Alternative approaches to business models (Chapter 2) Flashcards
what should a business model have
-how the firm is structured
-the markets the firm operates in
-how it engages with those markets
-its products and services
-types of customers
-distribution methods
key aspects of a traditional business model
-define value
-create value
-deliver value
-capture residual value
who are the key aspects of a traditional model aimed to
stakeholders
value can be
-financial or non-financial
-tangible or intangible
-past, present or future
-short term and long term
financial or non-financial
differentiate from price, cost, profit or cash flow
past
reporting
present
operational management
future
investment
short term and long term
survive in the short term but have long term prospects
why are business models used
-legal and regulatory requirements
-a way to create long term value
-a way to exploit business opportunities
-respond to disruptions
defining value
-identify stakeholders
-specify their roles
-prioritise them based on their demands
what do you use for stakeholder analysis
the Mendelow Model
power
amount of influence the stakeholder has
interest
actively interested
what is the process firms use to determine who they’re creating value for
- Identify
- Prioritize
- Establish and identify their needs
- Formulate value propositions
what should stakeholders be ranked on
-power
-legitimacy
-urgency
the operating model of value consists of
-partners
-resources
-processes
-activities
-outputs
how do you deliver value to customers
through goods and services
what can customer aspects be based on
any aspect of demographics
what did traditional segmentation look at
-geographical variables
-demographic
-psychological
-behavioral
what does value based look at
revenue they generate and cost of establishing and maintaining a cost relationship
the segment must be
-measurable and meaningful
-mutually exclusive
-stable
-substantial
-easy to understand
what are channels
ways firms connect with customers
what are the key aspects of customer data
-collect
-clean
-connect
-transform
capturing residual value
value is captured when the costs for delivering the value is lower than sales
the models to cosider when capturing value
-cost model
-revenue model
-sharing residual value
cost model
defining value
the cost model is established by
-efficiency of processes
-levels of activity
-resources consumed during activity
-price paid for resources
revenue model
deliver value
prices must align with segments, market conditions and regulatory control
sharing residual value
-based on principle of creating shared value
what is shared value
shareholder value and value delivered
what does shared value depend of
environment
