Archive by Author | yuexu2012

Value Innovation & Value Proposition: The Business Model Canvas

More and more people start using the Business Model Canvas as a network innovation tool. According to definition, “the Business Model Canvas is a strategic management and entrepreneurial tool. It allows you to describe, design, challenge, invent, and pivot your business model.” In my opinion, it is a really useful tool and well integrated with the philosophy of value innovation, which is simply an approach to business growth concentrating on new markets.

Below is a picture of framework of the Business Model Canvas:

When we take a close look at this picture, you can easily see that the central of this picture is Value Proposition. The right half of the picture shows all the relations and interactions between this value proposition and the target customer group. In the left half part, all the key resources, main activities and partners that needed to complete this value proposition are listed.

Recently, a popular view claims that the first goal of a new business is to find Product-Market-Fit. However, what is fit means? In my opinion, if it is fit mainly depends on the level of acceptance among target group of the value proposition that the product provide. Only if the value proposition has been accepted by enough amounts of customers, economic scale can be truly formed. Thus, the income from selling the product and service could exceed the cost of providing them, and the company can profit from the business. Then we say it is a feasible business model.

However, the more important question is: how to find this Product-Market-Fit? Or should we look for the potential market for the existing product or the other way around, trying to creating the product for the existing market? From the Business Model Canvas’s perspective, it is better for entrepreneurs to think from the right half to the left half or from left to right?

The traditional industry of technology innovation normally follows the path of Technology -> Design/Build -> Sale, but the new way of innovation, like what Apple, Facebook and Amazon followed is User Behavior -> Solution -> Technology. In this new path, company should observe the change of consumer behavior first, and then design the most valuable solution for the specific problem. After that, start to think if there is appropriate technology to support this solution. If not, then the innovation should be in abeyance until the right technology comes out.

Alibaba: the future trend of E-Commerce – transformation from B2C to C2B

The 2012 network operators conference in Hangzhou just finished, Alibaba Chief of staff Zeng Ming gave speech under the topic of the future of E-Commerce. I think his point of view of future e-commerce is very interesting, so I would like to share part of content with you guys.

“B2C is only a transitional business model, the future of the real mode of E-Commerce is C2B”

According to Alexa statistics, Alibaba is the world top-ranked site in both E-Commerce and International Trade category. Up to 2012, it has almost 30 million subscribers and 2.5 million registered merchants all over the world, and perceived as the most successful B2C E-Commerce platforms. However, Zeng Ming believes that B2C standard mode is the mode of operation of the traditional industrial economy, it represents the traditional industrial economy era of large-scale assembly line, standardization of this mode of operation, low-cost, inventory a fatal around the past in which its natural mode. However, “the future business model customization will be mainstream. Its requirement is that the individual needs of many varieties, small batch, rapid response platform collaboration, we can see the future.”

With the increasing use of the Internet and network, every consumer’s voice is getting stronger. Increasing the time of the power of consumer groups, the first driving force of the future value chain will come from consumers, not manufacturers, so in this sense it is the Consumer Driving instead of Manufacture Driving, which is a fundamental business model changes.

Then when you actually driven by the consumer, the future business model, “customization” will be the mainstream, the first move toward mass customization, and finally toward customization, custom mode, the requirement is the demand for personalized, multi- variety, small batch, rapid response, the platform of collaboration, we can see the future. E-commerce will inevitably require fundamental changes in the mode, is a new business value chain reengineering, e-commerce oversimplify tradition.

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Zeng Ming concluded:

“First, the future of electronic commerce must be C2B, consumer-driven large-scale e-business models, e-commerce is definitely not just the sales channels to move to the Internet.

Second, the Alibaba Group, the next five years will go all out to create an open, collaborative, thriving e-commerce ecosystem, B2C to C2B era is the most important foundation. In e-commerce platform better with partners on the platform more closely we can work together innovation, in order to create the future of e-commerce.”

Do you agree with him that the future e-commerce will transfer from B2C to C2B or what is your opinion?

Placeme: always remember your places!‏ Scary or Amazing?

Placeme™ is a free app that always remembers the places you visit. It’s automatic so no need to ever ‘check-in’. Once your places are recorded, you can add notes, get quick place info or share. Oh yeah, it works in private mode only so your locations are never broadcast!
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Placeme is a free Android or iPhone app that creates personal accounts of the locations users visit. It is not about checking-in or sharing a location; it’s about keeping track of places you visit and then giving the option to add notes to make those visits more memorable or relevant. It brings new direction of big data usage.
Optimist think Placeme is the future development direction of software. Placeme collects huge amount data of clients is in order to provide more closet and personalized advice and service.
However, we say it is scary, because every single movement of you cannot escape its sharp eyes! It is able to acquire all your personal information and of course brings safety concerns.
Placeme can quickly learns:
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  • Where you live;
  • Where you work;
  • Your route to work, it can recognize if you are driving;
  • What church you go to, or if you go at all;
  • What club you go to and just how drunk you are;
  • What gas station you stop at and how many miles before u have to fill up;
  • Whether you are walking or running or just standing still;
  • Whether you just got in a car wreck;
  • What your favorite restaurants are and the kind of food you both like and hate;

Do you want to have it or …… are you freaked out?
Y.X.