1. Brand
Telefónica S.A.
Digital Business_
#3
Mg. Alejandro M. Salevsky
Lic. Juan Manuel Cascone

2. 2
Global BI
Telefónica S.A.
Who we are_
Mg. Alejandro M. Salevsky
•MBA / BBA UCA
•Corporate & strategic finance professor (UCA)
•Global BI senior manager in Telefonica S.A. (NYSE: TAR)
•Innovation & new tech researcher fan
•asalevsky@gmail.com / @alesalevsky
Lic. Juan Manuel Cascone
•BBA UCA
•Corporate & strategic finance professor (UCA)
•Controller manager in Grupo Assa S.A.
•jmcascone@gmail.com
+Keynote
guests_

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Global BI
Telefónica S.A.
General structure
1.News
2.Concepts + real examples
3.Customer insight
4.Mini groupal or individual case to solve in class
And most important: interactive participation!!

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Global BI
Telefónica S.A.
Session #3 - Agenda
1.News (non MECE!)
2.Key concepts overview_
3.Digital Business models
4.Activity: finding revenue sources

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Global BI
Telefónica S.A.
http://www.businessinsider.com/apple-reportedly-has-a-deal-with-china-mobile-2013-8

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Global BI
Telefónica S.A.http://www.economist.com/news/business/21583687-media-companies-took-battering-internet-cash-digital-sources-last?fsrc=scn/tw_ec/counting_the_change

7. 7
Global BI
Telefónica S.A.http://www.businessinsider.com/samsungs-smart-watch-2013-8

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Global BI
Telefónica S.A.
Session #3 - Agenda
1.News (non MECE!)
2.Key concepts overview_
3.Digital Business models
4.Activity: finding revenue sources

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Global BI
Telefónica S.A.
Welcome to the
information era_
• Re-evolution
• A New economy
and a new society is
growing
• We are in a new
era_

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Global BI
Telefónica S.A.
Remembering some key
concepts of class #1_
•Long Tail_
•Technology adoption curve_
•Big Data_
•Generations_
10
Class #1
+
+
+
+

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Global BI
Telefónica S.A.
Technology Adoption Cycle_

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Global BI
Telefónica S.A.
The Long Tail_

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Global BI
Telefónica S.A.
Generations_
Generation Historical
events
Family Social
events
Mass media
idols
Techonolog
y
Personality
Baby
Boomers
(1945 – 1963)
End WWII,
French May,
Cuban
revolution,
Kennedy
murder
Extended
family
Hippie
movement,
leftish parties,
feminism
The Beatles,
Elvis, Marilyn
Monroe
Vinyl, B/W TV,
Radio
Rebel + Hard
workers
X Generation
(1964 – 1979)
Moon landing,
Cold War
Nuclear family
/ divorce
Dictatorships
(LaTAM)
Michael
Jackson,
Madonna,
Queen,
Cassette,
cable TV,
Walkman
Sceptics
Y Generation
(1980 – 1995)
Berlin wall fall,
USSR fall
Divorce Neoliberalism,
end of two-
sided world
Kurt Cobain,
Axl Rose,
Jhonny Deep
DVD, Mp3 Individualism
Generation
Z1 (1996-
2002) Z2
(2003 – 2010)
11S, war on
terrorism,
crisis
Diverse and
ensembled
families
Terrorism,
climate
change
Lady Gaga,
Justin Beaver
Streaming
video, Apple
devices
Optimism
Source: “Entre Generaciones” Alejandro Mascó / http://www.lanacion.com.ar/1547175-generacion-z-la-vida-a-traves-de-una-pantalla

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Global BI
Telefónica S.A.
Generations_

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Global BI
Telefónica S.A.
Generations_
Source: “Entre Generaciones” Alejandro Mascó / http://www.lanacion.com.ar/1547175-generacion-z-la-vida-a-traves-de-una-pantalla

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Global BI
Telefónica S.A.
Big Data_

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Telefónica S.A.17
Top digital companies and business models_
Company Key capability Revenue source
Google information intelligence Publicity
Digitalization of social
relationships and
interactions
Publicity
Amazon Long Tail monetisation
(individual customer
insights + logicstics)
Asset selling
Apple Innovation, communication
and ecosystem
Asset selling + Revenue
sharing

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Global BI
Telefónica S.A.
Session #3 - Agenda
1.News (non MECE!)
2.Key concepts overview
3.Digital Business models_
4.Activity: finding revenue sources

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Global BI
Telefónica S.A.
What is a business model?

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Global BI
Telefónica S.A.
A business model is…
The extensive
answer to how
a company
creates profit

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Telefónica S.A.
A business model is…
how to acquire,
mantain and
transform an
asset into
cash flow.

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Global BI
Telefónica S.A.
1
Capabilities
2
Value proposition
3
Delivery
A business model is about…
23
Assets: know how, goodwill,
machinery, etc
What, how much and to whom
Production, supplier,
communication, channels, etc
What you have.
What you
offer
How you do it

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Global BI
Telefónica S.A.
Activity: which is the main asset of…? 1 Capabilities
•Coca-Cola
•McDonald’s
•Unilever
•United Airlines
•Google
•Apple
•Groupon
•Twitter

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Global BI
Telefónica S.A.
Platforms are a key asset in the digital world 1 Capabilities

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Global BI
Telefónica S.A.
Seven Digital (and not so digital) revenue sources 2 Value
proposition
1
2
3
4
5
6
7
Asset selling / E-Commerce
Brokerage / Auction
Advertising (direct & indirect)
Subscription / Usage fee
Revenue Sharing
Subsidy (direct & indirect)
Freemium
Not exclusive
at all!!!

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Global BI
Telefónica S.A.
Seven Digital (and not so digital) revenue sources 2 Value
proposition
1
2
3
4
5
6
7
Asset selling / E-Commerce
Brokerage / Auction
Advertising (direct & indirect)
Subscription / Usage fee
Revenue Sharing
Subsidy (direct & indirect)
Freemium
Selling something
using a digital
platform and / or
selling digital
contents per unit

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Telefónica S.A.

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Global BI
Telefónica S.A.

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Global BI
Telefónica S.A.
Seven Digital (and not so digital) revenue sources 2 Value
proposition
1
2
3
4
5
6
7
Asset selling / E-Commerce
Brokerage / Auction
Advertising (direct & indirect)
Subscription / Usage fee
Revenue Sharing
Subsidy (direct & indirect)
Freemium
Selling something
using a digital
platform and / or
selling digital
contents per unit
Digital innovations
1. Business
intelligence for
retail
2. Digital platforms
3. Plus: creating
devices for
consumption

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Global BI
Telefónica S.A.
Seven Digital (and not so digital) revenue sources 2 Value
proposition
1
2
3
4
5
6
7
Asset selling / E-Commerce
Brokerage / Auction
Advertising (direct & indirect)
Subscription / Usage fee
Revenue Sharing
Subsidy (direct & indirect)
Freemium
Intermediation
through consumers,
business and/or
business and
consumers by using
a digital platform

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Telefónica S.A.

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Global BI
Telefónica S.A.

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Global BI
Telefónica S.A.
Seven Digital (and not so digital) revenue sources 2 Value
proposition
1
2
3
4
5
6
7
Asset selling / E-Commerce
Brokerage / Auction
Advertising (direct & indirect)
Subscription / Usage fee
Revenue Sharing
Subsidy (direct & indirect)
Freemium
Intermediation
through consumers,
business and/or
business and
consumers by using
a digital platform
Digital innovations
1. Platform

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Global BI
Telefónica S.A.
Seven Digital (and not so digital) revenue sources 2 Value
proposition
1
2
3
4
5
6
7
Asset selling / E-Commerce
Brokerage / Auction
Advertising (direct & indirect)
Subscription / Usage fee
Revenue Sharing
Subsidy (direct & indirect)
Freemium
Monetisation of
space, content or
usage thorugh third
party advertisement,
directly or indirectly

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Global BI
Telefónica S.A.

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Global BI
Telefónica S.A.

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Global BI
Telefónica S.A.

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Global BI
Telefónica S.A.
Seven Digital (and not so digital) revenue sources 2 Value
proposition
1
2
3
4
5
6
7
Asset selling / E-Commerce
Brokerage / Auction
Advertising (direct & indirect)
Subscription / Usage fee
Revenue Sharing
Subsidy (direct & indirect)
Freemium
Monetisation of
space, content or
usage thorugh third
party advertisement,
directly or indirectly
Digital innovations
1. Intelligent
placement + ROI
revolution

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Global BI
Telefónica S.A.
Seven Digital (and not so digital) revenue sources 2 Value
proposition
1
2
3
4
5
6
7
Asset selling / E-Commerce
Brokerage / Auction
Advertising (direct & indirect)
Subscription / Usage fee
Revenue Sharing
Subsidy (direct & indirect)
Freemium
Regular payments
(monthly typical) for
giving access to
digital contents or
digital service

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Telefónica S.A.

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Global BI
Telefónica S.A.

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Global BI
Telefónica S.A.

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Global BI
Telefónica S.A.
Seven Digital (and not so digital) revenue sources 2 Value
proposition
1
2
3
4
5
6
7
Asset selling / E-Commerce
Brokerage / Auction
Advertising (direct & indirect)
Subscription / Usage fee
Revenue Sharing
Subsidy (direct & indirect)
Freemium
Regular payments
(monthly typical) for
giving access to
digital contents or
digital service
Digital innovations
1. Platforms
2. Business
intelligence for
tailored offering
3. Digitalization
4. Digital
markeplace

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Global BI
Telefónica S.A.
Seven Digital (and not so digital) revenue sources 2 Value
proposition
1
2
3
4
5
6
7
Asset selling / E-Commerce
Brokerage / Auction
Advertising (direct & indirect)
Subscription / Usage fee
Revenue Sharing
Subsidy (direct & indirect)
Freemium
Splitting revenue
with a third party
who is partially (or
totally) helping to
deliver a product or
service

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Telefónica S.A.

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Global BI
Telefónica S.A.

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Global BI
Telefónica S.A.
http://www.forbes.com/sites/petercohan/2013/08/16/how-steve-jobs-got-att-to-share-revenue/
―AT&T, the exclusive
U.S. operator for the
iPhone, agreed to an
unprecedented
revenue sharing
agreement — Apple
got about $10 a
month from each
iPhone customer’s
bill – which gave
Apple control over
distribution, pricing,
and branding.‖

48. 49
Global BI
Telefónica S.A.
Seven Digital (and not so digital) revenue sources 2 Value
proposition
1
2
3
4
5
6
7
Asset selling / E-Commerce
Brokerage / Auction
Advertising (direct & indirect)
Subscription / Usage fee
Revenue Sharing
Subsidy (direct & indirect)
Freemium
Splitting revenue
with a third party
who is partially (or
totally) helping to
deliver a product or
service
Digital innovations
1. Platforms

49. 50
Global BI
Telefónica S.A.
Seven Digital (and not so digital) revenue sources 2 Value
proposition
1
2
3
4
5
6
7
Asset selling / E-Commerce
Brokerage / Auction
Advertising (direct & indirect)
Subscription / Usage fee
Revenue Sharing
Subsidy (direct & indirect)
Freemium
Charging a very low
price for a basic
digital P&S and then
selling high markup
add-ons

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Global BI
Telefónica S.A.

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Global BI
Telefónica S.A.
Seven Digital (and not so digital) revenue sources 2 Value
proposition
1
2
3
4
5
6
7
Asset selling / E-Commerce
Brokerage / Auction
Advertising (direct & indirect)
Subscription / Usage fee
Revenue Sharing
Subsidy (direct & indirect)
Freemium
Charging a very low
price for a basic
digital P&S and then
selling high markup
add-ons
Digital innovations
1. Devices
2. Digital
marketplace

52. 53
Global BI
Telefónica S.A.
Seven Digital (and not so digital) revenue sources 2 Value
proposition
1
2
3
4
5
6
7
Asset selling / E-Commerce
Brokerage / Auction
Advertising (direct & indirect)
Subscription / Usage fee
Revenue Sharing
Subsidy (direct & indirect)
Freemium
Delivering a digital
service or app for
free and then
charging for add-ons

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Global BI
Telefónica S.A.

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Global BI
Telefónica S.A.

55. 56
Global BI
Telefónica S.A.
Seven Digital (and not so digital) revenue sources 2 Value
proposition
1
2
3
4
5
6
7
Asset selling / E-Commerce
Brokerage / Auction
Advertising (direct & indirect)
Subscription / Usage fee
Revenue Sharing
Subsidy (direct & indirect)
Freemium
Delivering a digital
service or app for
free and then
charging for add-ons
Digital innovations
1. Platform
2. Long tail usage

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Global BI
Telefónica S.A.
Session #3 - Agenda
1.News (non MECE!)
2.Key concepts overview
3.Digital Business models_
4.Activity: finding revenue
sources

57. 58
Global BI
Telefónica S.A.
Finding revenue sources for digital business in the auto industry
http://www.wired.com/autopia/2013/08/google-glass-mercedes-benz/?mbid=social10837944

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Global BI
Telefónica S.A.
Finding revenue sources for digital business in the auto industry
Discuss with your team and create two digital
business with two different revenue sources to
take advantage of the auto industrie’s new
paradigm

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Global BI
Telefónica S.A.
Contact us!!!!
•BLOG:
www.digitalbusinessuca.wordpress.com
•Mail: asalevsky@gmail.com
•Twitter: @alesalevsky

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Global BI
Telefónica S.A.
Thank you!