Lumi is an example of company that has a portfolio of business models. In its product business model it sells apps, software, and hardware to companies for real-time audience insight. Lumi also operates a solutions business model, which this write-up will focus on. In this side of the business, Lumi Insight provide meeting/conference services to their clients. By combining Lumi’s technology with the convenience of event planning, Lumi creates an additional revenue stream while also gaining the opportunity to advertise the benefits of their systems. Lumi’s service is also used to gather customer feedback in the form of mobile surveys.
Lumi is a global market leader in real-time audience insight technology. Lumi was developed in Finland between 2005 and 2008. Marcus Wikars, Magnus Holtlund, and Johannes Berg incorporated the firm in London in 2008. Lumi was focused on creating a set of patent-driven products that could be sold individually or in groups to clients. Lumi started off as Lumi Mobile, selling apps and software that allowed for easy market research and audience participation. In 2014 it acquired IML Worldwide, adding a series of hardware options to their product offering. Today meetings and events represent the largest part of Lumi’s revenues, but market research opportunities present the greatest chance for growth.
CUSTOMERS – WHO THEY ARE:
Lumi’s customers for the solutions business model are individuals or groups hosting events and conferences where participant feedback is vital. Lumi also caters to customers whose businesses require mobile input from the public.
ENGAGEMENT – VALUE CREATION PROPOSITION:
In its solutions business model, Lumi deploys a “taxi” approach for customer engagement. It leverages its capabilities and expertise to create surveys and experiences for each customer/event. Event organizers can gain real-time insights into their audience, and post-event feedback through surveys.
DELIVERY – THE VALUE CHAIN:
In its solutions business model, app and software development are done in house. Creation of schedules and events for conferences are developed with the client in order to insure their requirements are met. A team of Lumi employees will work directly with the event host’s team before and during the event to ensure that the services are working properly.
MONETIZATION – VALUE CAPTURE:
Lumi receives agreed-upon lump sum payments upon reaching certain project milestones.
Lumi Website: http://lumiinsight.com/en-gb/home-gb/
Written by Danya El Zein and edited by James Knuckles under the direction of Prof Charles Baden-Fuller, Cass Business School. This case is designed to illustrate a business model category. It leverages public sources and is written to further management understanding, and it is not meant to suggest individuals made either correct or incorrect decisions. © 2016
Published 21 April 2016