Fly Frugal + Comparative from JDN

An interesting article on the history of low cost airlines.

JDN article has a great comparative chart.

Saturday Sessions - 10/03 + 24/03

The topic for next 2 sessions will be low cost airlines business model. Certainly low cost airlines have changed the nature of consumer behavior..not just for airlines, but the entire travel industry.

Please review this excellent (easy to read) PPT on EasyJet...also, take a look at their website and make a list of the revenue streams.

Be prepared to discuss in class additional revenue, customer development opportunities.



Read...think...share...push!



Just a reminder note, 1 commentary per week is due on your blog. Additionally, cross linking to a classmates' commentary is due each Thursday. As this is an MBA course, I'm sure you will all make an effort to accomplish this required work.

Nine Sigma - Expert Response to Innocentive Post

Kevin C. Stark, Sr., Ph.D. Senior Program Manager NineSigma, Inc. has provided an elaboration of the innovation concepts behind Innocentive...plus his company Nine Sigma.

Thanks to the Net, Dr. Stark saw the posting and contributed his comments...truly a fantastic aspect of online collaboration.

His comments....much appreciated by this class.

1. Innocentive is a service company in the external/open innovation space along with other companies such as NineSigma and yourEncore.

The idea behind "open innovation" is how to tap into external solutions to corporate technical problems. Innocentive posts to their recruited network ofscientists, yourEncore posts projects to retired corporate technical personnel, and NineSigma posts Requests for Proposals (RFPs) globally to an open network of inventors, universities, and small/medium/large companies.

2. Innocentive was founded by and spun out of Ely Lilly's e-ventures group,and is venture funded by Lily Ventures, Spencer Trask, and Omidyar Networks.(http://www.innocentive.com/about/press/20060102_Innocentive_secures.html)

3. They charge companies to post the technical problems to their network andoffer "bounties" of tens of thousands of $$ to those that can solve the problem. Solvers (if selected) then assign the IP ownership of the solution to Innocentive, which then turns over the solution and IP to the requesting client.

4. "Tricky scientific problems" (http://boston.bizjournals.com/boston/stories/2006/01/30/daily30.html)-

Innocentive

Let's review and discuss this extremely innovative concept....Innocentive

1. What is it?

2. Who owns it?

3. What is the business model?

4. What problems does it solve?

Thursday Class - Quick Quiz

Kindly post the answers in your blog. This is a graded quiz.

1. OTHER than core revenue sources:
-sale of goods and services
-advertising
-subscription
Please list 3 additional revenue sources in e-commerce.

2. If "market segments are dead", how are segments replaced? Why is it important to the digital economy?

3. How can 'free' generate revenue for an online business? Please include your favorite example.