Business Model

In the biometrics industry, I was once introduced to this findbiometrics.com website, a portal covering news of the industry. Because its revenue model is based on sponsored ads, it publishes mostly positive business news boasted mainly by the project-based biometrics companies, rather than their journalists’ own coverage. I found the website was not of much use to me. 

Two years ago, when we decided to develop cloud video surveillance solution, I bumped into another website, ipvm.com, a portal which the owner self-claimed as “the world's leading video surveillance information source. Dedicated to independent and objective information, we uniquely refuse any and all advertisement, sponsorship and consulting from manufacturers. We provide the best video surveillance analysis, testing and training for thousands of members globally.”

 After I perused some of the industry analysis and testing reports, I was convinced and thus signed up for a corporate account & paid the subscription fee online, frequenting my visit to the website to gather useful industry & technical know-how in a more neutral manner.

The above two different business approaches have their own target audiences with pros and cons. Unless they disclose their financial performance, I don’t think my personal preference is fair to judge who has a better business model.

Business owners have the liberty to choose their own business model. In many cases, we witness business models carrying more weight than the real substance of their products and services. Even the same products when run under different business models might end up with two totally different outcomes. Sometimes, one business model looks good in a short period, but might not sustain in a longer period; so, change is equally important too.

Business model plays a pivotal role in today's business

During the Dot Com Boom in the late 90s in the last century, investors were not dazzled by the technologies, but by the business models the Internet startups pitched on them. For example, Yahoo! succeeded with its news portal, Amazon with its online bookstore, and later Google’s strip down search engine struck gold. We have plenty more examples like Groupon, Foursquare, YouTube, SalesForces, Facebook, Twitter, Linkedin and etc; all of which proved business model plays a pivotal role, rather than the technologies in their success stories.

Today, with cheaper technologies and higher computing power, even conventional products and services can easily be revitalized with new ideas.  

Just like FingerTec, we produce quality products, but our business model works wonders. What is our business model? We’re heavily dependent on the Internet. We have plugged in almost everything; our sales and marketing, technical support, warranty claim, resource centre, all around the Internet. And from now on, we added FingerTec Webinar, a web conferencing tool to enhance our online training, to provide interactive training courses for our resellers and customers around the world. The best part of it is, at the right time, at your own place, no travelling is required. Just turn on the Internet, with a cup of coffee in your hand, you can join the class and participate in the discussion.  And it’s totally free of charge at www.fingertec.com/webinar/.