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10 Hyper Disruptive Business Models

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10 HYPER DISRUPTIVE BUSINESS MODELS THAT SHOULD INSPIRE YOU


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE? WE ANALYZED TONS OF DISRUPTORS


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE? WROTE A BOOK ON DIGITAL TRANSFORMATION


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE? YOU SHOULD CHECK IT OUT www.digitaltransformationbook.com


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE? AND DISCOVERED 7 SIMILARITIES


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE? 10 HYPER DISRUPTIVE BUSINESS MODELS THE SEVEN METAPHORS OF DISRUPTION


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE? 10 HYPER DISRUPTIVE BUSINESS MODELS THE GLASS HOUSE THE CHANGING RELATIONSHIP BETWEEN THE ORGANIZATION AND THE OUTSIDE WORLD.


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE? 10 HYPER DISRUPTIVE BUSINESS MODELS THE PACKAGE THE EVOLUTION OF UNBUNDLING AND HOW THIS CHANGES THE PRODUCTS AND SERVICES YOU OFFER AND YOUR GO-TO-MARKET. 



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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE? 10 HYPER DISRUPTIVE BUSINESS MODELS THE FROG THE BY-PASSING THAT YOU ARE SUBJECT TO OR THAT YOU CAN PERFORM YOURSELF, LEADING TO A CHANGE IN THE EXISTING VALUE CHAIN. 



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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE? 10 HYPER DISRUPTIVE BUSINESS MODELS THE GATEKEEPER THE CHANGE OF OPINION MAKING, OF LEADERSHIP AND THE ENTRANCE OF NEW PLAYERS THAT DOMINATE THE ATTENTION OF THE PEOPLE. 



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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE? 10 HYPER DISRUPTIVE BUSINESS MODELS THE TRAVELER THE CHANGE OF LOCATION & PLACE, THE EMERGENCE OF HYBRID MODELS THAT MERGE ONLINE & OFFLINE AND CREATE A CONSISTENT USER EXPERIENCE & CUSTOMER JOURNEY. 



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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE? 10 HYPER DISRUPTIVE BUSINESS MODELS THE PARTICIPANT THE IMPORTANCE OF THE CROWD AND THE POWER THAT IT REPRESENTS FOR THE GOOD OR THE BAD OF THE ORGANIZATION.



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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE? 10 HYPER DISRUPTIVE BUSINESS MODELS THE CYBORG THE REALIZATION THAT WE ARE JUST AT THE BEGINNING OF THE DIGITAL REVOLUTION.



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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE? 10 HYPER DISRUPTIVE BUSINESS MODELS THE SEVEN METAPHORS OF DISRUPTION THE GLASS HOUSE THE PACKAGE THE TRAVELER THE FROG THE PARTICIPANT THE GATE KEEPER THE CYBORG


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE? 10 HYPER DISRUPTIVE BUSINESS MODELS THIS IS YOU


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE? 10 HYPER DISRUPTIVE BUSINESS MODELS THIS IS DISRUPTIVE


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE? 10 HYPER DISRUPTIVE BUSINESS MODELS THIS IS HYPER DISRUPTIVE


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE? 10 HYPER DISRUPTIVE BUSINESS MODELS THE HYPER DISRUPTOR ATTACKS YOU ON EVERY LEVEL. THE METAPHORS REINFORCE EACH OTHER IN EVERY WAY.


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE? 10 HYPER DISRUPTIVE BUSINESS MODELS CAN YOU IMPROVE? HOW WILL YOU IMPROVE?


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT IS HYPER DISRUPTIVE? 10 HYPER DISRUPTIVE BUSINESS MODELS CAN YOU IMPLEMENT BUSINESS MODELS OF THE HYPER DISRUPTORS INTO YOUR BUSINESS?


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10 HYPER DISRUPTIVE BUSINESS MODELS WHAT ARE THEIR BUSINESS MODELS?


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 1.THE SUBSCRIPTION MODEL


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 1. THE SUBSCRIPTION MODEL The subscription model is a business model where a customer must pay a returning subscription price to have access to the product/service. PIONEERED BY Newspapers & magazines TYPES OF DISRUPTORS USING THE SUBSCRIPTION MODEL Netflix, HelloFresh, Dollar Shave Club, Kindle, One WHY? The constant revenue stream from subscribers reduces uncertainty & often provides payment in advance, while allowing customers to become greatly attached to using the service and, therefore, more likely to extend the subscription. The revenue stream from recurring subscriptions often is greater than the revenue from simple one-time purchases. This is known as the lock-in mechanism.


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 1. THE SUBSCRIPTION MODEL Netflix One Medical Group Dollar Shave Club Kindle Unlimited Hello Fresh


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 2.THE FREEMIUM MODEL


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 2. THE FREEMIUM MODEL The freemium model is a business model where the customer has free access to the basic service but is charged for additional features. PIONEERED BY Software companies giving away free ‘lite’ floppy disks of their products in the 80’s TYPES OF DISRUPTORS USING THE FREEMIUM MODEL Spotify, Dropbox, LinkedIn, The New York Times, Farmville WHY? The freemium model is used to build a large consumer base when the marginal cost of producing extra units is low. Giving the service away for free results in acquiring a lot of prospects very efficiently. The non-paying customers result in input of data, feedback, notoriety, advertising opportunities, etc.


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 2. THE FREEMIUM MODEL THE FREEMIUM MODEL HAS NUMEROUS WAYS IN WHICH THE PRODUCT OR SERVICE MAY BE RESTRICTED IN THE FREE BASIC USAGE: • • • • FEATURE LIMITED Skype: Only two-way video calling on the free version CAPACITY LIMITED Dropbox: Maximum 2GB cloud storage space CUSTOMER CLASS LIMITED AutoDesk: AutoCAD is free for Students EFFORT LIMITED FarmVille: Unlock levels faster OTHER EXAMPLES OF FREEMIUMS ARE: • • • • ADD-FREE UPGRADES - HBO Premium Channels don’t show tv ads TIERED SERVICES - LinkedIn provides with more services when upgraded SOFT PAYWALLS - The New York Times let’s you read 20 articles per month for free IN-GAME PURCHASES - Candy Crush let’s you buy power ups to go on with the game faster HARD PAYWALLS ARE NOT FREEMIUM SINCE THERE IS NO FREE BASIC USE!


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 2. THE FREEMIUM MODEL FREEMIUM IS NOT PREMIUM Freemiums don’t have an upfront price. However, the customer will have to pay for every upgrade. Premiums have an upfront price before they can even be used. It’s similar to licensed software, except that all future upgrades to the premium are free once purchased.


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 2. THE FREEMIUM MODEL FREEMIUM IS NOT FREE TRIAL Freemiums are free forever but will not give the potential customer the full package of the product or service. Free trials are limited in time and give the consumer the whole experience of the product or the service.


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 2. THE FREEMIUM MODEL FREEMIUM IS NOT FREE The goal of a freemium is to convert at least 1% of the free users into paying customers. Free means free. There are no upgrades for users whatsoever or they are free as well. The only way free can be free, is when the users pay with their data, their attention or if you’re called Instagram and get acquired for a billion dollars by Facebook.


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 3.THE FREE MODEL


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 3. THE FREE MODEL The free model is a business model integrated by companies that don’t charge the end users (directly). The data and the attention of the users is the currency. PIONEERED BY Search Engines TYPES OF DISRUPTORS USING THE FREE MODEL Google, Facebook, Snapchat WHY? By offering the product or service for free it is easy to gain a lot of users. The more people that interact with the product, the more data that can be extracted from the users. Besides data, the attention is also a big asset for these companies. The end user normally is not ‘the customer’ of the free model company.


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 3. THE FREE MODEL Free model businesses can offer their service or product without charging the user for two reasons: - THE DATA OF THE END USER IS BEING SOLD - THE ATTENTION OF THE END USER IS BEING SOLD When a free model company combines its data with advertising opportunities, the advertising will be much more targeted thus much more effective and, needless to say, much more expensive.


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 4.THE MARKET PLACE


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 4. THE MARKET PLACE The market place is a business model used by a company that only facilitates a platform where parties economically interact with each other. PIONEERED BY Classifieds in newspapers TYPES OF DISRUPTORS USING THE MARKET PLACE MODEL eBay, Alibaba, Friendsurance, priceline.com, The Lending Club, etc. WHY? The market place is a business model that defines a company as a big supplier of a product or service without that company having the good or the service. It only facilitates the platform where people interact with each other in any (economical) way. The market place business generates revenue by taking a percentage of any transaction between people on their platform.


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 4. THE MARKET PLACE Priceline.com Friendsurance Alibaba The Food Assembly


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 4. THE MARKET PLACE Other examples of companies that use the market place business model are Lending Club (the world’s largest online marketplace connecting borrowers and investors), Beatport (the marketplace where most of the dj’s sell and buy their music), Upwork (supply & demand of freelancers). IS ITUNES A MARKET PLACE TOO? We would say it’s a freemium because you can use the basic product for free, which is listening to music that you’ve bought. The iTunes store, however, could be seen as a market place or as the paying extra service that upgrades the media player. It’s up to you to decide. Apple is a hyper disruptor and thus king in combining disruptive business models that scores high on every earlier discussed metaphor or driver of disruption.


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 5.ACCESS OVER OWNERSHIP


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 5. ACCESS OVER OWNERSHIP The access over ownership model is the business model that grants customers the use of the product without buying it. “Everything as a service.” PIONEERED BY Sharing economy TYPES OF DISRUPTORS USING THE ACCESS OVER OWNERSHIP MODEL Zipcar, ParkCirca, Peerby WHY? Access over ownership companies generate revenue by using the power of the sharing economy. Just like market place companies, the access over ownership model only facilitates the actions between people thus making it needless for these companies to invest in products or people.


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 5. ACCESS OVER OWNERSHIP ParkCirca Zipcar Peerby


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 6.THE HYPER MARKET


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 6. THE HYPER MARKET The hyper market is the business model used by digital companies that act as hyper stores, offering enormous amounts of products and or services. PIONEERED BY Amazon TYPES OF DISRUPTORS USING THE HYPER MARKET MODEL Amazon, Zalando, Coolblue WHY? Having large amounts of goods or services results in having great scale advantages. These companies often sell products under the market price to expand territory. The digital hyper market players are hyper disruptive since their main objective is to kill the competition in a fierce pricing battle that you probably can’t win.


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 6. THE HYPER MARKET Coolblue Zalando


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 7.THE EXPERIENCE MODEL


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 7. THE EXPERIENCE MODEL The experience model is a business model used by a company that provides the customers with an unseen (user) experience. PIONEERED BY Apple DISRUPTORS USING THE EXPERIENCE MODEL Tesla, KLM, Disney World, Tomorrowland WHY? Customers of experience model companies mostly are willing to pay more just because of the special (user) experience they get when interacting with the company or the product. Experience companies are often situated in or penetrating competitive markets. In these markets you can either offer the lowest price or provide consumers with the best experience.


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 7. THE EXPERIENCE MODEL Tesla KLM Disney World Tomorrowland


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 8.THE PYRAMID


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 8. THE PYRAMID The pyramid has nothing to do with Ponzi schemes. It’s the collective term for all companies that are generating major parts of their revenue by affiliates & resellers. The company sits on top of the pyramid and lets the revenue stream upwards with the least possible effort. PIONEERED BY William J. Tobin TYPES OF DISRUPTORS USING THE PYRAMID MODEL Amazon, online retailers (fitness, fashion, etc.) WHY? The pyramid business model is a cost-effective way of building your business because you only pay your ‘sales people’ a percentage of the profit. Needless to say, companies like this don’t have (a lot of) sales staff, which raises the certainty regarding cash flow. Pyramid companies will often use people with high notoriety to sell their products.


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 8. THE PYRAMID Amazon


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 8. THE PYRAMID Fitness goods sold by affiliates & influencers


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 9.THE ON DEMAND MODEL


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 9. THE ON DEMAND MODEL The on demand model generates revenue by the exponential need of people to have things done right away. Speed and convenience matter the most. PIONEERED BY Uber TYPES OF DISRUPTORS USING THE ON DEMAND MODEL Uber, Operator, TaskRabbit WHY? The on demand company will provide (new) services that make the lives of its customers easier. The on demand model is a business model that holds a high risk but when executed properly and accorded to the right needs of a market, it will disrupt the entire industry. People value time.


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 9. THE ON DEMAND MODEL Operator TaskRabbit Our On Demand Service Economy Uber


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 10.THE ECOSYSTEM


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 10. THE ECOSYSTEM The ecosystem is one of the most powerful, disrupting business model. Companies build an entire universe of products and services in which customers gets lost without them knowing it. PIONEERED BY Apple & Google TYPES OF DISRUPTORS USING THE ECOSYSTEM Apple & Google WHY? The ecosystem business model only exists when companies can offer enough services and or products that cause a high level of dependence of the customer. Once the customer is dragged too far in the ecosystem, he can hardly get back out. The iPhone breaks? Too bad that you already bought a MacBook & the Apple Watch. You just need to buy another iPhone.


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 10. THE ECOSYSTEM


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10 HYPER DISRUPTIVE BUSINESS MODELS - THE BUSINESS MODELS 1. THE SUBSCRIPTION MODEL 2. THE FREEMIUM MODEL 3. THE FREE MODEL 4. THE MARKET PLACE 5. ACCESS OVER OWNERSHIP 6. THE HYPER MARKET 7. THE EXPERIENCE MODEL 8. THE PYRAMID 9. THE ON DEMAND 10. THE ECOSYSTEM


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10 HYPER DISRUPTIVE BUSINESS MODELS WHAT SHOULD YOU REMEMBER?


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER? THE SEVEN METAPHORS OF DISRUPTION


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER? THE SEVEN METAPHORS OF DISRUPTION THE GLASS HOUSE THE PACKAGE THE TRAVELER THE FROG THE PARTICIPANT THE GATE KEEPER THE CYBORG


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER? THE TEN HYPER DISRUPTIVE BUSINESS MODELS


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER? 1. THE SUBSCRIPTION MODEL 2. THE FREEMIUM MODEL 3. THE FREE MODEL 4. THE MARKET PLACE 5. ACCESS OVER OWNERSHIP 6. THE HYPER MARKET 7. THE EXPERIENCE MODEL 8. THE PYRAMID 9. THE ON DEMAND 10. THE ECOSYSTEM


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER? HYPER DISRUPTORS COMBINE DIFFERENT BUSINESS MODELS


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER? HYPER DISRUPTORS ATTACK YOU ON EVERY DRIVER OF DISRUPTION


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER? DO YOU THINK YOU CAN COMPETE WITH THESE COMPANIES?


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10 HYPER DISRUPTIVE BUSINESS MODELS - WHAT SHOULD YOU REMEMBER? IF YOU NEED HELP, CONTACT US!


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10 HYPER DISRUPTIVE BUSINESS MODELS DADO VAN PETEGHEM Managing Partner NICK VINCKIER Strategy Consultant @DADOVANPETEGHEM @NICKVINCKIER DADO@DEARMEDIA.BE NICK@DEARMEDIA.BE +32 474 82 68 07 +32 474 39 12 82


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10 HYPER DISRUPTIVE BUSINESS MODELS THAT SHOULD INSPIRE YOU


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