Business Model Book H1 Flashcards
What are the 4 elements of the magic pyramid?
- The customer - Who are the customers?
- The value proposition - What do we offer to customers?
- The value chain - How do we produce our offerings?
- The profit mechanism - Why does it generate profit?
Who, What, How, Why
What is the minimum amount of elements from the magic pyramid that are needed for business model innovation?
Two
What are the 9 elements of the business model?
- Key Partners
- Key Activities
- Key Resources
- Value Propositions
- Customer Relationships
- Channels
- Customer Segments
- Cost Structure
- Revenue Streams
What is the goal of every business?
To create AND capture value
What are the tree core challenges that make it difficult for companies to tackle the issue of business model innovation?
- Thinking outside of one’s own dominant industry logic
- Thinking in terms of business models rather than technologies and products
- The lack of systematic tools
What does the ‘Initial Ascent’ myth mean?
The misconception that people believe that business model innovation always has to be an idea that has never been done before.
What does the ‘Thinking Big’ myth mean?
The misconception that business model innovations are always radical. They can also be incremental.
What does the ‘Technology’ myth mean?
The misconception that every business model innovation is based on a fascinating new technology.
What does the ‘Luck’ myth mean?
The misconception that you have to have luck and business model innovation can not be undertaken systematically.
What does the ‘Einstein’ myth mean?
The misconception that it takes a creative genius to come up with truly innovative ideas. Innovation is no longer a matter of individual performance, it is a team sport.
What does the ‘Size’ myth mean?
The misconception that breakthroughs can happen only with big resources. Most innovations are the result of small start-ups.
What does the ‘R&D’ myth mean?
The misconception that R&D departments are the source of important innovations. Innovation can come from anywhere in the organization.
What does the ‘R&D’ myth mean?
The misconception that R&D departments are the source of important innovations. Innovation can come from anywhere in the organization.
