Different types of information-driven models are identified, inspired by real-life, successfully adopted business models. Several information-driven models can be simultaneously applied to one business model.
Information can be used to innovate existing customer propositions in a number of ways.
Demand can be increased by using information. For example, ‘Appie’ is a smart phone application analysing shopping behaviour of customers and giving tailored advice on offerings, ideal shopping routes and recipes.
Increase and capture customer surplus
Information can be used to increase and capture customer surplus. For example, TomTom has opened up data sources to incorporate real-time traffic info into its HD Traffic subscription and earns a monthly fee by doing so.
Increase customer satisfaction
Customer satisfaction can be increased trough the use of information. The FlyingBlue ClubCHINA for example, is a platform for frequent business travelers to China, offering networking opportunities and convenience services.
Introduce a low cost model
Information can be used to improve the cost structure and hence offer low cost propositions which were previously out of reach. For example, Wonga is a provider of short term loans, which has developed a sophisticated algorithm for the instant approval of requests, minimising the chance of defaults.
Information, either raw or processed, can be sold as a product or service.
Companies can sell their raw information. For example, Vodafone sells anonymous network information to TomTom enabling TomTom to predict congestions even before they actually occur.
Information can also be analysed first in order to sell ‘insights’ instead of ‘data’. Tesco for example, is a retailer which sells customer preferences derived from its loyalty programme to third parties (other retailers, FMCG producers).
Information can also be used to create a platform which is used by targetted audiences. This platform can be offered to third parties who can use this to their own benefit.
Information can be used to generate leads. For example, Kieskeurig.nl is a product/price comparison website. After comparing products, consumers can buy products via a link to the retailer’s online shop.
Deals can also result from using information. Bol.com for example, has opened up its algorithm based e-commerce platform for third parties, enabling them to sell their products.
Third parties can also use the platform for advertisement purposes, both behavioural and non-behavioural targeted, with the later requiring the build up of information rich user profiles and technological capabilities to track and trace individuals. Facebook for instance offers advertisers tools to profile customer groups based on the content of their posts, which enables them to target preferred audiences.