E2 - C1 - Elements of Business Models Flashcards
What are the stages of the business model?
1) Define
2) Create
3) Deliver
4) Capture
What are the factors of Value?
Utility
Shared Value
Value Drivers
Time Period
Defining Value has four stages, what are they?
1) Identify Stakeholders
2) Prioritise Stakeholders
3) Identify their needs
4) Value Proposition
How can you create value through your business model?
Partners (stakeholders, suppliers)
Resources (physical, human, financial, etc)
Processes (design and set up)
Activities (workforce)
Outputs (products, service or experience)
Stage 3: Deliver Value
Segments - who it’s sold too (demographic, geographic, psychographic, behavioural)
Channels - how it’s sold (online, in person)
Stage 4: Capture and Store Value
Cost model
Revenue model
Sharing
What ways can a cost model capture value?
• Efficiencies of the process
• Level of activity
• Resources consumed
• Price paid for resources
How does a revenue model capture value?
• Market conditions
• Regulatory control
List four ways can you share stored value
1) Taxes
2) Shareholders
3) Incentives
4) Organisation
What are the different ways to expand a business?
Build
Buy
Partner
Invest
Incubate
What do you need to consider when defining a business model?
1) what are you creating?
2) who are you creating it for?
3) why are you creating it?
What do you need to consider when creating a business model?
1) how they deliver value
2) what resources are needed
3) what process should be used
4) activities
5) outputs
What do you need to consider when delivering a business model?
1) delivery of goods or services
2) the operational stage
3) segments and channels
What do you need to consider when capturing your business model?
Surplus value- is it shared in bonus, or dividends or taxes?
When can you the use Salience model?
When ranking and prioritising stakeholders
What are the three parts to the Salience Model?
Power
Legitimacy
Urgency
Value : Utility
The level of customer satisfaction
Value : Shared Value
They believe a business can deliver both long term shareholder value AND benefit society
Value : Value Drivers
Activity that adds value
- tangible (physical reason or quality)
- intangible (no physical)
Value : Time Period
Past: Financial reporting
Present: day to day operations
Future: investment appraisals
