04-Business Models

“To stretch our scarce resources, we absolutely do need to reinvent many of the production processes we are using today.” Gwen Ruta, VP for Corporate Partnerships, Environmental Defense Fund | New York Times, 15 June 2008

“It is a mistake to assume that older technologies are less dynamic than new ones.” David Edgerton, Historian, Imperial College in London | New York Times, 15 June 2008

“Many innovations were, frankly, thwarted by cost…There’s a lot of upside in revisiting old, discarded ideas.” C. Philip Ross, Consultant | New York Times, 15 June 2008

“The lesson [that our research revealed] from e-tailers: They, too, can reap rewards from managing demand-in their case, by segmenting customers according to how they want their goods delivered.

“People who shop online can differ greatly in what they’re willing to pay for delivery, and how flexible they can be on the time and date, when they have to be home to receive the package.

“If e-tailers adjust their fees and delivery options accordingly, they can not only increase revenue but also efficiency.” Niels Agatz, PhD candidate at the Rotterdam School of Management | Wall St. Journal, 7 July 2008

“Those who contribute to us are as selfish as anybody else. There’s rarely any charitable aspect of this.

“Their number one reason is that they are contributing so that they will get, in return, a better-functioning product. They are looking after their own business interests.

“Number two and almost equally important, is their desire to build a reputation for themselves.

“We will say publicly what they have done. So they get great recognition for being smart engineers and brilliant programmers. That gives them better job offers and it gives them a feeling of usefulness in the world. They get a lot of emotional and practical benefits.” Marten Mickos, Sr. VP, Sun Microsystems database group | Wall St. Journal, 7 July 2008

“I applaud HP for having the desire to think of printing as something that doesn’t just happen attached to a PC…But all those areas have different business models.” Lou Miscioscia, Stock Analyst, Cowen & Co | Wall St. Journal, 20 June 2008

“Unlike the traditional approach, Nexon makes its games free to download to personal computers and to play. The company makes money by charging customers anywhere from 30 cents to $25 each for virtual “items” to enhance their game experiences, including everything from souped-up vehicles to wacky hairstyles for in-game characters.” Nick Wingfield, journalist | Wall St. Journal, 23 May 2008

“Nexon’s biggest hit in the U.S. so far is MapleStory, an online role-playing game popular with teenagers in which players assume the identities of warriors, magicians and thieves and collectively fight monsters. The game has 85 million users globally, of which 5.9 million are registered in the U.S.” Nick Wingfield | Wall St. Journal, 23 May 2008

“The in-game purchases add up to a big, fast-growing business. Prepaid cards used to buy Nexon game items are now the second best-selling entertainment gift card at Target Corp. stores in the U.S., after cards for Apple Inc.’s iTunes Store, Target says.” Nick Wingfield, journalist | Wall St. Journal, 23 May 2008

“These games are as much Facebook as they are raw video games.” Evan Wilson, Analyst, Pacific Crest Securities | Wall St. Journal, 23 May 2008

“We sell social experiences, not packaged products.” Min Kim, VP Marketing, Nexus | Wall St. Journal, 23 May 2008

“I think we’re going to become television to their film…there will always be room for big blockbusters, but there will be less and less of them. I think we’ll reach a much, much broader audience.” Steve Rechtschaffner, CCO, Nexon Publishing North America | Wall St. Journal, 23 May 2008

“The three challenges for [successful outsourcing in] China seem to be language, project management skills, and security of intellectual capital. To address the language and project issues, a company has to put in place employees with strong project management and client-native language skills in close proximity to each of its clients. To protect intellectual property and build trust with clients, the firm has to acquire ISO-27001 on certification [a special international certification designed to protect the confidentiality, integrity, and availability of customer data].” Dr. Robert Lee, CEO of Achievo | East Bay Business Times 13-19 June, 2008

“The median ages of the broadcast networks keep rising, as traditional television is no longer the first screen for the younger set.” Research Magna Global, a media services firm owned by Interpublic Group | Wall Street Journal, 30 June 2008

“One of the biggest challenges that Sharper Image faced in the past five years [going bankrupt] was that the Apple Store took over as the place to hang out and play with gadgets at the mall.” Richard Thalheimer, Founder of Sharper Image | Wired, July, 2008

“I think the most interesting thing on the label side is being able to combine the merchandise with the music. I think Hot Topic is reinventing themselves as a one-stop shop for artists.” John Jannick, Founder of Fueled by Ramen, Independent Label affiliated with Atlantic Records | New York Times 30 June 2008

“For us, music merchandise is where profit is. The reason we carry CDs in the stores is that, to be in a music-centered business and not to have music, would be a contradiction. And you can’t be in an online music store and not have MP3s.” Jerry Cook, President, Hot Topics | New York Times 30 June 2008

“A lot of their demographic probably has MP3 players but it’s possible they already established relationships with an existing online retailer like Apple or Amazon. They’re going to have to convince their customers that their online store is more compelling than all the others.” Mike McGuire, Vice President, Gartner Research | New York Times 30 June 2008

“The Internet is not only a great place to reach web sites, but it’s also a great way to delivery conventional content. And at the end of the day, it’s about getting entertainment back into the living room.” Robert Wiesenthal, EVP, CFO, Sony Corporation of North America | | New York Times 30 June 2008

“I think you have to chalk everything studios are doing now with digital delivery to be experimentation. No one knows what the business model will be.” Stephen Prow, Founder, Salem Partners, LA based investment bank with a focus on entertainment | New York Times 30 June 2008

“Good cost managers are the unsung heros of business.” - Andrew Wileman, author, Driving Down Costs: How to Manage and Cut Costs Intelligently

“Hmmm. If I cut costs enough, I can make money on no revenues.” Dilbert’s boss

“You never try to grow your headquarters, because it’s an indirect cost.” Dr. Robert Lee, CEO of Achievo | East Bay Business Times 13-19 June, 2008