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Data-Driven Business Models

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Data-Driven Business Models

Thomson South-Western,

15 min read
10 take-aways
Audio & text

What's inside?

How to use data to build and execute the right business model.

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Editorial Rating

7

Qualities

  • Innovative
  • Applicable

Recommendation

Staying one step ahead of the competition has always been a basic tenet in the business world. But, as the Internet significantly raises the competitive stakes by offering consumers options that never before existed, businesses are under even more pressure to produce. From the huge auto factory to the corner drugstore, every corporate management team is trying to figure out how to penetrate its market, better serve its customers and increase its profits. Alan Weber’s skilled dissection of business models and marketing strategy shows how you can use data to improve your operations. This is not simple to digest nor is it designed for the casual reader. The book is loaded with graphs, charts and formulas that illustrate Weber’s material. But even if you wouldn’t take it to the beach, getAbstract finds that it is well-suited for experienced managers who want to learn about creating business models and using data-based marketing. Actually, anyone with an intense interest in business could derive concrete information from this book, which comes with a CD of support material drawn from Weber’s clients.

Summary

Understanding Business Models

A business model defines how a company uses planning, execution, information and resources to make money. The tricky part is achieving a healthy, productive balance between long-term strategy and the inevitable short-term adjustments. Sometimes, they conflict. For example, say that an automobile dealership decides to market its cars to men older than 50, even though its sales figures show that women 35 and younger purchase 75% of its cars. The dealership’s business model, therefore, is not compatible with its long-term strategic plan to target middle-aged men. Shouldn’t it adjust its plans in light of the facts? That would be data-based marketing.

Business modeling – the process by which upper management sets strategy and directs its implementation – is based on several factors. The most useful information frequently comes from hard data about how the company is doing: Are sales are up or down? Is production slowing or speeding up? Is the bottom line diving or soaring? But corporate leaders really must understand their numbers – including information from surveys and focus groups – in the proper context and not react to them impulsively...

About the Author

Alan Weber, president of a marketing analysis group, is the co-author of Desktop Database Marketing. His articles have appeared in numerous trade publications and he has trained direct marketers across North America, England, Mexico and South America.

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