Business model innovation in the Internet era: profit model for free installation of LED street lights
Benwei LED lighting: LED street lights are environmentally friendly, pollution-free, low power consumption, high luminous efficiency, and long life, so they are the best choice for energy-saving renovations. The state has promulgated relevant policies for the renovation of street lamps.
For the government, there are two options. Option 1: Public bidding in the market, which requires tens of millions of yuan to be guaranteed; Option 2: The company promises to do this for free, but the government should give it the right to place street light advertisements. . For the government, the first reaction must be to choose the second option, and it is wonderful to be able to do things without spending money!
Scheme 2 is a typical Internet thinking mode, which makes full use of the principle of "compensation transfer" or "multi-point compensation" in the Internet era. As Adam Smith said more than 240 years ago, the cornerstones of modern economic theory are "supply and demand", "buyer and seller". The "invisible hands" of God use the law of value to influence the decision-making of "rational people".
Compensation of the company - advertising revenue
As a business in the market, a company needs to make a profit. Although she did not ask the government to pay monetary consideration, she asked for the right to advertise on LED street lights. At this time, the company only needs to find the advertising demander to implement value compensation. In this real case, the advertising revenue alone covers the company's LED street lamp renovation costs and is slightly profitable.
Here, there is another concept of new institutional economics - "property rights". The government has "the right to put advertisements on street lights" and gives it to companies. This is a typical property rights transaction. Property rights are valuable, whether you use it or not, which may have been overlooked before. But now it's a value discovery for the government, which can replace LED street lights without spending a cent anyway.
Compensation of the company - data compensation
Companies that are good at Internet thinking have also thought of another value compensation point, which is to install cameras on urban LED street lights, collect video signals around the street lights, and use big data technology to organize information and sell them on the premise of legal compliance. These data, earn income.
Through street light video, combined with increasingly accurate face recognition technology, big data analysis technology, etc., the company can obtain a lot of information: personnel flow; people flow in time; Price information; precise personnel locking, etc. All of these can generate commercial value and can be used in online store location selection, social surveys, personnel analysis, and more.
Taking the site selection of an online store as an example, for businesses, where to open a store is crucial to profitability, and street lights are traversed for the entire city, they are all over the city, collected through street lights. It is of great value for merchants to choose the location of physical stores.
