Business Models
Affiliate Subscription
based on marketing and broad reach of strive to attract clients in the hopes of luring them
specific entity or person's platform into long-time, loyal patrons
• Companies pay entity to promote good, • offering product that requires ongoing
and that entity often receives payment, usually in return for fixed
compensation in exchange for their duration of benefit
promotion Example: Software, box delivery, Spotify, Tinder
Examples: Social Media Influencer, Tinder
Fremium
Brokerage
connects buyers and sellers without attract customers by introducing them to basic,
directly selling good themselves limited-scope products
• receive percentage of amount paid • ompany attempts to convert them to more
when deal is finalised premium, advance product that requires
Example: Real Estate payment
Example: LinkedIn/ LInkedIn Premium, Tinder
Pay-As-You-Go
amount charged depends on how much Franchise
of product or service was used leverages existing business plans to expand
• may charge fixed fee for offering and reproduce company at different location
service in addition to amount that • work with incoming franchisees to finance
changes each month based on what business, promote new location, and oversee
was consumed operations
Example: Utility Companies • receives percentage of earnings from
Crowdsourcing franchisee
Example: Mc Donalds
opening tasks of issues to large group in
order to receive their input for operation Advertising
• company is going to employ their
revenue generation strategy supported by
knowledge to benefit your business
sale of advertising
• allows companies to save time and
• use of paid advertisements to promote
money while tapping into people with
products or services
different skills or thoughts from all
Example: Newspaper, Television, Google,
over world
Tinder
Example: Graphic Designers
Low-Touch (Nor Frills)
Disintermediation
Removal of intermediaries/ middlemen minimal sales-to-customer interaction
• consumer buy directly from between first contact to conversion
wholesaler • automation and digital sales
• Purpose: cut cost, speed up delivery Example: eCommerce, Amazon
Example: booking directly via airline
, Chapter 1 - What is Service?
‘IHIP’ Characterisitcs
• not unique to services (as
opposed to physical
products
• Technology had
significant effect on
application and
limitations
Ser vice Operations Management (SOM) • resources and processes are
Transforming set of inputs into outputs vital ingredients
• OM how to manage this
• Importance of customer
• OM reflects both operations
and customer perspective +
overlap
• Customer Perspective: service
outcomes = results of being processed
and having their state changed by
experience
• Main outcomes: products, benefits,
emotions, judgments and intentions
• core of most services: where operations
and customer perspective meet
> lead to concepts of ‘co-production’ and
‘co-creation’ = to indicate circumstances
when customer collaborate with service
operation to produce/ create value
, Ser vice Operations Managers Responsibilities
Control of resources ad processes that deliver value
• framing services operations
• Understanding service people
• Delivering service
• Improving service operations
Importance of SOM Challenges of SOM
• managing design and delivery of
• balancing operations and custom er
services
perspective
• managing most of organisation’s
• Managing multiple customer groups
resources = costs and investments
• managing tactically and strategically
= significant impact on ability of
organisation to innovate and improve its
performance
Affiliate Subscription
based on marketing and broad reach of strive to attract clients in the hopes of luring them
specific entity or person's platform into long-time, loyal patrons
• Companies pay entity to promote good, • offering product that requires ongoing
and that entity often receives payment, usually in return for fixed
compensation in exchange for their duration of benefit
promotion Example: Software, box delivery, Spotify, Tinder
Examples: Social Media Influencer, Tinder
Fremium
Brokerage
connects buyers and sellers without attract customers by introducing them to basic,
directly selling good themselves limited-scope products
• receive percentage of amount paid • ompany attempts to convert them to more
when deal is finalised premium, advance product that requires
Example: Real Estate payment
Example: LinkedIn/ LInkedIn Premium, Tinder
Pay-As-You-Go
amount charged depends on how much Franchise
of product or service was used leverages existing business plans to expand
• may charge fixed fee for offering and reproduce company at different location
service in addition to amount that • work with incoming franchisees to finance
changes each month based on what business, promote new location, and oversee
was consumed operations
Example: Utility Companies • receives percentage of earnings from
Crowdsourcing franchisee
Example: Mc Donalds
opening tasks of issues to large group in
order to receive their input for operation Advertising
• company is going to employ their
revenue generation strategy supported by
knowledge to benefit your business
sale of advertising
• allows companies to save time and
• use of paid advertisements to promote
money while tapping into people with
products or services
different skills or thoughts from all
Example: Newspaper, Television, Google,
over world
Tinder
Example: Graphic Designers
Low-Touch (Nor Frills)
Disintermediation
Removal of intermediaries/ middlemen minimal sales-to-customer interaction
• consumer buy directly from between first contact to conversion
wholesaler • automation and digital sales
• Purpose: cut cost, speed up delivery Example: eCommerce, Amazon
Example: booking directly via airline
, Chapter 1 - What is Service?
‘IHIP’ Characterisitcs
• not unique to services (as
opposed to physical
products
• Technology had
significant effect on
application and
limitations
Ser vice Operations Management (SOM) • resources and processes are
Transforming set of inputs into outputs vital ingredients
• OM how to manage this
• Importance of customer
• OM reflects both operations
and customer perspective +
overlap
• Customer Perspective: service
outcomes = results of being processed
and having their state changed by
experience
• Main outcomes: products, benefits,
emotions, judgments and intentions
• core of most services: where operations
and customer perspective meet
> lead to concepts of ‘co-production’ and
‘co-creation’ = to indicate circumstances
when customer collaborate with service
operation to produce/ create value
, Ser vice Operations Managers Responsibilities
Control of resources ad processes that deliver value
• framing services operations
• Understanding service people
• Delivering service
• Improving service operations
Importance of SOM Challenges of SOM
• managing design and delivery of
• balancing operations and custom er
services
perspective
• managing most of organisation’s
• Managing multiple customer groups
resources = costs and investments
• managing tactically and strategically
= significant impact on ability of
organisation to innovate and improve its
performance
