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Designing Business Models for [Public Interest] Digital Goods (Guide)
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Designing Business Models for [Public Interest] Digital Goods (Guide)
Assume: you want to design a business model.
Aside: a different (valuable) thing to write is "We need better digital ecosystems and that needs better business models ..."
Diginomics 101: bits are fundamentally different from atoms and that matters for every aspect of business model design
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Designing a business model 1: a simple economic schema of a digital good business/ecosystem and what is a business model (ans: a solution for each part of the model)
Business models can be summarized by a simple schema, showing how building blocks can be combined given certain constraints and the outcomes we want to create
Overview of a business / ecosystem 
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Designing a business model intro (?)
Business models are are composed of three major building blocks: a revenue model, supplier remuneration mechanism and legal structure
Business models are composed of building blocks which can be assembled under constraints to make a limited number of business model types. Learning these types–and the list of blocks and the rules for assembly–allow you to rapidly design business models that are successful for chosen outcomes.
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Intro to terminology:
General i.e. common to business models of all kinds (revenue etc)
Specific i.e. the terms we'll use for our guide (building blocks, types etc)
Constraints ... e.g. have to make a surplus or break even (over long-run) (in short turn can have investment etc)
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How building blocks are combined e.g. you can't have user fees and free access or zero revenue and paid suppliers ...
Design pt II: types of business model. A limited set of types of business model. We identify 6 key types: 1) ... 2) ... 3) (and X extra ones)
💡🔥 ACTUALLY probably just want anecdotes for now ...
There are 5 major types of business model, that we've named after famous companies that use them: Microsoft, BBC, Spotify, WordPress and Wikipedia. These can also be mixed to form new models.
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New possible models that aren't commonly seen (yet) ... e.g. user fees with X factor distribution, or public funding with X factor etc (especially those that are more feasible in a world of easier voting etc b/c of digital tech).
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Design pt III: Designing/Choosing? a business model for your situation
Your choice of business model will depend on the outcomes you want e.g. access, quality, profit and constraints of the situation e.g. is there public funding, do you have investors etc
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Business model types rank against different features in different ways
Appendix: if you want to get formal, from public point of view just one objective function which is social welfare. That involves X trade-off. If we knew XX we could rank models perfectly against social welfare ...
This can give you simple decision trees for making a choice 🔥🔥
Conclusion: how to design a business model in 3 steps
If you're happy with an "off the rack" solution then you can design a business model in in 3 simple steps: 1) prioritize the features you care about 2) select the shortlist of model types that match your preference 3) pick one or two models and tweak them to your liking
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Distilled: Cheat-sheet decision tree ...