Archive for February, 2005

Feb 14, 2005

Getting Channel Design Right

Alexander Osterwalder

In a recent issue of the McKinseyQuarterly there was a nice article on channel design. The authors insist that carefully tailored “routes to market” can become important sources of differentiation.

This is exactly what I outline in a part of my dissertation on business models. Additionally, I describe how channels can be better designed by using a conceptual approach. Such a conceptual approach has the double advantage of creating a visualization of a company’s channel architecture making it easy to understand and it helps defining indiciators to understand channel profitability.

The article mentioned above unerlines my point. It demonstrates that by carefully designing its channel strategy a company can can reduce its sales and service costs, increase its revenue per customer, and penetrate underserved segments by guiding customers to the most appropriate channels.

On eventual tools to implement a channel strategy the article falls short. But then again, if it would mention some tools I could not advocate the concepts and tools I propose…

Feb 11, 2005

The Distruptiveness of Skype's Business Model

Alexander Osterwalder

I have recently started studying, analyzing and comparing the business models of traditional telecommunication companies and Skype’s Voice over IP (VoIP) services based on peer-to-peer (P2P) technology. The study gives interesting insights on the role of the business model concept to analyze different players in a specific industry. It also includes the concepts the concepts of disruptiveness proposed by Clayton Christensen and a method proposed by Farshad Raffi and Paul Kampas. I will make the results available in an article pubished in the coming months.

Interested people can contact me at Alex@BusinessModelDesign.com

Feb 7, 2005

Computer Aided Business Model Design (CABMoD)

Alexander Osterwalder

The design of business models is greatly facilitated and enhanced through computer assistance. My dutch colleague, Professor Jaap Gordijn, provides such a tool that easily allows the design of a network of companies. The tool makes it possible to design and evaluate the profitability of a constellation of companies that want to offer value to the market together. It allows, for instance the design of such network companies as Dell, eBay or Cisco. Try it out, it’s worth it.

Business Model Design with the e3value tool developed at the Free University, Amsterdam.