Deezer

Here you are my final presentation : Deezer
Please note that it is the Chapter 1 of the presentation. The 2d chapter is on the Gary's Blog.

Thanks

99designs is an online company based on the same principal as Innocentive. It is a web community which gathers professional designers and seekers looking for innovative logos and designs meeting their expectations. The principle of 99designs is quite simple:

The company is based on the community model and is viable thanks to the involvement of the community members. The main advantages of this model are:

- - Gain of time for the seekers.

- Save money.

- Personalized service for the seekers thanks to the design brief.

- - No financial risk: if the seeker does not find what he was looking for after the design contest then the costs are paid back.

- - Adaptability for the designers: they can work when they want and choose to participate to the contest they want.

- - Gain of time for the designers.

- - Cash prize for the winning design.

- - Development of the designers’ creativity.

99designs generates revenue mainly thanks to standard fees (listing fee: $39 and handling fees: 10%) and premium services the seeker can select if he wants his contest to be more promoted:

- - Contest listed in bold.

- - Contest listing highlighted

- - External promotion: contest promoted not only on 99designs but also on other design forums.

- - Featured listings

The community model can only appear online and is already developed in other industries such as the pharmaceutical one (Avantium ).

In order to increase its revenues the company should target customers worldwide and offer a translation of its website in many languages. Moreover, it should also widen its services, maybe by offer e-learning services and why not creating design schools or studying program about design.

Vente-privée.com

Vente-privée.com

http://www.touslespodcasts.com/annuaire/societe/politique/983-episode491949.html

Vente-privée.com has been a specialist of destocking of famous brands’ products for 9 years now. It is actually the creator of the factual sales on the Internet only enabling the access of the sales to the community members (the member must be sponsored to enter the community). The success of the company, which is the leader in the market far ahead the other competitors, is due to its huge investment in strong marketing tools, creation of clips promoting the upcoming sales, etc..

The website is now generating a € 610-million turnover thanks notably to the margin the website takes on each product sold through its exclusive sales.

The sales in Vente-privée.com are limited in time, running from 2 to 4 days and are organized in collaboration with more than 800 brands from several sectors: fashion, accessories, home design, toys, sports articles, new technologies, gastronomy, etc…
This partnership between the brands and vente-privée.com offers the possibility to the community members to:

- Enjoy high quality products to a very low price (up to 70% off for a product).
- Attend exclusive sales only dedicated to the community members.

The partnership also enables the suppliers to:

- Destock the last collections without having to create partnership with unreliable international destockers.
- Control their distribution channel of unsold products without damaging their image (thanks to vente-privée which always creates good mise-en-scene for upcoming sales’ products respecting the value and image of each brand).
- Widen their clientele (according to a survey made by LH2, 4 members upon 10 admit buying products directly to a brand after getting the idée on vente-privée.com).

According to an article published on the website l'Entreprise, The vente-privée success is based on a strong business model, based on generating online sales before actually buying any merchandise. This means that the website does not take any financial risks because it waits for community members to buy the products before actually purchase them. Moreover the website only has to provide a really short-term stockage of the merchandise.

However this business model also have weaknesses such as:

- The strict condition for returning merchandise when this one does not satisfy the purchaser.

- The lack of transparency concerning the price of the product put online.

Since the vente-privée website already offer a lot of products categories to purchase, the business model should be developped for the sale of services such as concert or parties organized by famous event planners. Many website offers the possibility for people to get tickets for concerts, such as France Billet but none of them is specialized in the last minute and none of them offers special rates for the members. The good idea for this industry will be to provide low price last minute tickets for concerts and parties, and offer premium service for community members with private concert tickets.

Tripwolf and the Business Models

Tripwolf is a virtual travel guide which melts advices from tourist professionals (e.g journalists specialized in tourism) and travelers’ experiences. It enables the visitor to discover information on hundreds of destinations, to plan a trip thanks to rates and advices from experts and community members who already visited a country, to share experiences thanks to articles and photo downloads, and enables him to create his own personalized travel guide. It is also an intermediary between consumers and tourist service providers (for example dozens of hotels brokers for the booking process).

The website is based on several business models:

1.The Advertising Business Model: it provides free content or service and mainly generates revenues thanks to banner ads of partners.

2.The Infomediary Business Model: it collects information about service providers (in this case: hotels, attractions, transports and every service which goes with the tourism industry) for the consumers and gives information about the consumers (thanks to the information filled up during the registration procedure) to the service providers.
More specifically Tripwolf based itself on the metamediary concept which means it facilitates transaction between consumers and service providers thanks to comprehensive information and strong advices but without involving itself further.

3.The Affiliates Business Model: Tripwolf provides purchase opportunity to its partners thanks to ads present on its webpage. More specifically the website specialized itself on the banner exchange with airlines, and attraction sites such as Center Park.
4.The Community Business Model: Tripwolf is based on a Open Content model which means everyone can voluntarily write an article and give his opinion and experience on a tourist service (hotels, tourist attractions, city or everything) in order to help other community members in their trip planning.

This association of business models is favorable in many ways:

- Customers can find mainly everything on the website and are facilitated in their planning thanks to experts or community members’ advices and experiences. In a way they have the assurance they will not be disappointed by a destination if they referred to community members opinions. They are also put in relation with service providers in order to fasten their purchase/booking process.

- Partners can enhance their credibility thanks to favorable reports from community members. Moreover they can touch a wider target without spending too much in advertising campaigns.

- Owners have built a strong and sustainable business based on community which means they do not have to invest a lot of time or money to make it grow. They also reach a wide range of people from everywhere.

Tripwolf do not target a specific segment but is made for approximately everyone who wants to travel or share experiences in tourism. Target can be from any age, any sex and any countries. They can be professionals, beginners in the tourism experience.
As said earlier, Tripwolf mainly generates revenues from advertising and partnerships. They also offer a sort of premium partnerships (called Preferred partnerships) which guarantee:

- Preferred listing on the travel guide pages of the city they are from
- Preferred listing on profile pages of their competitors with standard listings
- Preferred listing in the mobile iPhone travel guide of the city they are from
- Translation service for their business descriptions in any languages
- Search Engine Optimization for improved search results of the tripwolf listing

More and more websites choose to develop the same kind of services surfing on the success of pioneers such as Tripadvisor. One of them is Travellerspoint which, as well as Tripwolf is more focusing on the concept of world-travelers community exchanging experiences than strict exchange of opinion on a specific hotel or restaurant.

Based on the same travel community is TravBuddy which enables the community member to

find travel buddies, share travel tips or record travel experiences.

Unfortunately this kind of business model is not viable offline. The main reason why is because it is based on the gathering of many people from everywhere, sharing the same passion but each in various ways (due to culture differences for example). The success of this business model is that people be helped in their planning process thanks to thousands of advices and experiences and not only one. It is quite impossible to gathers such an amount of opinions offline.
In contrary the model is sustainable online because more and more people needs to be sure of what they are buying. The importance of advices and opinions on a service is getting stronger and stronger. People are now looking for other people to help them in their decision making process giving them tips and sharing experiences with them. This way they feel more secure and are not afraid to be disappointed in something they invested in.

In order to increase users and customers Tripwolf owners should attract people with new concepts such as “Celebrity perfect trip” giving the opportunity for celebrities to talk about destinations they love and sites where they like to spend time.
They could also surf on the success of community blogs such as Facebook and Twitter and create special page on both websites.
In order to increase their revenues Tripwolf owners could develop a Premium application for the Iphone (which is for the moment free) maybe by offering location analysers: people in a foreign city turn on the application which tells them where they are exactly in the city and where are hotels, restaurants, attractions, etc…. in their surroundings (like a GPS).
They could also develop a Brokerage Business Model and get charge a fee or commission for each transaction it enables.

The InnoCentive Model

InnoCentive: Crowdsourcing and Open Innovation

Innocentive must be seen as a web community gathering professionals from various horizons (science, design, entrepreneurship etc…) and which make them collaborate to deliver solutions to other professionals in 3 different ways:

A. Challenges: Enables everyone to participate to 4 different challenges:

- The Big Idea Challenge: Help professionals delivering them strong idea concerning a specific demand (creation of a new product line, a new marketing strategy, etc...)
- The Design Challenge: Help professionals who already have the Idea to define it more specifically in order to make it work (description, specifications or requirements definition).
- The Proof Challenge: Help professionals who already have a well defined idea to test it before it becomes actual products.
- The Final Product Challenge: Help professionals to materialize their ideas and prototypes thanks to the professional network (search for suppliers, partners, etc...)

B. ONRAMP: Services delivered by professional from the InnoCentive Company and which gather all the four challenges above.

C. InnoCentive@Work: Creation of web community inside the seeker company in order to help it solve its problem internally and faster.

InnoCentive as a win-win solution:

Thanks to the Open Innovation, InnoCentive is a problem solver for all its stakeholders, from customers to the business owners:

A. Customers: referred in InnoCentive as Seekers.

- Gain of time.
- Save money (Challenges: the Seeker pays an award to the winning Solver only if the Challenge is solved).
- Find the solutions to every problem they can have.
- Assurance the solution will work (thanks to prototypes and tests for example).
- Can find from specific solutions to more global assistance throughout the Idea process.
- Solve Internal communication problem (thanks to InnoCentive@Work).

B. Suppliers: referred in InnoCentive as Solvers.

- Can work when they want
- Can choose the problem they want to solve
- Can work from home
- Gain of time,
- Gain of energy
- Can win up to 1, 000, 000 $ prize.
- Can develop their creativity

C. Partners: professionals who work for InnoCentive

- Huge range of problem to work on
- Target a wider potential clientele (thanks to the Final Product Challenge seekers are directly in touch with suppliers/ partners for further collaboration)

D. Business Owners

- Gain of time
- Nothing much to do with the problem solving part of the business
- Reach a wide range of people
- Creation of a business model which can last in the long run

Innocentive gathers two types of professionals looking for solutions: the corporate and the non-for-profit organizations.
The difference between the two is that corporates need to pay subscriptions to send their problems. They also have to pay reward to the seekers who offer the best solution to their problem.
Thanks to collaboration with the Rockefeller and InnoCentive, the Non-for-profit organizations do not have to pay any registration fee to put send their problem and receive solutions to them.

The main revenue source of InnoCentive is definitely the registration fees paid by the corporate.
Thanks to the prize-based principle of the company, InnoCentive can get a commission on every reward paid by the seekers to the solvers.
The company also offers other remunerated services in consultancy such as Open iNnovation Rapid Adoption Methods and Practices and InnoCentive@Work to corporates.

Although InnoCentive seems to be the leader in the web market, it also faces competitors such as Avantium which is a company specialized in high-throughput experimentation. It offers services in R/D for companies facing problem in the energy, chemicals and pharmaceutical industries.

We can also take a look at A Swarm of Angels which is not a competitor of InnoCentive but a movie based on the same principle of crowdsourcing and Open Innovation.
A Swarm of Angels is a movie project which will be licensed by Creative Commons.

Matt Hanson’s wish, who is a movie critic and who first thought of the project, is to gather 50 000 members. These members would have to contribute to the project with £25 each.
The choice of the scenario and the direction of the movie will be done by the community.


The Open Innovation model is definitely the kind of model which could not apply offline. The main reason to this fact is that it is impossible to create a community important enough for a company based on the model to build credibility. Plus, the model is also based on the rapidity of finding solutions which can also be found thanks to the Internet.
We can say the Open Innovation model is sustainable since corporates and organizations in general tend to look for unique, fast solution to their problem.
Businesses such as InnoCentive create community with creative thinkers from all over the world and from all industries. To my opinion we will see more and more businesses based on this model flourishing on the internet in the next years or even months.

To face the future competitors, InnoCentive will need to increase its market share. If we take a look at the website http://portail-innovation.typepad.com/innovationtribune/2005/12/innocentive.html, we can see that the solvers are mainly from the United States, and Germany. The business might not be known enough to generate seekers from other countries in the world. By translating the website in other languages and by developing a marketing strategy in the other countries, the business will be more accessible to other professionals.
Moreover, even if InnoCentive covers a wide range of industries, it can always develop new ones.
In order to create new revenue sources, InnoCentive should widen its consultancy services, maybe offer e-learning services and why not creating schools or studying program about innovative thinking, since, as seen in our course, everybody can learn how to think differently?

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