1. Digital Business Models
Sean Ammirati
November 12, 2012
#CMULean © Sean Ammirati, 2012

2. 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

3. Why is the Business
Model Canvas popular?
#CMULean © Sean Ammirati, 2012

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

5. #CMULean © Sean Ammirati, 2012

6. Sketch & Articulate Alternatives...
http://www.businessmodelgeneration.com
#CMULean © Sean Ammirati, 2012

7. Validate Hypothesis ...
#CMULean http://www.businessmodelgeneration.com
© Sean Ammirati, 2012

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

9. 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

10. Business Model Canvas
Evolution
#CMULean © Sean Ammirati, 2012

11. Business Model Patterns
Multi-Sided FREE
Long Tail Unbundled
Section adapted from: http://www.slideshare.net/explorics/business-model-generation-patterns
Business Model Generation Meetup
Cambridge, MA Brian Gladstein
June 26, 2012 @briangladstein
#CMULean © Sean Ammirati, 2012

12. Multisided Platforms
The Platform Enables… Subsidies across segments

13. FREE as a business
model
The Platform Enables… Subsidies from paid to non-paid

14. Long Tail
Niche Niche
Products Buyers
Key
Value
Customer
Partners Proposi1on Segments

15. Unbundling Business
Models
Infrastructure
Innovation
Customer
Relationship

16. 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

17. 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

18. 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