
I highly recommend reading the book Business Model Generation. Not only that the design of the book is really refreshing and makes it fun to read, but it also just focusses on main facts that you need to describe your business model and illustrates them well.
What I like especially is that it formalizes Multi-Sided Platforms, a business model pattern that is used in many Internet mobile businesses today: Two or more distinct but independent groups of customers are brought together, and such platforms are of value to one group of customers only if the other groups of customers are also present. The platform creates value by facilitating interactions between different groups. A multi-sided platform grows in value to the extent that it attracts more users, also known as network effect. Economists call this platform multi-sided markets.
A very prominent example for a multi-sided platform is Google’s business model: It’s value proposition is to provide extremely targeted text advertising over the Web (AdWords), extending the reach further through AdSense through which ads are displayed on other, non-Google Web sites. Customers are Web surfers, advertisers and content creators: Three independent groups of customers, but value is brought to one through presence of the others. Three value propositions exist respectively: Free search, targeted ads, and monetizing of content.
Another example for multi-sided platforms are the video games consoles Wii and Xbox. Both are double-sided platforms. While Wii addresses casual gamers (“family” console) and game developers, Xbox addresses hardcore gamers and game developers. But the business models are substantially different: Wii’s consoles are relatively inexpensive, and customers are attracted through the novel motion-controlled “fun factor”, while Xbox machines are sold with loss because of the expensive hardware. With the Wii, Nintendo earns money from both – console gamers which buy the hardware and game developers through royalties – while Microsoft only from game developers. Additionally, both produce and sell games on their own.
The Business Model Canvas, which is the main focus of the book Business Model Generation, provides a shared language for describing, visualizing, assessing, and changing business models. Together with the described multi-sided platform pattern, this book gives you a powerful tool to construct and visualize your business model of your mobile service business idea in a fresh and easy-to-explain way.