Business model
Bisnode’s business is operated by the customer’s needs of good decision support. The customers are business decision makers who need business and market information to minimise risks, find new customers to increase sales and to get in touch of specific industries and market segments.
The services are delivered digital by online services to be able to package the information to every customer’s unique demands. By reusing parts of the same information Bisnode finds economies of scale in data collection and database management which gives low costs in relation to customization, packaging and distribution.
Data collection is done locally in each country
Bisnode’s operations are highly scalable and provide significant structural advantages. Collection and purchasing of data is handled locally. The gathered data is analyzed and harmonized to be formed as information. The information is then packaged and sold as customized and differentiated services under various brand names. Bisnode currently runs some of the largest databases in Europe with information about companies across the continent, as well as databases with consumer information from numerous countries.
The information is sold either on a subscription or transaction basis. Subscriptions are paid in advance, often granting the user free access to information. Subscription contracts reduce the churn rates and increase the predictability of revenues. Transaction-based services are paid per information unit and actual usage. The Group aims to raise the total share of subscription-based services.
Economies of scale
The digital business information market is characterized by relatively high fixed costs arising from data capture and database management, and low incremental costs in relation to customization, packaging and distribution. The high fixed costs of purchasing information and setting up databases allow for the creation of significant economies of scale since the marginal cost of packaging and distributing the services is relatively low. Information acquired in individual countries generally contains data about companies or consumers in that specific territory. In addition, customers mainly demand information that is limited to a specific country, since most sales processes and risk assessments are local and require information in the local language.
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