Tuesday, May 24, 2005

220$ Service .....Car Free

220$ Service .....Car Free, Quite an unusual title... I know , but the concept has got me thinking a lot of about revenue models/ business models in general. First let me explain the concept, I was listening to Jonathan Schwartz's (COO/President SUN) speech at the OSBC 2005 via IT Conversations. This was a very insightful presentation/talk, I learnt quite a few things and got a wealth of new ideas / concepts. One of his slides was titled the "Value is in the Service" and he goes on to explain the OnStar program of GM. Today they offer a service at 18$ basic service and 80$ premium service, Jonathan asked the team at what price of the service would they be able to offer the car of free and the team is supposed to have shot back 220$, so as it noticed they have done the analysis, and may be sometime in the near future this might be a reality. Yes this is the same model as used by cellular service providers and mobile handsets. I believe i did no justice to explaining the concept, I suggest...no...Recommend that you listen to this yourself.

Given this back ground may be its time to rethink your/our business model see if there are any innovation that can be introduced there, more importantly look at where in your industry the value is in now and will be in , in the near future, Value keeps moving around in the stack, the organization ability to move to the VALUE ZONE is critical.


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