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My name is Professor
Milé Terziovski.
I'm a former Engineer with
a multinational
organization, and a PhD from
the Melbourne Business School,
University of Melbourne
in Quality Management
and Innovation.
Today's topic is Topic 5
Business Model Development.
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Topic 5 Business
Model Development.
Designing and validating
a business model is
an essential step in successfully
commercializing technology.
This topic will explore
how to design and validate
a business model
that aligns with
the technology being
commercialized.
The importance of
value propositions
and the role of
customer feedback.
Utilize frameworks like
the Business Model Canvas
to illustrate key components.
Finally, we'll
provide an example
of Netflix's evolution
from a DVD rental to
a streaming service and the
changes in its business model.
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Designing and validating
a business model.
The design of a business
model is a key decision
for an entrepreneur who
creates a new firm and
a crucial task for
general managers
who are charged with
rethinking their old model
to make their firm
fit for the future.
There are several factors
that need to be considered
when designing and
validating a business model
as shown in the figure.
First of all, understand
the technology.
Deep understanding
of the technology
you are commercializing.
Consider its unique features,
potential applications, and
the problems it solves.
Secondly, identify
target customers.
Define who your
target customers are.
Consider demographics,
industry sectors, and
specific pain points that
your technology addresses.
Create a value proposition.
Value proposition
articulates the unique value
your technology
brings to customers.
It should answer the
following questions.
What problem does the
technology solve?
How does it outperform
existing solutions?
Why should customers choose
your offering over competitors?
For example, Netflix's
transformation from
a DVD rental service to
a dominant streaming
platform is a testament.
Netflix reinvented
its business model
as a result of its ability to
innovate and adapt to changing
technology and
consumer preferences.
