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New Business Models of the Future 

  • September 2015
  • -
  • Frost & Sullivan
  • -
  • 153 pages

Summary

Table of Contents

New Business Models of the Future : Analysis of Innovative and Emerging Best Practices and Implications to Future Value Chains to 2025

Between 2012 and 2014, over 70 global companies that were valued at more than $1 billion were start-ups with unique and transformative new business models. During the same period, most business model innovators have managed to produce consistently profitable returns with a high average revenue gain. The keys to these success stories have been connectivity and convergence, as about half of the start-ups were launched on mobile platforms. The study will explore such innovations and the best practices that drove this success. For the benefit of readers, the study will analyze models from a B2C, B2B, and G2G angle.

Key Findings

Around % of the business models in 2020 will be driven by the cloud, pushing the global cloud computing market to $ billion in 2020.

The most critical factor for the success of a business model will be scalability. Scalability beyond traditional product offering and competing beyond a company’s traditional industry will be important as more companies will begin to converge products and services. Companies like Google, Amazon, and Facebook will continue to compete outside their domain, pushing other companies to break their dominant industry model.

In the B2B business models, the service-based models tend to be more agile than the product-based ones. Service and fee-based models appear will continue to gain more traction compared to the previous decade. Product as a service, platform as a service, and data as a service are few business models that have proven future revenue streams beyond sale of the “hard asset.”

B2B licensing models are losing their sheen to new fee-based models such as subscription, leasing, and other fee-based models.

Innovation in new business models have the ability to open markets to companies times bigger than its original market (e.g., Apple).

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