Management of Technology Final AssignmentBusiness Model Canvas Sitti Alvina 1306393181 Skype Business Model Canvas Contents Company Profile ...................................................................................................................................................................................................................... 2 Skype Business Model Canvas ................................................................................................................................................................................................. 3 Relationship Matrix ................................................................................................................................................................................................................. 9 Patterns ................................................................................................................................................................................................................................ 11 Mapping Environtments ........................................................................................................................................................................................................ 12 Risk Mapping ......................................................................................................................................................................................................................... 15 New Alternative Future Business Model ................................................................................................................................................................................ 16 References ............................................................................................................................................................................................................................ 20 Appendix ............................................................................................................................................................................................................................... 21 1 and then the number of users reach 100 million. video. skype to go. Now Microsoft has the opportunity to put Skype into as many platforms as possible.000 for each Skype’s active users. Skype has many features that are offered to users worldwide. It is already integrated with Facebook. skype to skype. and instant message with other people on skype. and the video call is introduced in late 2005/early 2006.Skype Business Model Canvas Company Profile Skype is a global technology leader that enables real-time communication over the internet. The software is invented by Ahti Heinla. 663 million users are registered. We do not know for sure how the company will do that.8 million are paying users. many wonder if Microsoft overpaid. users were unable to connect to the network because of a Skype system wide crash. easy-to-use tools for consumers and businesses to communicate and collaborate globally through voice. It is free to start using skype for several features like skype to skype. It can be accesed by its website (www. On 2005. skype number. the technology will help a number of Microsoft’s products like Windows Phone 7 become more competitive. Skype has marketing services. Skype was purchased by eBay. but you can take a look at the possibilities 2 . it becomes a part of Microsoft that has some Pros and Cons. and text message. SkypeOut Services was banned in South China. Since 2011. Blackberry. access WiFi or send texts. out of which 8. Android. including advertising that allows businesses to market their products or services selectively to Skype’s user base. and conference calls. Fortunately. Skype founders had conflicts with eBay and destabilized the company. Microsoft has gained a popular service and has denied its competitors from acquiring it. and by paying nearly $ 1. The Cons are many worry if Microsoft will screw up the purchase consequently hurting Skype. Skype’s products are on multiple platforms including iOS. skype connect. Linux.skype. skype out. It is found on 2003 by Niklas Zennstrom and Janus Friis.com) or its apps that can be downloaded on the web. On 2007. On 2008. Skype’s employees my move on to other companies if they do not like working with Microsoft. video call. You can pay as you go or buy a subscription. and Symbian. and Jaan Tallinn. Prliit Kasesalu. The Pros are microsoft gains Skype’s community of 100 million active members who log more than 100 million minutes each month. Josh Silverman becomes CEO and brings the stability to Skype. and by purchasing Skype. you have to pay to get some extra services like call phones. such as: send message. video conferences. But. It offers high-quality. Skype Business Model Canvas Skype Business Model Canvas 3 . they can use Skype manager to have them manage the features for the company’s needs. Customer Relationship Skype has some customer relationships. 2. conference calls. They can be individual users or companies. like send message. The skype customers are internet users who want to communicate via internet. Customer segment Skype has the “mass market” for the customer segment type. The users can send message via Skype to skype. use skype connect. The hardware can be personal computers. The personalized self service is a customer service that available to help you with your difficulties using Skype live online. skype out. the mobile application. 4 . skype subscription. video conference.Skype Business Model Canvas 1. and other skype to skype communication 3. since it is the main media to distribute the value for the customers. Channels Channel is something that delivers the value proposition to the customer. Value Proposition Value propositions that the customers get are some features like send message. The hardware is one of the channel too. 4. make calls to non-skype number via Skype out. and skype manager for companies. make international calls via skype to go. and customer relationship focus on one large group of customers with similar needs & problems. The distribution channels. value proposition. Users also can pay for some extra features and subscribe. Skype has some distribution channels.com). and skype software download. For companies. A company can use Skype manager to manage their needs of Skype’s features for meeting and other business requirements. The users can use Skype via the website or download the application for pc and mobiles. They are personalized self service. and communicate easier and cheaper.skype. skype to skype. use video conferences and conference calls and pay cheaper (especially for the international calls). tablets. even free for some features. and skype software that are downloaded by the users worldwide. hardware. use Skype number to make phone calls. payment of skype. skype number. skype connect. like the website (www. and handphones. skype to go. Key Resources Skype’s key resources are developers. Most of the users. Skype can also get the revenue streams from companies that advertise their products on Skype 6. 7. Skype partners with Telecom companies and payment providers to pay for credits for feature like Skype out. The developers are important to Skype’s development. Hardware manufacturers. Customer service is important too to mantain the relationship between the company and the customer and keep the the customers’ loyalty. Users can pay credit and subscriptions for some features and finally can use the feature. 9. The brand itself is one of the key resource because Skype has its loyal customer that already comfortable using it than using the competitors’ products. skype brand. Skype also partners with hardware manufacturers such as LG electronics and panasonic to produce monitors that are connected to Skype that displays high quality picture. Cost structure 5 . Key activities Skype’s key activities are software development and customer service. especially companies do not mind to pay for some features since the feature help them to grow their businesses. Key partnership Skype partners with several companies such as Microsoft. since it developed the software and the other things that support Skype and make it usable for the users. and software. Telecom companies. and payment providers. 8. Software development is one of the key activities because it is important to the development of the company.Skype Business Model Canvas 5. Microsoft buys Skype on 2011. Revenue stream The revenue streams that Skype has are credits and subscription from the users. video conferences. and desktop sharing. They can send messages via skype. skype to go. the company must recruit the best human resources for its development. skype’s users can communicate easier and cheaper. Relationship between value proposition keywords to the design of the map Skype’s users will get some value propositions from the product such as sending messages. Relationship between target market characterisitic to your value proposition. especially for international calls. 6 . phone call. and file sharing while the competitors only offer some of it. access WiFi. and video call. partner fees. With these features. marketing. instant messaging. The fixed cost is for building. video call. The variable costs are software development. skype out. people do not need to meet to see each other and pay high to make international calls anymore. For example: Google voice only offers voice call. They can be individual users or companies.Skype Business Model Canvas The cost structure is made of fixed cost and variable cost. desktop sharing. Therefore. skype connect. instant message. GoToMeeting only offers video calls. Cisco WebEx only offers video call. skype number. and conference calls. desktop sharing. and telecom costs for the skype out features. The Skype’s target market is internet users worldwide who want to communicate via internet. skype to skype. instant messaging. With Skype. make phone calls via skype to skype. and why you think you are better than competitor. Facebook chat only offers instant messaging. Apple FaceTime only offers phone call and video call. To maintain the quality of the services that delivered to the users.and the employees’ salary. and send texts. and make video calls for free and pay a little bit more for extra services such as phone calls via skype out. What makes Skype better than the competitors are Skype offers voice call. and file sharing. machine. phone call. the company must develop the software well and the customer service have to handle the users’ complaints profesionally. customer service. Personalized self service - - Skype.Software .Software development .Telecom costs .Telecom companies .com & skype application Skype manager for companies Skype.Skype software download .Personalized self service Channels - - 2 Customer service .Payment providers 7 .com & skype application Skype manager for companies Value Proposition - Send message Skype to skype Skype out Skype number Skype to go Skype connect Video conferences Conference calls Send message Skype to skype Skype out Skype number Skype to go Skype connect Video conferences Conference calls Communicate easier and cheaper A table lists on how each key activities is related to key resources.Skype Business Model Canvas A table list on how key activities are derived from all activities needed to support customer relationships.Microsoft . cost structure. channels and value propositions No Key Activities Customer Relationship 1 Software development . and key partners No Key Activities Key Resources Cost Structure Key Partners 1 Software development .Customer service . Developers . Skype games 8 . frame and themes for the application 4.Skype brand . Skype map 2.Software .Skype Business Model Canvas 2 Customer service .Marketing .Software development .Payment providers Other Possible Revenue Stream 1. Sell sound fiters to add more fun to the conversations 5.Customer service . Develop paid membership content 3. Sell chat stickers. Skype Business Model Canvas Relationship Matrix 9 . Skype Business Model Canvas 10 . only a small portion. mainly Web-based. no-strings-attached offer. such as: 1. The freemium model is characterized by a large user base benefiting from a free. subscribe to the paid premium services. 11 . Free calls are fully routed through the Internet vased on-so-called peer to peer technology that employs user hardware and the Internet as communications infrastructure. Fremium stands for business models.Skype Business Model Canvas Table 1. Users pay only for calling landlines and mobile phones through a premium service called SkypeOut. usually less than 10 percent of all users. Skype is categorized as a Freemium business model pattern for several reasons. 2. Skype enables users to make calls via Internet. Most of these users never become paying customers. that blend free basic services with paid premium services. which offers very low rates. Relationship Matrix Notes: S : Strong Relationship M : Moderate/Medium Relationship W : Weak/Little/No Relationship Patterns The pattern of Skype is Freemium. Indonesia’s increasing number of middle class income is a market growth potential. video calls.Skype Business Model Canvas Premium paid services FREE services Mapping Environtments Market Market segments Targeting people who communicate via Internet. for example: make international calls. etc. (+RS) Forces Market issues Users who want to make calls. chat. video calls. and the other features that Skype had and doesn’t want to spend too much money (+VP) 12 . send message. Switching brand is very easy. desktop sharing. (-CS) Industry Supplier and other value The software development is developed by the software developer (+VP) Forces chain actors Hardware manufacturers that partners with Skype. (-CS) Revenue attractiveness Skype has premium features that the customer must pay for it and Skype offers advertisement placement which gives benefits to the revenue streams (+RS) but on the other hand is not pleasant for most customers. like Google Voice. and communication regulation in Indonesia. (+VP) 13 . instant messaging. Event companies use it for video conference. technology.Skype Business Model Canvas Needs and demands People needs a high quality network so they can use the features well (+VP) Switching cost Skype is free of charge for basic feature and you can pay for premium features. (+KP) Other content developer that develop the network. etc (+VP) Stakeholders Microsoft owns Skype and make Skype as built-in apps (+KP) Competitors (incumbent) Apple FaceTime application who already built-in in Apple devices so Apple users often prefer using it than other apps (-CS) Other competitors. GoToMeeting. Facebook chat. similar with the competitor. file sharing but they don’t offer voice call and phone call (-RS) services Key Technology trends Trends in using internet to communicate is very promising. (+VP) Trends Regulatory trends Information. etc. and Cisco WebEx don’t offer as much feature as Skype does (+CS) Skype brand (+CS) New entrants (insurgents) Other competitors that offers new features that Skype doesn’t have (-RS) Substitute products and Cisco WebEx can be a substitute products since it offers almost all of Skype’s features like video call. Skype Business Model Canvas Societal and cultural trends The number of people connected to the internet is increasing. Indonesian are using the internet more than ever and still growing. (+VP) resources 14 . webcams. (-CS) PCs. Indonesia’s economic growth is slowing down. (-RS) Skype already has loyal users (+CS) The number of people who use internet is increasing and the internet infrastructure development is on progress in forces Economic infrastructures Indonesia. (+VP) Socioeconomic trends The user can be any age category who want to make calls via internet (+CS) Macro- Global market condition Recently at the first and second quarter of 2015. earphones continue to have positive sales growth. mostly on area near Jakarta (+CS) Commodities and other Internet infrastructure development on rural areas is still limited. (-RS) economic Capital market condition Rupiah is weakening against the US Dollar. smartphones. Risk caused by substitute products and services has high impact and high probability. so Skype must mitigate and control this risk by doing innovations for their features so the users will stick to them and won’t use the other products.Skype Business Model Canvas Risk Mapping Key Risk by New entrants (Insurgent) (-RS) Risk by Substitute products and services (-RS) Risk by Global market condition (-RS) Risk by Capital market condition (-RS) From the risk map. This is a high risk problem. so Skype company should take immediate action to mitigate and control the risk by developing features and make some trial promo for the premium features for example. 15 . Skype must keep update for the new technologies too. we can conclude that: Risk caused by new entrants (insurgent) has high impact and high probability. Customer-driven innovation is a innovation that based on customer needs. They just have to say what they mean with their own language and Skype will translate it to be the other user’s language via text that appears on the conversation bar. But there is another problem. etc.This innovation affects the revenue streams and key activities. For more than one decade. Skype succesfully break geographical barrier to people who want to communicate and see each other’s face. New Alternative Future Business Model Every company has to develop new alternative future business models. communicate and collaborate. Using innovations from Microsoft Research. 1. facilitated access.Skype Business Model Canvas Risk caused by Global market condition has low impact and high probability so it is a medium risk problem. Skype will remove another barrier to make it possible for people to communicate irrespective of what language they speak. Finance-driven innovation is a innovation that driven by revenue stream. The problems that come from the risks can affect the revenue stream. It can decrease the users’ loyalty and reduce the revenue streams that the company get. conference calls. Skype brings people together to make progress on what matters to them. like you can use it while you make phone calls. New alternative future business models are needed to develop the business in order to solve the environment risk. For the revenue streams. there are customer-driven. people will no longer be hindered by geography and language. There are three drivers to be considered. video calls. pricing mechanism. or reduced cost structures that affect other business model building blocks. if Skype put this feature on the premium feature. and multiple-epicenter driven. Customer-driven innovation Alternative Future Business Model Canvas 1 explanation (Customer-Driven Innovation) New business alternatives need to be developed to solve the problems that come from the environmental risks. Risk caused by Capital market condition has low impact and high probability so it is a medium risk problem. Revenue stream can be reduced by these environmental risks. Skype must control this risk by making strategies that can reduce the effect from capital market condition problem. 16 . They are restricted by languages that they don’t understand from another country’s user. Skype will still get the revenue stream because some feature like make call to non-skype users (SkypeOut) is one of the premium features which is not free. Skype must control this risk by making strategies to overcome some global market conditions. Skype will get new source of revenue streams or if this feature is free and bulit-in in every feature of Skype . finance-diven. Sometimes people can’t communicate well because they still have a barrier. Skype Translator will open up endless possibilities for people around the world to connect. or increased convenience. The innovation that Skype plans to do is a new feature called Skype translator. Multiple-epicenter driven is a innovation that is driven by multiple epicenters. such as: key activities. There are many competitors that already did the innovation to add stickers features for chatting features. more expressive the chat will be. For example if it is World Cup time. Finance-driven innovation Alternative Future Business Model Canvas 2 explanation (Finance-Driven Innovation) Plain chat message that only contains texts is so boring. On key activities. sell Football players stickers edition. it adds one ponit. To affect the revenue streams. it affects the software development. Also add celebritiy edition stickers or other seasonal stickers that suit the situation that is happening that time. it is stickers designers that Skype has to pay. key resources. and revenue streams. it is sticker 17 . The price doesn’t have to be expensive. Maybe just around 1$-2$ for a pack of stickers. Skype does not only offer free stickers but also sell stickers to be purchased. This innovation affect many aspect on business model canvas. On key resources. On cost structure. it add one more point. More stickers that are available. cost structure.Skype Business Model Canvas 2. 3.Skype Business Model Canvas designer that has to design the stickers. On revenue streams. For example. Multiple epicenter-driven innovation Alternative Future Business Model Canvas 3 explanation (Multiple epicenter-driven Innovation) To affect more aspects on the business model canvas. it affects credit & subscription that Skype get from the selling of the stickers. Skype can develop a new 18 . Skype has to do the multiple epicenter-driven innovation. add one point in key resources which is hire the game developers. not only on their PC and tablets. it affects software development in key activities. It is expand the customer segment more.Skype Business Model Canvas feature called Skype game. This innovation affects software development in key activities and add one point on customer segment. not only people that use it on PC and tablet but people will also use it with their handphone. 19 . even on their apple watch. add one point in cost structure to pay the game developer. so users will not hesitate to install and use it on their phone. and get extra revenue stream from the bulit-in features inside the games that the users can purchased. It is a bulit-in feature that can be played by users. Users can play the game with one of their Skype’s friend live. To make this feature. Also Skype has to develop the lighter version of their mobile apps. skype.com/tag/innovation/ http://www.skype.com/ Business Model Generation by Alexander Osterwalder & Yves Pigneur 20 .Skype Business Model Canvas References http://blogs. Skype Business Model Canvas Appendix 21 . Skype Business Model Canvas 22 . Skype Business Model Canvas 23 . Skype Business Model Canvas 24 . Skype Business Model Canvas 25 .
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