A business model is a plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products, and details of financing. It tells the story around the kind of value the company wants to create.
Facebook that has been rather negative in the news lately. It might be because Facebook has an almost advertising-only Business Model.
Facebook’s growth into a digital advertising power is showing a flip side: The social network is more dependent than ever on the cyclical ad market, even as its rival Google finds new revenue streams in hardware and software.
Perhaps this is an opportunity to design a competing Business Model, one that creates a new market and value network and eventually disrupts the existing market and value network.
There are several approaches to disruptive Business Model generation, but here we will outline another approach that might work out well. It is based on Edward de Bono Six Thinking Hats.
- POSITIVE POINTS. Write down for two minutes (no more, no less) at least 20 positive points about Facebook
- IMPROVE. Take two of the most Positive Points and improve them (Give it even more value, make it less costly, more simple, easier in use, etc)
- NEGATIVE POINTS. Write down for two minutes (no more, no less) at least 20 negative points about Facebook
4. REMOVE. Take two of the most Negative Points and remove them completely, or reduce their effects or compensate.
5. INTERESTING POINTS. Write down for two minutes (no more, no less) at least 20 interesting points about Facebook (New ideas, alternatives, possibilities)
6. EXPLORE. Take two of the most interesting points and move forward to a practical idea or concept.
To help you get quick-started, this may of help:
- Advantages and disadvantages of Facebook
- Benefits of using Facebook
- Being programmed
- How To Disrupt Facebook With Unlimited Capital
Take some days of incubation time, then take 20 minutes to set up your first Lean Startup Canvas.
Some more reflection about how to disrupt Facebook, look here