Wk5-02 Revenue Streams and Key Resources Presentation
Welcome back, this is module five. So far, we've made our decisions regarding the customer segment, the value propositions, channels and customer relationships. Now, we turn to building blocks number five and number six. Revenue Streams and Key Resources. At the basic level, the revenue streams building block attempts to answer the question, for what value or price will the customer segment be willing to pay? Those common techniques to determine your pricing strategy is fixed list pricing, discount pricing, that's where you typically start high. And perhaps, offer significant discounts to attract early customers. Volume dependent pricing and market dependent pricing. The two main categories of revenue streams include transactional revenues, like when you purchase a car or something on amazon.com and recurring revenues. Good examples of these are subscription fees, usage fees and licensing fees. Next, we need to determine the key resources needed to create and deliver our value propositions. The main types of key resources include physical resources. This category includes physical assets like machinery, plants, warehouses, vehicles or point of sale systems to name just a few. The next category is human and intellectual. Almost every business today requires human resources and they are most critical in our new knowledge intensive marketplace. Intellectual resources often include your branding, proprietary knowledge, which is also sometimes called intellectual capital. Other examples of intellectual resources are patents. And of course, your customer database. And last but certainly not least, financial resources. The majority o business models require significant financial resources that come from a combination of sources including cash, lines of credit from a bank and perhaps, offering stock options in return for investments. And for many new businesses, the financial resources typically come from your own assets and sometimes with family and friends. For my business model campus project, I'm thinking that the revenue streams will come from two primary sources. First, fee per person transactions where parents will purchase the career readiness mobile learning program for their son or daughter. The online gamified program will offer about 15 hours of in depth training on how to develop and implement a winning career plan. We're thinking the fixed list price would range between $195 and $395 per person. The second source of revenues might be corporate sponsorships. If we're able attract corporate sponsors who also deeply believe in the need for high quality career planning programs for young people, then the fee per person would be closer to $195 per person. If we cannot attract corporate sponsors, then the fee per person might be closer to 395. With key resources, I predict that we will be primarily human and intellectual in nature. The intellectual resource would involve getting access to high quality mobile learning platforms that are designed using best practices in gamification and online learning. The human resources will be the teams of professionals that the university makes available for the project. In addition, to recruiting certified career planning coaches to join the cause. Now, it's your turn. Your module five assignments are as you remember, your job is to participate in the discussion group by answering the question, what is the most important thing I learned while watching the animated video Titled Proving It? Next, there are two application assignments. With your idea in mind, identify and describe your revenue streams and your key resources. Then just like I did, add your decisions to your business model canvas. And by the way, congrats, you're more than half way through the program. Well, we'll get together again at the beginning of module six.
