Amit and Zott Flashcards
What is the primary focus of Amit and Zott’s text on business model innovation?
The primary focus is on how firms can create value through innovative business models.
Define business model innovation according to Amit and Zott.
Business model innovation is the process of creating, refining, or transforming a firm’s business model to enhance value creation.
What are the four interdependent dimensions of business models as identified by Amit and Zott?
The four dimensions are content, structure, governance, and value creation.
Explain the ‘content’ dimension in the context of business model innovation
The ‘content’ dimension refers to the selection of activities to be performed within a business model.
What does the ‘structure’ dimension entail in a business model?
The ‘structure’ dimension concerns how activities are linked and sequenced within the business model.
Describe the ‘governance’ dimension in a business model.
The ‘governance’ dimension pertains to who performs the activities and how they are controlled.
How do Amit and Zott define ‘value creation’ in their framework?
Value creation involves the benefits generated for all stakeholders, including customers, through the business model.
What are the key sources of value creation identified by Amit and Zott?
The key sources of value creation are novelty, lock-in, complementarities, and efficiency.
What role does ‘novelty’ play in value creation?
Novelty involves introducing new ways of conducting economic exchanges, which can create new value.
How does ‘lock-in’ contribute to value creation in a business model?
Lock-in ensures customers and partners remain loyal to the firm, increasing value through sustained relationships.
What are ‘complementarities’ in the context of value creation?
Complementarities refer to the value-enhancing effects that occur when business model components work together harmoniously.
Explain how ‘efficiency’ impacts value creation in a business model.
Efficiency increases value by reducing transaction costs and optimizing resource use within the business model.
What is the significance of understanding the business model ecosystem?
Understanding the ecosystem helps firms align their business models with external partners and market dynamics, enhancing overall value creation.
According to Amit and Zott, how can firms identify opportunities for business model innovation?
Firms can identify opportunities by analyzing market trends, customer needs, and technological advancements
What is the formula for innovation?
Innovation = Invention + exploitation+ diffusion
