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"Business model innovation can be seen as one outcome of strategic innovation. (Have a look at my definition for other outcomes.) On the strategy level a company makes choices about what game to play, what competitive position to conquer. The business model outlines the details of these choices, the activities to be carried out, how they fit together, etc. The business model is the detailed description of how to play the game. It describes how you will create, capture and deliver value to your customer segments."
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Link
Why Private Communities Work so Well
This is an interesting article by Aaron Wall where he describes how the implementation of private forum affected his business. Before the forum, Aaron only offered a $80 book that taught people about SEO, search engine optimization, on his website SEO Book.com. Aaron later created a new private community forum for SEO Book members with a membership cost of $300 a month.
Some interesting parts in this article include Aaron’s comparison of the benefits/negatives of switching implementing this sort of business model. Forums are much more dynamic than books which remain static, and it’s interesting to hear about how something with content that changes everyday, and with many members interacting, changed the way he provided value to his members.
While most businesses that include premium information offerings generate revenue through the one time sale of products like ebooks, it’s interesting to see how the value proposition has changed for SEO Book, and how the change in the customer channel affected the customer relationship, and revenue streams Aaron managed. Aaron says that now the time commitment needed from him has increased because things happen on the forum much more often.
A great read and exercise to see an change from one online business model to another one with a more unique appeal.
