Week 2-Kamilla Flashcards
What is a born digital?
Firms born with a fully digital business model, including what they sell.
What do born digitals rely on?
- Digital infrastructure to: build their communication, collaboration, and computing capabilities so they can create and sell something online
- The world is their market
- Customers can find them by doing a quick search
- Have intellectual and social capital
Born digitals have an identifiable:
- Online presence(in space); and
- A physical footprint( in a place)
What is an example of a born-digital?
- Tiktok
- Shopify
What is NOT a born digital?
- Peloton
- Airbnb
- Casper
Why are born digitals exciting?
- Directly engage with stakeholders
- Highly automated
- Leverage network effects
- Are organizationally flexible
- Scalable (increase the user base, revenue is growing faster than investment)
What is a business model?
- The set of choices made by firms to create value through customer engagement and appropriate subsequent outcomes
- How the organization provides value to the customer
- Describes how the firm does business
- Will change over time and in different directions
Are business models and revenue models the same thing?
No.
- Revenue models is how you bring money into the organization
- Business models is what the business does
What are two types of revenue models?
- Freemium:
- Basic service for free
- Charge for premium
services to paying
members - Ex: Shopify, ChatGPT,
Tinder, Youtube, Canva
- Bait and Hook
- Basic product at very
low cost, even at a
loss(‘bait’) - Charge ‘compensatory
recurring amounts’ for
refills or associated
products and services
(‘hook’) - Ex: Adobe, Printers
- Basic product at very
What is the purpose of the Business Model Canvas?
- Map
- Audit
- Focus on
- Remind
- Communicate
What is Lean Canvas?
- Specific to new firms
- Facilitates early planning processes about the “problem-solution” question
- Helpful when you have no product and no customers
Evaluating the fit between strategy and business models?
- Idling (Business Model: Weak, Strategy: Competive)
- Traction (Business Model: Strong, Strategy: Competitive)
- Breakdown (Business Model: Weak, Strategy: Uncompetitive)
- Faceoff (Business Model: strong, Strategy: Uncompetitive)
Example of Faceoff?
Lyft and Uber and Taxis are in a face off with each other
Example of Traction?
Shopify, Blackberry, Nokia
Basically companies that are doing really well. Or did well at one point.
Example of Breakdown?
Blockbuster, Blackberry, Nokia.
A company that went bankrupt.