2. Elements of Business Models: Value I Flashcards
What are the 4 contributors to defining value?
- Identifying stakeholders
- Prioritising stakeholders
- Identifying the needs of stakeholders
- Formulating the value proposition
What are the 5 contributors to creating value?
- Partners
- Resources
- Processes
- Activities
- Outputs
What are the 2 contributors to delivering value?
- Segments
2. Channels
What are the 3 considerations in capturing value?
- Cost model
- Revenue model
- Sharing surplus
What are the 3 (Ts) factors that influence value?
- ‘Tenner’ - financial and non financial factors
- Tangibility
- Time
What are the 3 main groups of stakeholder?
- Internal (primary)
- Connected (primary)
- External
What does Mendelow’s matrix show?
How stakeholders should be treated, based on their level of power/influence and interest
What are the 4 categorie’s in Mendelow’s matrix?
- Make acceptable (high interest, high power)
- Keep satisfied (low interest, high power)
- Keep informed (high interest, low power)
- Minimal effort (low interest, low power)
What is an example of a ‘make acceptable’ stakeholder?
Major customers
What is an example of a ‘keep satisfied’ stakeholder?
Large institutional shareholder
What is an example of a ‘keep informed’ stakeholder?
Lobbyists
What 3 elements are considered in Stakeholder Salience theory?
- Power to influence
- Legitimacy of relationship
- Urgency of relationship
How are customers usually defined under stakeholder salience theory?
Definitive - high salience
What are the 3 categories of low salience?
- Dormant (only power)
- Demanding (only urgency)
- Discretionary (only legitimacy)
What are the 3 categories of medium salience?
- Dangerous (power and urgency, not legitimate e.g. employee)
- Dominant (power and legitimacy e.g. the board)
- Dependent (urgency and legitimacy e.g. local residents impacted)
Who are the 4 participants that an organisation exists to create value for?
Customers, owners, employees and suppliers
What are Drucker’s 5 questions for defining strategy?
- What is our mission?
- Who is our customer?
- What does the customer value?
- What are our results?
- What is our plan?
Using a network orchestration model, what is the extension of value creation?
Co-creation
What are the 3 characteristics (Vs) of big data?
- Volume
- Velocity
- Veracity
What are the 3 key uses of big data?
- Building a more complex picture of competitions
- Understanding trends in customer behaviour
- Revealing insight into performance
What is customer segmentation?
Dividing a customer base into groups of individuals that are similar in specific ways
What are the 3 factors of channel management?
- Targeted marketing
- Customisation of products
- Targeted delivery
What are the 2 conflicts in value creation?
Employees want pay vs shareholders want profit
Customers want quality for low price vs company wants higher prices
What is the cost model of pricing?
Calculating all associated costs and using that as a basis for price
