Business Models, Technology Roadmaps & Exit Strategies
- 1. BusinessModels, Go To Market Strategies & Exit Strategies Generator THE powered by
- 5. 4Basic Types of Business Models MANUFACTURER Distributor Retailer Franchise
- 6. But, you need a bit more granularity than that…
- 7. The LICENSING MODEL Sign over rights to commercialisation to another party
- 8. The Add-On Model Competitively priced core offering Numerous extras that drive up the final price
- 11. The BAIT AND HOOK MODEL Disproportionate amounts of the value are captured on components, refills, etc. Switching costs results in monopolistic pricing
- 13. The LOW COST MODEL Drive significant volumes of customers by charging a very low price
- 16. The PAY AS YOU GO MODEL Actual usage is metered and you pay on the basis of what you consume
- 17. The RECURRING REVENUE MODEL Secure the customer on a long term contract so that they are consuming your product or service well into the future
- 18. The DEMAND AGGREGATION MODEL Assemble all the sellers and buyers for some stuff in the same virtual location
- 20. The ONE-OFFEXPERIENCE MODEL Nowism offering unique experiences to customers at a given place during a specific event Social media + offline event organisers, pop-up stores, online retailers
- 21. Disruption It is happening everywhere • Education ► TED Ed • Finance ► Bitcoin, ApplePay • Technology ► Nest • Media ► Spotify, Netflix • Telco ► WhatsApp • Medical ► Automata • Travel ► Airbnb
- 23. GO TO MARKET STRATEGIES AND TECHNOLOGY ROADMAPSTOO
- 24. A go-to-market strategy (GTM strategy) is an action plan that specifies how a company will reach customers and achieve competitive advantage. The purpose of a GTM strategy is to provide a blueprint for delivering a product or service to the end customer, taking into account such factors as pricing and distribution.
- 26. Go-To-Market Strategy 1. Define market value proposition 2. Identify primary target market 3. Review existing market channels 4. Create detailed channel approach
- 27. 8Basic building blocks Business Summary ProductStrategy ChannelStrategy Marketing Strategy Customer experience Technicalrequirements Evaluation Timeline & Execution
- 28. Ready fire aim
- 29. Strategic objectives o Create awareness, first customers o Maximize market share o Defend market share (against competitors) o Maximum profitability
- 31. Technology roadmaps A planning process for a specific product or service to identify o Technical processes o Technology gaps o Opportunities & risks o Critical requirements, targets o Technology alternatives o Milestones for meeting those targets
- 32. 7Basic building blocks Business & technical assets Cost/complexitydrivers Producthypothesis Productrequirements Productplanning Timeline Risk & mitigation strategies
- 33. High level example 1. Product that is the focus of the roadmap 2. Critical system requirements & their targets 3. Major technology areas 4. Technology drivers & their targets Energy-efficient vehicle MPG, reliability, safety, cost Targets: 100mgp by 2017 & 150mpg by 2025 Materials, engine controls, sensors, modeling, simulation
- 34. High level example 5. Technology alternatives 6. Recommend technology to pursue 7. Create the technology roadmap report Technology alternatives that can satisfy these targets identified with estimated timeline for how it will mature with respect to the technology driver targets. Identify decision points for when it will be dropped from further consideration.
- 35. Technology roadmaps A planning process for a specific product or service to identify o Technical processes o Technology gaps o Opportunities & risks o Critical requirements, targets o Technology alternatives o Milestones for meeting those targets
- 36. EXIT STRATEGIES
- 38. Merger & Acquisition(M&A) • Win-win for bordering companies with complementary skills, assets, resources • Large company can more quickly grow revenue or access customers than create new products organically
- 39. Initial public offering(IPO) • Offering sale of stock in the business on public markets (like the ASX)
- 40. Sell to anotherperson • Offering sale of stock in the business on public markets (like the ASX)
- 41. Sell to YourEmployees • An employee stock option plan can direct payroll into a trust to purchase investments, like company stock
- 42. Milking the cow • Distribute profits as dividends to investors • Pay off investors • Hire someone else to run it
- 44. Exit Tips • Most of the time, companies are sold, not bought, and require an active sales process • Deals can unravel if they drag on – cold feet phenomenon • Every step should have a deadline • Establish trust and open communication –friction is the enemy • Clean house before the visitors arrive
- 45. Exit Tips • Don’t get greedy – holding out for all increases your chances of getting none • Plan for the exit early – the end game should be part of your overall operating strategy • Negotiate tough but fair – remember that you may be working for the acquirer when the dust settles
- 46. Strategy foryourexit strategy • Deal Strategy – who? When? How? Why? • Positioning & Pitch – making them want you • Packaging & Valuation – the whole nine yards • Process Management – Set meetings, generate momentum, manage communications • Execution – get heat on the deal
- 47. WANT TO KNOWMORE? GET IN TOUCH! www.monash.edu/entrepreneurship @monashGENERATOR Facebook.com/monashGENERATOR 7 Innovation Walk AG01-04 (Clayton Campus) entrepreneurship@monash.edu