What is a Business Model?
Encapsulates the rationale of how an organization generates, delivers and captures value. Emerges from a viable business strategy
What are the four characteristics of successful business models?
Effective, Efficient, Differentiated and Inimitable
What does ‘Effective’ as a characteristic of successful Business Model mean?
Extent to which conversion from value creation to firm-specific returns is optimized
What does ‘Efficient’ as a characteristic of successful Business Model mean?
Extent to which cost of conversion from value creation to firm-specific returns is low
What does ‘Differentiated’ as a characteristic of successful Business Model mean?
Extent to which value system differs from those of immediate rivals
What does ‘Inimitable’ as a characteristic of successful Business Model mean?
Extent to which value system is hard to replicate
What is a ecosystem?
Dynamic structure comprising interconnected and mutually supportive parties which influence the system
What are the 3 elements in Formulating an Ecosystem Strategy?
Assessing Initiative Risks, Interdependence Risks and Integration Risk
What is ‘Initiative Risks’ ?
Extent to which innovations are delivered on budget, on time and according to specifications -> Is there sufficient value for money?
What is ‘Interdependence Risks’ ?
Extent to which complementary innovations have been developed and deployed in the marketplace.
Whose projects must succeed before yours can?
What is ‘Integration Risks’ ?
Who has to adopt the solution before the customer can?
What are Platforms?
Technology enabling the derivation of products, services and processes that augment present or future innovation
What 3 categories of Platforms exists?
Internal Platforms, Supply Chain Platforms and External Platforms
What is ‘Internal Platforms’ ?
A firm, either working by itself or with suppliers, can build a family of related products or sets of new features, thus ultimately seeking to lower costs of production.
What is ‘Supply Chain Platforms’ ?
A set of firms follow specific guidelines to supply intermediate products or components to the platform owner or the final product assembler
What is ‘External Platforms’ ?
Products, services, or technologies developed by one or more firms, and which serve as foundations upon which a larger number of firms can build further complementary innovations and potentially generate network effects
What 5 types of Platforms exists?
Product, Process, Customer, Brand and Global platforms
What is a ‘Product Platform’ ?
Common and evolving structural elements from which a series of derivative products or services can be innovated, developed and deployed.
What is a ‘Process Platform’ ?
Specific arrangements of business processes to deliver value-adding products or services routines or systems
What is a ‘Customer Platform’ ?
Customer segment from which to establish a point of entry to an untapped market bundling, cross-selling, upselling and co-branding.
What is a ‘Brand Platform’ ?
Conveys the central value proposition of products or services to achieve coherence and clarity in positioning
What is a ‘Global Platform’ ?
Core standardized offering of a product or service globally
What is Servitization?
To augment core products and services with supplementary services to generate alternate revenue streams
What 4 types of Service Innovations exist?
Flexible Solutions, Controllable Convenience, Comfortable Gains and Respectful Access
What is a ‘Flexible Service Innovation’ ?
Offers a new core benefit which can be consumed apart from where and when they are produced
What is a ‘Controllable Service Innovation’ ?
Creates markets on the basis of new delivery benefits, that is providing value via offering a product or service, that before was not present or too time-consuming for the customer to find by own hand
What is a ‘Comfortable Service Innovation’ ?
Offers a new core benefit consumed at time and place of production
What is a ‘Respectfull Service Innovation’ ?
Offers a new delivery benefit and that the production and consumption of the service are inseparable
What is wisdom of the crowd?
Collective intelligence from a group of people is, on average, more insightful than knowledge elicited from a single individual.
How many types of online creative communities are there?
Crowds, Hives, Mobs and Swarms
What is a ‘Crowd’, as an Online Creative Community?
Communities comprising large, organized groups who gather or are gathered together specifically to plan, manage, and/or complete tractable and well-defined projects
What is ‘Hives’, as an Online Creative Community?
Communities whose members not only contribute to the community, but also produce innovations to respond to particular challenges or to meet specific project goals
What is ‘Mobs’, as an Online Creative Community?
Communities whose members have a high concentration of innovation, but these contributions are geared towards communo-ludic spirit and lifestyle exchange
What is ‘Swarms’, as an Online Creative Community?
Communities consisting of collections of often-multitudinous yet individualistically small contributions that occur as a part of natural or free-flowing cultural or communal practices