Ch 2:The Business Model Navigator

Question 1

What is TRIZ?

Answer 1

Theory of inventive problem solving. Is used in mechanical engineering.

Question 2

What is the Business model navigator?

Answer 2

It’s actions that permits business to break with its dominant strategy logic and innovate its business model.

Question 3

What are the three strategies to generate new business ideas?

Answer 3

Transfer -An existing business model is forwarded to a new industry
Combine - Transfer and combine two business models. Major advantage: synergies decrease the likelihood that
competitors will imitate your business model. Major challenge: planning and
execution become highly complex.
Leverage - a company uses a successful business model for another product range, ability to capitalize on experiences and synergies.

Question 4

What are the steps that Navigator consists of?

Answer 4

Initiation : defining a common starting point and the direction where you want to head.
Ideation : the formation of the concept: Adapting the process
Integration: shapipng your business model
Implementation : Realising your plans

Question 5

What are the 7 business trends which should be watched?

Answer 5

1) Social media as a key features to engage with customers
2) Sharing community and networks
3) Physical freemium and digital Add-on
4) Digitally reloaded products
5) Sensor as a service: record of product run-time, system optimisation
6) Integrated digital and physical experience
7) From analytics to big data

Question 6

What are two major influencing factors that we need to consider in the ecosystem analysis?

Answer 6

Technologies - the early adoption of top technology or applying bottleneck tech can be a success.
Mega trends

Question 7

How can 55 patterns be applied?

Answer 7

Using similarity or the confrontation principle

Question 8

What is similarity principle?

Answer 8

You begin with pattern cards for business models in related industries and progress to more dissimilar pattern,which you then adapt to your own business model. The idea is to consequently think through how the pattern be applied to your company.

Question 9

What is the confrontation principle?

Answer 9

Face off with extremes, you compare your current business model with scenarios in completely unrelated industries and study the extremes in respect of their potential impact on your own current business model.

Question 10

Ways of how to adapt the patterns by organizing you workshop with other members?

Answer 10

1) Face-to-face or virtual workshops
2) Sequential of parallel: In the second, parallel instance, each
team member receives a given number of cards and proceeds to present one or two business models to the rest of the group. In the sequential approach, the group as a whole gets down to evaluating and creating ideas for each
business model.
3)Open or closed: you can adjust how openly the process will be taken.
4) High or low frequency: Finally, you can limit the amount of time that
participants are permitted to devote to each business model pattern.

Question 11

How to select ideas, NABC. What is NABC?

Answer 11

It’s useful to cluster the ideas that come up by general concept and then make a selection from each cluster.
NABC stands for Need, Approach, Benefit and Competition and these are the four elements the students should base their pitch on.

Question 12

What is the elevator pitch?

Answer 12

The name ‘elevator pitch’ comes from the idea that a
person should be able to convey the main ideas of a concept within the timespan of an elevator ride. If you were to meet an investor or decision maker in the elevator, how would you explain your idea?

Question 13

What is the difference between BMI and Venture Capitalism?

Answer 13

Venture capitalists generally make snap decisions, but in BMI the ideas are there to be built upon.

Question 14

What is the NABC approach to evaluate ideas?

Answer 14

1)Development: present according to the NABC principle.
2) Sharing:Each group presents their ideas to the other participants in an elevator pitch style.
3)Water-holding: Venture capitalists call this ‘water-holing’, because the teams are refreshed and strengthened by the new ideas expressed. After each presentation, the group receives give-and-take feedback. They don’t respond directly, but listen first.
4) Redesign: any weaknesses and challenges that have been
uncovered are addressed by way of new ideas.

Question 15

What is the internal consistency ?

Answer 15

Internal consistency may be defined as presenting a harmony between the who what- how-why dimensions. Once the four dimensions fit internally, you will have secured a competitive
advantage for your company that cannot be easily imitated by your competitors.

Question 16

What is the external consistency?

Answer 16

External consistency refers to the fit between your new business model and the company’s environment. How well does your new business model satisfy stakeholders’ needs and how well equipped are you to answer to the prevailing
trends and competition?

Question 17

What includes the cycle of business model innovation?

Answer 17

1) Design - In the design phase all three steps from initiation to integration are present. A strong base of innovative ideas already present.
2) Prototype - The aim of the next step is to consolidate your design.
3) Test - Testing your prototypes will determine which dimensions of the new business model work and which ones don’t.

Question 18

What is Design-Prototype-Test cycle?

Answer 18

Interdisciplinary teams with a wide range of
experience and knowledge are the most effective. Complete the whole of each design cycle in an iterative manner. This approach obliges your team to generate new knowledge rapidly, gain a common understanding of preconceptions, and work together to overcome
them.

Question 19

What are the key steps that will make success in the Design-prototype-test cycle?

Answer 19

Openness
Courage
Iteration(Repetition)
Diversity
Change
Summaries
Failure
Challenge
Coach
Directions