Can One Business Unit Have Two Revenue Models?

  • Which markets do Isolde and Emanuel target respectively? How do their respective business/revenue models align with their markets?

Isolde targets the market of the mass consumers, who may not have the budget for getting the research instruments. Emanuel targets the research market.

Isolde’s revenue model is to make profit from selling consumables for research instruments. Emanuel’s revenue model is to make profit from selling the research instruments.

  • What are the pros and perils of “imposing the structure of a single revenue model” vs. “letting [the company] continue on its flexible way”?

The pros for “imposing the structure of a single revenue model” are that one single model is straight-forward, clear, and doesn’t confuse employees or consumers.Having one single model is also easier to measure its success. On the other hand, the perils of it are that they are slower when reacting to changes in the markets and the consumers’ needs. It might be too focused on one market and miss the opportunity in other markets.

“letting [the company] continue on its flexible way” may make people confused, but it proves to be more adaptable in the fast-changing market right now.

  • Pretend that the CEO has decided the department heads must merge their divisions together. As a star PM assigned to mediate this interaction between department heads, how would you scaffold the discussion to ensure a fair merging process?

If I were the PM, I will start from the essence of each model. Who are the targets, what values we are providing to get to the targets, and at what cost. I would hope to find a middle ground between the two models in terms of the core values.

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