E2

Question 1

Regulatory frameworks are challenged on 4 fronts by ecosystems. These are:

Answer 1

Speed of change
Innovators find back doors
Ecosystems evolve
Innovations cross lines of jurisdiction

Question 2

The traditional business model has 4 key aspects:

Answer 2

Define value
Create value
Deliver value
Capture residual value

Question 3

Name 6 drivers of the digital revolution

Answer 3

Mobile and internet penetration
Connected devices
Data analytics and the cloud
User interfaces
Global accessibility
Increasing urbanisation

Question 4

According to KPMG, a business model must include 6 things:

Answer 4

How the firm is structured
The markets in which it operates
How it engages with the markets
Its main products and services
Its main categories of customers
Its main distribution methods

Question 5

4 ways that organisations can keep ahead of customer expectations are:

Answer 5

Design thinking
Experiential pilots
Prototyping
Brand atomisation

Question 6

What are 7 things that digital customers want?

Answer 6

Contextualised interactions (individualised)
Seamless experience across channels
Anytime, anywhere
Great service
Transparancy
Peer reviews/ advocacy

Question 7

Draw the ecosystem archetypes matrix

Answer 7

Orchestration

                                          Loose                       Tight

                     High        Hornets Nest           Lions Pride         Complexity
                     Low           Shark Tank             Wolf Pack

Question 8

The 2 key characteristics of an ecosystem and their definitions are:

Answer 8

Orchestration - the formal or informal coordination or interactions or collaborations between partcipants

Mutuality - companies working together with shared ideals, standards or goals to achieve more together than they coudl as individuals

Question 9

What are the 3 things that define an ecosytem interaction?

Answer 9

Rules - this is the set of explicit or implicit guidelines on how the interactiosn take place

Connections - this refers to the linkages between different elements of the environment

Course - how quickly content or value an be exchanged between participants

Question 10

What are the 3 things which define an ecosystem participant?

Answer 10

Role - the expected behaviour of the individual/organisation in the environment

Reach - the extent or range of the individuals/ organisations ability to influence or impact

Capability - what the individual/organisation is actually able to do within the environment

Question 11

What are the 4 key factors that establish the total cost in the cost model:

Answer 11

Efficiency of processes
Levels of activity
Resources consumed during the activities
Price paid for resources

Question 12

Value is 4 things primarily, and 2 others secondarily:

Answer 12

Financial or non-financial
Tangible or intangible
Not limited to the past
Covers both the short-term and long-term

About people
Creates shared value (benefits more than 1 shareholder)

Question 13

There are 5 key elements for creating value:

Answer 13

Partners
Resources
Processes
Activities
Outputs

Question 14

What are the 3 main issues to consider when capturing value:

Answer 14

Cost model
Revenue model
Sharing residual value

Question 15

The 4 P’s marketing mix are:

Answer 15

Product
Place
Price
Promotion

Question 16

PESTLE stands for:

Answer 16

Political
Economic
Social
Technological
Legal
Ecological/ Environmental

Question 17

Porters 5 forces are:

Answer 17

Competitive rivalry
Threats of new entrants
Threats of substitutes
Power of suppliers
Power of consumers

Question 18

Porters generic strategies are:

Answer 18

Low cost High cost

Broad target Cost Leadership Differentiation

Narrow target Cost and focus Differentiation and focus

Question 19

An ecosystem is:

Answer 19

An ecosystem is a complex web of interdependent enterprises and relationships aimed to create and allocate business value.

Question 20

A business ecosystem is:

Answer 20

A business ecosystem is a network of organisations who are involved in the delivery of a specific product or service through both competition and collaboration.

Question 21

Emergngg technologies create an environment that is:

Answer 21

Connected and open
Simple and intelligent
Fast and scalable

Question 22

A market is:

Answer 22

A market is a place where 2 parties can gather to facilitate the exchange of goods or services. The parties involved are usually buyers and sellers. Markets are therefore comprised of individuals or organisations who exchange products or services within an environment governed by the laws of supply and demand.

Question 23

Define culture

Answer 23

The shared set of beliefs, values and mindsets tha guide a group’s behaviours.

Question 24

The 3 factors that disitinguish a digital culture from others are:

Answer 24

Having a strong mission statement and a clear sense of purpose
Lean business structures, with small cross fusnctional teams as opposed to individual divisions working as seperate silos
A diverse workforce with good digital skills

Question 25

Leaders can focus on 4 keys areas to move towards a digital culture:

Answer 25

Communication Journey management Continuous change monitoring Make changes visible

Question 26

According to the World Economic Forum, CEO's should fulfil 6 key roles in the digital age:

Answer 26

Creator of vision and mission Stategic planner Driver of information-based business models Enabler of shift to on-demand operating models Innoation promoter Operational excellence driver

Question 27

3 methods of creatinga workforce with digital skills are:

Answer 27

Developing required competencies within the workforce Mining your own organisation for hidden talent Bringing new skills into the organisation

Question 28

The World Economic Forum proposes the following 5 options in regards to an organisation becoming an employer of choice in the digital era:

Answer 28

Formulate a long-term working strategy for millenials Work with staff to fomrulate company values together Empower the workforce Build spaces that attract digital talent Create policies that support collaboration and knowledge sharing tools

Question 29

5 emerging trends which business leaders should focus on in developing digital strategies are:

Answer 29

``` The internet of me Outcome economy The platform (r)evolution The intelligent enterprise Workforce reimagined ```

Question 30

8 abilities which the execultive leadership team will need to survive digital transformation/ disruption are:

Answer 30

``` Inspirational leadership Competitive edge Establishing a strategic direction Influence external parties Collaboration Business judgement Execution Building talent ```

Question 31

5 strategies to build disruptive business models as suggested by the World Economic Forum:

Answer 31

Build a digitally disruptive business model Buy a digitally disruptve business model Partner with a digitally disruptive startup Invest in a digitally disruptive startup Incubate/ accellerate a digitally disruptive startup

Question 32

The World Ecominc Forum identified 5 successful digital operating models:

Answer 32

``` Customer-centric Extra-frugal Data-powered Skynet Open and liquid ```

Question 33

Draw mendelows matrix to show the traditional approach to defining value:

Answer 33

Interest Low High High Keep Satisfied Key Players Power Low Minimal Effort Keep Informed

Question 34

The 4 step process of defining value is (stakeholder ranking):

Answer 34

1 Identify stakeholders 2 Prioristise stakeholders 3 Identify needs of stakeholders 4 Formulate value proposition

Question 35

Stakeholders are ranked on 3 attributes:

Answer 35

Power - ability to impose their will Legitimacy - according to the norms and values of the firm and society Urgency - the need for immediate action in the light of a stakeholder claim

Question 36

Traditional customer segmentation is based on a number of variables including: (4)

Answer 36

Geographic Demographic Psychographic Behavioural

Question 37

Value based segmentation looks at groups of customers in terms of:

Answer 37

Value based segmentation looks at groups of customers in terms of the revenue they generate and the costs of establishing and maintaining relationships with them.

Question 38

Whatever method of customer segmentation is chosen, the segments should be: (6)

Answer 38

``` Measurable Meaningful Mutually exclusive Stable Sustainable Easy to understand ```