02 Flashcards
(11 cards)
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What is the economic difference between physical and digital?
Physical: Slow speed, crucial production cost, no actionable customer data, non-updateable, no AI.
Digital: Speed of light, zero marginal cost, actionable data, updateable, powered by AI.
What is a business model?
A business model describes how a company creates, captures, and delivers value.
What are the key elements of a business model?
1. Value proposition
2. Market segment
3. Revenue generation
4. Value chain structure
5. Cost structure
6. Position within value network
7. Competitive strategy.
What is the Product Software Service Matrix?
A matrix outlining four quadrants:
1. Physical product (e.g. dishwasher)
2. Physical service (e.g. home rental)
3. Digital service (e.g. cloud storage)
4. Digital product (e.g. iTunes song).
What is the Freemium business model?
The basic version is offered for free to attract a large audience. Revenue comes from the smaller segment of premium-paying customers. Examples: Hotmail, Spotify, Dropbox.
What are key KPIs for digital businesses?
1. DAU (Daily Active Users)
2. MAU (Monthly Active Users)
3. Stickiness (DAU/MAU ratio)
4. Conversion Rate.
What is the E-Commerce business model?
Products/services are sold exclusively online, reducing costs linked to physical stores. Examples: Dell, Amazon, Asos.
What is the Long Tail business model?
Revenue comes from selling large quantities of niche products rather than focusing on a few blockbusters. Examples: Amazon, eBay, Netflix.
What is the User Designed business model?
Customers design and manufacture their own products, with the company providing support. Examples: Spreadshirt, Lego Factory, Ponoko.
What is the Crowd Sourcing business model?
Tasks or problems are solved by an anonymous crowd, often through the internet. Examples: Threadless, InnoCentive, Wikipedia.
