lundi 25 février 2008

Natural


Nowadays, the term « natural » is used in all types of industries and is in everybody’s mouths.

What does “natural” really mean?

Pursuant to the Wikipedia definition and within the various uses of the word today, "nature" may refer to the general realm of various types of living plants and animals, and in some cases to the processes associated with inanimate objects – the way that particular types of things exist and change of their own accord, such as the weather and geology of the Earth, and the matter and energy of which all these things are composed. It is often taken to mean the "natural environment" or wilderness – wild animals, rocks, forest, beaches, and in general those things that have not been substantially altered by human intervention, or which persist despite human intervention.

This more traditional concept of natural things which can still be found today implies a distinction between the natural and the artificial, with the latter being understood as that which has been brought into being by a human or human-like consciousness or mind.

Although humans currently comprise only about one-half of one percent of the total living biomass on Earth, the human effect on nature is disproportionately large. Because of the extent of human influence, the boundaries between what we regard as nature and "made environments" is not clear cut except at the extremes. Even at the extremes, the amount of natural environment that is free of discernible human influence is presently diminishing at an increasingly rapid pace, or, according to some, has already disappeared.

The first non-governmental organization in charge of environment safe was Greenpeace (http://www.greenpeace.org/france/). With the unmasking of the regrettable effects of human uses on earth, this kind of organization has been developed.
How this influences business model?

This concept is linked to several other concepts such as health, fair trade and sustainable development. Moreover, “natural” means without chemistry, it means 100% linked to the plants.

The result of the growing of this concept is the birth of new business models :

- New concepts can be created (hotel totally eco-friendly, organic fast food, organic restaurants, electric cars, non pollutant energy, recyclability of everything, new method of communication, recycle paper etc.)
- Boom of the online sale of organic food, cosmetics, clothes
- The sustainable development has to be taken into account in the process of production.
- New packages spa – essential oil – medicine by plants etc.
- Phythothérapy
- Naturotherapy

The nature is at the beginning of everything and after all the abuses, we are going back to the nature.

Indeed, after all the constructions of new cars, each day a new car, etc… the bicycle is booming in big cities !
After all types of tourism, in each part of the world, in the most beautiful hotels, etc… the ecotourism is booming !
After the opening of one Mac Donald each second, it is the closing of one Mac Donald each second which is happening.

Everybody is going back to the real values, is starting to understand what is really important, and as a consequence, is trying to make little signs for the environment.

Even big companies such as Easygroup, which main brand is Easyjet, that is to say not really eco-friendly, has joined the trend of “carbon-compensation”.

To speak about e-business, new companies have developed their business online in industries ranging from vegetables to cosmetics :

www.Machja.com
www.naturalforme.fr
www.MySweetBio.com
www.natoora.fr
www.leportailbio.com
www.ecotourism.org


This trend has lead to create new types of industries around the ecology, which main ones are the following:

- Ecotourism (ecotourism.org)
Ecotourism, also known as ecological tourism, is a form of tourism that appeals to the ecologically and socially conscious individuals.
It focuses on volunteering, personal growth, and learning new ways to live on the planet; typically involving travel to destinations where flora, fauna, and cultural heritage are the primary attractions.
Responsible ecotourism includes programs that minimize the negative aspects of conventional tourism on the environment, and enhance the cultural integrity of local people.
Therefore, in addition to evaluating environmental and cultural factors, an integral part of ecotourism is in the promotion of recycling, energy efficiency, water conservation, and creation of economic opportunities for the local communities.

- Organic food, cosmetics and clothes (LeMarcheCitoyen.net, Leportailbio.com)
For the health, consume natural product must become more than a trend. All the pesticides present in vegetables would have to warn us about what we eat and the consequences on our health.
If the bees are dying, if some animals are about to disappear, it should make us understand that our world is polluted.
The sale of bio-cosmetics online is booming thanks to all the documentaries relating to the bad effect of paraben on the health, and the competition is rude between sellers.
Moreover, the bad impact of non-organic cotton on the skin has also led to the growth of organic clothes’ sales.

- Fair trade (Etikebo.com)
Fair trade doesn’t mean organic food but it is as well a way to consume.
It is an organized social movement and market-based model of international trade which promotes the payment of a fair price as well as social and environmental standards in areas related to the production of a wide variety of goods.
The concept of “nature” is also respected when you consume fair trade products.

In a general sense, the term of sustainable consumption includes the consumption of all the types of products from the industries defined above.

Internet is the new media and it can be a way to promote this trend. Indeed, communicate and promote by internet is better than paper for ecological defense. Of course, the big consumption of energy has to be taken into account but the saving of paper is really huge.
We can also notice that it promotes nature and environment respect on each first page.


Is it sustainable?

The concept of “Natural” has become much more than a trend. If at first it was so, it is now a real segment to be explored. It is a real shift and it is very positive for the well being of us.
With the development of diseases like cancers etc, people realize that it is really important to protect our environment and to promote ecology and organic consumption. It has changed our way of consumption.
As a consequence, working around this concept is sustainable and is more and more developed in our society, and particularly in cities like Paris, where a big part of the population called “bobo” is eco-friendly.

Companies around sustainable consumption are very profitable.



What is the danger of such a trend?

The danger is as usual the abuse and misunderstanding of the real meaning of the concept.
Moreover, the oversupply is dangerous for its keeping-up.
Nowadays, everybody is following the profit. Being on the segment of sustainable development and ethical trade is really profitable and each industry tries to penetrate it.
The labels can be quite easy to obtain and some products gains the “bio” label without efforts.
Sometimes, companies call themselves “totally organic and eco-friendly” while they use non recyclable packaging or way of production far from what has to be done for fair trade.

Moreover, the big “industrialization” of the concept “natural” could lead to a denaturalization of this word.
Indeed, natural refers to fragile, in small quantities, rare etc.
If all the industries try to work around this concept, then it will not mean “natural” at all.

mercredi 20 février 2008

mardi 5 février 2008

InnoCentive

Wikipedia describes InnoCentive as an "open innovation" company that takes research and development problems in a broad range of domains such as Engineering, Computer Science, Math, Chemistry, Life Sciences, Physical Sciences and Business, frames them as "challenge problems", and opens them up for anyone to solve them. It gives cash awards for the best solutions to solvers who meet the challenge criteria.

Since 2006, an agreement is signed with the Rockefeller Foundation to add a non-profit area designed to generate science and technology solutions to pressing problems in the developing world.

http://query.nytimes.com/gst/fullpage.html?res=9E04EEDE1430F931A25752C1A9619C8B63&n=Top/Reference/Times%20Topics/People/S/Schneider,%20Keith

http://webreprints.djreprints.com/1657770067525.html

http://gotastrategy.typepad.com/innovation/2007/10/open-innovation.html

Two types of people are put in contact : the seeker, who is looking for information or for somebody to solve his problem, and the solver, who is going to try to find a solution.
Everybody can join the community of seeker or solver by registering himself on the site.

For the seeker, who must face the competition with his breakthrough, the possibility of new ideas and solution will enable him to invent new products and as a consequence, to accelerate the development cycles and stay ahead of the competition through innovation and faster time to market.
Moreover, I think that an external view can be very positive for the company and this concept is positive for the company as it lows the R&D and operating costs.

For the seekers, the time saving is huge because they do not have to find an external consultant. Of course, it is not free but the guarantees are the same as when it is made offline.

Each Challenge is associated with a financial incentive, and payment is only made to the Solver who provides the solution that you select as the best for your requirements.

For the solver, it is a way to train, work and earn money. It is not automatic to be selected and to earn money for the solution you proposed but it worth the pain to try.
For people who are already working, who are maybe the more present, it is a way to face new problems and it can help them to be more efficient in their work.

How does InnoCentive make money?
By earning a commission on the fees of the solvers.
By their partnership with the Rockefeller foundation.



Who does this business compete with?
It competes with the consultant group such as those to whom companies externalize their R&D, marketing or management problems.
This competition shows that this kind of business works offline. However, the logistic is much more complicated and it costs much more to have this kind of business offline.
Nevertheless, people can be afraid by the serious of the information provided on the web.

Moreover, exist competitors online : Ninesigma.com, InnovativeXchange.com etc. (more or less 500 companies).


If I was the owner, I would expand the fields of competence and develop the concept for private users. Indeed, It seems to be a B to B business and I think that a large number of private would be interested by this concept. The prices should be adapted to the request, as it could be small requests.
Moreover, solvers should be able to help students on their thesis, at a low price. The profitability could be ensured by increase the price of the B to B business and compensate the low prices provided for students.
I my mind, it is also profitable for solvers who will always have to readapt their thought and as a consequence, who will have to be more aware of the modernization in the different fields in where they will have to work.


Companies such as EDF could use this kind of tool of R&D to face the new problems of renewable energy. I think that the advices of people external to the company can be a force as they have a certain retreat in comparison with those who work in the company.

Moreover, industries such as hospitality can ask for advices about what to do, what to change to have more guests. It is not really R&D but an external view can also be important in such a sector. In my opinion, for a hotel to succeed, the “external eye” is primordial.
http://computerworld.com.sg/ShowPage.aspx?pagetype=2&articleid=7138&pubid=3&tab=Home&issueid=121

mercredi 23 janvier 2008

Social entrepreneurship - a trend or a real shift ?

We can describe a social entrepreneur as someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change. Whereas business entrepreneurs typically measure performance in profit and return, social entrepreneurs assess their success in terms of the impact they have on society. While social entrepreneurs often work through nonprofits and citizen groups, many work in the private and governmental sectors.

One well known contemporary social entrepreneur is Muhammad Yunus, founder and manager of Grameen Bank and its growing family of social venture businesses, who was awarded a Nobel Peace Prize in 2006.

To give an example, Danone SA joined the Grameen group and created the Grameen Danone Food, which is a plan of development in Bangladesh, using local farmers and local companies as suppliers.
http://www.danone.com/fr/actualites/focus/grameen-danone-food.html


http://www.businessweek.com/magazine/content/04_18/b3881047_mz007.htm?chan=search


Nowadays, our society is in constant evolution. People are more aware about their rights and give more importance to their health and well-being.
Entrepreneur must understand that even if profits are of course important, the well-being of their employees is primordial cause it is thank to them that a company can make those profits.
I think that it is more than a trend but a real need for our society.

That is also why the impacts on the environment are always mentioned for each strategy of a company. Companies are many to become "environmentally-friendly", first of all, for their image but also because they understand that our future depends on that.

Entrepreneurs have to overtake the research of profit and only profit. The example of Danone shows that a multinational can think socially and still generate profits.

In my opinion, social entrepreneurship has become a real shift and we are all beginning to understand that we really have to play a role in the society.

lundi 21 janvier 2008

Vente-privée.com

Vente-privée.com is an e-business providing sales for is own members and only for them. The brand sold are well-known one and sometimes prestigious, such as Longchamp, Lancel etc. and the customer benefits from great sales (-30% to -70%).
Sales are about all type of goods such as clothes, accessorizes, sportswear, toys, high-tech…

To be invited in these sales, you need to be invited by somebody who is already client. Once member of the club, you receive regularly on your mail box invitations for the sales. The person who invited you will benefit from a discount at your first purchase.

The sales are timely-limited and can last 4-5 days maximum. The quantity of the good sale is limited too so that you need to be almost the first to visit the site if you really want to find the good you want.





For example, if the sale "Point à la ligne" is interesting for you, click on “s’inscrire à la vente”. As soon as the sale will start, you will be able to buy what you want and then to receive it at home.

This concept is a very interesting one for different reasons:
For the customers :
- Time saving because no need of moving to the right store
- Money saving because of the big discount

For the brands :
- Elimination of inventories for the brands
Indeed, this concept solves the problem of inventories for the brands because it permits to eliminate the old collections which are not going to be sold.


How does vente-privée make money?

http://www.vinimarket.com/dossier_49616_fr.htm

By registering and selling the goods for all the companies’ presents on the web-site, the company earns commission. Vente-privée is part of partnership agreements with some brands and earns commissions from the sales.


This business exists of course off-line but only in big cities, there are a lot of “ventes privées” in some shops in Paris but it is not always well-known, the publicity in not as efficient as on the net and only one brand is represented in each vente privée.
I really think that the concept is more efficient online.
To develop the business of vente-privée, what could be interesting is to develop the partnership and the advertisement. Indeed, there is no advertisement on the web.
However, the fidelisation of the client is good so the publicity can be as efficient as the advertising.

Who does this business compete with?

It competes with the ventes privées off-line which have no competitive advantages except the possibilities of see and try the clothes.
But as nowadays, the e-shopping is booming, the web-site vente-privée.com is still growing.

Since a few months, 24h00.fr is the new competitor of vente-privée.com. The manager is following a strategy consisting in evaluating the issues of vente-privée.com and trying to take advantage of them.
http://www.lentreprise.com/3/3/5/article/12038.html

jeudi 10 janvier 2008

The Freemium Business Model

The freemium business model works by offering basic services for free, while charging a premium for advanced or special features.
The word freemium result from the combination of the two aspects of the business model: free + premium. The business model has gained popularity with Web 2.0 companies.

The freemium business model was first articulated by venture capitalist Fred Wilson on March 23, 2006.
"Give your service away for free, possibly ad supported but maybe not, acquire a lot of customers very efficiently through word of mouth, referral networks, organic search marketing, etc, then offer premium priced value added services or an enhanced version of your service to your customer base."

After describing the business model, the problem was to find a name for this concept. After over 30 names suggestions, Jarid Lukin of Alacra, one of Wilson's portfolio companies coined the term "freemium". The term has since appeared in Wired Magazine and Business 2.0, and has been used by prominent bloggers such as Chris Anderson (from the Longtail) and Tom Evslin.

Web sites such as Linkedin.com, Flickr.com or Skype.com are examples use of the Freemium business model.


Taking the example of Skype, this company makes its users insanely productive by letting them talk with any other user worldwide for free.
The company makes money by charging users for connecting to phone systems outside of its network. It's a freemium model, indeed, Skype attracts users with free services, and then it charges them a premium for special features.
Bruce Sterling, in the article "Blogging for Dollars," Wired, June 1, 2006 gave his opinion on the concept:
“Files are stored centrally, so you will not want to use this method to transfer sensitive data. And since somebody has to pay for storage and bandwidth, you get limited capabilities for free — premium plans get you more storage, bandwidth or access to your files (Web 2.0 jargon alert: this free-to-premium escalation plan is being called the 'freemium' model)”.

Positive points:
-Basic services can be used by everybody and for a website like Linkedin, it is very useful in order to find work. So it can be viewed as a real work tool.

-The users are not bounded with the website

-The free services make the website more well-known because it increase the number of users.


Negative points:
-Basic services are often really basic and only serve to attract the customer to order the special features.

-The price you pay for advanced services is not always fair regarding the service provided.


Links:
http://www.contentmatters.info/content_matters/2006/05/whats_in_a_word.html
http://www.wordspy.com/words/freemium.asp
http://fr.wikipedia.org/wiki/Accueil