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Hi guys,
I have just started working on a new project which requires a thorough analysis of en existing revenue generation sytem. Let me try to explain the system in a concise manner.
This new system, ABC, developed by company XYZ, will allow 3rd party companies / individuals to provide various services to the XYZ customer base. XYZ will preside over the quality of the application given by these 3rd party people and based on which provides good benefits, meets standard requirements on user experience, follows processes and so forth, an application will be go main stream and XYZ will allow the 3rd party to become their partner and provide this service to their customer base.
Thus you have a company XYZ with a huge customer base, evaluating potential service suppliers, who on clearing and meeting certain objectives, will be chosen to partner with the company, provide their service to the customer base and thus share the revenue between them. All this work prior to becoming XYZ's partner, will be carrid out on the new system ABC. Hope this is clear.
My role comes in to understand the existing revenue model currently present in XYZ and the potential requirements for the new project as to what additional revenue sharing requirements and legalities will be involved. Since I plan to hold a workshop soon, would like to know how to drive the workshop and how to identify the most vital points to bring up in the workshop. The bottom line is for me to suggest a potential revenue model for system ABC, using the existing model in XYZ with further additions.
Cheers
Ken |
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Are you charged with coming up with the new business revenue model, or the requirements for the ABC system? Are you a business or IT person?
Who is the sponsor for this new line of business, and/or the ABC system? Why is the project going ahead if its value, the new revenue, has not been defined yet? What systems support the current revenues? Will ABC have to integrate with them?
Or, is your session to gather the appropriate business people who will work together to define the new revenue model? If so and that is accomplished, will that be the source of requirements for implementing ABC?
| kenfrapin wrote
Hi guys,
I have just started working on a new project which requires a thorough analysis of en existing revenue generation sytem. Let me try to explain the system in a concise manner.
This new system, ABC, developed by company XYZ, will allow 3rd party companies / individuals to provide various services to the XYZ customer base. XYZ will preside over the quality of the application given by these 3rd party people and based on which provides good benefits, meets standard requirements on user experience, follows processes and so forth, an application will be go main stream and XYZ will allow the 3rd party to become their partner and provide this service to their customer base.
Thus you have a company XYZ with a huge customer base, evaluating potential service suppliers, who on clearing and meeting certain objectives, will be chosen to partner with the company, provide their service to the customer base and thus share the revenue between them. All this work prior to becoming XYZ's partner, will be carrid out on the new system ABC. Hope this is clear.
My role comes in to understand the existing revenue model currently present in XYZ and the potential requirements for the new project as to what additional revenue sharing requirements and legalities will be involved. Since I plan to hold a workshop soon, would like to know how to drive the workshop and how to identify the most vital points to bring up in the workshop. The bottom line is for me to suggest a potential revenue model for system ABC, using the existing model in XYZ with further additions.
Cheers
Ken
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David Wright |
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Hi David,
I am responsible for making a detailed note of the existing model in the company and then check to see if the model can be applied as-is to the new system. If it cannot be applied as-is, I would need to recommend a new model if possible, by stating what modifications will be needed to the as-is system.
I am an IT person and will have to conduct workshops with the business and program manager. The intial work on project feasibility, advantages have all been carried out and is not in scope for my work. The project implementation of the new system has begun. The Revenue model is the one that would need to be defined. Before defining it, I need to get details on the existing model in place as noone seems to have that info in one place or documented anywhere.
I plan to come up with a requirements document for the Revenue model of the new system. Then I plan to map these requirements to see if it exists in the exisiting model. If not, then clearly work would need to be carried out. To achieve all this, I first plan to meet with the project owner who has a clear understanding of what the system is being designed to do and who the actors of the system are. Once this is in place, I will then proceed to find out what relation needs to exist between the actors in terms of revenue sharing. All this would be detailed in a document. If possible, I would compare the as-is and to-be model (in a manner of speaking) and would possibly try to chalk out a broad design for implementing the same.
Cheers
Ken |
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Hi Ken,
I think you should firstly do some research into business models (try wikipedia for starters - but go further and particularly check out MIT.)
What you want to look for is a capability approach to value configuration, rather than a requirements (customer) driven approach. The idea is that you model what the system can do and then map it into potential business models.
To get there you will do things like define who your customer is, and understand what value your system offers. That will tip you off to revenue opportunities.
I would LOVE it if you could come back here and explain how you tackled this problem. |
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Hi Craig,
Many thanks for the good pointers. Unfortunately, I had a real detailed discussion on the exact project requirements and it now turns out that there is nothing much to it at all !
Basically, revenue share for validated applications that directly hit XYZ is decided based on collated reports. Since the new system ABC for invalidated applications is now come in, the existing model / team cannot be used for carrying our revenue validation and we need a 3rd party to take care of this by looking into system ABC's reporting structure.
My job is to make everyone involved aware of the technicalities of this new setup, processes that will be involved and potential issues that may arise due to this new setup. Thats about it for this project :-(
None-the-less, I will make an effort to dig in deeper and pull out some more information, as we all know, the business always have very vague ideas that have to be implemented no matter what. Will keep you posted
Cheers
Ken |
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