Service model and revenue model

The Service Model (or Delivery Model) refers to the Costs aspect of the business canvas model and the Revenue Model refers to the Revenue aspect of the Business Model Canvas. When we look at Costs and Revenues just as costs and revenues, you will miss the opportunity to innovate in that respect. 

Case: Lets say you consider to become a publisher of scientific journals. Researchers provide you with scientific papers which you review and publish in your journal. 

Traditionally publishers of scientific journals (like Nature) have a big staff to manage the business, write comments and review articles. The journal targets researchers all over the world who pay high fees to access the database of articles and receive the printed magazine.

On the revenue side you can use different revenue models. Nature is using the subscription model, but you could also think about the pay per view model or the advertisement model. Other revenue models not applicable for this case, are the lease or hire model, part payment or pre-payment model, shared use model. In social business crowd souring, barter and pay it forward models are used. So there are many ways to get paid when you use your imagination.

On the costs site you can come up with different delivery (of service) models. Nature uses paid reviewers and editors, but you could also make use of a community of peer reviewers, instead of a printed magazine you could use on-line journals and instead of an expensive paywall and proprietary business systems, you can use open source systems and grand free access to your articles. The idea of Web 2.0 is that user generate the content or service that you provide. You don't bother with creating content or services, you get your customers to do that for you and share their content with others. Usually services like this are supported by advertising income or donations by believers. If you apply the above you get a journal like PlosOne.


Nils de Witte (c) 2013