InnovationTactics

The Best Digital Tech Business Models Today

Business Model Canvas Uber [2020 update]

Uber is one of the most prominent platform businesses. They are admired by innovators & entrepreneurs (and not so much by some others).

And Uber is a great example of what I have been saying for a long time: that the most successful Apps are not (just) Apps. They are the front-end to a great business model!

This is an MBA-level article for Startups & entrepreneurs on how to create a successful App and its business model.

People who don’t realise that the best apps are underpinned by a great business model run the risk of wasting years developing an App that has no chance to succeed. Others compile pitch decks that have little chances to be rewarded if there is no backing data on the business model

This is must-know knowledge for entrepreneurs and Startups.

9 Step guide how to create a business model for your App

The most successful Apps are not (just) Apps – they are the front-end to a platform business model.

The biggest misconception of developing an App is that it is a programming task. That’s the visible part of the endeavour. But most of what makes an App successful happens under the hood: in the business model! That is what I am going to talk about in great detail in this article: the business models that make Apps successful.

This is a 10-step guide on how to develop your own App or shall I say the business model and the App.

Google Business Model Canvas: Strategy Mastery

Even entrepreneurs don’t realise that Google-parent Alphabet is the top App publisher in the US by reach, even ahead of Facebook!

In my mind, there could be not better proof of what I am stating for the last few years: that the success of an App is not based on the App but the business model.

If you want to develop an App, Google may not have been on the top of your list to get ideas from. But I can only recommend that you place them very high when it comes to it! There is an incredible amount we can learn from Google in terms of business model and strategy….

Business Model Canvas Facebook: how to become a giant?

How to create successful Apps?

Facebook is one of the most successful Apps of all time. Facebook and their other Apps (Instagram, WhatsApp, Messenger) rank all within the top 5 in 2019. What makes them develop so successful Apps? Are they just great developers? 

Well, the secret is, of course, in the business model. Sadly, many developers and even entrepreneurs seem to be focussing on individual / cool features of an App and think it will come with great success. I recommend not to waste years “developing” into the blue. First and foremost, understand the business model that will power your App. You can do this in parallel to developing your App.

Business model first!

Our articles and products are MBA-level content that can give you an initial understanding of the business model without having to do a business degree.

Netflix Business Model Canvas

I have covered Netflix in great detail as one of the champions of the subscription business model. Our journey has covered the most important elements of the Subscription Business Model which are:

Crucial accounting metrics: Contribution Margin, Free Cash Flows
Crucial microeconomic metrics: Customer Lifetime Value/Customer Acquisition Costs, Economies of Scale, Diseconomies of Scale
Business Management: the Flywheel & the importance of the investment cycle
Customer Value Proposition: 12 Ways to make the Subscription Business Model work
Strategy: business model canvas (this article)

Join me to get a comprehensive overview of Netflix’s business model using the popular strategy tool of the business model canvas

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