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Topic 6: Product Development for a Software Business (Revenue Model (Free,…
Topic 6: Product Development for a Software Business
Software Business
Turning to services rather than software
Long tail of product can remain popular due to digitization (niche goods)
Revenue Model
Free
Revenue comes from other means:
Sales of data
Advertising
Freemium
First offered as free service with limited feature but require payment to access the full feature:
Focus on both the free and paid members
Retention is important
Paid
Pay to use the service
Transactional
Take a cut from the transaction
Sponsored
Cooperation with various partner where they will invest to put up ads on the platform
Need to project in time
(i.e. Revenue projections)
Create Value Proposition
Customer point of view
Pain
Need to Complete Some Tasks
Gain something
Solution from
services
Service that complete the task
Pain Relievers
Help customer to gain
Focus on creating
User Experience
that is:
simple
Platforms
Network
Tech Infrastructure
Data
Example of platforms
Technology
Marketplaces
Crowdsourcing
Gamification
Using games to engage the user so that they will keep using the service
Element of human behavior