Lean Entrepreneurship - Digital Business Models

Digital Business Models

Sean Ammirati

November 12, 2012

#CMULean © Sean Ammirati, 2012

Goals for This Week’s Lecture

• The Business Model Canvas Paradigm

• Common High Growth Technology Business Model Patterns

• Financial Modeling & Metrics

#CMULean © Sean Ammirati, 2012

Why is the Business Model Canvas popular?

#CMULean © Sean Ammirati, 2012

http://www.flickr.com/photos/yodelanecdotal/3329778720/#CMULean © Sean Ammirati, 2012

#CMULean © Sean Ammirati, 2012

http://www.businessmodelgeneration.com

Sketch & Articulate Alternatives...

#CMULean © Sean Ammirati, 2012

http://www.businessmodelgeneration.com

Validate Hypothesis ...

#CMULean © Sean Ammirati, 2012

http://innovationgames.com/empathy-map/#CMULean © Sean Ammirati, 2012

Goals for This Week’s Lecture

• The Business Model Canvas Paradigm

• Common High Growth Technology Business Model Patterns

• Financial Modeling & Metrics

#CMULean © Sean Ammirati, 2012

Business Model Canvas Evolution

#CMULean © Sean Ammirati, 2012

UnbundledLong Tail

Multi-Sided FREE

Business Model Patterns

http://www.slideshare.net/explorics/business-model-generation-patternsSection adapted from: Business Model Generation Meetup

Cambridge, MAJune 26, 2012

Brian Gladstein@briangladstein

#CMULean © Sean Ammirati, 2012

The Platform Enables… Subsidies across segments

Multisided Platforms

The Platform Enables… Subsidies from paid to non-paid

FREE as a business model

Long Tail

Key  Partners

Value  Proposi1on

Value  Proposi1on

Customer  Segments

Niche Products

Niche Buyers

Infrastructure

Innovation

Customer Relationship

Unbundling Business Models

Goals for This Week’s Lecture

• The Business Model Canvas Paradigm

• Common High Growth Technology Business Model Patterns

• Financial Modeling & Metrics

#CMULean © Sean Ammirati, 2012

Financial Models Help Understand ...

• critical levers for growth

• current assumptions (costs & revenue)

• growth capital needs

• if successful, how big the business can ultimately be

• metrics to evaluate business going forward

#CMULean © Sean Ammirati, 2012

Bessemer’s 6 C’s of SaaS Businesses

• CMRR: Committed Monthly Recurring Revenue

• Cash

• Churn

• CAC: Customer Acquisition Cost

• CLTV: Customer Life Time Value

• CPipe: CMRR Sales Pipline http://www.slideshare.net/botteri/cloudonomics-101-creating-a-financial-plan-for-your-saas-or-cloud-computing-business

#CMULean © Sean Ammirati, 2012