

totally) helping to

deliver a product or

service

Digital innovations

1. Platforms

50

Global BI

Telefónica S.A.


2 Value

proposition

1

2

3

4

5

6

7


Brokerage / Auction



Revenue Sharing


Freemium

Charging a very low

price for a basic

digital P&S and then

selling high markup

add-ons

51

Global BI

Telefónica S.A.

52

Global BI

Telefónica S.A.


2 Value

proposition

1

2

3

4

5

6

7


Brokerage / Auction



Revenue Sharing


Freemium

Charging a very low

price for a basic

digital P&S and then

selling high markup

add-ons

Digital innovations

1. Devices

2. Digital

marketplace

53

Global BI

Telefónica S.A.


2 Value

proposition

1

2

3

4

5

6

7


Brokerage / Auction



Revenue Sharing


Freemium

Delivering a digital

service or app for

free and then

charging for add-ons

54

Global BI

Telefónica S.A.

55

Global BI

Telefónica S.A.

56

Global BI

Telefónica S.A.


2 Value

proposition

1

2

3

4

5

6

7


Brokerage / Auction



Revenue Sharing


Freemium

Delivering a digital

service or app for

free and then

charging for add-ons

Digital innovations

1. Platform

2. Long tail usage

57

Global BI

Telefónica S.A.

Session #3 - Agenda

1.News (non MECE!)

2.Key concepts overview

3.Digital Business models_

4.Activity: finding revenue

sources

58

Global BI

Telefónica S.A.

Finding revenue sources for digital business in the auto industry

http://www.wired.com/autopia/2013/08/google-glass-mercedes-benz/?mbid=social10837944








59

Global BI

Telefónica S.A.

Finding revenue sources for digital business in the auto industry

Discuss with your team and create two digital

business with two different revenue sources to

take advantage of the auto industrie’s new

paradigm

60

Global BI

Telefónica S.A.

Contact us!!!!

•BLOG:

www.digitalbusinessuca.wordpress.com

•Mail: [email protected]

•Twitter: @alesalevsky

61

Global BI

Telefónica S.A. Thank you!

Digital business #3

Business

Transcript of Digital business #3